Successful Corporate and Foundation Fundraising for Nonprofits John Feather, PhD, CAE, CFRE Chief Executive Officer Grantmakers in Aging.

Successful Corporate and Successful Corporate and Foundation Fundraising for Foundation Fundraising for NonprofitsNonprofits

John Feather, PhD, CAE, CFREJohn Feather, PhD, CAE, CFREChief Executive OfficerChief Executive OfficerGrantmakers in AgingGrantmakers in Aging

Why Foundations?Why Foundations?Why Corporations?Why Corporations?

As government funding diminishes, private As government funding diminishes, private foundations and corporations can helpfoundations and corporations can help

Especially useful for new programs and special Especially useful for new programs and special effortsefforts

Strong interest in programs that involve local Strong interest in programs that involve local communitiescommunities

Big money – foundations give away $41 billion a Big money – foundations give away $41 billion a year and corporations $20 billionyear and corporations $20 billion

Top three areas are education, health, and human Top three areas are education, health, and human servicesservices

Why Are Nonprofit Why Are Nonprofit Programs Attractive?Programs Attractive?

Meet real needsMeet real needs

Matches donor demographics and interestsMatches donor demographics and interests

Visibility and prestige of being associated with Visibility and prestige of being associated with good works in the communitygood works in the community

Small investment, big returnSmall investment, big return

Sustainability of programsSustainability of programs

Fairness vs. Fairness vs. StewardshipStewardship

Foundations, corporations and government Foundations, corporations and government agencies have agencies have fundamentally different fundamentally different approaches to funding decisionsapproaches to funding decisions

Not understanding the difference often leads Not understanding the difference often leads to frustration by grant seekers to frustration by grant seekers

Government Process: Government Process: FairnessFairness

All applicants should have an equal All applicants should have an equal opportunity – a “level playing field”opportunity – a “level playing field”

Detailed written criteria (Request For Detailed written criteria (Request For Proposals)Proposals)

Review panel of outside experts Review panel of outside experts

Staff members who are assigned to answer Staff members who are assigned to answer questionsquestions

Foundation and Corporate Foundation and Corporate Process: StewardshipProcess: Stewardship

Stewards of donor’s intentions and interestsStewards of donor’s intentions and interests

Often favors known successful programsOften favors known successful programs

Makes use of information not in the grant Makes use of information not in the grant proposalproposal

May not have a written proposal process or May not have a written proposal process or staff access at allstaff access at all

Final decision makers may not be expertsFinal decision makers may not be experts

Goal is the SameGoal is the Same

Both government funders and Both government funders and foundations/corporations want to fund foundations/corporations want to fund excellent projectsexcellent projects

Approach is differentApproach is different

Successful grant seekers tailor their proposals Successful grant seekers tailor their proposals for each foundation or corporationfor each foundation or corporation

Why Do Corporations Why Do Corporations Give?Give?

Good corporate citizenship. Positive Good corporate citizenship. Positive community image in places they operatecommunity image in places they operate

Enlightened self interest. For example, they Enlightened self interest. For example, they need an educated workforce, so they support need an educated workforce, so they support educationeducation

Individual leadership initiative. The CEO or Individual leadership initiative. The CEO or senior leaders often shape giving prioritiessenior leaders often shape giving priorities

Civic participation. Often restrict giving to Civic participation. Often restrict giving to places in which they operateplaces in which they operate

Quid pro quo. What’s in it for us? Quid pro quo. What’s in it for us?

Why Do Foundations Why Do Foundations Give?Give?

To honor the donor.To honor the donor.

To make the world a better place.To make the world a better place.

To meet community needs.To meet community needs.

To gain prestige or visibility (sometimes).To gain prestige or visibility (sometimes).

Because they have to (IRS 5% rule). And only Because they have to (IRS 5% rule). And only to 501(c)3 organizationsto 501(c)3 organizations

Writing a Successful Writing a Successful Foundation/Corporate ProposalFoundation/Corporate Proposal

First and foremost, it is just good grant First and foremost, it is just good grant writingwriting

Every foundation and corporation is unique: Every foundation and corporation is unique: follow follow theirtheir process process

Never “repurpose” a government grant Never “repurpose” a government grant proposal for a foundation or corporationproposal for a foundation or corporation

A Step by Step A Step by Step ApproachApproach

Writing the proposal comes at the Writing the proposal comes at the endend of the of the processprocess

Many of the steps will take timeMany of the steps will take time

Respect each foundation or corporation’s Respect each foundation or corporation’s process and proceduresprocess and procedures

Make use of the Make use of the allall resources you have, resources you have, including connections to the foundation or including connections to the foundation or corporationcorporation

Step 1: Nurture Step 1: Nurture RelationshipsRelationships

Essential to know the foundation or Essential to know the foundation or corporationcorporation

Provide a regular stream of informationProvide a regular stream of information

Invite staff to eventsInvite staff to events

Don’t let the proposal be your only Don’t let the proposal be your only communicationcommunication

Step 2: Advertise Your Step 2: Advertise Your SuccessSuccess

Smaller foundations and local corporations Smaller foundations and local corporations especially want to ensure that they are giving especially want to ensure that they are giving to good programsto good programs

Make sure your efforts are seen and Make sure your efforts are seen and appreciated in the communityappreciated in the community

A little secret: A little secret: foundation and corporate giving foundation and corporate giving people talk to each otherpeople talk to each other

Step 3: Do Your Step 3: Do Your HomeworkHomework

Find out what the foundation or corporation Find out what the foundation or corporation funds and at what levelfunds and at what level

““Over the transom” proposals are never Over the transom” proposals are never successful -- and no multiple copies!successful -- and no multiple copies!

Tailor the proposal carefully to match the Tailor the proposal carefully to match the language (“buzz words”) of the foundation or language (“buzz words”) of the foundation or corporationcorporation

Step 4: Look LocallyStep 4: Look Locally

Most foundation and corporate money is Most foundation and corporate money is local, but most people look nationallylocal, but most people look nationally

Have local influentials on advisory boards Have local influentials on advisory boards

Receiving support locally will help you Receiving support locally will help you compete for national foundation fundscompete for national foundation funds

Step 5: Understand the Step 5: Understand the Funder’s NeedsFunder’s Needs

What is the foundation or corporation trying What is the foundation or corporation trying to accomplish?to accomplish?

Is visibility and/or prestige a goal?Is visibility and/or prestige a goal?

Look at the history of the organization and Look at the history of the organization and background of trustees or corporate officersbackground of trustees or corporate officers

Corporations often take cues from employees Corporations often take cues from employees in deciding what to fund – do you know any?in deciding what to fund – do you know any?

Step 6: Simplify and Step 6: Simplify and ClarifyClarify

Often the downfall of nonprofitsOften the downfall of nonprofits

Have a verbal pitch that is at maximum 2-3 Have a verbal pitch that is at maximum 2-3 minutes long minutes long

Write it down Write it down and memorize it and memorize it

Answer the obvious questions (cost, Answer the obvious questions (cost, length, why you)length, why you)

Try the “mother test” – she’s on the Board!Try the “mother test” – she’s on the Board!

Step 7: Talk before Step 7: Talk before WritingWriting

AlwaysAlways try to talk to a program officer before try to talk to a program officer before submitting a proposal if possiblesubmitting a proposal if possible

Ask for advice -- they often can and will give Ask for advice -- they often can and will give itit

Hearing that they would never fund you is not Hearing that they would never fund you is not an insult, it is a favoran insult, it is a favor

Listen more than you talkListen more than you talk

Step 8: Create the Step 8: Create the proposal proposal

HereHere is where you actually write the proposal is where you actually write the proposal (step 8 of 9)(step 8 of 9)

Answer the “Three Whats”:Answer the “Three Whats”: Do What? Clear statement of the projectDo What? Clear statement of the project So What? WhatSo What? What difference difference will it make?will it make? Then What? How will the effort continue once Then What? How will the effort continue once

funding ends?funding ends?

Step 9: Remember Step 9: Remember YourYour GoalsGoals

Don’t respond to every foundation or Don’t respond to every foundation or corporate announcement -- you won’t be corporate announcement -- you won’t be successful and will soon give upsuccessful and will soon give up

Be politely persistentBe politely persistent

Don’t let the pursuit of funding warp your Don’t let the pursuit of funding warp your strategic goals – know what you do well and strategic goals – know what you do well and stick to itstick to it

Information ResourcesInformation Resources

The Foundation Center: most The Foundation Center: most comprehensive resourcecomprehensive resourcehttp://foundationcenter.orghttp://foundationcenter.orgSearchable databasesSearchable databasesWell worth the membership if you submit Well worth the membership if you submit

many foundation proposalsmany foundation proposals

Foundation websites and annual reportsFoundation websites and annual reports

Corporate giving information is harder, Corporate giving information is harder, but a search of local news stories is but a search of local news stories is often helpfuloften helpful

IRS 990s at guidestar.comIRS 990s at guidestar.com

Thank You!Thank You!

John Feather, PhD, CAE, CFREChief Executive OfficerGrantmakers in AgingArlington, [email protected]