What's Wrong With Charitable Giving - And How To Fix It (Post #2)

In the November 9th issue of the Wall Street Journal, Pablo Eisenberg, a senior fellow in the Center for Public and Nonprofit Leadership at Georgetown Public Policy Institute in Washington, D.C., wrote an article entitled “What's Wrong With Charitable Giving—and How to Fix It.” This is the SECOND in a series of posts about that article.

Eisenberg’s next three suggestions for fixing charitable giving are as follows:

4. Adopt Rolling Grant Making

In other words, don’t make the nonprofits bend to fit the annual or biannual grants cycle of foundations. Rather, delegate ongoing grant making authority to a Board Level grants committee so nonprofits may apply for and receive necessary funding at any time during their fiscal year.

5. Allocate More Funds to the Truly Needy

Nationally, only 3% to 5% of foundation funding goes directly to nonprofits serving those in the greatest need. Rather, the overwhelming bulk of foundation funding goes to higher education and larger health and arts organizations. Eisenberg recommends a rebalancing of this.

6. Reach Out to Local Groups And Underserved Regions

Foundations should do more to stay in touch with local nonprofits who have their finger on the pulse of critical local needs. More local action, interpersonal contact, and understanding is in order.