What is our impact?

That is the question every organization asks themselves at some point. For many direct-service organizations the answers may be clear-more healthy food options, more access to mental health support, less violence, etc. But for foundations- those institutions meant to support direct-service organizations- that answer becomes less so, though the vision may be the same. We too may want to realize those same impact goals, but the levers we pull are very different from those directly addressing the need.

At Julian Grace Foundation (JGF), we sat with that question during a Board and Staff retreat in 2023. Under new leadership and almost entirely new staff (all of whom come from direct-service as nonprofit organizers, program leaders, and educators), we wrestled with the idea of developing impact goals that blurred the line between our role as funders and our histories as frontline social impact stewards. For example, while we do want to see more healthy food options across food desert communities, we aren’t growing, sourcing, or delivering food to those in need. We support an organization that does that work, and that is where our impact lies.

Through this lens we began to ask ourselves even better questions:

How is our support best utilized?

What support beyond the check can we provide?

What are organizations struggling with and how can we tap our resources and networks to fill those gaps?

What makes an organization sustainable and scalable?

These questions were harder to answer- partly because most of the organizations we worked with didn’t have the answers and were never asked. So we set out to find out and that became our impact lever: to ensure organizational health is assessed, measured, and strategically supported. Through this exploration, we found Joan Gerry’s 14 Attributes of a Thriving Nonprofit and the Nonprofit Leadership Lab, an excellent FREE resource for organizations looking for guidance on strategically growing their organizations. Recognizing the importance of access for organizations with limited capacity, we wanted to ensure whatever frameworks we adopted were readily available for all. While we adapted the framework to support our vision and values, such as prioritizing BIPOC representation across leadership & boards, we stuck to the core indicators of a healthy organization: People, Programs, Money, Strategy, and Narrative. These elements are crucial to any organization- whether for-impact, for-profit or somewhere in between.

We believe strong communities need strong organizations. Healthy organizations create lasting change, so we invest in the health of grantee partners, because that is what lets their impact outlast any single grant. We aim to build organizations that are resourced, resilient, and ready to lead in our communities for generations.

Our impact is measured not by the program we fund, but by the strength of the organizations that deliver them.

To make this commitment more consistent and useful, JGF has developed the Nonprofit Health Matrix as part of our application. The Matrix creates a shared framework for reflecting on organizational health across several dimensions. It helps nonprofit leaders and JGF identify strengths, surface areas that may benefit from attention, and consider what kinds of support could be most relevant at a particular moment.

We do not view the Matrix as a scorecard, compliance exercise, or substitute for local knowledge. It is a starting point for dialogue. Used well, it can help us ask better questions, understand change over time, and connect grantee partners with right-sized resources while keeping their goals and judgment at the center. The process also gives JGF a clearer view of patterns across our portfolio, allowing us to refine our own practices and respond more thoughtfully to shared challenges.

Insights from the Matrix can inform capacity-building investments, strengthen conversations about organizational sustainability, and help partners recognize progress that may not appear in traditional program metrics. Just as importantly, the framework encourages us to examine whether our funding, timelines, and expectations create the conditions organizations need to thrive.

Our experience continues to reinforce a simple idea:

‍sustainable impact requires sustainable organizations.

‍By pairing trust-based grantmaking with intentional investment in organizational health, JGF seeks to support nonprofits not only in delivering today’s work, but also in building the strength and adaptability needed for the future.