Michigan Nonprofit Association Strategic Fundraising and Grantwriting Basics What You Don’t Know WILL Get In Your Way!

Our Goals for Today  Basic reality check  Provide participants with strategies for more effective grant-seeking  Outline basic components for writing and supporting data collection

Ongoing Challenges  Rapid growth of sector  Competition vs. collaboration  Economic slump  Changes in government funding priorities  Doing more with less = less time for you to research, write, cultivate…

Show Me the Money!  Breakdown of Nonprofit Funding (pretty consistent trends over the past 20+ years) 50% - fee for service 50% - fee for service 30% - government (grants and contracts) 30% - government (grants and contracts) 20% - private sector 20% - private sector 80-85% - individuals80-85% - individuals 10-15% - foundations10-15% - foundations 5-10% - corporations5-10% - corporations

Research, Research, Research The primary difference between successful grant writing and inefficient proposal submission is the amount of time invested in the strategic identification of appropriate funders.

Do Your Homework!  In relation to seeking and securing funding… What current trends do you see? What current trends do you see? Where do local nonprofits shine? Where do local nonprofits shine? Where do local nonprofits need to improve? Where do local nonprofits need to improve? What basic advice could you offer? What basic advice could you offer? What resources exist to support nonprofits locally? What resources exist to support nonprofits locally?

Create a Plan  Determine your grant revenue goal in relation to overall fund development  Determine how much time you have to invest in grant seeking and SCHEDULE IT  Create a grantseeking calendar that reflects application timelines, reminders, etc.  Engage support as necessary – consider hiring technical and/or grant writers** Outside fundraisers must register with Michigan Attorney General Outside fundraisers must register with Michigan Attorney General

What You Need to Write  Cover letter (or, if you’re lucky – a letter of application!)  Proposal  Case statement  Needs statement  Goals and objectives  Evaluation strategy  Budget

Critical Questions  What problem are we trying to address?  What program are we offering to address the problem?  Why is this important?  Who is our market?  Who are our competitors? (duplication?)  What are the financial needs of supporting this initiative?  Do we possess the organizational capacity to carry this through?  Who should support our efforts?

Painting the Picture  Statistics Reliable sources Reliable sources Appropriate comparisons Appropriate comparisons Paint by numbers: stats can tell your story Paint by numbers: stats can tell your story  Anecdotes: short, sweet, related  Focused on needs of community v. needs of organization  Community voice is key

Goals and Objectives  Goals are the large statements of what you hope to accomplish but usually aren't very measurable. They create the setting for what you are proposing.  Objectives are operational, tell specific things you will be accomplishing in your project, and are very measurable.

Effective Evaluation  Effective evaluation answers the question, “So what?”

Your Evaluation Strategy  Evaluation plans should be developed concurrently with program plans, staffing plans, funding plans to ensure that the pieces of the puzzle fit  What do your wide array of stakeholder’s care about?  You can’t measure everything, so focus on what matters most

Typical Budget Line Items  Personnel (salary and benefits)  Consultants (salary)  Instruction  Equipment  Supplies  Communication (telephone/postage)  Materials preparation  Travel  Rental of facilities  Evaluation  Other expenses  Indirect costs (costs that your organization requires)

The Budget Narrative  Show Your Work (formulas are helpful)  Be Realistic  Check Your Addition  Explain Every Line (make no assumptions)  Too much detail makes you “thorough” – too little makes you “suspect”

Words that Work  Use a thesaurus  Avoid duplicating and repeating yourself  Seventeen words per sentence  Skip the jargon  What does A.C.R.O.N.Y.M. stand for?  We are not all PhDs

When Brainstorming…  Answer the following questions: What is your current “big idea”? What is your current “big idea”? What does your mission say as related to this big idea? What does your mission say as related to this big idea? Most significant (potential) impact of this big idea? Most significant (potential) impact of this big idea? How do you know this is needed? How do you know this is needed? What does success look like? What does success look like?

When Brainstorming…(cont’d) Take your potential impact and frame it as a “Goal Statement” Take your potential impact and frame it as a “Goal Statement” Take your thoughts on “What Will Success Look Like?” and create a measurable outcome objective Take your thoughts on “What Will Success Look Like?” and create a measurable outcome objective

“What is your sustainability plan?”  Multiple Choice….  A. Ask you for more money  B. Ask somebody else for more money  C. Worry about it later  D. Buy a lotto ticket  E. Develop a strategy to increase and diversify community investment while diminishing the need for grant funding

Define Sustainability  Environmental Term: meeting the needs of the present without compromising the ability of future generations to meet their own needs.  Nonprofit Equivalent: the ability to continue the work that was started in a self-renewing manner. “Planting trees in our own special way.”

Barriers to Sustainability  Increasing competition  Rivalry and turf  Effective planning takes time  If the community doesn’t know, the community doesn’t care  Nonprofit funding is typically short-term focused (2-3 year grants; annual gifts from individuals)

Grant Writing Resources     l l l

Wrap-Up  Lingering Questions  Ongoing Needs  Evaluation  Evaluation

Questions? Contact MNA: Annie McGuigan Fenton Capacity Building Manager Michigan Nonprofit Association