Robin L. Cabral, CFRE Raising Serious Money Through GrantsDEVELOPMENT CONSULTING SOLUTIONS D e v e l o p m e n t C o u n s e l
A little about me… Director of development for the Northeast Community of the Sisters of Mercy. Principal of part-time, Development Consulting Solutions. Certified Fund Raising Executive (CFRE). 18 years of fund development experience: Progressive social change agency (2), women’s center (4), YMCA (2), outpatient Children’s Rehabilitation Center (7), and Sisters of Mercy (3)
A little bout you… Share with your partner: A little bit about yourself What you hope to accomplish by attending this class What you are seeking funding for?
Partner sharingShare with your partner (and head start on your homework!): What is your organization’s mission and vision statements? What is it that your organization does? What are you major programs? What are your future goals? And what makes it unique? What other funding sources do you have to support your program? Have you received past grants and if so in what amounts?
Who are you? Before you even begin you should already know: Who you are. What your niche is. What kind of service you provides and how are you unique. What you need in terms of financial support for your programs and services. Overall organizational case and maybe individual case statements for different entities: Corporations/businesses. Foundations. Government entities. Market segmentation: who is most likely to support you! Do you have the financial systems in place to monitor the use of funds?
Where to start With your organization! Mission/case statement Long-range plan? Goals? Others sources of funding? Programs and projects? Uniqueness? Cost-efficient? Regulations compliance?
A little perspective! Corporations : 4-6% of all giving in the U.S. Foundations: 7-10% of all giving in the U.S. Individuals: 79-81% of all giving in the U.S.
Three questions about support!What do you think are: The types and forms of grant/foundation support? What are the possible motivations for support? What strategies are most effective?
Corporations and businesses Types of support: Corporate foundation. Direct corporate giving (case directly out of profits). Executive discretionary funds (personal connections). In-kind gifts of company products or equipment. Subsidiary or individual plant budget (local giving). Marketing budgets (cause-related support or for events). Research and development budgets (business interests). Motivations: Good corporate citizenship. Enlightened self-interest. Individual leadership initiative. Location. Quid-pro-quo interests. Of interest to corporate/business employees. Tax advantages.
Obtaining corporate support Research the business. Identify their motivations. Make your case for support. Involve key employees. Write a proposal.
Trends in corporate giving Smaller, one-time grants. Competitive applications. Want something in return for their investment. Specific problem area in society: poverty, illiteracy, etc. Areas most often funded: education, health and human services, and environmental issues.
Foundations! Types: Independent foundations (known as family foundations, general purpose foundations, special purpose foundations, or private non-operating foundations.) Company-sponsored/corporate foundation (contributions of a profit-making business organization with close ties with the donor company.) Community foundations (build permanent, named funds established by separate donors.) “Operating” foundations (privately supported or funded, actively conduct charitable programs or activities rather than distribute funds.) Motivations: Community support (broad). Sociopolitical concerns. Historical roles (philanthropic interests of founders). Seed money for new projects.
Obtaining foundation support! Research the foundation. Analyze foundation guidelines. Make personal contacts. Write a letter of inquiry. Write a proposal.
The government! Types: Direct support (grants and purchase of service contracts). Indirect support (tax exemptions, reduced mailing rates, etc.) Federal and state governments provide the greatest amount of funding. Motivations: Promote public policy. Address a pressing social problem.
Strategies for support! Design a program that conforms to requirements of funding agency or better yet match your interest to theirs. Enlist local counsel and support for your work (advocate). Meet with legislative staff who support the program. Complete and submit the required application in a timely and thorough fashion. Report in a timely and thorough fashion.
Government RFP’s Bidders conference. Letter of intent. Request for proposals issued. Competition for dollars high. Highly specific and targeted. Education, research, etc. Eligibility, interest compatibility, feasible, flexible, implementation, competitive. Need a DUNS # (Data Universal Numbering System Number) - The DUNS number is a unique nine character identification number provided by the commercial company Dun & Bradstreet (D&B).
More on government RFP’s Direct grants (apply directly to the federal government.) “Flow-through” or “pass through” grants (federal grant is made to an organization or state that then uses some or all of the money to make sub grants to other organizations.) Appropriations from legislature. Difficult to find out about. Notify agencies that they already have a relationship with. Federal sources even more difficult. Competitive (compete with other grant applicants for limited pool) or formula (disbursed by state agency to applicant based on a formula). http://www.grants.gov/ - the BEST resource!
Private foundations Many, many out there. Foundation Center – www.foundationcenter.org Billions in assets. Categories: general purpose, special purpose, corporate or company foundations, family foundations, and community foundations.
Professional Associations Many small groups. Awards for scholarships and fellowships, research projects, or travel. Examples of these organizations include churches, Junior Leagues, and civic organizations such as Rotary and Kiwanis.
Partner sharingShare with your partner: What is the importance of research to the foundation/grant process? Why should we do research before we begin? What kinds of things should we be looking for as we do our research?
Why research? At least 50% of successful foundation solicitation is research. Research is undertaken by few. Vast numbers of nonprofits, stiff competition. Match between funder and mission/program. Foundations list broad funding areas.
Before you begin An eagle eye, a detective’s nose, and the patience of a saint! Patterns and similarities of grantees. Unearth a familiar name. Snoop out not readily available information. Cross-check sources. Record, record, record!
Record keeping Properly managed recordkeeping system. Document, document, document! Staff turnover. Share information. Grid system, rolling calendar, individual files. Database such as Raisers Edge ($10,000), Giftworks ($849) and others.
Importance of research Be thorough, but not an obstacle. Get specific information on each prospect. Online databases. Foundation Center at www.fdncenter.org. Great classes as well…Foundation Fundraising or Proposal Writing Narrow your prospects to sources whose giving policies match your needs. Develop a funding source ranking sheet.
Research your potential funder Profile. Funders interest areas. Types and sizes awarded grants. Geographical preference. Organizational preference. Application guidelines. Relationship with funder. Evaluates proposals.
Evaluation form Standardized form for data collection. Foundation annual report. Correspondence with foundation. Consult several different sources. Ranking (interest, geography, support).
Resources Local library (Foundation Center Cooperating Collections Network). Published foundation directory. Online and subscription directories. Anything published by foundation. Form 990 – Federal tax return. Guidestar and Foundation Center. Periodicals and newsletters (Chronicle of Philanthropy)
Elements of a good relationship Trust. Communication. Shared values. Honesty. Respect.
Six rules of engagement Know the landscape. Know who you are dealing with. Know their considerations. Know what they value. Know how to give it to them. Minimize the risk.
Know the grant making landscape Mega foundations (specialists, staff are influential) Competitive (Generalists, boards are more involved in decisions) Family (the donor, the buck stops there) The institutional paradox. Entrepreneurial mission. Risk-adverse board. Managing competing priorities.
Know what they value Product Data. Deliverables. A plan that is likely to work. People Leadership. Trust. Accountability and responsibility. Protocol Respect for the rules.
Know how to give it to them Learn the culture of the grant maker Analog or digital. Old school or new school. Traditional or cutting edge. Learn the personality of your contact(s) How they process information. How they interact with others. Never, ever underestimate the value of the gatekeeper. Respect the process.
Minimize risk Risk to the grant maker. Failure of the project. Misuse of the funds. Risk to you. Unreal expectations. Mission drift.
Seven best practices Build an information network to help you understand your funders. Look beyond the numbers and learn who the grant maker is. Don’t see. Help the grant maker to buy. Err on the side of professional rather than personal. Know the difference between persistence and pestering. Communicate early and often when the going gets tough. Respect the ground rules.
Your proposal is only one part Each year $10 - $20 billion. Process (planning, research, personal contact, and follow- up). Not just about grant writing!
Present yourself credible and capable Trust – credible organization with strong leadership. Merit or value of your project or proposal. Mission, people you serve, uniqueness, management/leadership, fiscal, and results.
Speak to the funders goals Not just about you! “What will funder gain by funding me?” Think of it as a TEAM approach.
Call before writing Call them first! Letter of inquiry. Determine level of match. Obtain more information. Is there interest? Describe project. Personal visit?!?
If you get an appointment Unique opportunity. Who attends? Research, preparation and plan. Role play!
Style and content Brief, concise, and compelling! You match! Address needs! Experience and capability! Best approach! No duplication! Collaboration!
Blend logic and emotion Facts with life and passion! Examples, anecdotes, stories. Relationships – connect! Write to a person. Human side. No jargon. Confidence. Concise. Integrity. Feasible and realistic.
Write! Components:* Cover letter. Cover page. Table of contents. Abstract, executive summary. Purpose of request. Statement of need. Project description. Objectives or major goals (behavioral, performance, product, process, research) Methods or who the project will be conducted. Staffing and administration. Evaluation. Organizational information. Closing. Budget. Appendices (tax id, financial statements, board list, annual report, letters of support). Packaging.
Follow-up 6 months plus. Write, call, or visit! Any further info call. Review time – call!
Did you get it? Thank you (letter and/or call). Can you publicize? Recognition different for each source. Reporting. Maintain ongoing relationship with funder. Encourage site visits.
You didn’t get it! Thank you. Call why? Keep lines of communication open.
And yet another perspective! Time of grant writing? Foundations and corporations historically contribute very small amounts compared to individuals. Necessity for a diversified and integrated fund development plan…
Where do you go from here? Small group exercise: Determine what your next steps should be? Identify at least five simple steps that you can take when you go back to your organization. What are you going to start implementing? How can you incorporate this information into your organization? Share your next step action step with the larger group!