Finding the Right Fit with Foundations Effective Steps to Grant Prospecting

1. Finding the Right Fit with FoundationsEffective Steps to Grant Prospecting Presentation to 2013 IT’S TIME TEXAS Summit June 24, 2013 by Erica V. Ekwurzel, CFRE

2. Agenda • Understanding the Foundation Landscape • Statistics on Family & Private Grant Programs • How the Process Works • LOI  Application  Board Decision  Report/Follow-up • Tips on finding the right Foundation • Find a Foundation near and dear to you • Effective techniques to approaching funders • Importance of Cultivation & Stewardship • Tools to Flex Your Grantseeking Skills

3. Landscape of Grantmaking Entities • Types of Funding Organizations • Corporate giving programs • Community foundations • Grantmaking public charities • Private foundations • Family • Independent • Corporate

4. Fascinating Facts on Foundations • In 2010 there were 88,800 active, private foundations in the U.S. • Over 90% (83,113) had endowments of less than $10 million with $88 billion in total endowments. • Most of these are family foundations. • Private foundations are required to make grants of at least 5% of their average assets annually. • 5% of $88 billion = $4.4 billion. • 70% make grants for educational purposes.

5. Generally Speaking, How Foundations Operate Characteristics of small foundations: • Few or no staff • Keep a low profile • Tendency to fund locally • Make grants to nonprofit organizations with which they are personally acquainted • Many do not consider unsolicited requests • Best to approach through personal relationships

6. Importance of the Ask: People Give to People In a recent survey of family foundations by Foundation Source, 58% said it is very important that: “Someone I know and respect is closely involved or has asked me to support the project.”

7. Finding Family & Private Grantmakers • Network locally • Online resources: • Foundation Center: www.foundationcenter.org • Guidestar: www.guidestar.org • Urban Institute: http://nccs.urban.org/statistics • CTEF Giving Profile: www.centraltexasedfunders.org • FC Cooperating Collections: http://foundationcenter.org/collections/cctx.html • 20+ Cooperating Collections around Texas • Electronic & Print Resources such as: • The Foundation Directory Online Professional • Philanthropy In/Sight • After the Grant: The Nonprofit's Guide to Good Stewardship (2010) • Board Member's Book (2003)…..and MUCH MORE!

8. Quick Demonstration on finding Grantmakers Online National Center for Charitable Statistics • search by Texas County • view Board Members • see Past Grants (by IRS Form 990s)

9. Urban Institute - NCCS

10. Texas County Detail

11. How the Grantmaking Process Works Letter of Inquiry (LOI) • Brief • Amount requested • Specific purpose of funds • Why it is needed • Who it will help & how many • What you hope to accomplish

12. How to Apply Full Proposal • Many foundations have their own application. • Most small foundations do not want a long proposal. • Be direct and honest. • Be accountable to project goals and budget needs. • Cut the jargon talk. • State how your work differs from other similar organizations/programs.

13. Target Prospecting Private Foundation Website • Grant guidelines & funding priorities • Grant process & timeline • Annual reports • IRS 990 Form • Staff biographies • Grant success stories • General information/FAQ

14. Tools to Refine Search & Outreach

15. Timing of Grant Cycles Don’t Expect Quick Results • Often part-time philanthropists • Small or no staff • 3 or 4 funding cycles annually

16. What to do if funder says “No.” Don’t Let a Rejection Discourage You • Rejection is part of the process of finding funding • Reasons for rejection may have nothing to do with the quality of your program or proposal: • Funding priorities may have changed • Reached annual quota for funding • Contact them again next year. Strengthen personal relationships and program awareness.

17. Questions, Comments? Thank You! http://www.seedsforchangeconsulting.com/CivicAIM Erica V. Ekwurzel, CFRE erica@civicaim.com