The State of Grantseeking and Its Implications for Grant Professionals

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PhilanTech presentation at Mid-Atlantic Grant Professionals Conference in May 2012

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The State of Grantseeking and Its Implications for Grant Professionals

  1. 1. The State of Grantseeking and Its Implications for Grant ProfessionalsMid-Atlantic Grants ConferenceMay 21, 2012Dahna Goldstein
  2. 2. http://www.flickr.com/photos/oxygeon/238163317
  3. 3. The State of the Nonprofit SectorNonprofit Research Collaborative Late Fall 2011 Nonprofit Fundraising Survey
  4. 4. Overall giving is increasing slightlyBlackbaud Index, May 2012
  5. 5. A majority of nonprofits reported increased donationsNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  6. 6. Which is an improvement over last yearNonprofit Research Collaborative Late Fall 2011 Nonprofit Fundraising Survey
  7. 7. Overall, changes in charitable receipts are trending in the right directionNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  8. 8. Organizations’ overall fundraising success varied by sizeNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  9. 9. …and by issue areaNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  10. 10. Nonprofits are feeling optimisticNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  11. 11. But they have felt optimistic beforeNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  12. 12. More nonprofits met their fundraising goals in 2011Nonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  13. 13. And grants were an important factorNonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey
  14. 14. Grants are over 25% of funding for half of all nonprofitsState of Grantseeking Spring 2012, GrantStation and PhilanTech
  15. 15. Mid-sized organizations rely most heavily on grants as funding source Medium Small Organizations Organizations Large Organizations % of Budget All Organizations <$100,000 $100,000 - >$1,000,000 $999,999 Under 10% 35% 47% 23% 42% 11 - 25% 22% 18% 24% 23% 26 - 50% 16% 10% 20% 15% 51 - 75% 12% 7% 16% 10% over 75% 15% 18% 17% 11%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  16. 16. State of Grantseeking for Nonprofits• 81% of respondents applied for more (46%) or the same number (35%) of grants ▫ Previous survey: more (45%), same (33%)• 69% of respondents received the same number (38%) or more (31%) grants ▫ Previous survey: same (37%), more (26%)• 64% of respondents received the same size (41%) or larger (23%) grants ▫ Previous survey: same (38%), larger (25%)
  17. 17. Government funding has decreasedNonprofit Collaborative Late Fall 2011 Nonprofit Fundraising Survey
  18. 18. Total foundation giving is stabilizingFoundation Center, Foundation Growth and Giving Estimates 2011
  19. 19. But funding priorities have changed• “With government pulling out of ‘safety net’ funding, we are finding that foundations are moving away from support for the arts to fill the gap in needed social services.”• “It seems that grant funding is becoming much harder to get, more specific to apply for and fewer and farther between. It also seems as if the things that we need most are things that are least likely to have a grant available to supply.”
  20. 20. While foundations may be giving moregrants, multi-year support is decreasing
  21. 21. Private foundation grants remain the most frequent funding sourceState of Grantseeking Spring 2012, GrantStation and PhilanTech
  22. 22. Organizations of all sizes rely heavily on private foundation grants All Small Medium Large Source Organizations Organizations Organizations Organizations Private Foundation Grants 72.0% 49.0% 77.0% 81.0% Community Foundation Grants 58.0% 39.0% 58.0% 68.0% Corporate Grants 54.0% 32.0% 53.0% 68.0% Corporate Gifts 35.0% 18.0% 32.0% 47.0% Federal Grants 43.0% 13.0% 36.0% 67.0% State Grants 48.0% 26.0% 43.0% 66.0% Local Government Grants 38.0% 22.0% 37.0% 48.0% Other Grant Sources 13.0% 22.0% 13.0% 9.0%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  23. 23. Private foundation grants were also the largest single source of total grant fundingState of Grantseeking Spring 2012, GrantStation and PhilanTech
  24. 24. The largest source of total grant funding varies by organization size All Small Medium Large Largest Funding Source Organizations Organizations Organizations Organizations Private Foundation Grants 27.0% 25.0% 34.0% 21.0% Community Foundation Grants 9.0% 14.0% 10.0% 5.0% Corporate Grants 9.0% 15.0% 10.0% 3.0% Federal Grants 24.0% 5.0% 16.0% 42.0% State Grants 15.0% 14.0% 13.0% 19.0% Local Government Grants 7.0% 7.0% 9.0% 5.0% Other Grant Sources 10.0% 20.0% 9.0% 4.0%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  25. 25. Private foundations were also the source of the largest grantState of Grantseeking Spring 2012, GrantStation and PhilanTech
  26. 26. Nonprofits continue to submit many requests to grantorsState of Grantseeking Spring 2012, GrantStation and PhilanTech
  27. 27. …and continue to get grant awardsState of Grantseeking Spring 2012, GrantStation and PhilanTech
  28. 28. Organizations rely on different people to engage in grantseeking activitiesState of Grantseeking Spring 2012, GrantStation and PhilanTech
  29. 29. …to varying degrees of success # of # of Grants Awarded Proposals Submitted 0 1 2 3-5 6-10 11-20 21-30 31+ Some 0 74 8 1 1 0 0 0 0 2 1 24 19 2 0 0 0 0 0 0 2 18 35 25 2 1 0 0 0 3 3-5 34 43 78 77 5 0 0 0 7 6-10 6 13 19 63 21 1 0 0 6 11-20 1 1 2 28 44 19 0 0 5 21 - 30 0 0 0 4 6 23 5 1 1 31 + 0 1 0 1 5 13 7 9 3State of Grantseeking Spring 2012, GrantStation and PhilanTech
  30. 30. Most organizations get grants under $100,000 All Small Medium Large Largest Award July – December 2011 Organizations Organizations Organizations Organizations $1 to $10,000 24% 59% 25% 10% $10,001 to $50,000 28% 28% 36% 19% $50,001 to $100,000 13% 4% 18% 11% $100,001 to $500,000 22% 9% 18% 32% $500,001 to $1,000,000 5% 0% 1% 11% Over $1,000,000 8% 0% 3% 16%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  31. 31. Grant award sizes stayed the same or increasedState of Grantseeking Spring 2012, GrantStation and PhilanTech
  32. 32. …but that hasn’t been consistent Largest Grants Amount Fall 2011 Spring 2011 Fall 2010 Spring 2010 Highest $ $30,000,000 $26,000,000 $100,000,000 $57,000,000 Median $ $45,000 $39,000 $65,000 $50,000 Average $ $462,539 $312,000 $775,600 $611,500 Smallest Grants Amount Fall 2011 Spring 2011 Fall 2010 Spring 2010 Lowest $ $25 $1 $100 $10 Highest $ $525,000 $500,000 $600,000 $500,000 Median $ $1,000 $1,500 $1,500 $2,000 Average $ $6,966 $8,200 $10,468 $7,310State of Grantseeking Spring 2012, GrantStation and PhilanTech
  33. 33. Nonprofits submitted the same number or more grant requestsState of Grantseeking Spring 2012, GrantStation and PhilanTech
  34. 34. Which resulted in increased numbers of grants for 31%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  35. 35. Changes in numbers of grants varied by issue area Same More grants Fewer grants number of grants ARTS, CULTURE, HUMANITIES 33.33% 25.81% 40.86% EDUCATION 31.93% 26.89% 41.18% ENVIRONMENT 36.00% 36.00% 28.00% HEALTH CARE 34.92% 25.40% 39.68% HUMAN SERVICES 32.14% 26.79% 41.07% INTERNATIONAL 25.00% 25.00% 50.00% PUBLIC, SOCIETAL BENEFIT 28.57% 21.43% 50.00% RELIGION-RELATED 0.00% 33.33% 66.67%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  36. 36. Nonprofits face both internal and external grantseeking challengesState of Grantseeking Spring 2012, GrantStation and PhilanTech
  37. 37. Smaller organizations struggle more with the mechanics; larger organizations struggle more with the macro issues All Small Medium Large Grantseekings Greatest Challenge in 2012 Organizations Organizations Organizations Organizations Competition 6.0% 4.0% 5.0% 8.0% Reduced funding 12.0% 6.0% 11.0% 17.0% Economic conditions 11.0% 5.0% 11.0% 14.0% Funder practices and requirements 6.0% 5.0% 7.0% 6.0% Internal organizational issues 4.0% 0.0% 3.0% 7.0% Lack of time and/or staff 23.0% 26.0% 26.0% 19.0% My organization needs a grantwriter 7.0% 14.0% 6.0% 3.0% Relationship building with funders 7.0% 9.0% 7.0% 7.0% Research, finding grants for my organization’s mission 16.0% 21.0% 16.0% 13.0% Writing grants 4.0% 8.0% 2.0% 2.0% Other 4.0% 3.0% 4.0% 4.0%State of Grantseeking Spring 2012, GrantStation and PhilanTech
  38. 38. Project Streamline, addressed tofunders, identified challenges• Enormous variability• Requirements that aren’t “right sized”• Insufficient net grants• Outsourced burdens• Trust undermined• Reports on a shelf• Fundraising gymnastics• Due diligence redundancy• Double edged swords• Time drain for grantmakers, too
  39. 39. In the words of grantseekers…• We have lost key staff, whose positions have been unfilled for months. We have never been able to devote a staff position to grant writing. We apply mainly for the same local grant opportunities on a regular basis instead of broadening our opportunities.• With the funding reductions we have experienced a reduction in staffing. This means fewer hours to spend on grant writing, research, etc.
  40. 40. In the words of more grantseekers…• Federal and state funds cut by amounts that would mean doubling all other sources just to remain even.• We just dont have the staff that has the experience in writing grants nor the time to conduct the needed research.
  41. 41. In the words of yet more grantseekers…• It seems that grant funding is becoming much harder to get, more specific to apply for and fewer and farther between. It also seems as if the things that we need most are things that are least likely to have a grant available to supply.• Due to the downfall of the economy, my organization reduced staff positions by merging staff responsibilities into multiple tasks. We lost our development director/grant writer that is one of the most critical positions for a nonprofit.
  42. 42. Implications for grant professionals• Recovery is still on the horizon, not yet present• Don’t assume that this year’s funder will be next year’s funder• Impact of government funding reductions isn’t over• Diversify• Grant trends can inform strategy and prospecting
  43. 43. Focus• On net positive grants• On developing and cultivating relationships• On high ROI prospects – and issues that matter to them
  44. 44. There is an increased need for grantprofessionals• Challenges of time, not having grantwriter on staff ▫ “We just dont have the staff that has the experience in writing grants nor the time to conduct the needed research.” ▫ “The organization does not have a professional grant- writing professional. Each individual program director must research and write their own grant proposals, taking valuable time away from direct program administration and development.”• Opportunity for consultants ▫ Expertise + time = ROI
  45. 45. …but corresponding stress on ability topay• New hires are not in the cards for many nonprofits• Many don’t have the cash flow to pay consultants
  46. 46. Nonprofits remain optimistic about the next six monthsState of Grantseeking Spring 2012, GrantStation and PhilanTech
  47. 47. A bit about PhilanTech
  48. 48. Questions?Dahna Goldsteindahna@philantech.com

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