Private foundations are changing their giving patterns during the pandemic, specifically by giving directly to individuals, according to a recent study conducted by Foundation Source, a support organization for private foundations.
Giving to individuals remains a tiny part of the overall granting of private foundations, but it is emblematic of the shift, and the practice increased by nearly 900% last spring, Foundation Source said. Grants to individuals grew to 945 between January and September 2020 from 158 during the same period last year, a spokeswoman for the organization said in an e-mail.
Foundation Source said the shift illustrates “clients’ willingness to try new things to achieve optimal impact with their philanthropy.”
The study, “2020: The Year That Changed Everything,” was based on information from 105 private foundations.
“We’ve been very impressed with our clients’ dedication to making the most of their giving this year—and beyond,” said Susan Friedlander Calzone, chief executive officer of Foundation Source, in a statement. “For some of the foundations, 2020 has been a ‘call to action’ that has altered their grant making not only to address immediate hardships but to ensure funds are deployed as effectively as possible over the long term as well.
“Given the extraordinary challenges of 2020—Covid-19, high unemployment, social turmoil—the entire philanthropic community is under pressure to do more with finite resources,” she added. “Private foundations have been meeting the challenges head-on; they’ve adapted their strategies and are doing new and amazing things with their philanthropy.”
Thirty-nine percent of respondents said they have shifted their foundations’ missions during the year, mostly to meet needs created by Covid-19. Fourteen percent said they will look at more alternative ways to help, in addition to giving to nonprofit organizations, the study said.
In addition, 42% of the private foundations have increased the amounts they’ve given, and the same percentage expect to continue increased giving for the remainder of 2020. Eleven percent of foundations awarded scholarships for the first time, and 11% engaged in direct activities (such as distributing clothes) without the aid of a nonprofit, the study said.