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BRIDGING THE GAP:
Grantee Perspectives
on Intermediary Funders

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Overview

Intermediaries – a term which refers to many kinds of entities that are regrantors of philanthropic dollars – have been the subject of increased support and attention in recent years. While there has been much discussion about why funders may choose to use intermediaries, relatively little is known about the experience of those funded by intermediary organizations.

Our research aims to explore:
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What can be learned from the intermediaries that are highly rated by grantees?

What are the experiences of those that receive grants from intermediaries and how do those experiences differ, if at all, from grantee experiences with originating funders?

To what extent do the experiences of grantees of intermediaries align with reasons cited by those in philanthropy for working with and through intermediaries?

We surveyed

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grantees of

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intermediary funders

In total 62,138 grantees from 364 funders were surveyed.

Intermediaries: Not a Silver Bullet

Intermediary funders represent a wide range of organizational characteristics and grantee experiences. On average, grantees of intermediaries do not report having a substantially more positive or negative experience than grantees of other funders.

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Impact, Understanding, and Commitment to Equity

Grantees report that intermediaries demonstrate a similar level of impact on grantees’ fields and similar levels of commitment to diversity, equity, and inclusion as originating funders.

Grantees indicate that intermediaries have a slightly better understanding of their fields, and they rate intermediaries slightly more likely than originating funders to advance knowledge in these fields.

Statistically Significant Differences Between Intermediaries and Originating Funders in Grantees' Fields

"Our intermediary funder was able for years to understand the strengths and weaknesses of the field, ask the right questions, set the right challenges, and help create collaboration opportunities. "

– Grantee of an Intermediary Funder

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Communications and Relationships

Grantees perceive intermediary funders as providing slightly more open and frequent communication and slightly lower levels of trust and understanding of grantees’ work compared with grantees of originating funders.

While grantees indicate that intermediaries and originating funders are equally clear in communicating about their goals and strategies, grantees of intermediary funders are slightly more likely than grantees of originating funders to understand how their work fits into their funders’ broader efforts.

Statistically Significant Differences Between Intermediaries and Originating Funders in Funder-Grantee Communications

Grantees rate intermediary funders slightly lower in areas related to the funder-grantee relationship, including the funder’s trust in grantees, compassion for those affected by grantees’ work, and respect in
their interactions.

Statistically Significant Differences Between Intermediaries and Originating Funders in Grantee Relationships (Ns range from 44,931-47,810)

"Funder-grantee relationships can be very one way, giving us a perception of being contractors."

– Grantee of an Intermediary Funder

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Differences in Grant Funding

Grantees of intermediary funders report receiving grants that are somewhat smaller and less likely to be multiyear or unrestricted compared to grants received from originating funders.

Differences in Grant Size (N=56,373)

Percent of Grantees Receiving General Operating Support Grants (N=60,524)

Percent of Grantees Receiving Multiyear Grants (N=59,716)

"Understanding that there are constraints and to the degree possible, it'd be great to see our intermediary funder adopting best practices within philanthropy including multi-year grant commitments and general operating support."

– Grantee of an Intermediary Funder

Bridging the Gap:
Grantee Perspectives on Intermediary Funders

This work represents the largest study of grantee experiences with intermediary funders to date and raises important considerations for intermediaries and originating funders alike, as both groups have much to gain from ensuring that intermediaries are as strong as they can be in their work with grantees. Our hope is that this research generates an open, honest conversation about what it takes to create excellent intermediary funder-grantee experiences across the philanthropic sector.

Intermediaries remain a major topic of interest and research. For more research on intermediaries, see upcoming reports from Bridgespan on governance structures and Arabella Advisors on grantee experiences with pooled funds.

If this report has been helpful to you, please consider supporting CEP’s research. Reach out to us for more information. Thank you.

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WEBINAR VIDEO

Recorded October 15, 2024

Bridging the Gap: Grantee Perspectives on Intermediary Funders

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Research Funded By

Authors: Emily Yang; Seara Grundhoefer; and Elisha Smith Arrillaga, Ph.D.

Copies of the interview protocols can be found here.

Find out more about CEP’s Grantee Perception Report.

This work is licensed under the Creative Commons BY-NC-ND license.

© 2024. The Center for Effective Philanthropy, Inc. All rights reserved.

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