States’ Budget Woes Cut Hole in Nonprofits, Foundation Center Finds

The Foundation Center conducted its survey in March, receiving 75 completed responses from the Grantmaking Leadership Panel's 220 members. The center presented the results in a new report, "Foundation Leaders Address the State Budget Crises," released Thursday.

"Foundation budgets are dwarfed by government spending," Steven Lawrence, director of research at the Foundation Center and principal author of the report, said in a statement. "Nevertheless, many foundations are trying to help keep the doors open at nonprofits until the state budget crises pass."

Nearly half of survey respondents said they had awarded grants or provided other kinds of assistance in direct response to state funding cuts.

Foundations are helping in other ways as well. They are increasing the number of direct charitable activities they provide for affected nonprofits, such as offering technical assistance; seeking out opportunities to partner with state governments to address the budget crisis; and increasing support for public policy-related activities to inform budget debates. And some two-thirds of foundation leaders expected to boost funding for nonprofits that serve vulnerable populations.