Part II: Private Foundations/Corporation Grants

Why Foundations/Corporations? As government funding diminishes, private foundations and corporations can fill in the gap. Especially useful for new programs and special efforts. Strong interests in programs that involve local communities. Funding is substantial; foundations give away $41 billion a year and corporations $20 billion. Top three areas of interest are education, health and human services.

Federal Grants vs. Foundations Foundations, corporations and federal agencies have fundamentally different approaches to funding decisions. Not understanding the difference often leads to failure by grant seekers

Federal Process: Fairness All applicants should have an equal opportunity with a “level playing field”. Detailed written criteria (Requests for Proposals) Review panel of peers who are outside experts Staff members who are assigned to answer questions.

Foundation and Corporate Process: Stewardship Purpose is to honor donor’s intentions and interests. Often favors programs known to be successful. Makes use of information not in the grant proposal. May not have any written proposal process or staff access. Final decision makers may not be experts.

Goal is the Same Both federal agencies and foundations/corporations want to fund excellent projects Approach is very different Successful applicants tailor their proposals for each foundation or corporation, unlike the federal process which is similar across agencies.

Why Do Corporations Give? Good corporate citizenship; positive community image in locations they operate. Enlightened self interest. For example, they need an educated workforce, so they support education. Individual leadership initiative. The CEO or senior leaders often shape giving priorities. Civic participation. Often restrict giving to locations where they operate. Quid pro quo. What’s in it for us?

Why Do Foundations Give? To honor the donor. To meet community needs To gain prestige or visibility (sometimes) Because they have to (IRS 5% rule; donations only to 501(c)organizations)

A Step by Step Approach Writing the proposal comes at the end of the process Many of the steps will take time. Respect each foundation/corporation’s process and procedures. Make use of all the resources you have, including connections to the foundation or corporation

Step 1: Nurture Relationships Essential to get to know the foundation or corporation through attendance at social and business events. Provide a regular stream of information about your research interests. Invite staff to events. Don’t let the proposal be your only communication.

Step 2. Advertise Your Success Smaller foundations and local corporations especially want to ensure that they are giving to good programs. Make sure your efforts are seen and appreciated in the community. Foundation and corporate giving people stay in communication with each other.

Step 3. Do Your Homework Find out what the foundation or corporation funds and at what level. Proposals that request funding above this level are rarely successful; nor are identical grants submitted to different foundations/corporations (double dipping). Tailor the proposal carefully to match the language (“buzz words”) of the foundation or corporation.

Step 4: Look Locally Most foundation and corporate money is local, but most people look nationally. Become acquainted with local influential members of advisory boards. Receiving support locally will help you compete for national foundation funds.

Step 5: Understand the Funder’s Needs What is the foundation or corporation trying to accomplish? Is visibility and/or prestige a goal? Look at the history of the organization and background of trustees or corporate officers. Corporations often take cues from employees in deciding what to fund; try to contact local employees to understand their needs and opinions.

Step 6: Talk before Writing Always talk to the program officer before submitting a proposal. Ask for advice; they often can and will steer you in the right direction. A lot of time and effort can be saved if they tell you what they would never fund.

Step 7: Create the Proposal Answer the “Three Whats”: -Do What? Clear statement of the project -So What? What difference will it make -Then What? How will the effort continue once funding ends.

Step 8: Simplify and Clarify Poor writing is often the downfall of nonprofits Develop a verbal pitch that is at maximum 2-3 minutes long. Write it down and memorize it Answer the obvious questions (cost, length, why you) Try the “mother test”.

Step 8: Simplicity and Clarity cont’d Talk about benefits rather than process Combine emotion and reason: -Emotion is putting a human face on the problem you are addressing and your success; consider testimonials. -Reason is providing sufficient quantification of your accomplishments in making changes the donor wants to fund..

Step 8 cont’d What are the numbers that prove you are special? -What are the most important numbers in your organization? -Are efforts focused on enhancing these numbers? -Is funding/compensation related to these numbers? You don’t have to effect a large number of people but do need to have a big impact

Step 9: Remember Your Goals Don’t respond to every foundation or corporate announcement; you will not be successful and will likely give up. Be politely persistent Do not let the pursuit of funding warp your strategic goals. Know what is important to you and what you do well and stick to it.

Thank You! Jeanne M. Manson, PhD, MSCE