Close to Two-thirds of Foundations Expect to Reduce Their Grants in 2009

"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."

Other key findings from the new advisory include:

* Foundations will draw upon various resources to fund their 2009 giving — close to two out of five respondents expect to draw at least in part on their endowments to fund grants.
* About 14 percent of respondents either have made or plan to make exceptional grants or launch special initiatives in response to the economic crisis, largely by reallocating existing grants budgets.
* Nearly one-third of respondents made operational changes as a result of the 2000-02 economic downturn that they believe better prepared them to face the current downturn, such as changes in investment strategies or reducing operating expenses.