The Philadelphia Fed has released the report A Qualitative Exploration of "Following the Money: An Analysis of Foundation Grantmaking for Community and Economic Development." It is based on interviews with key nonprofit professionals throughout the Third Federal Reserve District and examines findings from the paper "Following the Money: An Analysis of Foundation Grantmaking for Community and Economic Development" by the Philly Fed's Keith Wardrip and Atlanta Fed's Will Lambe and Mels de Zeeuw. The new report explores the factors at play in determining where philanthropic capital flows and shares the perspectives of nonprofits on the role of local and national philanthropic support for CED efforts.
Key insights include:
- A high level of collaboration among community partners is a strength in attracting grant capital.
- Rural communities and smaller cities are not well-positioned to utilize large grants made available by national foundations.
- An organization's staffing capacity and fundraising sophistication are critical to its ability to attract capital.