Lean Funders: Three Tips for Grants Managers

According to the 2024 Foundation Operations and Management report by Exponent Philanthropy, a member-led community of lean funders, nearly three-quarters (73%) of participating foundations had paid staff. The average number of paid staff was three, whereas the median was two. The average number of paid staff has not significantly changed over time.

With limited staff and resources, lean foundations often face challenges in managing their grantmaking processes efficiently. This can lead to increased administrative burdens and slower response times. To mitigate these issues, lean foundations can adopt technology solutions, streamline their application processes, and focus on capacity-building for both their staff and grantees.

Lean foundations can improve resource management by adopting several key strategies that enhance efficiency and effectiveness. Here are some tips on how you can continue to drive impact to achieve your organization’s mission without overwhelming your small team or neglecting your grantee relationships:

1. Leverage Technology: The 2024 Foundation Operations and Management report found that participating foundations collected applications and proposals in a variety of ways. Almost half (49%) accepted proposals through an online application using grants management software, whereas nearly one-third (32%) accepted applications through email or another informal electronic system. Utilizing technology can streamline administrative tasks and reduce the burden on limited staff. Tools like grant management software can automate application processes, track grant outcomes, and facilitate better communication with grantees without requiring more time or resources from your staff.
2. Enhance Collaboration and Communication: Building strong relationships with grantees and other stakeholders can lead to more effective resource allocation. Regular feedback loops and open communication channels help ensure that resources are being used efficiently and that any issues are addressed promptly. Whether via survey data, grantee speakers, or program officer presentations, making grantee feedback a part of your grantmaking process will enhance collaboration and improve your grantmaking process.
3. Focus on Capacity Building: Invest in the capacity building of both staff and grantees for more sustainable and impactful grantmaking. Training programs, workshops, and other educational resources can equip everyone involved with the skills and knowledge needed to manage resources effectively. Collaborate with other funders by joining funder collaboratives and grantmaker networks to fill your resource gaps.

By integrating these strategies, lean foundations can improve their resource management, ultimately leading to more effective and impactful grantmaking.

Would you like to explore any of these strategies in more detail? Are you interested in connecting with other Lean Funders? How about hosting a Blackbaud Grantmaking User Group in your region? We would love to hear from you! Please comment on this blog to share with our community members.

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