Good Humor

 Courtesy: The Chronicle of Philanthropy

~ Cheers!

eHarmony for Grant Making

It’s important to know that your organization can be a compatible partner to the funder you are approaching. Consider looking at your opportunity like eHarmony or host of other online dating sites. The more variables that line up, the more questions you answer in common—the better your chances.

In the search for a good funding match, we usually consider a potential funder to be a prospect.

• Does your prospect look at organizations in your geographic area?
• Has your prospect supported similar organizations in the past?
• Does your organization align with the “areas of interest” for the prospect?
• Will your prospect consider funding the amount you are asking?
• Do you have a history with this prospect?
• Do you have a board member who is connected to the prospect?
• Can a board member open a door for you with the prospect?

Resources to find some of the necessary background information can be found by reviewing the potential funder’s Form 990. GuideStar or through the Foundation Directory Online.

Recent technology is allowing most foundations to post information and usually their 990s on their own website. Do your research.

• Who did the prospect recently support?
• How much did they fund?
• Do they fund multi-year gifts?
• Who is on their board of directors?
• What is their giving history?
• What key words stand out in the funding they have provided to other recipients?

The most basic fundraising teaching will break this all down into the LAI principle.
• Linkage
• Ability
• Interest

If you can find common ground between your organization and the prospect when you answer these questions, it might just be time to break out the roses and iron your best blouse (figuratively speaking)…give it shot. Begin preparing a well-developed proposal and see if they are interested in being your partner.

~Cheers!

Grant Glossary

As new words and definitions continue to be added to the Grant Savvy vocabulary, instead of defining them in detail within each post, they will be added to the Glossary on the right. If you are looking for additional definitions or have suggestions let me know!

~Cheers!

What Motivates Corporations and Foundations to Give?

We would like to think that corporations and foundations give because they are overflowing with altruism and good intentions. However, corporations and foundations run their business first and give money second. Pure philanthropy is rare.

Funders have developed their corporate giving and/or foundations for a reason. They have goals that they want to achieve. If your organization can help them achieve their goals, you have a shot.

Most corporations and foundations like to see requests for projects and programs, not endowments or general operating support. They like to see the beginning and end of things and will often ask for progress reports.

Funders also like to have some room for flexibility. They want to be involved, but not tied-down by a funding opportunity. It takes too much time and too many resources to manage a long-term funding relationship. If they need to change direction in response to something like a recession, they want to know they can get out and not be the single reason for your program’s downfall.

Authentic philanthropy does exist and foundations and corporations generally are motivated by the fact that they can make a difference and see the business benefits of their transaction.

Don’t underestimate the power of people to see the good work you do. Still, your project must be aligned with the foundation’s or corporation’s goals or you simply will not even be considered. Ever heard “I’ll scratch your back if you scratch mine”?

~Cheers!

Friday: Making a Good Match

Good Humor

We're back on track...enjoy this bit of fundraising humor!

Top Ten Reasons for Becoming a Fund Raiser
Edited by Cindy Chamberlin, Ronald A. Knott, et. al.

From Accent on Humor book set: The Wit and Wisdom of Philanthropy

Recorded at Fund Raising Day in New York
by Steven M. Bernstein

#10-We were inspired by a Sally Struthers infomercial.
#9-For the glamour and the profit sharing plan.
#8-We take rejection well.
#7-What else can a liberal arts graduate do?
#6-We need to change jobs every 1.7 years.
#5-I thought if I raised money in the capital campaign, they'd name the building after me.
#4-We can use the word "athon" after almost any verb.
#3-We want everyone to have an opportunity to become our boss.
#2-Dinner at the Waldorf twice a week.
#1-My parole officer said that would qualify as community service.

Excerpted from Accent on Humor book set: The Wit and Wisdom of Philanthropy, Edited by Cindy Chamberlin, Ronald A. Knott, et. al., Philanthropic Service for Institutions, 1992 and 1996

~Cheers!

Common Types of Foundations

Foundations, similar to charities, are governed by a board of directors or trustees. Some foundations, usually larger ones have paid staff who manage grants and the grantmaking process.

There are three common types of foundations that grant writers should be familiar with:

Community Foundations
Community Foundations share the resources of many donors in order to award grants. They usually focus on their grantmaking in a specific region, county or city. The IRS classifies this type of foundation as a public charity and therefore it is not subject to the excise taxes and distribution requirements. Donations to community foundations ARE tax deductible. One of my favorites, with a great website is the Community Foundation of Greater Fort Wayne http://www.cfgfw.org/.

Corporate Giving Programs
Corporate giving programs are connected to businesses. The money that they give to charities comes from the corporation’s profits. With our current economy, corporate giving is taking a big hit and thus, charities are feeling the pinch of losing funding they usually received.

Corporations that don’t have a foundation are not legally required to make their contributions public are aren't bound by "foundation rules". Unfortunately, it can be challenging to get this information and determine if they are good fit.

Examples of corporate giving programs reflect all types of business including Target, Best Buy, Kohl's Department Stores, and 3M. Look into your favorite business, you might be surprised!

Employee involvement is a big factor when decided where corporations with put their dollars. They like to support communities where their employees live, work and play. Funding usually comes in the form of sponsorships, which is allocated from their marketing budget. Other companies have match-gift programs and volunteer incentives outside of the “grant making” realm. We'll discuss this at a later date.

Private Foundations
Private foundations make up the largest number of grant makers. They are founded by individuals, families or like minded groups of people. A family foundation usually has a family that is involved in grant making decisions and perhaps the daily operations. Sometimes the family is simply involved it the decision process and leaves the operations end to a trustee or management staff. An independent foundation is normally run by professional staff and/or program officers and the family or donors are not actively involved in the management process.

Private foundations invest their money or at least the majority of the endowment, earning dividends, and interest on its investments. The IRS requires private foundations to make grants equal to at least 5% of its investments assets. This is important to know when researching 990s and foundation profiles. Private foundations pay a 2% excise tax on net investment earnings. Keep your ear to the ground to see if any of the new tax law and charitable giving tax will creep into this category. For now, it looks safe.

Information adapted from: Handbook for Nonprofit Success, Minnesota Council of Nonprofits (2008) and Webster’s New World Grant Writing Handbook by Sara Deming Wason. www.mncn.org

Wednesday, April 15: Fundraising Humor

Thursday, April 16: What Motivates Foundations and Corporations to Give? (in a nutshell!)

~Cheers!

Understanding Nonprofit Status

For the next several weeks, I will be working through the proposal development process. I think it is first important to begin, well, at the beginning.

Nonprofit status can determine if and how you can apply for grant funding, federal or otherwise.

501 (c)(3) Charities: are charities under Section 501 (c)(3) of the tax code. Exemption status is given to charities that:
1. serve charitable, religious, scientific or educational purposes
2. ensure that no part of the income generated by the organization goes to the benefit of any one person
Donations to these charities ARE tax deductible.

501 (c)(4) Social Welfare Organizations: often called advocacy organizations; these groups are also exempt under Section 501 (c)(4) and given more lenient restrictions to lobby and take part in advocacy activities. Donations to these organizations are NOT tax deductible.

For more information, visit www.irs.gov/charities

Thursday: Types of Foundations

~Cheers!

Good Humor

~Cheers!

Keys to Successful Fundraising

I am a big believer in peer-to-peer sharing and fundraising education. The following is taken from lessons taught by The Kaiser Institute. Perhaps some of the language is a bit euphoric, but the ideas stick. Building on the previous post, I think we can all be reminded to treat donors as friends and neighbors, not just pocketbooks...foundations included.

• Care about the person, not the dollar
• Enable people to become everything they have ever dreamed of
• Treat every relationship as equitable
• See things differently, a new mental vision
• Donors don't care what our needs are; we need to find the donors' "bliss" and translate into our needs
• Create space to open up conversation
• Be a good people developer; hear in them what they can't hear
• We must become the change we want to happen
• Think BIG, we miss great potential when we think so small
• The donors who have a vision make a difference
• Be creative in gift giving
• Shift Traditional Language (instead of steward, show gratitude; instead of prospect, good friend...)

Taken from "Understanding our Partners Lessons from The Kaiser Institute and Eddie Thompson".

~Cheers!

Can Money Really Buy Happiness?

Not exactly, but in a 2008 article written by Sam Kean for The Chronicle of Philanthropy, giving money instead of keeping it for oneself can boost happiness levels.

In research findings published in the journal, Science (March 2008), Elizabeth W. Dunn, an assistant professor of psychology at the University of British Columbia noted that "behaving in a prosocial manner broadly speaking--whether it's holding a door open for someone with groceries or making a donation to a charity or volunteering for an afternoon at a school--all of those things are likely to benefit the well-being."

http://www.unitedwaysb.org/study%20finds.pdf

Everyone likes to feel as if their contribution matters. Your mission and your work can make people happy. Let donors and volunteers become invested in what you do and share their ideas and talents to better your organization. Cultivation at the most basic levels reminds us how Maslow's Hierarchy of Needs can affect the short and long-term potential of gift giving.

Organizations have the ability to positively or negatively determine the amount of happiness that is felt by funders. When deciding how to tailor stewardship efforts, it is wise to remember that there is always a human being on the other end of your transaction.

~Cheers!

Batter Up!

In these challenging economic times, the fundraiser, as I have found, is gaining more credibility and is in higher demand. With this comes the pressure to meet goals, engage new major donors and expand grant writing efforts.

Did I mention "challenging economic times"?!

The reality is that it is often impossible to start programs or expand old ones when you've let staff go, cut operating hours and grant funding continually decreases. I will not even mention the competition for available funding. Organizations must find ways to better the programs you have, modify plans for new ones and clean up old proposals (note: this should be happening anyway).

Give funders a reason to stay with you during a challenging economy. Make them a partner in your succcess. The best way to emerge on top is if funders and grantees work as a team. Don't make a new plan and then assume they still want to support you because "they always do".

Roll up your sleeves and fill out your roster. Then put on your jersey and show up for the game. Be ready for extra innings and look at creating an injured reserve list. It could be a long one.

When my brow gets little sticky, I find it helpful to look to wise old men (and women) for a slice of inspirational coaching.

"Patience, persistence and perspiration make an unbeatable combination for success"

-Napoleon Hill

It's okay to sweat, but please do it patiently and with purpose. Nobody wants to watch a sloppy game. You're not just selling seats for today's match-up, you want your funders to buy season tickets.

~Cheers!

Orwell's Rules for Effective Writing

Aside from the great literary pieces that George Orwell contributed to the world library, he also shared a few of the secrets for effective writing that kept his work relevant. He often referred to his rules as "elementary" and urged readers to remember that you could follow each one and still produce bad writing. However, according to Orwell, your writing won't be as terrible as some of the passages quoted in his essay, "Politics and the English Language".

"...modern writing at its worst does not consist in picking out words for the sake of their meaning and inventing images in order to make the meaning clearer. It consists in gumming together long strips of words which have already been set in order by someone else, and making the results presentable by sheer humbug." -George Orwell

Orwell's rules apply well when writing a grant proposal. They can provide a much needed compass point when creative energy overtakes the purpose of your writing. It is our job as grant writers to interpret data, to tell a story, to evoke emotion and to make a compelling case for support. Creativity is the glue that holds it all together, but is not the theme of the writing.

1. Never use a metaphor, simile, or other figure of speech which you are used to seeing in print.

2. Never use a long word where a short one will do.

3. If it is possible to cut a word out, always cut it out.

4. Never use the passive where you can use the active.

5. Never use a foreign phrase, a scientific word, or a jargon word if you can think of an everyday English equivalent.

6. Break any of these rules sooner than say anything outright barbarous.

Orwell's original essay, "Politics and the English Language" was written in 1946.

~Cheers!

The Grant Writer: Coach, Collaborator, Project Development Specialist

"Proposal writing represents the last phase of thoughtful project development. The process generally includes a team of people and starts with an idea that will enhance current operations or address a specific financial need required to augment the operating budget. Either starting point for an idea must link seamlessly to an organization’s mission and strategic long-range planning objectives. To effectively launch the project, the grant writer must be fully versed in these fundamental aspects of the organization.

The grant writer can be a staff member on the development team, an external consultant, or the person who will manage and direct the project. No matter who takes on this task, a unique combination of qualities and skills is needed to be successful. " by Noël Appel

One of the biggest challenges that I face as a grant writer, especially as a grant writing consultant, is finding my best role within an organization. Do I lead the project, do I just write and deliver the final product? Then the question becomes, do I coach the team I am working with? Do I consider myself as part of this team or am I an external resource? What is within my scope?

A while back I read an incredibly insightful paper written by Noël Appel. She clearly addresses the many hats that a grant writer is given and describes how to wear each one best. I will work in the coming days to post the entire paper.

About the Author

Noël Appel: Director, Foundation Relations, Fairfield University has more than 25 years of writing experience. She develops projects and proposals to private foundations and manages Fairfield’s Trustees Advisory Council. She has served as the Director of the Westchester/Putnam School-to-Careers Partnerships for the Southern Westchester Board of Cooperative Educational Services. She has a BA from Fairfield University, in English and studied abroad at the University of London. She is a member of the Association of Fundraising Professionals, the American Association of Grant Professionals, the American Association of Colleges of Nursing, and CASE (Council for the Advancement of Secondary Education) and the Westchester and Connecticut Chapters of the American Society of Training and Development.

Ms. Appel's expert voice speaks well to the positon that I often find myself in as a grant writer.

Grant Writer’s Role as Project Development Specialist
"Once the project team has been expanded to include the appropriate internal and external partners, it is time to move beyond the conceptual phase of the project and into the articulation of the actual project. This process includes defining the project goal, anticipated outcomes, budget, and implementation timeline. At this stage, the grant writer works with the project team to articulate a clear and concise project goal with a series of anticipated outcomes. The achievement of the project outcomes is delineated through action items listed in the project timeline, tying seamlessly to implementation costs.

The use of various basic tools can be very helpful during this phase of the project design process. The grant writer can create a budget and project timeline templates for use with each project team. The project timeline provides information about the implementation activities, responsible staff, and timing for each action item. This form can be used as a handout in a planning meeting and helps to focus all of the participants on the scope of what is being proposed. Additionally, a budget template can be used in the same manner to help the project team consider staffing, materials, travel, marketing, equipment, and other costs associated with a project’s implementation. The resource package for this phase of the process can include a budget summary page that provides an explanation of the kinds of line items often included in a project budget. Use of sample budgets and project timelines from previously funded projects can effectively illustrate what these documents should contain.

As a project development specialist, the grant writer should make recommendations related to the appropriate use of external staffing resources. Designing an assessment framework for a project should be considered as an integral part of the project design process."