Many small foundations adjusting grantmaking and spending plans

A new survey conducted by Citi Institutional Consulting and the Association of Small Foundations finds that 2008 market losses likely will compel several small U.S. foundations to significantly reduce their grantmaking in 2009.

According to an article in Philanthropy News Digest, nearly 80 percent of the 350 small foundations that responded to the survey suffered portfolio losses of at least 10 percent in 2008, while more than 60 percent expect to adjust their grantmaking and spending plans due to the market decline.

According to the survey, foundations in the latter category will reduce their grant budgets by between 10 percent and 50 percent and plan to reduce their grant obligations through a variety of means, including not accepting new grant applications, designating no new grantees and avoiding multiyear commitments.

JVA Consulting encourages nonprofits to recognize the reality that their grant programs may fall short of expectations and that they should be increasing their fundraising efforts among individual donors.

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