Introduction to Fundraising and Grants

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Introduction to Fundraising and Grants

  1. 1. Grants 101 Introduction to Fund Raising and Grants
  2. 2. Part I Overview of the Non-Profit Sector
  3. 3. Facts about the Non Profit Sector <ul><li>Approx. 1.4 million NPs in the US </li></ul><ul><li>$1.6 trillion in revenue yearly </li></ul><ul><li>5% of GDP, 8% of wages/salaries, 10% of all employment in US </li></ul><ul><li>About 26% of all Americans volunteer </li></ul><ul><li>(Source: Non Profit Almanac 2008) </li></ul>
  4. 4. Giving to NP’s in 2009 <ul><li>Total Giving in 2009 $303.75B </li></ul><ul><li>Giving By Source: </li></ul><ul><ul><li>Individuals: $227B 75% </li></ul></ul><ul><ul><li>Foundations: $38B 13% </li></ul></ul><ul><ul><li>Corporations: $14B 5% </li></ul></ul><ul><ul><li>Bequests: $24B 8% </li></ul></ul><ul><ul><li>Source: GivingUSA Foundation </li></ul></ul>
  5. 5. Giving in 2009 by Recipient <ul><li>Religion $100B 33% </li></ul><ul><li>Education $40B 13% </li></ul><ul><li>Foundations $31B 10% </li></ul><ul><li>Human Services $27B 9% </li></ul><ul><li>Public-Society Benefit $22B 8% </li></ul><ul><li>Health $22B 7% </li></ul><ul><li>Arts/Culture $12B 4% </li></ul><ul><li>International $9B 3% </li></ul><ul><li>Environment/Animals $6B 2% </li></ul>
  6. 6. Tax Exempt vs. Tax Deductible <ul><li>All NPs are tax-exempt - No taxes on revenue or assets </li></ul><ul><li>Gifts to certain NPs are tax deductible for the giver </li></ul><ul><li>Only gifts to 501c3 NPs are tax deductible </li></ul><ul><li>Gifts to other types of NPs are not tax-deductible </li></ul>
  7. 7. Sources of Income for NPs <ul><li>Individuals </li></ul><ul><li>Foundations </li></ul><ul><li>Corporations </li></ul><ul><li>Government contracts/grants </li></ul><ul><li>In-kind gifts </li></ul><ul><li>Fees </li></ul>
  8. 8. Individual Gifts <ul><li>Events </li></ul><ul><li>Annual gifts </li></ul><ul><li>Membership </li></ul><ul><li>Major gifts </li></ul><ul><li>Planned gifts </li></ul>
  9. 9. Corporate Support <ul><li>Grants from corporate foundations </li></ul><ul><li>Example: Verizon Foundation </li></ul><ul><li>Gifts/Donations from company </li></ul><ul><li>Example: Sunoco Corporate Giving </li></ul><ul><li>In-kind support </li></ul><ul><li>Sponsorship/marketing </li></ul>
  10. 10. Government Grants <ul><li>Actually opposite of philanthropy </li></ul><ul><li>Philanthropy means gift with nothing in return, no quid pro quo </li></ul><ul><li>Government contracts with businesses (FP and NP) to do work it wants done—essentially paying for a service </li></ul>
  11. 11. Fees/Revenue <ul><li>Myth that NPs can’t charge for services/can’t bring in own income </li></ul><ul><li>Fee for service </li></ul><ul><li>For profit subsidiaries </li></ul><ul><li>Related businesses—thrift stores, other businesses </li></ul>
  12. 12. In-Kind Support <ul><li>Gifts of items or time </li></ul><ul><li>Examples: food drives, toy collections, used computer equipment, etc. </li></ul>
  13. 13. Part II Preparing to Raise Money Through Grants
  14. 14. For Grants You Will Need: <ul><ul><li>clear organization mission </li></ul></ul><ul><ul><li>plan with organizational goals and objectives </li></ul></ul><ul><ul><li>budget development process </li></ul></ul><ul><ul><li>support of Board/Executive Leadership </li></ul></ul><ul><ul><li>fundraising plan </li></ul></ul><ul><ul><li>way to record/track your plans, work and results </li></ul></ul><ul><ul><li>support documents commonly requested by grantors </li></ul></ul>
  15. 15. Mission <ul><li>What is your mission statement? </li></ul><ul><li>One sentence to summarize what you do and why </li></ul><ul><li>“ elevator pitch” </li></ul>
  16. 16. Work Plan and Leadership Support <ul><li>What will your organization accomplish this year? Next year? </li></ul><ul><li>How will accomplish these things? </li></ul><ul><li>How are your organizational plans and budgets created? </li></ul><ul><li>Does leadership support these plans? How do you know? </li></ul><ul><li>Does leadership support grant fundraising? </li></ul><ul><li>Is leadership willing to commit time and resources to grant fundraising? </li></ul>
  17. 17. Fundraising Plans <ul><li>Create program plans </li></ul><ul><li>Develop budgets </li></ul><ul><li>Set fundraising goal </li></ul><ul><li>Involve all types of funding </li></ul><ul><li>Set goals for funding streams </li></ul><ul><li>Create action plans for each funding area </li></ul>
  18. 18. “ Ideal” FR Plan <ul><li>Goal of $100K </li></ul>
  19. 19. More Common Reality
  20. 20. Plans for Each Funding Stream <ul><li>How will you get $10K in individual gifts? </li></ul><ul><li>How will you get $20K in major gifts? </li></ul><ul><li>What events will you have to raise your $15K </li></ul><ul><li>How many grants will you write for your $55K in grant funding? </li></ul>
  21. 21. Tracking <ul><li>Records for internal and accounting purposes </li></ul><ul><li>Thank and communicate with grantors </li></ul><ul><li>Report and reconcile grants on time </li></ul><ul><li>Many options—spreadsheets, custom database, software </li></ul>
  22. 22. Documentation <ul><li>501c3 letter </li></ul><ul><li>990 tax returns </li></ul><ul><li>Audits for past 2 years </li></ul><ul><li>List of Board Members </li></ul><ul><li>Overall organization budget </li></ul><ul><li>List of largest funders/grants </li></ul>
  23. 23. Thank you! To learn more about the grant seeking process, view the next slidecast, “Elements of a Proposal”

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