Foundation Patronage toward Citizen Groups and Think Tanks: Who Get Grants?

Private foundations are important patrons for nonprofit organizations engaged in research, education, and policy advocacy, but little is known about the allocation of grants to specific organizations. Company-sponsored foundations that fund environmental citizen groups and think tanks seek to purchase good will, while many independent foundations fund specific programs. Given foundation objectives, the allocation of grants depends on recipient organization program activities, governance structure, and mode of operation. Interest organization entrepreneurs can manipulate these variables to create market niches. Stable niches may in turn limit the flexibility of incumbent organizations and the funding sources available for new organizations.