Courtesy: The Chronicle of Philanthropy
~ Cheers!
Tuesday, April 28, 2009
Wednesday, April 22, 2009
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!
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!
Thursday, April 16, 2009
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!
~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
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
Wednesday, April 15, 2009
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!
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!
Thursday, April 9, 2009
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!
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!
Wednesday, April 8, 2009
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!
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!
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