The State of Grantseeking and Its Implications for Grant Professionals

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Results from the Fall 2013 State of Grantseeking survey and their implications for grant professionals

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  • Percentage of responding organizations reporting change in charitable receipts by NTEE code, 2012 compared with 2011Education and human services fared wellHealthInternational and public society orgs less so
  • In 2012, 63% of responding organizations said they met their fundraising goals, compared to 59% in 2011In 2011, 59 percent of responding organizations said they met their fundraising goal.Among respondents, 59 percent had increased their goal over the 2011 goal, 29 percenthad the same goal in the two years, and 12 percent lowered their goal for 2012 compared to 2011Of those that increased their goal, 77% met the new fundraising goal; only 33% of those that lowered their fundraising goal met that lower goalSmaller organizations are less likely to meet goalsThe number of paid staff focused on fundraising, with more paid staffassociated with a greater probability of reaching goal (the maximum for paidstaff was “5 or more”). Years of experience of the person most responsible for fundraising, with moreyears of experience associated with reaching goal, independent oforganizational size. The organization’s size (based on expenditures), which also correlates withfundraising staffing levels.compared with 2010.Similar in grantseeking
  • The State of Grantseeking and Its Implications for Grant Professionals

    1. 1. The State of Grantseeking and Its Implications for Grant Professionals Grant Professionals Association Conference 2013 Dahna Goldstein Founder and CEO 11/21/2013 1
    2. 2. Introductions 11/21/2013 2
    3. 3. The State of the Nonprofit Sector 11/21/2013 3
    4. 4. The new normal Giving USA 2013 Highlights 11/21/2013 4
    5. 5. Service demand is increasing Nonprofit Finance Fund, 2013 State of the Nonprofit Sector Survey 11/21/2013 5
    6. 6. Majority of organizations not able to meet demand Nonprofit Finance Fund, 2013 State of the Nonprofit Sector Survey 11/21/2013 6
    7. 7. Overall giving is increasing slightly Blackbaud Index, September 2013 Data 11/21/2013 7
    8. 8. A majority of organizations reported increased donations Nonprofit Research Collaborative, Winter 2013 11/21/2013 8
    9. 9. Which is an improvement over last year Nonprofit Research Collaborative, 2012 11/21/2013 9
    10. 10. And a more significant improvement over the prior year Nonprofit Research Collaborative, Late Fall 2011 Fundraising Study 11/21/2013 10
    11. 11. 2012 saw greater giving growth 11/21/2013 11
    12. 12. Organizations’ overall fundraising success varied by size 11/21/2013 12
    13. 13. …and by issue area 11/21/2013 13
    14. 14. Organizations are feeling optimistic 11/21/2013 14
    15. 15. But they have felt optimistic before 11/21/2013 15
    16. 16. More organizations met their fundraising goals in 2012 11/21/2013 16
    17. 17. The State of Grantseeking 11/21/2013 17
    18. 18. Government grants are a relatively small percentage of overall fundraising Urban Institute, The Nonprofit Sector in Brief: Public Charities, Giving, and Volunteering, 2013 11/21/2013 18
    19. 19. Foundation grants are an even smaller percentage Giving USA 2013 11/21/2013 19
    20. 20. Grants are over a quarter of funding for 42% of nonprofits 11/21/2013 20
    21. 21. Mid-sized organizations rely most heavily on grants as funding source 11/21/2013 21
    22. 22. State of Grantseeking 11/21/2013 22
    23. 23. Government funding has decreased 11/21/2013 23
    24. 24. Foundation assets are recovering 2012 Council on Foundations – Commonfund Study of Foundations 11/21/2013 24
    25. 25. But foundation giving is expected to stay relatively flat this year Foundation Center – Foundation Focus 2013 11/21/2013 25
    26. 26. Competition for funder dollars is intense • “We have seen federal funding be drastically reduced for human services. We also see a greater competition for local grants and resources. ” • “Our challenge is finding additional funding to reduce dependency on state dollars. ” • “Due to the economic conditions, fewer funds are available and therefore the competition for funds is greater. Our location limits the number of agencies to apply to, other than the federal agencies.” 11/21/2013 26
    27. 27. Private foundation grants remain the most frequent funding source 11/21/2013 27
    28. 28. Private foundation grants are the largest source of total funding 11/21/2013 28
    29. 29. Private foundations were also the source of the largest grant 11/21/2013 29
    30. 30. The sources of largest grants vary by organization budget size 11/21/2013 30
    31. 31. 11/21/2013 31
    32. 32. 11/21/2013 32
    33. 33. Organizations continue to submit many requests to grantors 11/21/2013 33
    34. 34. …and continue to get grant awards 11/21/2013 34
    35. 35. Organizations rely on different people to engage in grantseeking activities 11/21/2013 35
    36. 36. Most organizations get grants under $100,000 11/21/2013 36
    37. 37. Small Organizations 11/21/2013 37
    38. 38. Medium organizations 11/21/2013 38
    39. 39. Large organizations 11/21/2013 39
    40. 40. Grant award sizes stayed the same or increased 11/21/2013 40
    41. 41. …but that hasn’t been consistent 11/21/2013 41
    42. 42. Organizations submitted the same number or more grant requests 11/21/2013 42
    43. 43. Which resulted in increased numbers of grants for 30% 11/21/2013 43
    44. 44. Trends over past 2 years 11/21/2013 44
    45. 45. Service area impacted sources of largest grant award 11/21/2013 45
    46. 46. 11/21/2013 46
    47. 47. Organizations face both internal and external grantseeking challenges 11/21/2013 47
    48. 48. 11/21/2013 48
    49. 49. Greatest challenges vary by organization size 11/21/2013 49
    50. 50. Project Streamline, addressed to funders, 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 11/21/2013 50
    51. 51. How does this resonate with your experience? 11/21/2013 51
    52. 52. Implications for grant professionals • Economic conditions are not necessarily greatest challenges, but have a lasting impact • Manage relationships with existing funders • Don’t assume that this year’s funder will be next year’s funder • Address specific guidelines (goes without saying, but…) • Speak directly to funder’s mission 11/21/2013 52
    53. 53. Implications for grant professionals • Impact of government funding reductions isn’t over • Diversify • Focus on basics • Grant trends can inform strategy and prospecting 11/21/2013 53
    54. 54. Focus • On developing and cultivating relationships • On grantwriting fundamentals • On high ROI prospects – and issues that matter to them • On net positive grants 11/21/2013 54
    55. 55. Net Grant Calculation Amount of awarded grant Total grant cost Net Grant 11/21/2013 55
    56. 56. Total Grant Cost Time spent researching opportunity + Time spent preparing proposal + Time spent corresponding/communicating/meeting with funder + Time spent on compliance and reporting ALL * Cost of salary/salaries of people involved in process 11/21/2013 56
    57. 57. Total Grant Cost Calculation Starting Points • Average time spent on grant proposal creation = 27.45 hours (median 20 hours) • Average time spent reporting = 20.48 hours (median 10 hours) • Median salary for a development director = $95,631 • Hourly = $55 (assuming 35 hour work weeks, 2 weeks vacation) • Over $1,500 to apply for grant, over $1,100 to report Note: these numbers are for foundation grant applications/reports (from Center for Effective Philanthropy). Government numbers are higher. 11/21/2013 57
    58. 58. There is an increased need for grant professionals • Experienced grantwriters = higher ROI • Opportunity for consultants 11/21/2013 58
    59. 59. …but corresponding stress on ability to pay • New hires are not in the cards for many organizations • Many don’t have the cash flow to pay consultants 11/21/2013 59
    60. 60. Organizations remain optimistic about the next six months 11/21/2013 60
    61. 61. A bit about PhilanTech • Research • Relationships • History • Deadlines • Reuse information Find Report • Deadlines • Reuse information 11/21/2013 Apply Receive • Tracking • Requirements 61
    62. 62. 11/21/2013 62
    63. 63. “Ugliest” Grant Tracking Spreadsheet Contest Go to http://bit.ly/UglySpreadsheet to enter 11/21/2013 63
    64. 64. Questions? Dahna Goldstein dahna@philantech.com 11/21/2013 64

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