Grantwriting for Credit Union Leagues

Grantwriting for Credit Union Leagues Megan E. McNally [email_address]

Workshop Overview
The Nonprofit & Funding Landscape
Fundamentals of Fundraising
Grantseeking from Private Sources
Public Funding

Landscape Nonprofit Sector (2005) All nonprofits………………...……………………….. 1.4 million Reporting nonprofits……………………………………………… 530,376 Revenues……………………………………………………$1.6 trillion Expenses……………………………………………………. $1.4 trillion Assets……………………………………….………………… $3.4 trillion Public charities, 501(c)(3)………………………………………. 876,164 Reporting public charities…………………………………….. 310,368 Revenues……………………………………………………$1.1 trillion Expenses…………………………..………………………… $1.1 trillion Assets…………………………………………………..………$1.98 trillion

Landscape Credit Union Leagues Source: National Center for Charitable Statistics search of IRS records, July 2009 $245,552,526 $101,243,532 45 133 Total $10,337,947 $5,096,075 3 4 501(c)(14) $108,247 $2,684,454 1 2 501(c)(9) $235,106,332 $93,463,003 41 127 501(c)(6) Assets Revenues Active Total IRC exemption

Landscape Credit Union Foundations
Source: National Center for Charitable Statistics search of IRS records, July 2009
Cross referenced w/ Guidestar.org & likely missing any CU Foundations that don’t have “credit union” or “C U” in their organization names
$51,610,741 $27,170,029 32 42 Total $24,828,541 $8,816,383 5 7 501(c)(3) pf $26,782,200 $18,353,646 27 35 501(c)(3) Assets Revenues Active Total IRC exemption

Landscape Nonprofit Revenues (2005)

Landscape 2008 Charitable Giving = $307.65 Billion

Landscape
What’s impacting nonprofit funding?
New federal funding & attitude
State & local budget crises
Economic meltdown = reduction in private grants
Individual giving slowing more than many projected

Landscape
Trends:
2008 inflation adjusted decrease of 5.7%
is only second since 1956
Giving is 2.2% of GDP = good sign
Human Services funding (9% of total)
54% reported increase in demand for services
53% reported being under-funded
Biggest impacts expected in 2009-10

Landscape
General qualities of organizations getting funded:
Clarity of:
mission, vision & values
theory of change
Grounded in understanding of:
key development principles
unique resource & capacity realities
Nimble enough to:
adapt based on unique strengths & opportunities
innovate within risk tolerance
Authentically connected to stakeholders

Landscape
What’s gaining attention in asset building:
Innovative approaches to helping those most in need
Programs/ projects with high leverage
Private dollars that access public dollars
Matches to public grants
Programs that help people connect to public benefits/ work supports
Grants/ gifts that compel others to match
Filling gaps in continuums of service/ linking services
Vehicle purchase programs tied to asset building opportunities
Financial education linked to voluntary income tax prep assistance
Access to benefits tied to higher education access

Fundamentals
Fundraising typically is:
top>down (lead gifts identified & solicited first) &
inside>out (closest allies engaged first for best leverage)

Fundamentals
Communication is key:
Donor Centered Fundraising*
Understand & deliver what donors want
Prompt, personalized acknowledgement of their gifts
Confirmation that their gifts have been put to work as intended
Measurable results on their gifts at work prior to being asked again
Shift in fundraising focus:
Traditional school of thought:
Rule of 7 Touches
New school of thought:
Personalization & effectiveness of touch as/or more important
* Penelope Burke, 2003

Fundamentals
Preparation matters:
Organizations are ready to invite donors closer in when:
The case for support is clear & compelling
Leadership embraces & embodies a culture of philanthropy
The house is in order
Organizations have the capacity for effective fundraising when:
Roles are clear & people are in place to fill them
People have the time, tools & training to fulfill their roles
Those responsible for goals have a role in shaping the goals

Grantseeking Research & Validate Leverage Highest Link Stewardship/ Manage Relationship Report Acknowledge Site Visit/ Due Diligence Proposal/ Application LOI/ Concept or Introduction

Grantseeking Internal Revenue Code outlines activities of:
Public Charities
Funded by many ( the public )
Community Foundations
Fundraising Organizations
Private Foundations*
Funded by one or few
Independent
Family
Corporate
Type/ behavior
Operating
Non-Operating
*109,852 in US in 2006

Grantseeking
Step One: Research & validate prospects
Establish search criteria
Build a suspect list
Due diligence to validate prospects & prioritize
Commit to ongoing research, validation & prioritization
* * * Alignment is everything * * *

Grantseeking

Grantseeking
Step Two: Leverage highest link
Key: Highest appropriate connection
First contact critical: don’t miss an opportunity to start at the top if it exists
Always take advantage of an opportunity to discuss your organization or project first
* * * Outsource production, but not relationships * * *

Grantseeking
Step Three: Outline case in LOI
When required, often 2-3 page introduction
Clear identification of alignment
High level snapshot of organization
Specifics: amount, timeline, program/ area
Contact information

Grantseeking
Step Four: Write the proposal or complete application
Sometimes, guidelines provide for you to write a document
Sometimes, an online application w/ space limited responses
Always, provide information requested, in order requested
Often supplementary documentation required
* * * Plan the work with a checklist & timeline * * *

Grantseeking
Why proposals get funded
Solid alignment with funder priorities
Clear, organized responses to requested information
Budget adds up, makes sense, can be substantiated
Professional and credible presentation of the organization’s capacity for the work

Grantseeking
Why proposals get rejected :
Don’t align w/ funders’ priorities
Don’t follow guidelines/ answer requested info
Budgets don’t add up or support narrative
Don’t demonstrate knowledge of field or competition
Not measurable or realistic
OR not compelling enough

Grantseeking The goal

Grantseeking
Common Proposal Elements:
Cover sheet and/or cover letter
Overview or executive summary
Statement of the need , problem or opportunity
Solution or theory of change & explanation of how the applicant is qualified and positioned to deliver this solution
Project specifics : timeline & workplan/actions, objectives & outcomes
Evaluation : plan for measuring outcomes
Budget & sustainability : costs, revenues and how the project will be funded once this particular grant is spent
Supporting documentation as requested

Grantseeking
Other questions often asked:
Provide baseline information and metrics in the areas that this project is intended to improve.
Describe how you hope the successful completion of the project will benefit individuals and/or a community after the grant has ended.
How will this work contribute to the field?
What challenges do you anticipate, and what plans are in place for mitigation?

Grantseeking Tools, like logic models, help organize the writing:

Grantseeking

Grantseeking
Evaluation
Organizational Values About Evaluation
Why measure results?
What do you do with the information?
Approach & Methodology
How have you measured results before?
What systems, metrics, tools might you use?
Who does the evaluation, and how is it funded?
Is it reflected in the budget?
Alignment w/ the work you’re proposing
Use logic model as guide to identify outcomes
What are the indicators of success toward outputs/ outcomes?

Grantseeking
Sample of what funders look for in a project budget:
Does it make sense?
Does it support the work described?
Is it consistent with the organization’s budget and size?
Is the staffing adequate?
What is the cost per client/ outcome?
Do the costs seem reasonable relative to similar work?
Are the income expectations realistic and supported?
What is the plan for sustainability/ our exit?

Grantseeking
… vs. in an organizational budget:
Are there appropriate sources of income?
Are they appropriately diversified?
How is the budget structured – does it make sense?
Does it demonstrate smart financial management?
Is there appropriate cash on hand? A healthy reserve?
Does it reconcile to cash flow?
Are administrative costs appropriate and sufficient?

Grantseeking
Budget basics:
Revenues should reflect
Committed funds
For a project/ program, the portion allocated from the organization
Expenses should reflect
Direct & indirect costs
Total cost of the work, not just the parts requested
Use budget narrative to explain
How/ from whom you expect to raise other funds needed for the work described
Path to “sustainability” – meaning how the work will go on once grant funding runs out

Grantseeking Budget Example: Funder’s Grant Delineated From Other Funds

Grantseeking Budget Example : Multi-Year Roll-Up Without Funds Delineated

Grantseeking Common Supporting Document Requested Are key staff experienced for the work? Key Staff Bios Who governs and leads? What is their experience, connection, expertise? Are you in good hands? Board Roster Do you have what you need for the work you do? Relevant Licenses/ dependent upon area of work Are you running a legitimate business? Articles of Incorporation Are you tax exempt? Can they fund you? IRS Determination Letter Who supports you? Do those closest to you? Donor/ Funder List Are your stories the same? What’s the balance of program v. admin expenses? Form 990 Are books consistently reviewed, and is there evidence of smart fiscal management? Audited financials and/or recent statements (P&L/ Asset) Is the project aligned? Can the org support it? Organizational budget What The Funder Wants To Know: What You Are Asked For:

Grantseeking
Notes on Style & Language:
Make it easy to read
Don’t be too creative
Highlight section breaks clearly
Use bullets appropriately
Protect document intregrity: use footers w/ org name & Page X of Y
PDF when permitted
Make it easy to understand
Avoid jargon
Explain acronyms
Graphics only that clarify or highlight a point
Cite evidence/ support claims

Grantseeking
Final Points on grantwriting:
Elevate the field
Demonstrate knowledge of others’ work
Show how you’ll complement or build on it
Never criticize others’ work & never claim superlatives
Make life easy for the reviewer
A person will review your request, but often they don’t make the final decision
They have feelings, biases & passions, just like you do
They have a job they’re responsible for, just like you do
Make it easy for them to want be your ally, they aren’t obligated to

Grantseeking
Step Five: Site Visits/ Funders’ Due Diligence
Learn as much as possible about what they hope to learn from the visit or their inquiries
Schedule site visits at a time/ venue that allows them to really see your best work
Prepare, but don’t script
ALWAYS follow up w/ email and voice mail to the person/ people who spent time learning more about your work
* * * Be responsive & helpful while they do their job * * *

Grantseeking
Step Six: Acknowledgement once funded
To Funder:
Sign & return contract/ keep signed copy
Formal letter from leadership acknowledging receipt & restating details
Personal thank you to visitors
To Public:
Get Grantor’s permission
Press release only if newsworthy (rare)
Web/ annual report/ newsletter etc… BE CONSISTENT with how you acknowledge funders

Grantseeking
Step Seven: Reporting
Formal:
Ask & get clarity on requirements including dates, formats/ templates
Always a final report, even if not asked
Informal:
Ask the PO how often they want to hear from you
Communicate substantive changes re: leadership, budget, deliverables
Reach out strategically 1-2x during grant period
* * * Keep open channels of communications * * *

Grantseeking
Step Eight: Steward the Relationship
Be a resource:
Share key lessons, research, findings in mutual field of interest
Extend an offer to share lessons/ collaborate w/ other grantees
Be respectful:
Know & honor policies about repeat funding
Communicate strategically & thoughtfully , not opportunistically
Be resourceful:
If appropriate, invite dialogue about PRI’s or other resources
Ask for 1-2 specific, strategic introductions or referrals

Public Funding
Public Funding = government funding
Federal
Tribal
State
County
Municipal
District

Public Funding
Keys to accessing public funds:
Follow policy priorities & trends
Track budget, authorization & appropriations processes
Study how each level of government is organized as it relates to your work
Bookmark the websites of those departments & agencies and pay attention to what they’re doing to know in advance of Notices of Funding Availability

Public Funding
Federal Funds:
Notices published in federal register
Most agencies coordinate grants via Grants.gov
No registration required to get notices, but lengthy registration required to submit applications
Must have adequate capacity to manage rigorous application, implementation & reporting requirements
Typically very specific funding opportunities
Often ≥ 20% private match required
Right now focus on ARRA & new federal budget

Public Funding

Public Funding
Federal Budget
Significant funding w/in Depts & Agencies for Nonprofits
Department of Education
$10M - Promise Neighborhoods (planning grants to development plans modeled on Harlem Children’s Zone)
Health & Human Services
$1.7B - Social Services Block Grant
$741M - programs serving refugees
Housing and Urban Development
$1B - Housing Trust Fund
$8.1B - project based rental assistance
$250M – Choice Neighborhood Fund (link to Promise Neighborhoods)

Public Funding
Federal Budget
Capacity & Technical Assistance
within agency budgets, ie:
Treasury - CDFI
HUD - Neighborhood Stabilization
specific programs
Strengthening Communities Fund
Social Innovation Fund
Nonprofit Capacity Building Initiative

Workshop Review
Key Take Aways & Burning Questions:
The Nonprofit & Funding Landscape
Fundamentals of Fundraising
Grantseeking from Private Sources
Public Funding

Thank You. Megan E. McNally [email_address]

Grantwriting for Credit Union Leagues

by realsolutions on Aug 04, 2009

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Grantwriting for Credit Union Leagues Presentation Transcript

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