The Donors Forum of Chicago recently released its Economic Outlook 2011.  This annual survey confirmed many familiar realities - increasing demand in the face of less available funding, delayed government payments, and overworked staff.  Two rays of hope exist, however, due to a noticeable shift in grantmakers' funding focus.

According to the 51 grantmakers surveyed, funders are increasing their investments in capacity building.  Though only half of surveyed grantmakers offer capacity-building grants, 55% of these funders will increase this funding allocation in 2011.  Could this be a sign of progress in response to Bridgespan's research on the Nonprofit Starvation Cycle?

The report also reveals that half of the surveyed grantmakers provide funding to help streamline reporting processes.  68% of funders who supported this area in 2010 have increased their allocation in 2011.  Another ray of hope!  I often encounter organizations that recognize the need to measure and communicate their results, but they lack the time (see "overworked staff" above) and the resources to get it done.  Could funders help set up nonprofits for success by funding measurement capacity building?  It appears so.