Listening to Grantees: What Nonprofits Value in Their Foundation Funders (2004): The relationship between foundations and grantees is much discussed, debated, and dissected. Competing theories abound regarding the key attributes of successful and satisfying foundation-grantee relationships: Most are informed by speculation about what nonprofit grantees really value. What is often missing from these discussions, however, is rigorously collected and large-scale data about the opinions of nonprofit grantees.

CEP has sought to address this issue by surveying thousands of grantees of dozens of foundations. We have identified three factors – which we refer to as the three dimensions of foundation performance that grantees value in their foundation funders – that best predict variation in overall grantee satisfaction:

1. Quality of Interactions with Foundation Staff: fairness, responsiveness, and approachability
2. Clarity of Communication of a Foundation’s Goals and Strategy: clear and consistent articulation of objectives
3. Expertise and External Orientation of the Foundation: understanding of fields and communities of funding and ability to advance knowledge and affect public policy

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