And they will have to monitor local and state governments and hold them accountable. What's more, organizations of all kinds will be forced to deal more and more with public-policy matters. To cope with all those new demands, many local groups will need help paying their operating expenses. It will not be easy for them to find the money they need. Very few foundations are willing to make small or moderate-size grants to local organizations, despite the increasingly urgent problems facing so many neighborhoods in this country.
Foundations offer numerous reasons for their unwillingness to help local groups.
They say that making small grants is not cost-effective. They note that it takes more of their staff's time and effort to distribute small grants than large ones, and they say they would probably have to hire more staff members if they started making small grants. In addition, they contend that it is too hard to evaluate how much is achieved with a small grant and to make sure that the money is used wisely. Unlike business, philanthropy is not primarily concerned with the health of the bottom line. Cost-effectiveness should not be a roadblock to meeting critical public needs.