In March 2021, the Association of Charitable Foundations (ACF) surveyed its members to understand what the impact of coronavirus was in their work in 2020, and what their forecast was for 2021.
Central to the responses was evidence of foundations striving to help applicants and grantees in this unprecedented context.
70% of foundations reported the same or more demand on their resources at the start of 2021 as in the aftermath of the first lockdown a year ago.
Several foundations reported plans or actions to create specific funding programmes or ring-fenced funding for Black, Asian and Minority Ethnic-led organisations and communities.
Another theme was increased collaboration, with three quarters reporting on activities in 2020 to work more closely with other funders, to increase alignment and avoid duplication. This has included information sharing, pooling of funds and aligning strategic priorities, and most intend to continue to collaborate in these ways in 2021.
Foundations have not been immune from the impact of the pandemic, and many referenced strains on their own staff and systems. Some reported negative impacts on their finances, resulting in constricted grants budgets, redundancies, and operational challenges. 40% of foundations forecast that their finances will be negatively impacted by the pandemic.
The report highlights that foundations have become more important players in the funding mix for charities.
The report can be accessed here.
Local VCSE organisations may find the report of interest when revising or drawing up a fundraising strategy.