1. AFP-GLAC Regional Philanthropy Conference
The Challenge of Raising Money
Understanding what foundations want
September 10, 2015
Cristina Gallegos, Vice President
JMC Philanthropic Advisors

2. In a nutshell?
FOUNDATIONS ARE INVESTORS
(social investors)
JMC/CGallegos/ September 2015

3. Create excitement by
1. Differentiating your “HOW” from your “WHAT”
2. Rethinking your philosophical approach to proposal
submission
3. Asking effectively
4. Understanding what turns funders “on”/“off”
5. Shifting your paradigm - remove the scarcity model
from your organization’s approach to fundraising
JMC/CGallegos/ September 2015

4. Foundations want to…
 Have a clear understanding of what you do and how
you do it
 Be proud of their investment in your services, your
programs, your outcomes because you are meeting a
current community need
 Be inspired by the potential of your impact, your team
and your vision
 Feel an authentic connection with your agency’s work
and staff
JMC/CGallegos/ September 2015

5. To create a clear understanding, present
yourself effectively!
THINGS TO MENTION:
 Vision/ultimate goal
 Stories, examples
 Words your audience
already uses (when possible)
 Words your Grandmother
would understand
THINGS TO AVOID:
 Jargon
 Stuff that people can go to
your website for
 Lots of stats
 An exposé of the need you
are addressing
 Information overload
JMC/CGallegos/ September 2015
Create your
Elevator Pitch
(it should be brief
enough for an actual
elevator ride)
Articulate
your impact
(10 words or
less)
Have a
Soundbite

6. #1: Your HOW* is not your WHAT!
 Example of talking about your “HOW”: using
words like “mentorship program”, “tutoring”, “case-management”,
“research”, “outreach”, “public policy”, etc.
 Example of talking about your “WHAT”:
saying things like “lift people out of poverty”, “create career
trajectories”, “enhance the health of families”, etc.
* While you should always talk about the HOW later, try to engage people with the WHAT first.
JMC/CGallegos/ September 2015
This is what
funders are
excited to
fund!

7. #2 Rethinking your proposal submissions
 Don’t just focus on a proposal – while it needs to be the best it could be, it is the easiest
part of the process.
 Be genuine – real connection > engagement > relationship > funding. Be SPECIFIC and brief –
talk about what you want to do and HOW.
 Keep in mind that program officers are people too. Help them help you.
 Pursue $$ only for what you are chomping at the bit to do - Don’t guess what the funder
wants. Don’t build new things because money is on the table.
 Every agency has issues – highlight your agency’s plan to solve them and focus on solutions.
 Keep polishing your budgets – paint a clear picture of your agency’s financials. Don’t put
this on your CPA. Leadership, program team and the financial team should work together to
create a picture that serves you best.
 Approach only a few new funders at any given time - and focus on building a lasting, high
quality relationship through effective and thoughtful communication.
JMC/CGallegos/ September 2015

8. #3 Asking effectively
 Speak the language of business; be polished and uber-professional.
 Follow directions.
 Make sure people can differentiate your voice from the crowd. What is distinctive about your message?
 Give funders what they want: a strong “stock” in a social investment portfolio. Show that their dollar
will yield a strong return; and do it genuinely.
 Only pursue people you actually WANT to partner with. Not all business is good business – in philanthropy
or otherwise.
 Learn from agencies that had mega-capital campaigns, are new to the city, employ a multi-prong
approach, or have relatively small budgets while operating in challenging environments.
 Look for non-profits who needed to deal with seemingly insurmountable circumstances and see what
they did to survive and thrive.
 Use what fits YOUR agency best, from Kickstarter campaigns to galas. Keep in mind that large events use
intensive staff time and resources – to make it worthwile, build follow-up into your event.
JMC/CGallegos/ August 2015

9. #4 Understanding what turns funders “on”/”off”
 Things that turn funders off: Lack of follow-through. Lack of results after a
reasonable amount of time. Slapdash materials (LOIs, proposals, lengthy non-
sense, etc.) Lack of homework. Data overload. Social squeeze. Grandiose
statements. Desperation. Arrogance and/or aggression with a smile. Lack of
understanding of how grantmaking works. Discounting staff just because there is
a trustee/board relationship. Boilerplate/impersonal approaches.
 Things that do not turn (most) funders off: Honesty. Reasonable budget deficits
that have a correction plan. Being a small/new agency. Being a “competitor” to
an existing grantee. Large requests. Very specific requests. General operating
requests. Ernest appeals for help. Asking a lot of thoughtful, relevant questions.
Informal updates. Being forthright about what you know and don’t know.
JMC/CGallegos/ September 2015

10. #5 Shifting your paradigm
 The easiest funds to raise, are the funds you don’t have to raise. Look for partners that can, with their own resources,
do the work you are trying to fund. Who needs an image boost, the stats you have or the people you are serving? Look for
non-profit (or for-profit) collaborators and create a mutually beneficial, joint objective.
 Capitalize on what is already there – How can you leverage the funders you already have, the work your staff is already
doing, other efforts in the community, grants given to similar organizations? Etc.
 Trying to get new funders? Follow the money trail – look at 990’s, look at who gets funded by whom, who sponsors what,
existing collaboratives and partnerships.
 Are there agencies like you out there? They are educating funders so you don’t have to. Ride their coattails while
helping funders strengthen their social portfolio.
 Build your own army. Who might yearn for a new mission? Who might benefit from renewed purpose and meaning in
their lives? Look at veterans, youth, seniors, etc. Enlist them to do your fundraising, outreach and advocacy (for free as
volunteers).
 Tap into the 95% - most funders only give away 5% each year. When you hear “we have no grantmaking budget left this
cycle” – that’s your cue to explore if you are willing to look at capital in a creative way. Get educated about Program
Related Investments, impact investing, loans, etc.
 Convene small groups of funders – not for an ask, but to update, learn from them, get their input on specific difficulties
your might be facing, etc.
JMC/CGallegos/ September 2015

11. Summary
Q & A
JMC/CGallegos/ September 2015

12. Contact
information
Cristina Gallegos
JMC Philanthropic Advisors
2444 Wilshire Blvd., Suite 622
Santa Monica, CA 90403
Phone: (310) 829 4771
cgallegos@janisminton.com
@CristinaIngerG
www.JMCPhilanthropicAdvisors.com
12
Cristina blends a strong business background focused
on strategy and economics with a commitment to
community issues.
With 16 years of experience funding social change,
Cristina believes that impact can often be achieved by
combining lean thinking with traditional approaches
and solid due diligence.
Cristina currently serves as JMC Philanthropic
Advisors’ VP, providing long-term management and
advisory services for family foundations.
Responsible for a wide range of business operations
and programmatic activities, she oversees the grant
process for several foundations, individual
philanthropists and Next Gen family groups.
JMC/CGallegos/ September 2015