A lot of people write about grantmaking, but this essay in the Chronicle of Philanthropy in September is the best we've have seen at summarizing the problems with foundations and the way they fund nonprofits. It's worth your time to read.
Elspeth Revere retired from the MacArthur Foundation last year. She writes:
"Too often in America discussions about philanthropy disproportionately focus on donors and foundations rather than on the organizations that receive the money. In recent years, we seem to have forgotten that philanthropy succeeds only when foundations and nonprofits have strong partnerships that recognize the complexity of the problems we seek to solve and the need for solid, sophisticated, and sustainable nonprofit institutions to envision a better future and carry out the work...."