state of grantseeking- simple_development_systems_041713

The State of Grantseeking and Its Implications for Fundraisers

April 17, 2013

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The State of the Nonprofit Sector

Nonprofit Finance Fund: 2013 State of the Nonprofit Sector

1 in 3 organizations received less government money

in 2012 than in 2011

Nonprofit Finance Fund: 2013 State of the Nonprofit Sector

Overall giving is increasing slightly

Blackbaud, Charitable Giving Report 2012

A majority of nonprofits reported increased donations

Nonprofit Research Collaborative Winter 2013 Nonprofit Fundraising Survey

Nonprofits are feeling optimistic

Nonprofit Research Collaborative Winter 2013 Nonprofit Fundraising Survey

But they have felt optimistic before

Nonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey

Grants are over 25% of funding for almost half of all nonprofits

State of Grantseeking Spring 2013, GrantStation and PhilanTech

In the last 6 months of 2012, nonprofits applied for same number or more grants

State of Grantseeking Spring 2013, GrantStation and PhilanTech

And received the same # or more grants

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Grant size was the same or larger

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Trending in a positive direction

Total foundation giving has stabilized, but not returned to pre-recession

levels

Foundation Center, Foundation Growth and Giving Estimates June 2012

Private foundation grants remain the most frequent funding source

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Private foundation grants were also the largest single source of total grant funding

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Private foundations were also the source of the largest grant

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Nonprofits continue to submit many requests to grantors

State of Grantseeking Spring 2013, GrantStation and PhilanTech

# of Grants Submitted July to December 2012

…and continue to get grant awards

State of Grantseeking Spring 2013, GrantStation and PhilanTech

# of Grants Awarded July to December 2012

Number of requests has remained consistent

…as has the number of grants awarded

Organizations rely on different people to engage in grantseeking activities

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Most organizations get grants under $100,000

Largest Award July – December 2011All

OrganizationsSmall

OrganizationsMedium

OrganizationsLarge

Organizations

$1 to $10,000 24% 59% 25% 10%

$10,001 to $50,000 28% 28% 36% 19%

$50,001 to $100,000 13% 4% 18% 11%

$100,001 to $500,000 22% 9% 18% 32%

$500,001 to $1,000,000 5% 0% 1% 11%

Over $1,000,000 8% 0% 3% 16%

State of Grantseeking Spring 2012, GrantStation and PhilanTech

Grantseeking has challenges

State of Grantseeking Spring 2013, GrantStation and PhilanTech

Internal and external challenges

Smaller organizations struggle more with the mechanics; larger organizations struggle more with the macro issues

Grantseeking's Greatest Challenge in 2012All

OrganizationsSmall

OrganizationsMedium

OrganizationsLarge

Organizations

Competition 6.0% 4.0% 5.0% 8.0%

Reduced funding 12.0% 6.0% 11.0% 17.0%

Economic conditions 11.0% 5.0% 11.0% 14.0%

Funder practices and requirements 6.0% 5.0% 7.0% 6.0%

Internal organizational issues 4.0% 0.0% 3.0% 7.0%

Lack of time and/or staff 23.0% 26.0% 26.0% 19.0%

My organization needs a grantwriter 7.0% 14.0% 6.0% 3.0%

Relationship building with funders 7.0% 9.0% 7.0% 7.0%Research, finding grants for my organization’s mission 16.0% 21.0% 16.0% 13.0%

Writing grants 4.0% 8.0% 2.0% 2.0%

Other 4.0% 3.0% 4.0% 4.0%

State of Grantseeking Spring 2012, GrantStation and PhilanTech

In the words of grantseekers

• “Fewer personnel due to the economy doing more work so less time for grantwriting or money for a professional.”

• “Less Federal dollars and more agencies applying.”• “Grant funding at all levels (government, corporate,

foundation and other sources) has become very competitive during the economic downturn. Grant allocations have become smaller while human service needs have skyrocketed.”

In the words of more grantseekers

• “As we have moved increasingly into policy advocacy we need multi-year commitments; however, few foundations provide more than a year's worth.”

• “As an arts organization, we are seeing a number of long-time funders shift their giving to social service programs.”

Foundations are giving fewer multi-year grants

Internal Challenges

• “There is no agency-wide cohesiveness, no coordination. All Program Directors work independently and separately from each other, even closely related programs.”

• “Capacity is always the biggest challenge - we have a nice base of funders we keep going back to year-after-year, but this doesn't leave a lot of time to find and pursue new foundation grant opportunities.”

It’s Not All Bad News

• “2011 was our most dismal year for Foundation grants. Many Foundations were focusing solely on "basic needs" of housing and hunger. In 2012, Foundations came back - tripling the 2011 total.”

New in 2013

• “Finding new grant sources in a small, rural area with few corporations, foundations and other funding”

• Sequestration

Implications for Fundraisers

• Economy seems to be recovering, but giving has not returned to pre-recession levels

• Don’t assume that this year’s funder will be next year’s funder

• Impact of government funding reductions isn’t over – impact of sequestration is only starting to be felt

• Diversify• Grant trends can inform strategy and prospecting

Focus

• On net positive grants• On developing and cultivating relationships• On high ROI prospects – and issues that matter to

them

There is an increased need for grant professionals

• Challenges of time, not having grantwriter on staff– “No dedicated resource. Trained and experienced

grantwriters are in the area, but there is no budget setup for funding that work.”

– “We are all volunteers and no one knows how to write a grant proposal.”

• Opportunity for consultants– Expertise + time = ROI

…but corresponding stress on ability to pay

• New hires are not in the cards for many nonprofits• Many don’t have the cash flow to pay consultants

Nonprofits remain optimistic about the next six months

State of Grantseeking Spring 2013, GrantStation and PhilanTech

A Bit about PhilanTech

A bit about PhilanTrack

• Find new potential funders• Streamlined funder management• Complete proposal management• Effective and thorough progress reporting• Convenient document library

A Bit More about PhilanTrack

• Simple and clean user interface• Stay productive and free up resources• The speed and convenience of the cloud

without sacrificing security• Supported by an organization dedicated to

streamlining philanthropy

Questions?

Dahna Goldsteindahna@philantech.com