Helping Rural Nonprofits Succeed

At the Foundation Center, one of our leading priorities is to provide training and services to under-resourced organizations to help build the capacity of the nation's nonprofits. We do this through a number of programs, including our online tutorials and webinars, our online Ask Us service and the FAQs and guides at our web site, and our network of more than 400 Cooperating Collections across the country.

Still, we recognize that rural nonprofits continue to face challenges beyond those presented to organizations in more urban areas, especially in times of economic downturn. In a study released earlier this year by the Bridgespan Group, rural nonprofits were found to be, on average, 50 percent smaller than urban nonprofits, while the geographic areas they served were much broader and the poverty rates in rural areas remain higher than those for other regions. Among other figures cited in the report, Nonprofits in America: Overcoming the Resource Gap:

• For each year between 1994 and 2001, rural areas received between $401 and $648 less per capita than urban areas in selected fields.
• An analysis of grantmaking by the top 1,000 U.S. foundations showed that grants to rural areas accounted for only 6.8 percent of overall foundation giving.
• A 2000 study of giving by 124 Fortune 500 corporations found that rural organizations received only 1.4 percent of the total 10,905 grants awarded.

To help close this funding gap, the study proposed a number of possible strategies for rural nonprofits. Among these tactics, collaboration was a key theme:

• Affiliation with a national network can provide access to valuable resources and institutional knowledge that would otherwise be difficult to develop on a local level. Affiliation can also provided added legitimacy and connections to larger, national funders.


• Building strategic partnerships and networks is key to attracting resources and donors to rural organizations. Executives with rural nonprofits who take the time to develop relationships outside their local area are more likely to gain access to crucial information about funding sources at the state, regional, and national levels.


• Rural nonprofits with limited development resources should invest in priority grant relationships rather than applying to as many funding sources as possible. Focusing on those grant opportunities in which there is a strong alignment with the grantmaking organization will increase the chances of building long-term, strategic partnerships with funders and will ensure that the nonprofit has a stable revenue base for future years.


• Programs should be structured to meet the unique needs of rural communities. Effective program design can help rural nonprofits meet tight per capita funding formulas and attract funders interested in value or innovation.

Many other groups have begun to address the rural funding gap as well, including the Council on Foundations, which co-sponsored the 2009 Philanthropy and Rural America Conference, along with the National Rural Funders Collaborative and other organizations. Other organizations that are focusing on this issue include:

• Rural Funders Working Group - Neighborhood Funders Group
• Rural Philanthropy Knowledge Center - Forum of Regional Associations of Grantmakers
• Rural Policy Research Institute

You can find additional resources on this topic by searching the Catalog of Nonprofit Literature, the Center's bibliographic database, for the subject "Rural development". Among the books and articles listed are:

Rule, Doug (ed.) Philanthropy and Rural America. Arlington, VA: Council on Foundations, 2008.
Foundation leaders and various experts contribute essays that explore the challenges and opportunities for rural philanthropy. The contributors discuss the importance of supporting rural philanthropy and provide recommendations for foundations.

Perry, Suzanne. "Small-Town Philanthropy." Chronicle of Philanthropy vol. 19 (26 July 2007) p.10-2.
Rural areas, traditionally overlooked by philanthropy, are drawing more attention from grantmakers and charities. Groups such as Montana's Big Sky Institute have demonstrated a "philanthropic divide" between states with large foundation assets and those without. Groups of rural funders and advocates are banding together to draw more funding to such areas.

Swierzewski, Rachael. Rural Philanthropy: Building Dialogue from Within. Washington, DC: National Committee for Responsive Philanthropy, 2007.
Examines real and perceived obstacles that set rural nonprofits apart from foundations located in urban settings. Explores strategies for strengthening rural philanthropy and provides recommendations.

McGregor, Alan;  Chaney, Bethany. The Power of Rural Philanthropy. Washington, DC: Forum of Regional Associations of Grantmakers, 2005.
This assessment draws on information from many sources, and documents the growing grassroots efforts in rural America. One new model is the "geographic affiliate fund" within a community foundation.

Anft, Michael. "Rural Areas Reach Out to Donors." Chronicle of Philanthropy vol. 16 (11 December 2003) p.7, 9-10.
Explains how several foundations and nonprofit groups have established projects to help increase philanthropy in rural communities. Also notes the importance of advocacy efforts.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta