By Pauline Fong, Chief Program & Impact Officer (CPIO)
Last year, as the Trust leaned into a season of renewal, I had the opportunity to share some important updates. Our desire to "review the old and learn the new" sparked a variety of changes and adjustments to how we approach our work. Serving our interest holders (including nonprofits and communities) well remains our ultimate goal. The landscape continues to evolve with significant changes in the nonprofit, philanthropic, and governmental sectors. Organizations are navigating shifts in funding and support structures. Many are operating in an environment of increased demand for services while facing reduced government funding, heightened competition for grants, and rising operational costs. These pressures are reshaping how we all approach our work while underscoring the critical importance of sustainable funding and partnerships. Today, I would like to share some updates on the Trust’s grants process and approach due to the significant increase in inquiries and applications for grant funding.
Grants Process and Approach #
We have worked on refining the Trust's grant application system based on feedback and experience, seeking to reduce the time spent on applications while meeting due diligence requirements. I am pleased to report that many organizations have noted a substantial reduction in the time required to complete applications over the past 12 months. The current process includes:
- Eligibility Check: Organizations walk through a short set of questions confirming basic eligibility requirements.
- Letter of Inquiry (LOI): After verification, organizations submit an LOI.
- Full Application: Approved LOIs lead to invitations for full grant applications.
Note: Please see the Strategic Grant Application Process page on our website for more detailed updates on the LOI review and application submission periods.
This multi-step process enables strategic alignment between prospective grantees and the Trust while providing transparency on eligibility requirements and funding priorities. The intention is to optimize resource allocation for both applicants and the Trust by identifying potential misalignments before nonprofits invest considerable time in detailed proposal development, particularly given that the demand for grants and inquiries far exceeds the available funding resources. The aim of the revised approach with published timelines is to assist nonprofits in better planning project development, preparing submissions, and evaluating the potential for support, especially in an uncertain environment. We continually seek further refinements to our system and remain appreciative of the feedback and insights provided by nonprofits and partners.
Extraordinary Grant Demand #
Grant inquiries and requests have grown exponentially in volume over recent years. In 2024, applications exceeded our available resources by a factor of three. This growth reflects both the exceptional caliber of work happening in our community to address increasing needs and the intensifying funding pressures organizations face. We see nonprofits stretching resources to meet growing community needs while managing the complexity of diversified fundraising strategies. From innovative programs addressing complex social challenges to grassroots initiatives creating lasting change, the nonprofits we encounter daily demonstrate remarkable creativity, resilience, and impact in serving their communities despite these headwinds.
Many of the grant requests have incredible potential benefits to the community, and, like so many in the philanthropic space, we would love to fund every proposal we see. In recent years, the Trust has made a commitment to increase the grantmaking budget, consistently funding beyond the IRS required threshold of 5% of assets. But even with this ongoing investment, we cannot fund every proposal we would like to. We maintain a commitment to robust grantmaking, with a 6% payout planned for 2025—above the required threshold. However, at this level of giving, we can only fund about one-fourth of the number of LOIs submitted this year.
Adjusting Our Approach and Process #
The extraordinarily increased volume of inquiries and applications required us to adjust the Trust’s approach. To this end, we now:
- Implement LOI review periods to manage demand and workflow effectively
- Prioritize LOIs based on multiple factors including mission alignment and community impact
- Balance accessibility with the Trust’s funding capacity
We have updated our LOI process to add submission deadlines - a change that will allow the Trust to maintain an open door for LOIs, to ensure broad access for nonprofits, and provide more clarity to the nonprofits we serve relative to proposal review and decision timeframes.
The Decision-Making Process #
The selection process for the LOIs approved to submit full applications involves numerous factors and considerations, but ultimately, it is not a formulaic approach. The decisions involve many variables: community needs, mission alignment, project feasibility, and available resources. Rather than following a rigid formula, we evaluate each opportunity within the context of our overall portfolio and priorities and make decisions in alignment with our resources. This approach reflects the complex nature of philanthropic decision-making and allows us to respond to evolving community needs in alignment with grant funding capacity.
What Continues #
Our core commitments remain unchanged:
- Robust giving: Maintaining funding levels above required minimums
- Community focus: Listening to nonprofit partners and supporting meaningful projects that advance the Trust’s mission
- Accessibility: Keeping our doors open to diverse organizations and initiatives
- Transparency: Communicating openly about our processes and priorities
- Capacity building support: Supporting nonprofit partners through both grants and programs
Looking Ahead #
As we move forward, the Murdock Trust remains dedicated to supporting meaningful and impactful projects within our community. The demand for philanthropic support underscores both the challenges our community faces and the impressive dedication of organizations working to address them. In a landscape where social needs are expanding while traditional funding sources become more constrained, we consistently witness nonprofit leaders who combine deep expertise with genuine passion for their missions, creating solutions that government and private sector efforts often cannot achieve alone.
The scope and quality of proposals we review remind us daily why this work matters. From organizations creating new approaches to persistent social problems to those providing essential services with remarkable efficiency, our nonprofit partners represent some of the most thoughtful and effective change-makers in our region. We are committed to stewarding our resources thoughtfully while supporting as many impactful initiatives as possible.
We value the ongoing dialogue with our nonprofit partners, whose insights and expertise inform our understanding of community needs. The feedback you provide helps us improve our processes, and your dedication to mission-driven work inspires our own commitment to thoughtful grantmaking. This collaborative approach strengthens our collective ability to serve the community effectively. Our goal is to continue making a positive difference, and we look forward to partnering with nonprofit partners to work towards a brighter future, for the common good.
Many thanks to the many nonprofit partners for their persistence in doing important work during challenging times – you are deeply appreciated.
-Pauline Fong, Chief Program and Impact Officer