The Association of Charitable Foundations (ACF), the UK’s umbrella body for foundations and independent grantmakers, has said that recent pauses announced by grantmakers may be good for charities.
In the past months, numerous foundations have paused their grant programmes to reset their operations while others like the Albert Hunt Trust have announced moves to change their grant criteria due to an “unprecedented number of funding requests”.
Decisions from trusts to pause funding have drawn concerns from the sector, with New Philanthropy Capital CEO Dan Corry warning that “collectively it is creating challenges for charities, particularly around cash flow as grant decisions are being delayed”.
But this week, ACF chief executive Carol Mack argued that some pauses in funding could benefit charities.
She wrote in a blog: “Those foundations pausing new grant spending are often doing so because they need a new strategy for how to operate with a higher level of demand.
“It’s a necessary step to ensure their resources can be used most effectively in this changing landscape.
“Often, these pauses have a really positive impact for grant-seekers: one of our members recently closed for three months to restructure their grant programmes and reopened with higher funding amounts and a new programme better aligned with applicants’ needs.”
Importance of communication
Mack told Civil Society: “No funder ever closes programmes lightly.
“Funders want to support charities, that’s why they have funding programmes. But sometimes it can be irresponsible to continue to fund if you’re offering a poorer quality service as a result. You need to change and do something differently.”
Mack said it is important for funders to communicate clearly with applicants on the grantmaking process as well as with each other.
She said: “We’re encouraging foundations to collaborate and coordinate with other funders.
“Consider the broader impact of their approach, not just to think about what they’re doing, but what their peers who fund in similar areas are doing, so thinking about the ecosystem as a whole.
“One of the foundation sector’s key strengths lies in its plurality: there are around 10,000 foundation funders in the UK.
“While some foundations may pause certain programmes, others maintain or increase their spending.
“This plurality ensures continued support across the sector, even as individual foundations adapt their approaches.”
