Grantseeking Basics

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Welcome to the Foundation Center’s

The Foundation Center

Our Mission:To strengthen the nonprofit sector by advancing knowledge about U.S. philanthropy.

Accomplishing Our Mission

• Collect, organize, and communicate information on U.S. philanthropy

• Conduct and facilitate research on trends in the field

• Provide education and training in the grantseeking process

• Ensure public access to information and services through various vehicles

Today’s Program

Overview of the grantseeking process:• What you need to have in place before

you seek a grant• What you need to know about grantmakers

and how nonprofits are supported• How you identify funding partners• How you can use the Foundation Center’s

resources for your grantseeking efforts

Part 1

Building a Credible Nonprofit OrganizationWhat You Need To Have In Place

Before You Seek a Grant

What You Need To Have In Place

• 501(c)(3) status• Compelling mission• Board of directors to exercise oversight

Part 1: Building a Credible Nonprofit Organization

• High-quality programs that meet a real need in the community

• Track record of effective program delivery• Capable leadership• A strong organizational and financial

infrastructure

What Funders Look For

Part 1: Building a Credible Nonprofit Organization

Questions?

Part 2

The World of GrantmakersWho Supports Nonprofits?

Source: Nonprofit Almanac 2008National Center for Charitable Statistics, the Urban Institute

Other Income 2.9%

Fees for Services and Goods

70.3%

Private Contributions

12.3%

Sources of Revenue for Reporting Public Charities

Part 2: The World of Grantmakers

Government Grants9.0%

Investment Income 5.4%

Individuals$229.28

Corporations$14.50

Foundations$41.21

Bequests$22.66

Total Giving: $307.65 billion

75%

5%

13%

7%

Private Contributions by Source($ in billions)

Part 2: The World of Grantmakers

Source: Giving USA 2009, Giving USA Foundation,researched and written by the

Center On Philanthropy at Indiana University

Part 2: The World of Grantmakers

Source: The Foundation Center, Foundation Giving Trends, 2009

Education 23%

Health 23%Human Services

15%

Arts & Culture 11%

Environment & Animals 7%

International Affairs 5%

Science & Technology 3% Religion 2%

Social Sciences 1%

Public Affairs/Society Benefit 11%

National Distribution of Grant Dollars

Distribution of Grant Dollars by Northeastern Foundations

Total Dollars = $6.1 billion

Part 2: The World of Grantmakers

Source: The Foundation Center, Foundation Giving Trends, 2009

Education 23%

Health 19%

Human Services 12%

Arts & Culture 15%

Environment & Animals 7%

International Affairs 5%

Science & Technology 2%

Religion 1%

Social Sciences 3%

Public Affairs/Society Benefit

14%

Distribution of Grant Dollars by Midwestern Foundations

Part 2: The World of Grantmakers

Source: The Foundation Center, Foundation Giving Trends, 2009

Education 24%

Health 15%

Human Services 17%Arts & Culture

11%

Environment & Animals 6%

International Affairs 4%

Science & Technology 2%Religion 4%

Social Sciences 1%

Public Affairs/Society Benefit 15%

Total Dollars = $4.1 billion

Distribution of Grant Dollars by Western Foundations

Part 2: The World of Grantmakers

Source: The Foundation Center, Foundation Giving Trends, 2009

Education 19%

Health 33%

Human Services 14%

Arts & Culture 6%

Environment & Animals 9%

International Affairs 6%

Science & Technology 5% Religion 1%

Social Sciences 1%

Public Affairs/Society Benefit

6%

Total Dollars = $7.0 billion

Distribution of Grant Dollars by Southern Foundations

Part 2: The World of Grantmakers

Source:The Foundation Center, Foundation Giving Trends, 2009

Education 28%

Health 19%

Human Services 19%

Arts & Culture 11%

Environment & Animals 5%

International Affairs 2%

Science & Technology 2%Religion 3%

Social Sciences 0.3%

Public Affairs/Society Benefit 11%

Total Dollars = $4.1 billion

Institutional Grantmakers

Part 2: The World of Grantmakers

• Private Foundations• Direct Corporate Giving Programs• Grantmaking Public Charities

What Is a Private Foundation?• Nongovernmental, nonprofit organization

• Has its own funds or endowment• Managed by its own trustees or directors• Established to aid educational, social,

religious, scientific, or other charitable activities through the making of grants

Part 2: The World of Grantmakers

Types of Private Foundations

• Independent• Company-sponsored• Operating

~ 5% payout requirement

~ Must disclose total giving and grants through Form 990-PF

Part 2: The World of Grantmakers

Other Types of Grantmakers• Direct Corporate Giving Programs

– Research through sponsoring companies

• Grantmaking Public Charities– Disclose activities through Form 990– Includes:• Community foundations• Population or issue-oriented funds• Company-sponsored

Part 2: The World of Grantmakers

Questions?

Part 3

Finding Funding Partners

Identifying Funding Needs

• Why do I need funding and what kind do I need?

• How much do I need?• When do I need the funds?

Part 3: Finding Funding Partners

Part 3: Finding Funding Partners

Look for the match:• Who funds in my area of interest?• Who funds in my geographic region?• Who will provide the type of support I need?

Refine the match: • Has the grantmaker funded organizations

like mine?• How much does the grantmaker give to

organizations like mine?

Part 3: Finding Funding Partners

Application ProcessFollow the grantmaker’s guidelines• Initial contact

– Telephone call?

– Letter of inquiry?

– Full proposal?

• Variations on proposal format– Common Grant Application?

– Funder’s own application form?

• Pay attention to deadlines

Part 3: Finding Funding Partners

Questions?

Part 4

Grantseeking Resources

Resources and Services at the Foundation Center• Grantmaker information• Funding research databases• Nonprofit literature• Professional reference staff • Training programs• Special events• Associates Program

Part 4: Grantseeking Resources

http://foundationcenter.org

• Foundation Directory Online• Catalog of Nonprofit Literature• Foundation Finder• Philanthropy News Digest• Requests for Proposals• Frequently Asked Questions

Part 4: Grantseeking Resources

Where and How To Access the Center’s Resources• Foundation Center Libraries

– New York – Atlanta– Cleveland– San Francisco – Washington, D.C.

• Web site (foundationcenter.org)• Cooperating Collections

Part 4: Grantseeking Resources

Key Points

• Build a credible organization• Look for the match when identifying

funding partners• Foundation fundraising is just one part

of your overall fundraising plan• Foundation Center has many

resources, including assistance offered by our library staff

For More Information

• Resource list is available athttp://foundationcenter.org/course_ materials/free_training/

Questions?

Please fill out the evaluation form in your handout packet.

Thank you for coming.

The Foundation Center’s

Grantseeking Basics