Beyond the Grant: How Strategic Philanthropy Is Powering Community Resilience

The nonprofit sector is facing one of its most turbulent years in recent memory. A third of U.S. nonprofits that provide essential services¹—think food pantries, job training, mental health support—have lost government funding due to federal spending cuts and delays. Nearly 30% have reduced staff¹ and many expect further layoffs before year’s end. These disruptions are not isolated—and they’re reshaping how nonprofits operate, plan and survive.

But it’s not all headwinds. Innovation is accelerating. Nearly half of nonprofits have adopted AI tools to streamline operations, and more than 60% are exploring new revenue models², from earned income strategies to collaborative funding ecosystems. The sector is evolving—not just to survive, but to lead.

For decades, traditional grantmaking focused on funding specific programs—often short-term, narrowly scoped and output-driven. While those investments played a valuable role in delivering critical services, they often didn’t address the deeper organizational needs that allow nonprofits to grow, adapt and sustain their missions.

In response, a growing number of funders are rethinking their approach. Philanthropy is shifting from transactional giving to strategic investment while supporting leadership, infrastructure and operational resilience. This evolution reflects a broader understanding: strong organizations, not just strong programs, are essential for lasting impact.

This is the moment Truist Foundation was built for. In 2021, the Foundation defined its grant-making strategy in response to what it was hearing from nonprofit leaders: program-specific grants weren’t enough. Organizations needed support to strengthen internal capacity and lead through uncertainty, adapt to change and build sustainable futures.

Guided by its purpose to inspire and build better lives and communities, Truist Foundation began investing in the infrastructure behind the impact, like leadership development, technology, ecosystem building and flexible capital. These investments were designed to help nonprofits not only meet immediate needs but build long-term resilience.

“Economic mobility is not just an aspiration; it’s a measurable outcome when we invest in people, in organizations and in ecosystems,” says Lynette Bell, head of Philanthropy at Truist and president of Truist Foundation. “At a time when many nonprofits are seeing reduced giving, we’ve stayed the course—partnering deeply with nonprofits, learning from our grant partners and doubling down on what works.”

At the heart of this strategy are two giving pillars—strengthening small businesses and building career pathways—both of which are essential to advancing economic mobility. But what sets Truist Foundation apart is its ecosystem mindset: supporting not just individual nonprofits, but the networks, intermediaries, infrastructure and leaders that help them thrive together.

Since launching this strategy, Truist Foundation has helped create or retain 26,800 jobs, supported 26,000 workers and assisted over 18,000 small businesses³—all while building the capacity of nonprofit partners to scale their impact.

Reimagining Philanthropy’s Role

The future of philanthropy lies in its ability to go beyond the grant. By funding the ecosystems behind the services, funders can unlock scalable, sustainable impact.

The Scaling for Impact³ report offers a closer look at this approach, with data and stories that reflect both the challenges and the possibilities of building nonprofit capacity for the long haul.

Read Truist Foundation’s full Scaling for Impact report here³.

This content was paid for and created by the Truist Foundation. The editorial staff of The Chronicle had no role in its preparation. Find out more about paid content.