Expert Says Foundation Funding to Stay Strong Despite Economic Downturn November 14, 2008
Funding Tips & Trends
Foundation funding tends to remain fairly constant even when the broader economy turns sour, according to a top official at the Foundation Center.
Steven Lawrence, senior director of research at the philanthropic resource center, wrote in a recent advisory that foundations typically do not shift their grantmaking priorities in areas such as health, the arts, and international affairs when money gets tighter. Funders will respond to emergency needs, such as Hurricane Katrina relief, but are more likely to tap their endowment than cut spending in other areas, he said.
"There is no guarantee that patterns seen during the early 2000s economic downturn will predict how the current reality will unfold," said Lawrence. "But nonprofits should feel reassured that dramatic changes in overall foundation giving priorities are unlikely."