Making Smooth Moves:Identifying Prospective

Foundation Funders

There are more than 100,000 foundations in the United States.

Foundation fundraising is experiencing a paradigm shift and has moved from a worthiness model to a business model.

As a result, nonprofit business organizations must restructure how they present and conduct their organizations—with specific focus on professionalism, efficiency, impact, and sustainability.

Fast Facts on Foundation Fundraising

For now we’re going to focus on efficiency.

Prospecting: Why It Matters

Like gold prospecting in the 1800s, foundation fundraising requires a strategic and systematic approach.

If implemented well, your affiliate can: Develop focus Track progress Identify opportunities Focus on the most promising

prospects

Prior to Prospecting:Make Smooth Moves

Position yourselves favorably in the community and your sector

Recognize your strengths as an organization

Perform a competitive analysis with similar organizations

Leverage current relationships and make them more dynamic

Prospecting Step One:Identification

Identify the best prospects

Sift out foundations with little giving potential This will prevent

frustration and wasted effort.

This means: Research the

organization’s historical information

Search Internet, similar NPO donor lists, directories

Identify prospects through stakeholders

Expand network of current connections

Prospecting Step Two:Qualify

Use 4-Point Assessment:1. Capacity to give2. Receptivity to new recipients3. Funding trends of giving interest4. Geography

A quick side note on geography.

Location, Location, Location!:Foundations and the HFHI

Collaborative Development Policy

Fundraise in its local area or

Connect with foundations that have a “community presence”

If a foundation’s presence is unclear, the affiliate must: Collaborate with another local

affiliate to determine the geographical service area of the foundation and

Ask permission to pursue funding from that particular foundation.

HFHI policy dictates that each affiliate:

Prospecting Step Two Continued:Qualify

As you qualify, Prioritize:

Foundations that best matches your affiliate based on the 4-Point Assessment and

Fulfills your affiliate’s financial and/or programmatic needs Create list of prospective foundations for each

program or project Include the amount your affiliate requests per foundation

Conduct further research

Create a customized plan for each foundation

Call to confirm information and connect personally

Identify individuals who are connected your affiliate as well as to prospective foundations

Identify other levels of contact For example, engage and invite a foundation

representative to tour your facility or attend an event.

Prospecting Step Three: Cultivate

Prospective

Foundation

Your Organizati

on

Aligning Your Research

• Analyze trends in a foundation’s giving

• Perform “competitive analysis,” i.e. compare the prospective foundation, as well as its trends, to a similar foundation(s)

• Use this intelligence to determine fundraising priorities

Alignment

Match your organization’s mission and

goals with the priorities of

the foundation.Then, begin the inquiry

process.

• Review current relationships and partnerships

• Draw in stakeholders

• Network for information and funding prospects

• Perform “4-point” assessment:

• Ask for the right amount

• Align interests

Stake Your Claim:Where to Begin Foundation

Prospecting

Is a fully-searchable, online database of foundations

Contains vital information about the funding history and priorities of over 100,000 U.S. foundations

Provides specific information you need to determine foundation prospects

FoundationSearch Basics

And the best part is…

It’s free and available to HFH-NYS members now!

Approximately 20% of foundations have websites. This means that 80% of foundations do not have widely

available information but instead provide it to specific companies and databases.

To maintain legal foundation status, foundations must give away 5% of their assets annually. In 2011, foundations provided approximately $80 billion

dollars in funding. You can enhance your ability to match your affiliate

with prospective foundations. For example, you can vet foundations by geographical

giving and stay in compliance with HFHI.

Why use FoundationSearch?

FoundationSearch: Getting Started

Your Home Page

FoundationSearch: Getting Started

Tools to Use Grant Analyzer

Grant Visualizer

Foundation Search

Foundation Visualizer

Prospect Generator

Profile Key Word Search

990PF Key Word Search

Evaluate your affiliate and how you can fit it into the shifting foundation paradigm: What is your affiliate’s impact? What are your affiliate’s past successes? Is your organization structurally and financially

sustainable? What is your affiliate’s purpose or cause?

Start prospecting foundations Identify:

Employ the 4-Point Assessment Qualify:

Consider HFHI policy Cultivate

Moving Forward

Questions, Comments?Talk to Judy.

Remember, keep it smooth.