• Lisa Simpson
• Nov 25,2009
• In: Finance

Raising Grants is Becoming a Problem for Charity Organisations

The future of charity organizations seems uncertain. These charitable institutions that raise grants and then ultimately close down may prove a boon in the short-term but in the long-run it raises serious questions about fund-raising. A major reason is foundations may not be able to fund anymore.
It may be noted that at least 12 per cent of all foundations are not spending like before. Twenty five percent are even considering to spend even less. This has been revealed by the Urban Institute and the Foundation Center.
Some foundations are even considering wrapping up business, particularly the Atlantic Philanthropies. This endowment has been funded by the man who advocated duty-free shopping, Charles F. Feeney. The Foundation has eroded about $2.2 billion assets. It is expected to close down in a few years’ time. It is becoming difficult for charities to rely on grants in these recessionary times. It is time that the charities also depend on other sources of funding.

The executive director of Beldon Fund, Anita R. Nager, says that foundations need to evaluate their work and make certain corrections. The charities that are lightly financed are particularly at risk of closing down. In July, the Paul Rapoport Foundation said that it plans to give away $8 million in the next four years. The recipients will be charities that serve lesbian and gay population.
If funds go down then many organizations may have to down shutters. The executive director of New York City Anti-Violence Project, Sharon Stapel, says that it got one per cent of the money from Rapoport Foundation. If the budget goes down it will be forced to cut manpower further, which has already been slashed by 20 per cent.

The problem has been acknowledged by the director of Rapoport Foundation. He says during the downturn, there are not many people who would give grants to organizations that work with the sexually different people.

The executive director of the National Committee for Responsive Philanthropy, Aaron Dorfman, says that foundations must discuss with grantees their needs and concerns. After all, the purpose of foundations is to make a difference.
There are many foundations that have tried to make an exception to American life. One such foundation is the one set up by Julius N. Rosenwald. He was a big financier of education for the blacks but he died in 1932. The Foundation stopped making grants after 1948.