This chapter examines institutional philanthropy with a focus on how large-scale funders, such as foundations and endowments, determine grant allocations. It explores the impact of efficiency metrics, competition among nonprofits, and governance accountability on funding decisions. Using both theoretical frameworks and practical case studies, the authors assess how institutional donors shape nonprofit behavior, strategic positioning, and sector-wide practices. The analysis provides insights into the tensions between mission alignment and financial sustainability, highlighting the complex landscape nonprofits must navigate to secure support. The piece also critiques market-based assumptions in philanthropic strategies.
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