A study by Grantmakers for Effective Organizations finds that most foundations are not doing what is necessary to support nonprofits, according to an article in Philanthropy News Digest.
The survey, Is Grantmaking Getting Smarter: A National Study of Philanthropic Practice, finds that many grantmakers have not adopted practices that they admit are important for effective grantmaking. According to the report, an overwhelming majority of respondents said they are not providing the funds needed to cover the overhead costs associated with funded projects, while only 24 percent say their grants often or always include appropriate overhead.
Only a third of respondents (36 percent) said that they regularly solicited feedback from grantees through surveys, interviews or focus groups.
On a more positive note, the survey found that foundations with staff and board members who have nonprofit experience were significantly more likely than those without experience to engage in grantee-friendly practices.