Local Foundations versus National Foundations: What Makes Sense?

I recently blogged about how community impact is dependent on the financial health of an organization. In turn, your organization's ability to win grant funding is dependent on the impact you have in your community, region or across the nation.

Take a look at where you are applying for funding and where grant funding is actually coming from. Is it mostly from a local foundation? A regional foundation? A national foundation? Likely, the answer is that you have a combination, with the greatest success coming from local funders.

The bulk of funding given by family and private foundations usually stays in the community where the foundation is located—even if the foundation supports “national” projects or has open guidelines for geographic limitations.

Sure, national foundations open the door for more money and exposure, but also for competition among worthy organizations. Most funders like to support projects in the communities where they have a vested interest, financially or otherwise.

Don't forget this is business, not just the "goodness in their hearts" driving the decision making.

Who should I send my proposal to?
Do your research by looking at the annual reports and 990s of the foundations that you think will support your needs. Where does the bulk of their funding go? How often have they funded projects in your community during the past 3-5 years? Did they fund similar organizations elsewhere in the country?

If your project only helps your local community: apply with a local funder.

If your project spans across a region or will make a national impact: apply with a national funder.

If your program is replicable outside of the local community: apply to local and national funder.

If your program can be a model in the region or in similar areas across the country: apply to local and national funder.

If you plan to share your program results through research initiatives, presentation or at national conferences: apply to both.

Remember: unless you have a one-of-a-kind project that reaches the entire nation, applying for funding in Oregon when you are based in Florida, is not a sure thing. Be realistic and find a solid local funder to support local projects and a sustainable national funder to support those on the regional or national level.

~Cheers