The National Framework for Nonprofit & Donor Impact

To be successful, grantmakers need to demonstrate to their donors they can not only enable better philanthropy through infrastructure, but leverage our shared resources to deliver sustainable impact.

There is a general shift from giving as a means to feel good and give back, to giving as a form of investment that funds real outcomes, not outputs. Some would call this “venture philanthropy,” but it’s actually a bit simpler.

As grantmakers, it’s in our best interest to help grantees move fundraising from an administrative task to a central leadership priority. Doing so allows us to make grants to more organizations, maintaining excitement and interest of our donors.

BRIAN LAUTERBACH:FUNDRAISING GENIUS; 24 YEARS OLD

HIRED BY AN ORCHESTRA TO RAISE $4 MILLION FOR ANNUAL FUND

FIRST UP:RENEW 5,300 DONORS THAT GAVE $370,000 BY MAIL

MAIL DATE:SEPTEMBER 12, 2001

RED CROSS:NEW FUNDRAISING RECORDS SET ONLINE

“YOU WANT $55,000TO BUILD ONLINE GIVING FOR THE ARTS?”

ELEVEN WEEKS OF PLANNING &DESIGNING AN APPEAL

$1,700

AWKWARD,ENSUING PERIODOF REFLECTION

The grantmaker trusted that we were the experts and rightfully assumed we knew how to make our experiment not only successful, but sustainable.

We were all wrong.

The funding donor was frustrated.

80% 20% EXECUTIVE DIRECTOR

DEVELOPMENT STAFF

FEWER RESOURCES, GREATER NEEDS

EVENTSTRANSACTIONS

REPORTSEXPLANATIONS

CHIEF EVERYTHING

OFFICER

MORE RESOURCES, DIFFERENT NEEDS

RELATIONSHIP MANAGEMENT & PLAN

EXECUTION

As grantmakers, it’s in our best interest to help grantees move fundraising from an administrative task to a central leadership priority. Doing so allows us to make grants to more organizations, maintaining excitement and interest of our donors.

There are inherent challenges you need to embrace before you can overcome them.

ENGAGEMENT

59% of donors will

not give again, let

alone increase their

gift when asked

BUDGET GROWTH

77% of nonprofits are

struggling to raise

what they did last

year

93% of nonprofits don’t

have resources to hire

the help and staff

needed

2013-16, National Pilot Programs

Match Grantee with an Expert

Create & refine fundraising tools

Establish & Calendar a 12-month Plan

Results after 10 months

Grantmaker Outcomes

Funded programs became sustainable Net new revenue secured within the grant period, within 12 months

Grantee portfolios grew and diversifiedDonors and funders could give grants to more nonprofits

Funders could make a stronger case to donors Move the conversation from process and stewardship to impact

Better-quality, complete grant applicationsFoundations received substantively better applications

As a results of the successful pilot programs, DonorPath merged with Network for Good and together, have committed the time and resources to help small nonprofits build the fundraising capacity required to sustain programs – and began research.

10,000 Nonprofits

<$100k:

$100k-$500k:

$500k-$1mm:

$1mm - $2mm:

Framework

Survey:

Survey says, nonprofits…

Feel that they should always seek grant funding, and it’s easy.

Believe that a single person can unilaterally prepare an effective grant, in lieu of cross-functional collaboration.

Heavily rely on program staff for basic grant processes, and are anxious/uncertain about it.

Don’t fully understand the program officer’s role.

Believe that simply following application guidelines results in funding.

Don’t have credible plans to financially sustain programs after the grant period.

Plan for follow-on grant funding, or don’t plan at all.

Lack time, and don’t understand the necessity of fundraising plans.

Look to foundations to both fund and help sustain programs.

Need ongoing, comprehensive fundraising assistance, not workshops.

Survey says, nonprofits…

Do you plan to submit applications to foundations to secure program/general operating support in the next 6 months?

Grants are often pursued as a path to large amounts of funding, en lieu of other efforts, or as a “seal of legitimacy.”

Nonprofits feel that they should always seek grant funding, and it’s easy.

Yes

No

93%

Do your funding priorities, guidelines, and

how you communicate the two to nonprofits

invite too many or not enough applications?

How do you know?

Who will be developing the program, conducting research, writing, and submitting your grant?

Grant submissions should include input from program, finance, leadership, etc. to avoid incomplete or ineffective submissions.

Nonprofits believe a single person can prepare an effective grant proposal in lieu of organizational, cross-functional collaboration.

Executive Director

Development Director

Full-Time Grant-Writer

A Volunteer

A Consultant

How often do you receive an application

developed from multiple functions and

perspectives within the applicant’s

organization?

Will the person submitting the grant attempt to get help or insights from the foundation’s program officer?

While late-stage feedback strengthens applications, emerging organizations lack basic how-to direction.

Nonprofits heavily rely on program staff to complete basic grant processes, and have anxiety and uncertainty around them.

Yes

No

87%

Does your grant making process empower

nonprofits to complete applications

independently or, does it generate time-

consuming “how to” inquiries for program

officers to address?

How do you know?

How soon before the submission deadline will you reach out to the program officer to discuss your program/outcomes?

62% of nonprofits wait until 30 days out, or don’t reach out at all, projecting their own busy schedules onto foundation staff.

Nonprofits do not fully understand the program officer’s role and job function.

Three Months

One Month

One Week

I don’t feel we should/ It’s not appropriate

Does your communication mitigate uncertainty,

explain the program officer’s role, and

encourage nonprofits to begin the grant

writing process early so they have time to

request help?

How do you know?

In addition to the alignment with funding priorities, what do you believe is the most important criterion to get funded?

An implied “process” is confused with “priorities,” revealing a lack of understanding of grant making and future planning.

Nonprofits believe that simply following application guidelines results in funding.

Compliance with the applications instructions & guidelines

Our plan to implement the program & report on impact

Our ability to financially sustain programs after the grant period

Our historic track record and community reputation

Is your board, staff and grants committee

aligned on what is the single most important

criterion that determines funding decisions?

How do you know?

When asked, “How will you sustain this program after the grant period ends,” how do you answer?

78% of nonprofits had no written, specific plan to sustain programs, relying on/re-applying to grants as a primary funding source.

Nonprofits don’t have – and don’t understand – why a credible plan to financially sustain programs is important.

A written fundraising plan that shows how we’ll add net new revenue

A unique fundraising initiative, implemented upon a grant award

We feel existing fundraising activities should be sufficient

We struggle with this question, but do our best to be transparent

To what extent do your grantees struggle

to sustain their funded programs, and/or

re-apply for the same funding, year-

after-year?

How do you know?

Do you currently have a written, 12-month fundraising plan from which you are managing revenue-generating activities?

While there’s a 50/50 split of those with/without plan, the majority of plans do not include strategies to diversify foundation funding.

Nonprofits plan for follow-on grant funding as an acceptable source of fundraising, rarely initiating new, program-specific initiatives.

Yes

No

50%

50%

What indicators or metrics do you use, if

any, to discern an applicant’s ability to

sustain a program you fund after the

grant period ends?

How do you know they’re

the right ones?

If you don’t have a fundraising plan, what is the leading factor hindering your ability to create and implement one?

A nonprofit’s first fundraising plan must stage-appropriate and right-sized to existing limitations on time and training.

Fundraising is often seen as a back-office, administrative task rather than a central leadership function that takes priority.

I don’t know what comprises a FR plan

I’m too busy with program delivery

I don’t have the data/ insights to create it

If a grant application is turned down for

lack of financial sustainability, what

alternative direction or assistance will

you provide?

How do you know if it

helps the applicant?

Do you feel that funders could help you by providing optional technical assistance, geared towards sustaining programs?

Nonprofits see their funder as a credible source for training and assistance, and project their lack of capacity/need onto them.

Nonprofits are looking to foundations to take responsibility for both funding and helping to sustain programs.

Yes

No

85%

Do you feel it’s your responsibility as a

funder to invest in nonprofit capacity

building, as well as programs?

Why or why not?

What potential funder-provided resources would have the greatest value to you to sustain funded programs?

84% of nonprofits report ongoing assistance is desired over one-time options and workshops.

Fundraising success is predicated upon multiple factors, requiring comprehensive and overall assistance offerings.

Peer workshops with topical trainings on fundraising best practices

One-time strategic plans/assessments, with referrals for local consultants

Ongoing assistance from a FR consultant w/ costs offset

Capacity building funds for technology, assistance, and other

How does your foundation address

technical assistance for grantees?

How do you know if it’s effective or cost-

effective?

With all of the small nonprofits depending on grant makers, where do we go from here?

?

OBJECTIVE

To coordinate and align the capacity building and program sustainability resources between grantmakers, state associations, service providers and consultants to help small nonprofits stabilize and grow their programs.

PILLAR ONE

Establish, resource and monitor Impact Zones to support increased resource generation for small nonprofits in underserved and in-need communities.

We used ten years of giving data to establish geographic needs & priorities

PILLAR TWO

Engage local, seasoned fundraising practitioners to democratize and deliver free, ongoing technical assistance to small nonprofits who need it most.

We convened state associations & local consultant to create free technical assistance.

PILLAR THREE

Launch & fund cooperative grant making initiatives designed to help small nonprofits increase fundraising capacity to sustain funded programs.

We’re investing $2 million alongside with funders who are also focused on program sustainability.

Result: Raised $77K in net new dollar, a 34% increase form previous fiscal year.

Now you have a team that’s dedicated to helping you –and your donors & grantees