Foundations Must Listen to Grantees

To the Editor:

Jessie C. Gruman’s opinion article (“How Foundations Hurt Charities,” August 19) should be required reading for foundation trustees, executives, and program officers. Ms. Gruman is absolutely correct in her assertion that many foundations have concluded that only they know how to mount successful programs and, as a result, increasingly ask nonprofits to conduct “foundation-designed” projects that are, in fact, directed by foundations. She is also correct in her assertion that this style of grant making can have a negative affect on nonprofits.

Since it was established in 1992, the California Wellness Foundation has conducted its share of this directive-style grant making. While there were positive outcomes, evaluations, and feedback, grantees also made clear they had become distracted from their missions and experienced weakened organizational infrastructures.

In 2000, as a result of these experiences, the foundation’s Board of Directors decided to implement a responsive grant-making program with an emphasis on providing general operating support to nonprofit organizations. Preliminary assessment of those grants indicates progress toward the foundation’s goals and measurable strengthening of grantee infrastructure.

This is not to say that we have given up on foundation-designed project funding. The issue for us is one of balance — giving equal weight to general operating support and project funding.

If organized philanthropy wants a vibrant nonprofit sector to carry out our strategic projects, we need to listen to Jessie Gruman and others — like the nonprofit groups on the frontlines of these issues.

Gary L. Yates
Chief Executive Officer
The California Wellness Foundation
Woodland Hills, Calif.