Will the Trend of Awarding Grants Above the 5% Minimum Catch On?

Blog
May 2, 2016

fishing for moneyAccording to the Non Profit Quarterly, the Patricia Kind Family Foundation and the Untours Foundation are asking other foundations to award grants above the 5% minimum, in order to sustain their tax-exempt status, in an attempt to create a trend of foundations utilizing more of their assets towards making a positive social impact rather than using most of their assets for other purposes that aren’t as pertinent to their mission. These two foundations have built a strong reputation for increased grants awarded and with this “legacy” they created, but what will this mean for the nonprofit organizations that are potential grant recipients?

If the trend of awarding grants above the 5% minimum catches on, will nonprofit organizations that are potential grant recipients and utilize a large percentage of their resources towards their mission receive more grants or will all nonprofit organizations receive more grant funding despite some of them allocating a smaller percentage towards their mission relatively to other organizations? One thing that is for sure is that if foundations do begin to start awarding grants above the 5% minimum, the prospective grant recipients will more likely be inclined to increase and reallocate their assets towards their programs that are geared towards their mission.

This presents an opportunity for organizations similar to the Center for Nonprofit Excellence, which promotes strengthening nonprofit organizations to fully realize their potential in their community. Among the multiple efforts the Center for Nonprofit Excellence carries out to fulfill their mission, one way they fulfill their mission is by consolidating multiple grant awards in one place to make obtaining grants by nonprofit organizations more efficient. With the combined efforts of the Patricia Kind Family Foundation and the Untours Foundation advocating other foundations to award grants above the 5% minimum and other nonprofit organizations with a mission similar to the Center for Nonprofit Excellence, will it build enough momentum for nonprofit organizations to deviate their assets towards their mission and have a material social impact?

Read more about it via the links listed below:

Nonprofit Quarterly Source: https://nonprofitquarterly.org/2016/02/23/2-foundations-choose-higher-payouts-inviting-others-to-do-the-same/

The Center for Nonprofit Excellence Mission: https://www.thecne.org/about/mission-vision-values/

The Center for Nonprofit Excellence Grant Listing: https://www.thecne.org/engage/grants/