Ways Grantmakers Can Support Grantees Financially

This guide outlines strategies for grantmakers to assist their grantees in achieving financial sustainability. It addresses the challenges posed by traditional one-year grant cycles that often lead to a scarcity mindset among nonprofit leaders. The document emphasizes the importance of transitioning to trust-based philanthropy principles, which advocate for multi-year, unrestricted funding. It provides actionable recommendations, such as encouraging emotional planning, offering guidance on board responsibilities, and helping grantees understand their fiduciary frameworks. The guide also suggests establishing investment committees and creating investment policy statements to manage funds effectively. Additionally, it advises grantmakers to meet grantees where they are, providing resources for selecting fiduciary partners and establishing operating reserves. By implementing these strategies, grantmakers can help nonprofits move from a scarcity mindset to one of opportunity, ultimately enhancing their impact and sustainability.