Robin L. Cabral, CFRE

Raising Serious Money Through Grants

DEVELOPMENT CONSULTING SOLUTIONS

D e v e l o p m e n t C o u n s e l

Director of development for the Northeast Community of the Sisters of Mercy.

Principal of part-time, Development Consulting Solutions.

Certified Fund Raising Executive (CFRE).

18 years of fund development experience: Progressive social change agency (2), women’s center (4), YMCA (2), outpatient Children’s Rehabilitation Center (7), and Sisters of Mercy (3)

A little about me…

A little bout you…

Share with your partner: A little bit about yourself What you hope to accomplish by attending this class What you are seeking funding for?

Before you even begin!

Share with your partner (and head start on your homework!):

What is your organization’s mission and vision statements?

What is it that your organization does? What are you major programs? What are your future goals? And what makes it unique?

What other funding sources do you have to support your program?

Have you received past grants and if so in what amounts?

Partner sharing

Before you even begin you should already know: Who you are. What your niche is. What kind of service you provides and how are you unique. What you need in terms of financial support for your programs and services.

Overall organizational case and maybe individual case statements for different entities: Corporations/businesses. Foundations. Government entities.

Market segmentation: who is most likely to support you!

Do you have the financial systems in place to monitor the use of funds?

Who are you?

Where to start

With your organization! Mission/case statement Long-range plan? Goals? Others sources of funding? Programs and projects? Uniqueness? Cost-efficient? Regulations compliance?

Corporations : 4-6% of all giving in the U.S.

Foundations: 7-10% of all giving in the U.S.

Individuals: 79-81% of all giving in the U.S.

A little perspective!

What do you think are:

The types and forms of grant/foundation support?

What are the possible motivations for support?

What strategies are most effective?

Three questions about support!

Types of support: Corporate foundation. Direct corporate giving (case directly out of profits). Executive discretionary funds (personal connections). In-kind gifts of company products or equipment. Subsidiary or individual plant budget (local giving). Marketing budgets (cause-related support or for events). Research and development budgets (business interests).

Motivations: Good corporate citizenship. Enlightened self-interest. Individual leadership initiative. Location. Quid-pro-quo interests. Of interest to corporate/business employees. Tax advantages.

Corporations and businesses

Research the business.

Identify their motivations.

Make your case for support.

Involve key employees.

Write a proposal.

Obtaining corporate support

Smaller, one-time grants.

Competitive applications.

Want something in return for their investment.

Specific problem area in society: poverty, illiteracy, etc.

Areas most often funded: education, health and human services, and environmental issues.

Trends in corporate giving

Types: Independent foundations (known as family foundations, general purpose

foundations, special purpose foundations, or private non-operating foundations.) Company-sponsored/corporate foundation (contributions of a profit-making

business organization with close ties with the donor company.) Community foundations (build permanent, named funds established by

separate donors.) “Operating” foundations (privately supported or funded, actively conduct

charitable programs or activities rather than distribute funds.)

Motivations: Community support (broad). Sociopolitical concerns. Historical roles (philanthropic interests of founders). Seed money for new projects.

Foundations!

Research the foundation.

Analyze foundation guidelines.

Make personal contacts.

Write a letter of inquiry.

Write a proposal.

Obtaining foundation support!

Types: Direct support (grants and purchase of service contracts). Indirect support (tax exemptions, reduced mailing rates, etc.) Federal and state governments provide the greatest amount of

funding.

Motivations: Promote public policy. Address a pressing social problem.

The government!

Design a program that conforms to requirements of funding agency or better yet match your interest to theirs.

Enlist local counsel and support for your work (advocate).

Meet with legislative staff who support the program.

Complete and submit the required application in a timely and thorough fashion.

Report in a timely and thorough fashion.

Strategies for support!

A little more insider information!

Government RFP’s

Bidders conference.Letter of intent.Request for proposals issued.Competition for dollars high.Highly specific and targeted.Education, research, etc.Eligibility, interest compatibility, feasible, flexible,

implementation, competitive.Need a DUNS # (Data Universal Numbering System

Number) - The DUNS number is a unique nine character identification number provided by the commercial company Dun & Bradstreet (D&B).

More on government RFP’s

Direct grants (apply directly to the federal government.)

“Flow-through” or “pass through” grants (federal grant is made to an organization or state that then uses some or all of the money to make sub grants to other organizations.)

Appropriations from legislature.

Difficult to find out about.

Notify agencies that they already have a relationship with.

Federal sources even more difficult.

Competitive (compete with other grant applicants for limited pool) or formula (disbursed by state agency to applicant based on a formula).

http://www.grants.gov/ - the BEST resource!

Private foundations

Many, many out there.

Foundation Center – www.foundationcenter.org

Billions in assets.

Categories: general purpose, special purpose, corporate or company foundations, family foundations, and community foundations.

Professional Associations

Many small groups.

Awards for scholarships and fellowships, research projects, or travel.

Examples of these organizations include churches, Junior Leagues, and civic organizations such as Rotary and Kiwanis.

Researching foundations!

Share with your partner:

What is the importance of research to the foundation/grant process?

Why should we do research before we begin?

What kinds of things should we be looking for as we do our research?

Partner sharing

Why research?

At least 50% of successful foundation solicitation is research.

Research is undertaken by few.

Vast numbers of nonprofits, stiff competition.

Match between funder and mission/program.

Foundations list broad funding areas.

Before you begin

An eagle eye, a detective’s nose, and the patience of a saint!

Patterns and similarities of grantees.

Unearth a familiar name.

Snoop out not readily available information.

Cross-check sources.

Record, record, record!

Record keeping

Properly managed recordkeeping system.

Document, document, document!

Staff turnover.

Share information.

Grid system, rolling calendar, individual files.

Database such as Raisers Edge ($10,000), Giftworks ($849) and others.

Importance of research

Be thorough, but not an obstacle.

Get specific information on each prospect. Online databases. Foundation Center at www.fdncenter.org.

Great classes as well…Foundation Fundraising or Proposal Writing

Narrow your prospects to sources whose giving policies match your needs.

Develop a funding source ranking sheet.

Research your potential funder

Profile. Funders interest areas. Types and sizes awarded grants. Geographical preference. Organizational preference. Application guidelines. Relationship with funder. Evaluates proposals.

Evaluation form

Standardized form for data collection.

Foundation annual report.

Correspondence with foundation.

Consult several different sources.

Ranking (interest, geography, support).

Resources

Local library (Foundation Center Cooperating Collections Network).

Published foundation directory.Online and subscription directories.Anything published by foundation.Form 990 – Federal tax return.Guidestar and Foundation Center.Periodicals and newsletters (Chronicle of

Philanthropy)

Homework Assignment

Questions and Answers

More than a good proposal!

Debrief homework!

Trust.

Communication.

Shared values.

Honesty.

Respect.

Elements of a good relationship

Know the landscape.

Know who you are dealing with.

Know their considerations.

Know what they value.

Know how to give it to them.

Minimize the risk.

Six rules of engagement

Mega foundations (specialists, staff are influential)

Competitive (Generalists, boards are more involved in decisions)

Family (the donor, the buck stops there)

The institutional paradox. Entrepreneurial mission. Risk-adverse board.

Managing competing priorities.

Know the grant making landscape

Product Data. Deliverables. A plan that is likely to work.

People Leadership. Trust. Accountability and responsibility.

Protocol Respect for the rules.

Know what they value

Learn the culture of the grant maker Analog or digital. Old school or new school. Traditional or cutting edge.

Learn the personality of your contact(s) How they process information. How they interact with others.

Never, ever underestimate the value of the gatekeeper.

Respect the process.

Know how to give it to them

Risk to the grant maker. Failure of the project. Misuse of the funds.

Risk to you. Unreal expectations. Mission drift.

Minimize risk

Build an information network to help you understand your funders.

Look beyond the numbers and learn who the grant maker is.

Don’t see. Help the grant maker to buy.

Err on the side of professional rather than personal.

Know the difference between persistence and pestering.

Communicate early and often when the going gets tough.

Respect the ground rules.

Seven best practices

Writing winning proposals

Your proposal is only one part

Each year $10 - $20 billion.

Process (planning, research, personal contact, and follow-up).

Not just about grant writing!

Present yourself credible and capable

Trust – credible organization with strong leadership.

Merit or value of your project or proposal.

Mission, people you serve, uniqueness, management/leadership, fiscal, and results.

Speak to the funders goals

Not just about you!

“What will funder gain by funding me?”

Think of it as a TEAM approach.

Call before writing

Call them first!Letter of inquiry.Determine level of match.Obtain more information.Is there interest?Describe project.Personal visit?!?

If you get an appointment

Unique opportunity.

Who attends?

Research, preparation and plan.

Role play!

Style and content

Brief, concise, and compelling!You match!Address needs!Experience and capability!Best approach!No duplication!Collaboration!

Blend logic and emotion

Facts with life and passion!Examples, anecdotes, stories.Relationships – connect!

Write to a person. Human side. No jargon. Confidence. Concise. Integrity. Feasible and realistic.

Write!

Components:* Cover letter. Cover page. Table of contents. Abstract, executive summary. Purpose of request. Statement of need. Project description.

Objectives or major goals (behavioral, performance, product, process, research) Methods or who the project will be conducted. Staffing and administration. Evaluation.

Organizational information. Closing. Budget. Appendices (tax id, financial statements, board list, annual report, letters of

support).

Packaging.

Follow-up

6 months plus.

Write, call, or visit!

Any further info call.

Review time – call!

Did you get it?

Thank you (letter and/or call).

Can you publicize?

Recognition different for each source.

Reporting.

Maintain ongoing relationship with funder.

Encourage site visits.

You didn’t get it!

Thank you.

Call why?

Keep lines of communication open.

And yet another perspective!

Time of grant writing?

Foundations and corporations historically contribute very small amounts compared to individuals.

Necessity for a diversified and integrated fund development plan…

Where do you go from here?

Small group exercise:

Determine what your next steps should be? Identify at least five simple steps that you can take when

you go back to your organization. What are you going to start implementing? How can you incorporate this information into your

organization?

Share your next step action step with the larger group!

Questions and AnswersEvaluation