Giving Show: Top 10 Grantmaking Foundations

Today, I had the awesome privilege of being a guest on the Michael Chatman Giving Show with guest host, Ian Adair! We shared "Ian and April's Top Ten National Foundations" with listeners and tips for approaching the big players in the grantmaking arena. Many, many thanks to the loyal listeners who helped make my first appearance one to remember! We barley scratched the surface about finding the right foundation funder, but we had a great time!

Large foundations receive a lot of requests and it is the responsibility of an ideal grant recipient to do their homework before they approach the foundation. Don’t be intimidated if you believe your organization has a strong fit, BUT don’t jeopardize your future relationship with a poorly thought-out strategy. As a fellow development professional once said…”a little research goes a long way.”

I can't stress enough that just because you hear about a foundation on NPR and you know they have deep pockets, it doesn't mean that they are right for your organization or that you are right for them. 

Tips for Approaching National Foundations

• Know your funders. Research. Research. Research. What makes them tick? Do you share an interest? Do they fund organizations that are similar to yours? What is their annual giving? How many grants do they give per year? Do they have a regional representative or one in my community? 
• Use the Foundation Center and Grant Space. They are my magic fairy dust when I need to know more about a particular funder. They have FREE profile templates, webinars and training sessions. Yes, FREE! 
• Read the guidelines. I'm reminded of a direct quote from a foundation director a few weeks ago, "We don't get as many people reading the guidelines as we'd like". It's the nice way of saying, "Please don't waste our time or yours".  Don't force a square peg in a round hole.
• Start with a relationship in mind. What type of partnership can you create with a potential funder. They don’t want to be your bank account—even if they like limited contact with grantees.
• Respect the funder. Nagging gets you nothing. If a foundation does not want a lot of hands-on contact with a prospective grantee, you must respect their position.  Large foundations receive too many inquiries to respond to all of them like they want. They need policies that protect their organization too.
• Create your own Top 10 Foundations list to share with development staff and your board of directors. Do you have a relationship with any board members? Staff? Use the list as one piece of your fundraising pie and to jump start high-level giving.

Giving Show: Top Ten Grantmaking Foundations

1. The Bill & Melinda Gates Foundation is the largest operated private foundation the world.  The primary aims of the foundation are, globally, to enhance healthcare and reduce extreme poverty, and in America, to expand educational opportunities and access to information technology.
2. During 2009, the Walton Family Foundation invested more than $378 million in a wide variety of domestic and international projects that addressed significant social and environmental issues, and sought to create exciting new opportunities. The foundation continues to implement and expand grant making to fund a positive difference in many diverse communities.
3. The mission of the Robert Wood Johnson Foundation is to improve the health and health care of all Americans. Their goal is clear: To help our society transform itself for the better.
4. Through the support it provides, the MacArthur Foundation fosters the development of knowledge, nurtures individual creativity, strengthens institutions, helps improve public policy, and provides information to the public, primarily through support for public interest media.
5. The W.K. Kellogg Foundation supports children, families, and communities as they strengthen and create conditions that propel vulnerable children to achieve success as individuals and as contributors to the larger community and society.
6. The Wal-Mart Foundation strives to provide opportunities that improve the lives of individuals in our communities including our customers and associates.
7. The grant making philosophy of Andrew Mellon Foundation is to build, strengthen and sustain institutions and their core capacities, rather than be a source for narrowly defined projects
8. Kresge Foundation has seven, narrowly defined programs that each in its own way works to improve the life circumstances of poor and low-income children and adults and those living in underserved urban and rural communities.
9. Annie E. Casey Foundation is a private charitable organization, dedicated to helping build better futures for disadvantaged children in the United States. The primary mission of the Foundation is to foster public policies, human-service reforms, and community supports that more effectively meet the needs of today’s vulnerable children and families.
10. Knight Foundation supports transformational ideas that promote quality journalism, advance media innovation, engage communities and foster the arts.

Happy researching, cultivating and fundraising!!

~Cheers!

Grant Research: Using Online Databases

One of the most valuable parts of being a good grant writer is research. Where do you start looking for funders? What if you have a limited budget? Using an online research database helps narrow your research topic and gives you necessary background information to develop your proposal. Free grant research is available, if you know where to look. Other databases are available for a minimal yearly subscription fee (more on that topic soon).

There are several online databases that are easy to use and are free to access. They may not include the comprehensive information you will find in fee-based databases, but they are a good place to start or to verify giving information. My favorite FREE online sources are:

Foundation Center

Fundsnet Services

The Grantsmanship Center

NOZA Search

Remember that internet searching and online databases are only one part of a strong research strategy. Check with your local library, universities and subscription-based databases to fill in the gaps. Every area of fundraising also has affinity groups or specialized funder resources such as regional associations of grantmakers (RAGs).

Creating your own database of research information will speed up the process and allow you to keep key pieces of information close at hand.

~Cheers!

Educated Grant Seekers Have the Advantage

As the calendar year comes to an end, development professionals and grant writers are busy compiling reports for funders.  It is also an ideal time to start stewarding your grant makers and educating yourself about what matters to them.

Since 2008, the the nonprofit field has seen an enormous shift in grant making. Corporate giving has transformed the way we think about donor engagement and they way we need to think about long-term partnerships with funders. Grant makers want more than just a few pages telling them where their money might go...they want to see it themselves.

Proposals can no longer be hastily written and submitted to a foundation because you had lunch with a program officer---several months ago. Personal relationships are not a free pass for not following the rules and honoring your obligation as a grant seeker. Grant writers need to be diligent about doing their homework and educating their development team. Is the foundation accepting unsolicited proposals? What other programs do they fund? Would they be a good partner for our organization?

Foundations want to have real connection with the organizations and programs where they are investing their money. Don’t assume you have a real connection when you don’t.  Don’t force one just because you think you can squeeze a few pennies from the funding tree. 

As we begin submitting proposals for 2011, it will be necessary to spend quality time stewarding your funders by including them on mailing lists, inviting them to events and providing them with timely reports. Knowing what the donors need to know in order to choose you over your competition can only be discovered through good research.  An educated grant seeker will always have the advantage over the uneducated ones.

For more great tips for grant writing in 2011, check out The Foundation Center's Guide to Proposal Writing, 5th Edition., where Jane C. Gleever shares key information and a realistic view of what grant makers are really looking for when they fund projects and programs. A must read for 2011 success!

~Cheers!

Proposal Rejection: "We Wish You Luck...

A letter from a funder with the words: "We regret to inform you..." OR "We had many worthy requests, but did not have the funds to help everyone..." OR "We wish you luck in your future fundraising endeavors...", can feel like a knife in the heart. There is no worse feeling for a grant writer than working long hours with program managers to write a compelling case with solid measureables and then have it rejected in a five-line letter. Ouch.

It hurts and it's a rough scratch across your ego, but it doesn't spell complete disaster when you have a rejection letter fall on your desk. Well, it shouldn't spell D-I-S-A-S-T-E-R, if you have a plan for action. If the funder does have likeminded interests, don't give up and don't let them forget about you.

1. Have an upbeat, grateful and well-written thank you letter ready for your rejections. There is nothing more gracious than for a denied grant seeker to say "thank you".

2. Put the funder on your calendar for the following year.

3. If you have a relationship with the funder, ask for the chance to further discuss your denial whether via phone or email. Program officers WANT to find good organizations to partner with, but don't always have the time to learn about them in a meaningful way.

4. Share your feedback with your own program managers and leadership. A quick update through email or in a staff meeting can be appropriate. Don't let program managers feel like their hard work on the grant (on top of their "real" job) wasn't worth it---keep them motivated to try again!

5. Invite your funder for a site visit. This can be informal through an event or a regular tour that you already offer. However, rolling out a little red carpet for a private visit might be a better fit for funders who need one-on-one time. Know what makes your funder happy!

The bottom line is that there is no need to tuck your tail between your legs if you have a good funding fit. We are working in a challenging and ever-changing landscape of grantmaking. Being creative with your stewardship shouldn't be overlooked.

Try incorporating this type of action plan into your 2010 grant process and see what results you get! If you keep up with your relationship-building when times are tough, you'll be better prepared when the economy turns around!

~Cheers!

Keys for Successful Grant Research

Planning for 2010 requires researching new funders to add to your submission list. Listed below are 10 elements of grant research that will guide you towards maintaining a strong research process. These are also useful parameters for overall donor research.

1. Identify prospects including your own donors. Research their background and history and find appropriate ways to approach them.

2. Resources are available and need to be read under the fundraising lens. Press releases, annual reports, directories, internet searches, files and fundraising databases are some examples.

3. Manage and update your information on a regular basis. You want to be able to identify links between donors, organizations and giving history.

4. Database. You should a have a solid, reliable database that can be used for research and analysis of giving and soliciting. It can be a spreadsheet to begin...anything that captures your data.

5. Find prospects through your own "6 Degrees of Separation". Each donor can open up new avenues and ways to turn prospects into donors

6. New prospects can be found through your research to find new groups or funders who are aligned with your organization's interests.

7. Match prospect interests with your own and your work. Do not force the fit. Do your research.

8. Personal intelligence gathering and experience to confirm your research, find out new details, names and other bits of information, but beware of GOSSIP! Don't assume anything.

9. Approach strategies define preliminary approach plans, revise your angles for asking and always look for the best 'ask' based upon your research.

10. Supporting donor development by growing relationships and through support of your own donors. This includes capturing information about how they like to be approached, how to keep them informed and how you can improve the relationship in the future.

Adapted from: "Prospecting Strategies for Online Research" JMG Solutions, Inc.

~Cheers!

Basic Steps to Grant Writing

The Association of Fundraising Professionals (AFP) offers a library of resources for all types of development professionals, including grant writers. Below is an excerpt from one of their fact sections about basic grant writing. I hope this is a helpful piece to add to your own writing library. Enjoy!

What are the basic steps to grantwriting?
1. Determine that you have a need.

2. Suggest a solution through planning, research, and experience.

3. Determine whether the grantmakers' goals will help you achieve your objectives, while matching your purposes.

4. Target your proposal to grantmakers appropriate to your field.

5. Present your proposal.

What are the components of a grant proposal?
1. Every grantmaker has different guidelines, priorities, deadlines and timetables for their organizations. Some accept a Common Application Form (CAF), a single proposal accepted by a number of grantmakers to help grantseekers save time and streamline the grant application process.

2. Always follow the exact specifications of the grantmakers in their grant applications, Requests for Proposals (RFPs) and guidelines.

3. Present your full proposal neatly, professionally, and in an organized package.

4. Type and single-space all proposals.

5. Write, organize and present your proposal in the order listed in the application and guidelines.

6. Only include the information and materials specifically requested by the grantmaker.

7. The proposal is judged on content and presentation, not weight.

8. Unless required, do not include an index or table of contents, or bind the proposal, and be sure to sign it and submit the number of copies requested by the grantmaker.

How do I find someone to submit my grant proposal to?
Research is the key to finding a compatible grantmaker. While there may be many grantmakers that match your organization's interests, locating the handful that will be most swayed by your proposal is important. Various methods of locating grantmakers include:

1. Web searches. Many organizations have websites devoted to their philanthropic interests. Find one that coincides with your goals.

2. Philanthropic publications. Many publications and periodicals publish reports of grants coming from different organizations.

3. News reports. Often an organization or individual will publicize their grant program for specific purposes. This is often useful for locating grantmakers in the local area.

4. Direct contact. It is beneficial to specifically tailor your grant request to the organization you are submitting it to. Knowing the details of the organization's philosophy and mission is an invaluable tool to beginning a grant relationship.

Find more information by visiting AFP Online's Resource Center!

~Cheers!

Grantwriting Tip: Cast Your Agency as a Hero, Not a Superhero

More accolades for Cheryl A. Clarke today! This is a great excerpt from her book, Storytelling for Grantseekers. I am skimming the pages again to inspire me to write a multi-layered grant request for a rare form of pediatric cancer. The book is candid, funny and energizes my creativity even when tackling a tough subject matter. Enjoy!

"When writing the goals and objectives section of a foundation grant proposal, grant seekers are like sci-fi writers. They envision the future. Of course, there is one critical difference: whereas sci-fi writers generally present fantasy, grant seekers discuss what is realistic and feasible.

To understand this concept, it may help to think in visual terms. Take a mental snapshot of the community where your nonprofit agency does its work today, at this very moment. What is the problem of unmet need that your agency addresses? Who are the people served by your agency? What more could your agency do if it had additional funds?

Now imagine taking a second mental photograph of the same community at the end of the projected grant period. Compare it with the earlier snapshot. What’s different? How has the need been met? How have the clients been served? Most important, how have the lives of your agency’s clients been positively changed? You should “see” a noticeable difference between these two mental snapshots.

How the community and your story’s main characters (your agency’s clients) will have changed is portrayed in the goals and objectives section of a grant proposal. The challenge in writing this portion of the proposal story is to vividly and accurately describe to the reader what can be seen in the two mental photographs just mentioned. The change that occurs helps resolve the conflict (the problem or need).

Readers appreciate a story that has a believable, satisfying resolution. Program officers and others reviewing grant proposals do too. The validity of your request for grant funding hinges on whether the resolution of the conflict rings true. If it doesn’t, no matter how well the story is written or told, it falls flat and short of the mark."

Want to know how to be a hero? Click here.

Thanks, Cheryl A. Clarke!

~Cheers!

50 Tips for Improving Your Chances of Winning a Grant

From "The Only Grant-Writing Book You'll Ever Need", Ellen Karsh and Arlen Sue Fox provide a solid list of not ten, but 50 tips for improving your chances of winning a grant!! Take note, these are great tips that we often forget in the rush to complete a grant application on time. More details are found in "The Only Grant-Writing Book You'll Ever Need"  add this book to your library today!

1. Take stock of your own organization. Know what your organization can manage when it comes to grants and grant size.
   



2. Incorporate as a tax-exempt organization.
   


3. If you're not a 501 (c)(3), link up now!
   


4. Find the Foundation Center Library
   


5. Get online. Have a website, publish your annual report and financials, and tell people who you are!
   


6. Find the right funding opportunity. Don't submit something that isn't a good fit. It's a waste of your time and the funder's.
   


7. Read the guidelines.
   


8. Do your homework. Study up on the foundation through their 990s, guidelines, past giving, etc.
   


9. Read the instructions. Don't skim or give half-answers to questions.
   


10. Get organized! Have documents ready to submit in a file system that works best for your organization.
    


11. Give yourself time to prepare.
    


12. Bring partners into the project development as early as possible.
    


13. Speak with the program officer.
    


14. Call for technical assistance during preparation of government proposal. Ask for help!
    


15. Don't use acronyms!
    


16. Watch your language. Be sensitive to other community groups, cultures, individuals or organizations.
    


17. Use the grantmaker's language. Incorporate their language from guidelines or website when it fits.
    


18. Repeat yourself when you have to. Don't go overboard, but emphasize your important points.
    


19. Give proposal reviewers a break! Don't write pages and pages of narrative. Make it interesting and include charts, graphs and quotes.
    


20. Create a checklist. This is important for attachments, budgets, financials, etc. that may come from several different people.
    


21. Be sure each section of the proposal is consistent with the others.
    


22. Use the application topics as headings in your proposal. This will make it easier to show the reader you are addressing their issues.
    


23. When designing your program objectives, be realistic.
    


24. Know how you will recognize success. Explain how you will know you reached your goals.
    


25. Read the instructions!
    


26. Get consulting for the evaluation section of the proposal. Involve them early to get feedback.
    


27. Make sure your budget is reasonable.
    


28. Computer your budget figures carefully.
    


29. Think about sustainability.
    


30. Include a timeline in your proposal.
    


31. Write your abstract or executive summary two days before you submit the proposal—no sooner, no later. By then you'll understand exactly what you are submitting.
    


32. Don't stuff the appendix. Be thoughtful on attachments. Don't send more than they ask for.
    


33. For a gov't. proposal, include a letter from your elected official. For a foundation proposal, don't.
    


34. When in doubt, ask the grantmaker questions before submitting.
    


35. Think about the final report. Can this be measured and implemented successfully.
    


36. Use spell-check and colleagues for proofreading help.
    


37. Use your own reviewers. Ask different people for help during different phases of the process.
    


38. Save your most trusted, courageous "reviewer" to read the final draft.
    


39. Get involved with advocacy groups.
    


40. Get on mailing lists. Make sure you know about available funding.
    


41. Clip magazine and newspaper articles.
    


42. Get to know your elected officials.
    


43. Don't ask gov't. or foundation program officers to change guidelines for you. (No comment on this one…!?!?)
    


44. Do discuss unmet needs and potential new funding directions.
    


45. If you don't get funded, go back to the proposal. If there are issues, ask to discuss it with the funder.
    


46. If you get turned down for funding, find out why and how you can do better next time. Politely.
    


47. Wait until next year.
    


48. Keep the funders informed.
    


49. Get on the funders' radar.
    


50. Read the instructions.

~Cheers!

Learning From Sample Proposals

Thinking that another, similar organization's proposal can be substituted for one of your own is a mistake. Grant proposals are unique and no two are alike. No two organizations are alike, foundation guidelines are not alike and thinking that your proposal could be a copy of something that has already been submitted is not the way to craft a winning grant.

We can learn a lot from reviewing proposals and reading samples of grant outlines. As writers our senses are altered when we edit work that is not our own. We notice the voice and flow of words that didn't come from our thoughts. We learn a what works and what definitely doesn't. Reviewing grants gives writers the chance to "beg, borrow and steal" good ideas to add their own toolbox.

Below are sample excerpts from two different proposals. Notice the different approaches to the question. Each was asked to answer: What are your long-term funding strategies?

A. ABC Organization's long-term funding strategies for sustaining this effort includes obtaining foundation and corporate grants, soliciting individual contributions and sponsors, in-kind gifts, and conducting a full-scale capital campaign.

B. Collaboration with other programs and agencies continues to be a key to sustainability. The sharing of resources and referrals to external programming allow us to ensure that resources are not duplicated, as well as pooling the knowledge gained to develop the most effective and most innovative education methods. Diversification of funding is also critical in program sustainability. Finally, sustainability will come in the form of an increased emphasis on volunteers. Properly used volunteers can have a tremendous impact on the ability of an agency to serve the community, and over the past three years XYZ Organization has increased its commitment to the use of volunteers in program delivery.

The first proposal was asking for $30,000 a year, for two years. The second, a $5,000 one-time grant.

If you were a grantmaker, which answer sparks your interest? Which answer gives you the information you need? (Remember, grantmakers review a lot of proposals and skim for the answers.) Which response gives you confidence in the grantees actions? Is their plan feasible or is it just fluff that answers the question without a lot of detail?

There is no possible way of knowing what the discussion sounded like when the grants were reviewed. Both answers addressed the question, but how well did they do it in context to their request? Being clear and concise is the best way to form your response.

I hope you learned something from reading these answers and could craft something even better for your own proposal!

~Cheers!

Hosting a Site Visit or Tour

Site visits by funders can be a vital part of securing the funding you requested and an important step in the proposal process. A visit can be scheduled before or after your request is formally submitted. You can also invite funders to your organization even if a site visit is not part of their traditional grant process.

When you bring grantmakers to your organization, the work that you do turns into something real and tangible. It makes the words in your proposal come to life.

Your site visit is like any other tour you would give. The preparation may vary slightly, but it's not rocket science. There is no need to over-complicate the tour because it is called a "site visit". If your site visit is required there may be specific guidelines set forth by the funder. Make sure you are aware of these requirements.

Prepare your team with:

• the background on the funder
• what/why you are seeking funding
• an organized tour route
• input from key volunteers or staff related to the project

Do not include people on your tour who don't have a direct link to your tour's purpose. Too many people can quickly overwhelm the situation.

It is incredibly important, especially in small organizations, to let staff know you are having visitors. Do not assume they will be okay with a surprise visits into their workspace. This can have a negative affect on morale when staff who hold your operations together aren't notified of important tours.

Keep remarks by executive directors and board leadership to a minimum. Let your funder ask the questions. Don't go to great lengths to prepare complicated PowerPoint presentations--this is rarely necessary.

Your experience should be "real" and it should reflect your organization. Don't overhaul your workspace or tell staff to dress in a way they normally wouldn't. Your site visit is about showing how you operate on a daily basis. Needless to say, tidying up and taking out the trash is probably a good idea.

After your site visit be sure to send a thank you letter signed by leaders who were part of the visit. This process is no different than after a meeting. Sharing your thoughts on what went well and expressing words of thanks can go a long way!

~Cheers!

Donor-Directed vs. Donor-Advised Funds

Although it may fall outside of the "grant savvy" library, the question has come up about the difference between a donor-directed and donor-advised fund AND how we, as grant seekers, can find opportunities with these funds.

A donor-advised fund is just that. A fund set up, usually with a community foundation, by a donor. The fund has a specific purpose or focus such as "at-risk youth", "homelessness" or "education"--something of importance to the donor.

The donor-advised fund is typically the easiest, most flexible avenue for creating a large giving entity. Donors to these funds provide suggestions on which causes their money should support.

In the case of a donor-directed (or donor-designated) fund it is set up similarly, but the donor is specific about which organizations or groups will receive funding.

How does this affect grant seekers?

It is important to know about and be involved with local community foundations that mange these donor funds. Good relationships go a long way when tapping these opportunities.

While donor-directed or advised funds are usually closed to applications and even note: "does not accept unsolicited proposals", it doesn't mean you shouldn't look for ways to inform the community foundation advisors about the work you do.

A great example of this happened last year with an organization that I was working with. The organization received a call from a trustee/financial advisor of a local community foundation. She had attended a roundtable discussion focused on the interests of her donor where one of the organization's program managers gave a presentation.

The financial advisor took what she learned about the program and shared it with her donor, who held a donor-advised fund with the community foundation. She recommended they make a gift to this valuable program. The donor agreed. A few weeks later, the organization received a substantial, unsolicited gift. They have been told that a gift will probably arrive in 2009 as well.

There isn't a formal method for seeking support from these types of funds, but it is possible. It is the job of the community foundation to match their donor's interests with an appropriate project, program and/or organization.

It is not a typical grant seeking method, but after some relationship building, it can evolve. Donor-advised funds may ask you to provide reports or "apply" annually to receive funding. Be prepared and don't let this opportunity slip past your radar. Patience is key.

~Cheers!

Making Your Grant Proposal Tell a Story

Telling a compelling story in a proposal can sometimes be the difference between finding the funding you need and opening a rejection letter.

Anecdotes bring the reader into your story, your organization and your need. Depending on your subject matter, this can be a valuable tool for illustrating your need for support.

National funders with strict funding guidelines might not leave room for this type of narrative, but small family foundations or those who follow a common grant outline usually do. Likewise, larger funders usually give to those who meet their funding goals--regardless of a touching narrative about someone who has been helped your organization. In her book, Storytelling for Grantseekers, Cheryl Clarke calls this "giving from the heart" and "giving from the head".

Stories can take an abstract idea or problem and make it personal. Just as you would share a story at a dinner party, with a neighbor or with a business associate, when people can relate they can better understand your situation.

Don't forget to find ways to pull a reader into your organization outside of the statistics and boilerplate answers. Stories of those who have benefited from your organization or group show impact. They make your work real to the reader.

So, what happens when it's time to write a grant and you don't have any stories off the top of your head? Only let this happen once and you'll learn. Work with your communications/public relations/marketing department (or person!), to collect and file stories just for this purpose. They are wonderful examples of the good work you are doing and the responsibility to catalog them can be shared by communications and fundraising areas.

~Cheers

Sample Grant Proposal Rejection Letter

For those of you who have never had the good fortune of receiving a rejection letter, below are a few samples of the vague language that can be included. I hope this is useful to our Savvy readers!

The first letter is from a larger foundation that reorganized its funding structure and thus many good organizations were left off of this year's funding cycle.

The second letter came from a smaller foundation in another state that funds specific programs and requires the applicants specifically mention a geographic priority. You'll notice the many reasons given, but that the foundation also welcomes future applications and discussion.

SAMPLE 1

Dear ABC Organization,

Thank you for your recent application to the XYZ Foundation. The decision-making process was a difficult one, with many worthwhile organizations vying for a limited amount of grant dollars.

Unfortunately, your organization was not selected for funding at this time. It is our hope that you will be able to obtain financial support from other sources. We wish you success in your efforts.

Sincerely,

XYZ Foundation Executive Director

SAMPLE 2

Dear ABC Organization,

Thank you for your most recent request for financial assistance. Unfortunately, we are unable to entertain your grant for this fiscal year.

In some cases, we do not approve a grant because the request does not specifically confine itself to [our program interests]. In others, it is because the request concerns salaries, professional fees, general operating expenses or building programs. Sometimes, we are unable to approve a request due to incomplete documentation. Unfortunately, in some cases, there simply are not sufficient assets from which to fund all worthy requests.

We invite you to submit a new request for assistance to us in the future. Please do not hesitate to contact me directly should you need further assistance with this matter.

Respectfully,

XYZ Foundation Board Chair

~Cheers!

Grant Savvy Books: Grant Writing: Strategies for Developing Winning Government Proposals

Grant Writing: Strategies for Developing

Winning Government Proposals
By Patrick W. Miller

There is no doubt that writing a government proposal takes a different approach than one to a family foundation. A skilled grant writer may struggle when first making the transition from traditional program proposals to government ones. I know this from personal experience.

It is the best of grant writers who can transition effortlessly between the two types of proposal writing. Practice makes perfect.

In Grant Writing: Strategies for Developing Winning Government Proposals, the author discusses in detail the RFP process and creating a budget for government funders. The book includes charts, exercises and planning tools for post submission processes. Revised in September 2008, this new edition includes the most updated information.

Patrick W. Miller and Associates is a Chicago-area business dedicated to providing textbooks and customized workshops and seminars for individuals or organizations interested in grant writing, academic assessment and evaluation, academic writing, research methods, and body language.

Courtesy of Patrick W. Miller and www.pwmilleronline.com.

~Cheers!

Where Does Grant Funding Go?

In a time when we are all competing for dollars that come from a smaller pot, a rejection letter or drop in funding amount is inevitable this year. However, as I have noted previously, foundations are still giving.

Where does the money go?

The easy way to figure this out is to look back at a funders 990s or grants award list, but what about the big bucks?

The Foundation Center does a stellar job of compiling statistics about which organizations receive the most funding. You can look up who received the most funding in your metro area, your state and the trends in subject area for at least the past five years.

Here is a sample listing of the Top 50 Recipients of Foundation Grants in the State of Indiana, circa 2007. Data is available for all fifty states and the District of Columbia.

This is a valuable tool for consultants who work across multiple states and for determining trends in regional giving. There is a wealth of information in the statistics area of their Find Funders section. Check it out!

~Cheers!

Creating a Proposal Budget: Part 3

How Much Should I Ask For?

Through experience I have learned that the budget is one of the first things that a funder reads, regardless of it's location in the proposal packet. They like to see a where you are taking them.

Knowing how much to ask for in a proposal has a fairly common-sense answer, but the actual "asking" part requires some finesse.

It's hopefully obvious that when you underestimate your costs, you increase your chance for failure. Likewise, when you overestimate your costs, you decrease your chance of building a dependable reputation with your funder.

So, how much should you ask for? A whole project's worth of funding? Or just a piece of the pie? Well, it depends. (classic fundraising mantra...ohmmm) It's about finding your fit.

• Does your funder like being the only supporter?
• Do they like to have reign over possible naming opportunities?
• Do they want to anchor your partnership?
• Has your potential funder taken on entire projects with other organizations?
• Can you provide your potential funder an opportunity to make a multi-year pledge to fulfill a larger gift?

If the answer is "yes", then you can probably be safe approaching them for full funding. Keep in mind, you need to stay in their giving guidelines and have a solid plan for sustainability after a few years of their support. Don't be foolish to ask for $150,000 when their largest gift in the last five years was $15,000. Remember to do your research.

On the flip side, it is more common to find funders who want to be part of your project, but shy away from being the only major funder. It's less risky to know that a particular foundation won't break your project if they cannot come through with funding.

• Has your potential funder noted that they like collaboration?
• Can you make your potential funder a partner in project development?
• Can you connect your potential funder with others who are supporting you?
• Can you find a way to leverage funding from a company's foundation and corporate marketing budget?

Nine times out of ten, I have a question on the grant proposal that asks if and who is also funding the proposed project. Below is an example taken directly from the Minnesota Common Grant:

Additional funders. List names of corporations and foundations from which you are requesting funds, with dollar amounts, indicating which sources are committed or pending.

Be reasonable in your request. Decide what you need to fund and what can be funded elsewhere. Respect the mission of the foundation/funder and don't take advantage of their ability to fund you. Funders are smart folks, they know how the game is played.

As noted in "The Only Grant Writing Book You'll Ever Need", "...they are looking for a budget that's not too high, not too low, but just right." Goldilocks knows her stuff!

~Cheers

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

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!