I want to ensure our grant proposal to a foundation makes it through the initial screening process and gets real consideration. How do I make that happen?

Great question! Last month we spoke about getting the “corporate ear”…let’s now examine charitable foundations, the only source of funds that are mandated to disperse money. All others (individuals, businesses, service clubs, churches, etc.) are supporting charities voluntarily. Some of these donors actually choose to set up a foundation to ensure their support remains relatively balanced, despite hiccups in the economy. However, given last year’s significant market crash, even those foundations are suffering; many have had to seriously re-evaluate their donations budget.

In 1988, I was recruited to Trent University as the foundation fundraiser. Trent was building its environmental sciences facility, automating the library, expanding the Native studies program, and engaging donors to invest in an exciting future. Google’s inventors were probably still in high school! The best information available was the Canadian Centre for Philanthropy’s (now, Imagine Canada) Directory to Foundations. This guide still exists and remains a reference that summarizes (in searchable form) the T3010s that registered charities have to submit to Canada Revenue Agency within six months of their fiscal year end.

Have you ever searched CRA’s website? Check out www.cra-arc.gc.ca/charities to find your own registered charity (and verify your information was inputted correctly). What’s available here is a summary of the public information forms or “registered charity information return.” Even the latest available data is usually a couple of years old, but it’s still valuable in your research efforts.

What you can find on the CRA website within seconds used to take more than six weeks to receive via snail mail! As a foundation fundraiser, I identified all those I thought would be suitable prospects. [Of course, an article can’t go by without reinforcing the difference between a “suspect” and “prospect”…remember? It’s LAI…Linkage – Ability – Interest]

How do I ensure my proposal gets through the initial screening process?

• Do you have any personal connections/linkages between your board of directors and their peers at the foundation?
• Is the foundation accepting applications or granting any funds in this fiscal year? What has been their previous range of grant amounts? Does the amount listed represent a one-time gift or just a one-year commitment on a multi-year pledge? (The answers to all these questions would be a good indication of the donor’s ability to support your charity.)
• Are the foundation’s stated interests (or previous donations) in line with the mission of your organization and the case you are pitching?

 

I put these questions in the order of LAI to demonstrate a point, but I would actually recommend you answer the “interest” question first. Charitable foundations clearly state what their granting priorities are. That’s a searchable feature on most online research databases (that charge an annual fee to subscribe to, but you may be able to access through other sources – check your local library. If not online, they might have the book version in their reference section).

In order to narrow your options to grantors with the most likely potential for investment, you should dig down further. The foundation’s geographic scope is an important consideration that cannot be overlooked, particularly if it’s limited to a specific community that’s not where your charity is based. Further, if the foundation states “nationwide” it often means your project should have national significance in order to get noticed (but they’re still worth a try if all the other “planets align”).

Here’s a concrete example: If the mission of my organization supports youth-at-risk, I would obviously select that term to identify foundations interested in that area (possibly breaking that topic into two headings…youth and prevention). Let’s now take that down another level. Say your project is to build a new sports facility for these young people. Given sports isn’t considered a charitable activity, I may have to look for foundations that support health, wellness, or fitness. (What headings do they list that are the closest match?) Finally, because the charity is building a new facility, I would search capital projects because there is no point sending a proposal to a foundation that doesn’t support bricks and mortar.

To me, prospect research is like a treasure hunt! Based on the results of the four separate searches (youth, prevention, health/wellness/fitness, and capital projects), I would prioritize my findings according to which foundations appeared on all the lists, followed by those that appeared on three or two of the interests, and finally, the foundations that remain. This gives me a list of most likely to least likely candidates and eliminates all others.

Another research strategy that might pay off is to examine what projects or charities the foundation has funded in previous years and whether these actually reflect their stated interests and geographic scope. If they demonstrate some variations, then there could be “gold in them thar hills” if you can bridge the gap.

Ability is a reality in today’s economy that we can’t ignore. It used to be if you had identified the foundation’s interests, then it was more about the amount you would request than whether they were a suitable prospect. However, we are in challenging times. Foundations rely on their investment income in order to determine their granting budget – usually the interest gained on the principle. Last year’s market crash had a significant impact on their assets. The first priority for these funders is to “make good” on their multi-year pledges before they take on any further spending. Hence, we are actually seeing new funding being frozen in order to deliver on previous commitments. Unfortunately, this trend will continue for a few years in order for foundation assets to recover.

Finally, for the sake of “equal rights,” linkage on foundation boards is less important today than two decades ago. However, if there was a personal connection between one of my organization’s board members and a foundation prospect’s peer, I would certainly encourage a discussion that would help me tailor my proposal accordingly.

One of the fundraising adages is “people give to people they know (and trust),” so I used to identify where my organization’s board members might know their counterparts on the pre-screened foundations’ boards. If there was a connection, I would send the proposal to the “correspondent” listed in the directory (because that’s what the foundation requested) but I would always make sure I cc’d the “connection.” The mutual contact would receive a copy of the proposal (sometimes with a personal note handwritten by their acquaintance, friend, or colleague). The correspondent would (at least) see that someone on their board was copied on the proposal. Based on significant research and a strong case for support that matched the foundation’s interests and abilities, I improved my chances that the proposal made it past the initial screening process.

What do foundations really want to know?

1. You have done your homework (research)! One of the campaign team’s proudest achievements at Trent University was securing a (US-based) Kresge Foundation Challenge Grant. Canadian support was rare, so if your charity was selected for one of these leveraging grants it was truly a noticeable flag to wave. It enabled us to go back to all those qualified prospects who had deferred our requests and say, “We are eligible for a $350,000 gift but only if you can help us raise the remaining $1.7 million by (this date) to reach our campaign goal!” I must have read the grant application guidelines at least ten times, with a highlighter in one hand and a pen in the other before I booked an appointment with the foundation staff person in charge of applications. Only then did I systematically go through my list of questions with her and diligently record her responses, in order to tighten our case for support.

2. The charity’s track record. What has this nonprofit achieved? Is the grant going to be a good investment? What evidence is there in the proposal of the charity’s resilience or problem-solving abilities? How committed is the charity’s board of directors? Does their strong leadership show in the organization’s strategic plan and proposal, and do their priorities fit the foundation’s interests?

3. Sound fiscal management. Do the audited statements reflect a financially healthy organization? Who else supports this organization? How much is the request for and are we being asked for 100%? Is the budget for the proposed project realistic? Has the applicant demonstrated a solid fundraising strategy? Is there a plan for sustainability after the grant period?

4. Evidence of measuring results. It’s hard to learn lessons without knowing what works and what doesn’t work and responding accordingly! How will the nonprofit evaluate this project? What outcomes are expected? What interim reports can the funder expect?

In the Ontario Trillium Foundation’s workplan they ask for:

Expected Results	Activities	Performance Indicators
What do you want to accomplish?	How will you accomplish it?	How will you know you accomplished what you wanted to?

 

Anyone who has completed an application knows that these “simple” questions are challenging to answer. What that should tell you is that if you can’t answer them effectively, the board and proposal writer need to collaborate further to think through the project more thoroughly.

Fundraising is hard work. Securing grants from foundations requires a lot of research in order to have your proposal “float to the surface.” You are competing against almost uncountable requests that require calculated decision-making based on limited available funds. But it’s worth the effort as your charity hones its strategy in order to get noticed by a potential funder. If you’ve done your homework, be persistent – I used to specialize in a “thank you for your refusal” letter! Patience, vision, strategic direction, thoroughness and tenacity will pay dividends.

Cynthia Armour is a freelance specialist in fundraising and governance. A Certified FundRaising Executive (CFRE) since 1995, she volunteers as a subject matter expert with CFRE International. She works with boards and senior staff to ensure that strong leadership will enhance organizational capacity to govern and fundraise effectively. Contact Cynthia directly at 705-799-0636, e-mail answers@elderstone.ca, or visit www.elderstone.ca for more information about her services.

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