Fundraising Part II: ABCs Fundraising Part II: ABCs of Grantseekingof Grantseeking
6th Annual Club MACJune 15, 2006
Elizabeth Pentak Averill, CFREDirector of Philanthropy
North Texas Food Bank214.330.1396 [email protected]
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Topics of Discussion
Organizational ReadinessSources of Grant FundsTypes of GrantsSuccessful Grantseeking
Private Sector Sources & ProcessPublic Sector Sources & Process
Research
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Critical Concepts
SynergyKeys
PlanningSystems
Grantsmanship is a process, not simply a writing exercise
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Organizational Readiness
Mission & VisionStrategic PlanThe Development Process
Case StatementDevelopment PlanPolicies
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Factors That Determine Grantseeking Success:
1. Quality of the nonprofit organization
2. Critical importance of the proposed project
3. Appropriateness of funding source or the level of competition in a grantmaking cycle
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Factors That Determine Grantseeking Success
4. Skills of writer in building a compelling case
Many people think this last item is the only important factor and do not take the first three into consideration!
- grantproposal.com
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Sources of Grant Funds
Foundations
Government Sources
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Foundations
Types of Foundations
1. Independent (private)
2. Community
3. Corporate
4. Operating
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Types of Foundations
1. Independent (private)Endowed funds from a single source
Examples: Meadows Foundation, The Moody Foundation, Sid W. Richardson Foundation, Robert J. and Helen C. Kleberg Jr. Foundation, The Cullen Foundation, Hillcrest Foundation
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Types of Foundations (cont.)
2. Community Pooled funds from multiple donors
Examples: Communities Foundation of Texas, Inc., The Dallas Foundation, Community Foundation of North Texas
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Community Foundations
Types of Funds
a. Unrestricted
b. Field of Interest and Named
Funds
c. Donor Advised
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Types of Funds
a. UnrestrictedDonors give to the community
foundation without restrictionFoundation’s trustees determine how
to distribute themExperience the greatest demandSmallest “pocket” of funds
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Types of Funds (cont.)
b. Field of Interest and NamedDonors specify an area of interest, such
as education, medical research, etc.Foundation’s trustees determine how to
distribute themFoundation usually determines which
proposals match area of interestSecond largest “pocket” of funds
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Types of Funds (cont.)
c. Donor AdvisedDonors place funds with community
foundation rather than create ownDonors benefit from investment managementDonors direct how funds are distributedTypically requests are made directly to
donorsLargest “pocket” of funds
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Types of Foundations (cont.)
3. CorporateEndowed by annual contributions from a corporation, usually bearing the corporation’s name. Percentage of contribution is determined on an annual basis.
Examples: J. C. Penney, Exxon/Mobil, Verizon, IBM, Kimberly Clark, Texas Instruments
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Types of Foundations (cont.)
4. OperatingEstablished for the benefit of one non-profit organization
Examples: Baylor Health Care System Foundation, VNA Foundation, McKinney Education Foundation
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Government Sources
1. Federal
2. State
3. City/County
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Types of Grants
1. Capital2. Endowment3. Challenge4. Matching5. Operating6. Project or Designated7. Research8. Seed
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Types of Grants (cont.)
1. Capital Funding provided for construction, renovation, equipment.
2. EndowmentFunding set aside in perpetuity. Interest generated benefits the organization. Trustees of organization decide how to use funds
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Types of Grants (cont.)
3. MatchingFunds given in direct proportion to additional funds raised from other sources. A specific match ratio of 2:1 or 1:1 is predetermined and then documented as gifts are received.
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Types of Grants (cont.)
4. ChallengeFunds given with the provision that a specific amount of contributions be secured from other donors within a certain time period.
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Types of Grants (cont.)
5. Operating
Funding provided for day-to-day expenses.
6. Project or DesignatedFunding provided for a specific program or activity, usually within the operating budget.
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Types of Grants (cont.)
7. ResearchFunding provided for the specific development of a project.
8. SeedFunding provided to initiate a project or an agency.
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Grantseeking
Successful Grantseeking is:
2/3 Planning1/3 Writing
Complete all planning before writing!
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Program Planning
Do you really have your ducks in a row?
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SuccessfulGrantseeking Requires
Understanding funders’ needs:Build relationships with funders
Appropriately match mission & program goals to the funder’s expressed interests
Follow the funder’s instructions - explicitly!
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SuccessfulGrantseeking Requires (cont.)
Effective working relationships:Create a “team” culture
Demonstrate credibility
Provide services with equal access for target clients
Network, collaborate, partner
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Successful Grantseeking Requires (cont.)
Effective processes:Shop proposals around
Demonstrate accountability
Secure needed resources, staff, facilities, etc.
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Successful Grantseeking Requires (cont.)
Effective processes: (cont.)Gather input from a client-based
advisory body
Create processes for collecting outcome measurements
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SuccessfulGrantseeking Requires (cont.)
Clearly communicating the story:
Craft a compelling needs statement
Reveal implementation detail: how, when, who, where
Include outcome measurements
Include evaluation criteria
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SuccessfulGrantseeking Requires (cont.)
Clearly communicating the story:(cont.)Use jargon-free narrativeReflect names & spell accuratelyRespond to requests for specific
information while weaving in the key points that make your case compelling
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Successful Grantseeking Requires (cont.)
Accurate financial data:Establish financial systems:
That allocate administrative overhead (see handout - Budget Allocation Worksheet)
Capable of managing the projectAttach a financial auditInclude a detailed budget
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Whatever you do . . .
Don’t chase funding!
and
Remember that people give to people!
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Private Sector Sources:
Have many different personalities
Can not be treated the same
Rarely fund an entire project
Grant a portion in relation to the whole
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Private Sector Sources (cont.):
Never give to what has already been done
Always want to know how their grant will enable you to do something you wouldn’t otherwise be able to do!
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Public Sector Sources
Will tell you what they want, but not how to implement the program
Do not “want to control the project”
Want you to spend all you are granted
Want you to spend it according toyour detailed budget
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Public Sector Sources (cont.)Have reporting requirements
Require a federal audit for grantstotaling over $300,000
Provide a 1st quarter advance, & then reimburse expenses
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Public Sector Sources (cont.)
May require a local private sector matching (cash or in-kind)
Specify “allowable costs”
Will pay a portion of administrative overhead expenses
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Public Sector Sources (cont.)
Will monitor your rate of spending
Will establish a permanent “overhead” or “indirect cost” ratio,usually between 8 – 30%
Will fund an entire project
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Public Sector Sources (cont.)
Will not “supplant” private sector funding
Usually don’t fund a new organizationthe first time they submit
Will negotiate budget changes
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Public Sector Sources (cont.)
Usually make multi-hundred thousand or million dollar grants
Require funds be placed in a separate audit-traceable account
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Public Sector Sources (cont.)
Require excellent record keeping – expenses, volunteer time, etc.
Will pay for the federal audit &audit-traceable account
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Public Sector Sources (cont.)Are required to allow 45 days
between grant announcement & deadline
Require that service delivery beginthe day funding is approved
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Research
Private Sector
Public Sector
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Private Sector Research
Who knows who - Foundation Questionnaire handout
The best research possible!
Qualified prospects are individuals to whom you have a “link”
Get Nonprofit Resource Center’s List of Texas trustees (www.nprc.org)
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Private Sector ResearchFoundation directories
Foundation Center (www.fndcenter.org)Directory of Texas Foundations
(www.nprc.org)Directory of Dallas County Foundations
(Dallas Public Library - 6th floor)Directory of Tarrant County
Foundations (Funding Information Center, Fort Worth)
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Private Sector Research (cont.)
PeriodicalsChronicle of PhilanthropyNonprofit Times (free to nonprofits)Local Business JournalBook of Lists Local newspaper columnistPhilanthropy Magazine
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Private Sector Research (cont.)
Foundation Profiles
Tax Year Sample Grants Areas of
Interest Restrictions
Application Process
Deadline Trustees &
Officers Contact
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Private Sector Research (cont.)
Foundation Profiles (cont.)Average Grant Calculation
Number of Grants GivenTotal Amount Grants MadeSubtract High & Low AmountsDivide by 2 less than “# of Grants”
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Private Sector Research (cont.)
Foundation Profiles (cont.)
Stemmons Foundation53 Grants Made$352,300 GrantedLess $25,000 & $1,000 = $326,300Divided by 51 = $6,398
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Private Sector Research (cont.)
Foundation Profiles (cont.)Sample - Perot Foundation
121 Grants Made Totaling $5,354,880High: $375,000; Low: $250Restrictions: No unsolicited applications
are accepted.
Identify Link or Send Permission Letter
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Private Sector Research (cont.)
Foundation Directory Indices
Areas of Interest
Types of Support
Trustee and Officer
City or State
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Public Sector Research
Federal sourceswww.cfda.gov
The online Catalog of Federal Domestic Assistance provides access to a database of all Federal programs available to State and local governments (including the District of Columbia)
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Public Sector Research (cont.)
Federal sources (cont.)www.firstgov.gov
Federal government web site allowing access to data and statistics
www.access.gpo.gov/su_docs
The Federal Register online
Hardcopy = $700
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Public Sector Research (cont.)
State sourceswww.governor.state.tx.us/divisions/
stategrants The State Grants Team’s mission is to
alert entities throughout Texas about funding opportunities.
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Public Sector Reseach (cont.)
State sources (cont.)
www.narc.org/links/member.html
National Association of Regional Councils – links to Council of Governments
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Credits:
The Center for Nonprofit Management, Dallas, TX
Linda Wassenich, CFRE, Dallas, TX
Grants Unlimited, Glenda J. O’Neal, Danville, CA
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Thank you!