The down times will continue for the remainder of this year, with close to two-thirds of foundations expecting to reduce the number or amounts they give in grants, according to a new survey.
The survey from the Foundation Center found that charitable groups will need new sources of support and recently established entities will be especially challenged in securing foundation funding, the organization said.
At least one out of five respondents expects to engage in more foundation staff-led activities, provide more technical assistance, offer more bridge/emergency financing, or engage in more advocacy this year.
"Foundations can do so much more than simply make grants," said Bradford K. Smith, president of the Foundation Center. "The important thing is for them to remain true to their values and causes and to stand by their nonprofit partners."
The Foundation Center, which operates research, education and training programs designed to advance knowledge of philanthropy at every level, is recommending that organizations draw upon various sources, including their endowments, to continue funding important missions through grants.
On a positive note, nearly one-third of survey respondents said they had made operational changes as a result of the previous recession that they believe better prepared them to face the current downturn, such as changes in investment strategies or reducing operating expenses.
"Foundations are not rolling over in the face of adversity," said Steven Lawrence, the Foundation Center’s senior director of research and author of the advisory. "The new survey shows foundations being creative, strategic, and willing to dig deep to ensure that their agendas move forward while this crisis persists."
The Foundation Giving Forecast Survey included responses from more than 1,200 foundations, including large and mid-size U.S. independent, corporate and community foundations.
The center maintains the most comprehensive database on U.S. grantmakers and their grants, the group said.