On the Money: an Executive Summary

As the nonprofit sector struggles to meet escalating service demands while at the same time addressing the underlying causes of social problems from poverty to crime and violence, many foundation and nonprofit leaders continue to argue for grantmaking strategies that are more responsive to the needs of grantees.

Advocates of general operating support and other strategies aimed at easing the money crunch facing nonprofits point to a strong, documented connection between how organizations are funded and their ability to deliver results. A core belief underlying this work is that nonprofits with financial reserves and flexible dollars are much better equipped to weather economic and other crises and adapt to a changing environment than those with highly restricted revenues.

On the Money marks an attempt by Grantmakers for Effective Organizations to better understand and communicate the financial challenges nonprofits face, the ways in which grantmakers are both improving the situation for nonprofits and perpetuating the problem, and the areas where knowledge and practice need further development. The full text of On the Money is available for download by GEO members, and for puchase by non-members, at the GEO website.