The State of Grantseeking and Its Implications for Grant Professionals

11/21/13 1

The State of Grantseeking and Its Implications for Grant Professionals

Dahna GoldsteinFounder and CEO

Grant Professionals AssociationConference 2013

11/21/13 2

Introductions

11/21/13 3

The State of the Nonprofit Sector

11/21/13 4

The new normal

Giving USA 2013 Highlights

11/21/13 5

Service demand is increasing

Nonprofit Finance Fund, 2013 State of the Nonprofit Sector Survey

11/21/13 6

Majority of organizations not able to meet demand

Nonprofit Finance Fund, 2013 State of the Nonprofit Sector Survey

11/21/13 7

Overall giving is increasing slightly

Blackbaud Index, September 2013 Data

11/21/13 8

A majority of organizations reported increased donations

Nonprofit Research Collaborative, Winter 2013

11/21/13 9

Which is an improvement over last year

Nonprofit Research Collaborative, 2012

11/21/13 10

And a more significant improvement over the prior year

Nonprofit Research Collaborative, Late Fall 2011 Fundraising Study

11/21/13 11

2012 saw greater giving growth

11/21/13 12

Organizations’ overall fundraising success varied by size

11/21/13 13

…and by issue area

11/21/13 14

Organizations are feeling optimistic

11/21/13 15

But they have felt optimistic before

11/21/13 16

More organizations met their fundraising goals in 2012

11/21/13 17

The State of Grantseeking

11/21/13 18

Government grants are a relatively small percentage of overall fundraising

Urban Institute, The Nonprofit Sector in Brief: Public Charities, Giving, and Volunteering, 2013

11/21/13 19

Foundation grants are an even smaller percentage

Giving USA 2013

11/21/13 20

Grants are over a quarter of funding for 42% of nonprofits

11/21/13 21

Mid-sized organizations rely most heavily on grants as funding source

11/21/13 22

State of Grantseeking

11/21/13 23

Government funding has decreased

11/21/13 24

Foundation assets are recovering

2012 Council on Foundations – Commonfund Study of Foundations

11/21/13 25

But foundation giving is expected to stay relatively flat this year

Foundation Center – Foundation Focus 2013

11/21/13 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.”

11/21/13 27

Private foundation grants remain the most frequent funding source

11/21/13 28

Private foundation grants are the largest source of total funding

11/21/13 29

Private foundations were also the source of the largest grant

11/21/13 30

The sources of largest grants vary by organization budget size

11/21/13 31

11/21/13 32

11/21/13 33

Organizations continue to submit many requests to grantors

11/21/13 34

…and continue to get grant awards

11/21/13 35

Organizations rely on different people to engage in grantseeking activities

11/21/13 36

Most organizations get grants under $100,000

11/21/13 37

Small Organizations

11/21/13 38

Medium organizations

11/21/13 39

Large organizations

11/21/13 40

Grant award sizes stayed the same or increased

11/21/13 41

…but that hasn’t been consistent

11/21/13 42

Organizations submitted the same number or more grant requests

11/21/13 43

Which resulted in increased numbers of grants for 30%

11/21/13 44

Trends over past 2 years

11/21/13 45

Service area impacted sources of largest grant award

11/21/13 46

11/21/13 47

Organizations face both internal and external grantseeking challenges

11/21/13 48

11/21/13 49

Greatest challenges vary by organization size

11/21/13 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

11/21/13 51

How does this resonate with your experience?

11/21/13 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

11/21/13 53

Implications for grant professionals

• Impact of government funding reductions isn’t over

• Diversify• Focus on basics• Grant trends can inform strategy and

prospecting

11/21/13 54

Focus

• On developing and cultivating relationships

• On grantwriting fundamentals• On high ROI prospects – and issues

that matter to them• On net positive grants

11/21/13 55

Net Grant Calculation

Amount of awarded grant-

Total grant costNet Grant

11/21/13 56

Total Grant Cost

Time spent researching opportunity+ Time spent preparing proposal+ Time spent

corresponding/communicating/meeting with funder

+ Time spent on compliance and reportingALL* Cost of salary/salaries of people involved in process

11/21/13 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.

11/21/13 58

There is an increased need for grant professionals

• Experienced grantwriters = higher ROI

• Opportunity for consultants

11/21/13 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

11/21/13 60

Organizations remain optimistic about the next six months

11/21/13 61

A bit about PhilanTech

• Tracking• Requirements

• Deadlines• Reuse information

• Deadlines• Reuse information

• Research• Relationships• History

Find Apply

ReceiveReport

11/21/13 62

11/21/13 63

“Ugliest” Grant Tracking Spreadsheet Contest

Go to http://bit.ly/UglySpreadsheet to enter

11/21/13 64

Questions?

Dahna Goldsteindahna@philantech.com