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Grantmakers in the US are beginning to understand the power of unrestricted funding. Here’s how nonprofit executives can collaborate with grantors on capacity building

Creating Impact

One of the most pronounced trends in the nonprofit sector in the US over the past several years has been the decline of small and medium-sized donations and the growth of big donations. This is a reminder that nonprofits have to be capable of making their case to large grantors, which are increasingly demanding accountability in the form of hard data on whether programs are achieving their intended outcomes. According to a 2020 Salesforce report that surveyed 725 nonprofit professionals in Europe and North America, 69% of nonprofits say the “demand for transparency regarding funding has increased.”

When grantors make decisions about which nonprofits to support, they’re looking for concrete evidence of effectiveness, the ability to communicate clearly and frequently with stakeholders and internal capacities that allow organisations to scale sustainably. 

Prioritising capacity-building

Nonprofits have to work harder than ever to earn support from grantors, but this shouldn’t just change the way they fundraise and demonstrate their performance — it should also change…
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