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School Fundraising Capacity Building Kay Sprinkel Grace January – June, 2014.

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Presentation on theme: "School Fundraising Capacity Building Kay Sprinkel Grace January – June, 2014."— Presentation transcript:

1 School Fundraising Capacity Building Kay Sprinkel Grace January – June, 2014

2 Grant Writing and Techniques for Growing Foundation Investment April – 4:30 p.m.; April 7 – 8 p.m.

3  Review of assigned work: volunteer job description and foundation identification worksheet  Foundation funding and overall support for nonprofit sector (Giving USA)  Understanding the Foundation world  Basics of grant writing  Getting grants out: what does it take?  Resources for Foundation grants  Summary of session  Homework for Webinar #5 3

4 Types of Foundations The good and bad and ins and outs of Foundation funding

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7  Easiest grant makers to research  They are the “venture capitalists” of the nonprofit world: can give big money and can give “PRIs” (program related investments)  Grants are likely to be only for one year, but some will commit for a longer period  When the stock market is “red hot” (like it is now) foundation assets soar  More and more foundations are addressing a select area of issues (e.g., women and girls, hunger, homelessness, poverty, etc.) 7

8  Grant is usually for a finite period of time and a definite purpose  Guidelines change with trends and emerging needs in communities  Operating grants hard to get: will fund a piece of your overall work, one whose impact can be measured  Most foundation grants go to public education, health, human services and culture  Religious organizations receive a small percentage of foundation funds 8

9  “Private foundations established to provide support or distributions to tax-exempt organizations through grants.” (IRS)  Must give away at least 5% of the value of their assets each year  Usually established through gifts from individuals or families; often carry the names of the original funders (e.g., Ford, Packard, Carnegie)  “Family foundations” are a type of independent foundation where giving decisions involve living family members  Staff size varies with asset base and distribution activity 9

10  Also considered “private” foundations  Receive assets from an associated for-profit company or business (e.g., Exxon-Mobil, AT&T)  Often serve as grant making vehicle for company  May have a separate board from the corporation/company  Decisions influenced by employee involvement and by alignment of corporate interest and nonprofit purpose and mission  Staffing varies according to funding activity 10

11  They look for the WIIFM – “What’s in it for me?”  Many may not be able to fund religious organizations, particularly if they are public companies that have not included religious organizations in their basic foundation documents  Exceptions may be made when there is a strong relationship between high-level personnel in the corporation and your school 11

12  Assets are growing at twice the rate of independent/private or corporate foundations  They receive gifts and make gifts (e.g., California Foundation, Ventura County Community Foundation, others in southern California)  As a public charity, they must receive assets from a large pool of donors and consequently fund a wide range of community needs  Most community foundations limit their interests and grants to a particular geographical area  Growth is due to rise in asset values for individual donors and the growth in donor- advised funds (70% between 2008 and 2012) 12

13  Community foundations have unrestricted funds, donor-advised funds and donor- designated funds  Donor-advised and donor-designated funds are permanent gifts to the community foundation and provide an immediate tax deduction to the donor  Staffing varies according to the number of donor-advised/designated funds  Related structure: Catholic Education Fund, Hispanic Education Foundation 13

14  Tax benefit is given when the gift is made into the foundation – there is no urgency to push it out into the community  Community Foundations and other donor- advised funds are hesitant to connect you with their donors (respecting privacy)  Money flows out at a rate of 16% to 17% a year (and there are more than $13 billion under management in donor advised funds)  BUT – 70% of donors follow their “personal values” when giving, so it is worth it to try 14

15  Find a connection to the DAFs  Excite donors about your plans  Emphasize your vision  Engage the donor in cultivation  Promote your impact and value proposition

16  Seldom make grants to other nonprofit organizations  Dedicated to conducting research and promoting programs to support the work of the original charter or governing body  IRS requires them to spend at least 85% of their income in support of their own programs (e.g., Gates)  Serve as conveners and may provide opportunities to connect with others 16

17  Operational/unrestricted ◦ No conditions for use  Program ◦ Specific set of activities and plans  Capital ◦ Building construction funds, equipment, endowment growth  Pilot/Seed ◦ Start up programs, projects or organizations  Challenge or matching ◦ To encourage other philanthropic giving 17

18  Higher expectations, more accountability  Emphasis on evaluation: grantees often must submit an evaluation plan  Collaboration with other organizations focusing on the same or similar mission is encouraged  More clearly defined guidelines and application processes 18

19  Charitable gift funds at (e.g., Schwab, Fidelity, Vanguard) have huge increases in managed assets and advise donors and manage donor- advised funds  Expectation that an organization’s board and other volunteers will reflect the diversity of the community  Support for capacity building, which waned during the recession, is growing again but usually only for organizations already receiving support from the foundation 19

20  From what kinds of foundations have you received support and for what purposes? ◦ Independent (private, family, other) ◦ Corporate ◦ Community ◦ Operations ◦ Program ◦ Capital/endowment ◦ Pilot ◦ Challenge grant 20

21 Getting ready to approach Making a request 21

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23  Be able to show evidence of diverse financial sources – the foundation grant should be one part of a fully diversified development plan  Research the foundation to determine any linkages and interest, and make sure your priorities are reflected in a strategic plan  Be sure your project or program is within their guidelines and the impact can be measured  Like individual fundraising, successful foundation partnerships are built on trusted relationships established over time 23

24  Ask three questions (Hank Rosso’s advice): ◦ Is there a previous relationship with the school through funding or friends? ◦ What size is the typical gift? Total assets? ◦ Is the foundation interested in this program?  Check the foundation’s 990 and other research  Adhere to the guidelines: if you fall within their guidelines, proceed ◦ Make an initial phone call (some will not accept unsolicited calls so you may need to prepare a brief letter of inquiry that outlines the parameters and benefits of the program but no budget – yet) 24

25  Assemble a proposal package ◦ Cover sheet including contact information ◦ Executive summary of proposal ◦ Identification of needs statement ◦ Case expression (Webinar #2) covering the problem/issue ◦ Proposed solution (program or project) ◦ List of outcomes ◦ Evaluation tool(s) ◦ Description/list of governance and staffing ◦ Budget and budget explanation  Package should be reviewed and approved by Principal and/or Archdiocese personnel before submission 25

26  Get broad input on ideas and positioning, but have only one person write the proposal (a camel, remember, is a horse designed by a committee!)  Draw from your case materials, and create a proposal (a proposal is a case expression)  You must include all the information they ask for, or the proposal will not be considered 26

27  Observe deadlines and don’t ask for exceptions or extensions  Over time, create a proposal template that can be revised according to the funder’s guidelines – it is part of the “systems liberate” idea  Work with the foundation program officer who has asked you to submit; it is better to ask questions and do it right than to submit and have it rejected 27

28 Review and decision process 28

29  Received and reviewed to make sure there are no missing materials (most submitted now via Internet and you are given a checklist)  Verification it is within foundation funding guidelines and has followed the submission format or template  Sent to program officer for evaluation of alignment with foundation priorities  If there is interest, you may be called to arrange a site visit – engage your Ambassadors and Advocates at that visit 29

30  Foundation officers recommend proposals to the foundation’s board (and/or Distribution Committee) – Proposals are sent out to them prior to their meeting  At the meeting, they are discussed and decisions are made  If you are funded, it is the beginning, not the end, of the relationship (just like with an individual) 30

31  You must extend immediate and appropriate thanks and mutually agreed to recognition (donor listing, press release, etc.)  Your success is important to the foundation and will influence future funding  Ongoing evaluation begins, and periodic reports are filed  If you are having trouble implementing, let them know ASAP  If you are denied, try to keep the relationship going – you never know when it might work 31

32  Your goal is to have a diversified funding base  Foundations will want assurance they are not “supporting you” entirely  Foundation funding is robust right now, but during the recession it was not  Individuals are still our strongest and largest gift source, especially for religious organizations including schools  Foundations are a key part of a healthy fundraising program 32

33 Primary resource for research and support 33

34  -- The Foundation Center is the best resource both online and through their 400+ Cooperating Collections in every state and Puerto Rico (interactive map with locations including LA area which has several sites – e.g., VCCF)  The Foundation Center operates five free libraries: California’s is in San Francisco  For Catholic education supporters, and particularly in Southern California, use your online search engine with key words 34

35  There are several types of foundations: each has its plus and minus factors  The trends in foundation funding parallel all funding trends: accountability, metrics, etc.  Gather wide input for a proposal then assign to one person to write  Foundations are part of a diversified funding program  The Foundation Center is the “go to” resource for new sources or to revalidate your base 35

36  Webinar #5 will be the long-awaited “Creating, Implementing and Growing an Annual Fund at Your School”  To get ready for that session, please finish your case elements checklist, be sure your mission/vision/values statements are refreshed and discussed with your volunteers, and complete the foundation identification assignment from Webinar #3 for Webinar #4 – you will need all of those things in place in order to run an effective annual fund. 36

37  All you need to do to get ready for #5 is to get together for a one hour meeting and lay out a brief plan for your annual fund including ideas about: ◦ Messaging ◦ Structure, including volunteers and staff and involvement of classrooms ◦ Who you will reach out to for participation ◦ The financial goal you have set and what it is based on ◦ What percentage of your overall fundraising goal is your annual fund? 37

38 May 7 – 8 p.m.; May 3:30 – 4:30 p.m. 38

39 School Fundraising Capacity Building Kay Sprinkel Grace January – June, 2014


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