CNCS On-the-Go e-TA: September 2010
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Dear “Grant Seeking” Colleague,
While large foundation grant giving shrank, giving by small and medium-size foundations actually grew in 2009. This issue of On-The-Go eTA focuses on some ideas to attract support from this donating audience. Click on the titles at the right to learn more about…
Donor-Advised/Designated Funds
What Foundation Funders Want
Foundation Visit Preparation
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If you wish to receive direct assistance from our team of issue experts, you can also contact Campaign Consultation, Inc. at OnTheGo@CampaignConsultation.com.
Donor-Advised/Designated Funds
In order to attract more foundation grants, it’s important to become acquainted with donor-advised/designated funds. Individuals and families of wealth are attracted to placing resources into donor-advised/designated funds rather than establishing their own foundations. These funds, many of which are advised/designated toward grassroots, health and human service causes, etc. – often reside in community foundations which help donors to …
- Save administrative costs as more donors pool their resources
- Worry less about running their own foundations
- Provide an extra layer of anonymity if they so choose
- Offer peace of mind that there’s a mechanism in place to responsibly manage their gift upon their death and lack of heirs
The funds differ in the degree of control that the donor has over giving as described below:
| Donor-advised funds: |
Donors advise that income/assets be directed to eligible charitable recipients for grants. However, the community foundation’s board of directors have the liberty to accept or reject their recommendations. |
| Donor-designated funds: | Donors designate that their fund’s income or assets be given to one or more specific charitable recipients or causes. However, after many years and perhaps the death of the donor and their heirs, the governing body is responsible for redirecting fund resources if the designation is no longer necessary, incapable of fulfillment or is inconsistent with the changing needs of the community or area served.
|
What Foundation Funders Want
You are well acquainted with what your cause needs and can easily express it in a proposal. It is equally important to take the time to focus on what a foundation funder requires. The closer you come to marrying your organizational needs to the expectations of funders, the greater the likelihood of receiving support. Here’s what foundation funders want …
- 1. To give away their money
Foundations are required to give away 5 percent of the fair market value of their assets annually. They are looking for meaningful projects.
- 2. A good fit with their priorities
Foundation funders are explicit about the kinds of organizations and projects they fund. Be certain that you clearly understand what they are by reading their profiles. If unclear about their interests, call the foundation.
- 3. A well-written proposal
Read the guidelines carefully to be certain that you have included all requested information. Proofread for grammatical accuracy and then ask someone else to proofread before you submit.
- 4. Measurable results, efficiency and accountability
Foundations need to know that their funds have impact, are being used wisely and are not wasted. Ensure that your proposal includes a scrutinized budget. Determine your impact goals and how you plan to measure/evaluate your success. These proposal aspects will win you the respect and eventual trust of foundation funders.
- 5. Creative solutions
Foundations are especially interested in new ways to solve old problems. This is why many foundations have a limit on the number of years they will support a particular project.
- 6. A plan for sustainability
Funders want to know that you are committed for the long haul. They want to see plans in place for growing the project and funding it through multiple sources.
- 7. Other funders
Only in very rare instances will a foundation agree to be a sole funder of a project. They want to be partnered with other funders. Quite often they will come right out and ask who else has been asked.
- 8. A relationship
You can start building a relationship even before you submit a proposal. Call for an appointment to visit and discuss your ideas. If your proposal is funded, remember to thank the foundation. Send articles, papers, or other materials that demonstrate the impact of their support. If the foundation’s support leads to other funding, let them know. Building your relationship over time may well lead to future support.
Foundation Visit Preparation
When you receive a call from a foundation leader who wishes to visit your program, that’s good news. It means that your proposal is under serious consideration. Here are some tips:
When a foundation leader visits your site
- Beforehand, ask the prospective funder about any program areas in which they are specifically interested. Determine how many others will be joining them and the length time available.
- Prepare some anecdotal stories that you’re often unable to include in a grant proposal. Such stories provide funders an opportunity to absorb and understand your organization and programs.
- Inform other staff colleagues who are adept presenters, about your research on the foundation and the proposal. Ask them to join you and/or prepare a brief report for the visit. You should consider having a board member and your finance person on call during the meeting.
When you visit a foundation
- Augment your research by visiting a foundation in advance of a funding request. Such a face-to-face is useful in finding out if there are any changes in program, personnel, discretionary monies and other giving possibilities. If you are brand new to a social profit organization and still learning about your community, use this meeting as an opportunity to gather valuable information and build relationship.
- Brief board members and anyone else who is joining you regarding the foundation’s background and your proposal. Share a draft agenda to use time efficiently in respect of the funder’s schedule.
- Always leave something behind – i.e., an information packet that contains your business card, an annual report, press coverage, Board / Advisor list, latest newsletter, etc. Remember, parting remarks exchanged in the doorway are often the most important outcome of the entire visit – use strategically.
