We knew this was coming. Given previous forecasts, it was only a matter of time before grantmaking flattened and started to decline.
Eighty-one percent of foundations expect their grant making to be flat or to decline in 2019, according to a survey conducted earlier this year, a worrisome sign for nonprofits that are already feeling the pinch from a drop in individual giving.
Chronicle of Philanthropy
Should nonprofit organizations panic? No.
However, charities must diversify their funding streams if they plan to be healthy and sustainable long-term.
During our consultations with nonprofit founders and executives, we consistently emphasize the importance of funding diversification. We often ask the following:
“Aside from grant funding, what other components of revenue generation are being sought and cultivated by your nonprofit organization?”
More often than not, that question is met with a look of confusion, defiance, fear – or a combination of all three.
And that’s not good.
Relying on grantmaking as your sole source of funding is financially irresponsible.
It is a losing strategy.
Rather, charities must identify and seek other sources of funding – corporate sponsorship, EICs, etc. – if their strategic plan is to remain relevant and healthy.
Aren’t you tired of your nonprofit organization teetering on the brink of financial collapse?
You’ll be so glad you did.
To read the full article regarding grantmaking predictions for 2019, click here.