Five Tips for Maximizing Grants

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How to Maximize Grant Funding Transparency in Turbulent Times Heather Burton, Sage

description

Competition for grants is increasing and requirements are evolving. What can you do to maximize your organization’s funding? Hint: transparent, accountable and results driven nonprofits will top funders lists for grant awards. This webinar will focus on the essential strategies for managing your grants pipeline, creating strong grant applications, increasing renewals, and building a sustainable grant management program. You will learn the right tools and best practices for successful grant management.

Transcript of Five Tips for Maximizing Grants

Page 1: Five Tips for Maximizing Grants

How to Maximize Grant Funding Transparency in Turbulent Times Heather Burton, Sage

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Your Partner in Dialogue

Heather Burton

• Product Marketing Director w/Sage

• Board, BookSpring Past president, held officer roles for 4+ yrs; development chair

• 10+ years working for/with nonprofits in fundraising United Way, Hospice, Social Service Agencies

• Charity Channel Chapter Author “All A-Board”

• Favorite food: Pizza (unfortunately)

• Twitter handle: @heathermburton

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Who I work for…

Over 32,000 Unique Not-For-Profit Customers in North America

6.2 Million Customers Worldwide

3rd largest ERP solution provider to businesses worldwide

The Sage Group, plc. (London: SGE.L)

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Trends in Grant Funding

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5 Tips to

Maximize Funding

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MACRO-TRENDS IN GRANT FUNDING

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Market Trends: PESTLE* Framework – What is it?

Core Drivers Description

Political Key political policies; examples include the stimulus package, trade policy, international relations, etc.,

Economic Overall economic outlook; examples include access to credit, unemployment, interest rates, consumer spending, etc.,

Social Changes in cultural values and population demographics; examples include aging population, consumer preferences, etc.,

Technological Advances in and adoption of technology; examples include mobility, Software as a Service, etc.,

Legal/Legislative Current or impending legislation; examples include regulations, certifications, tax code changes, etc.,

Environmental Potential environmental legislative changes; examples include carbon emissions credits, green purchasing requirements, etc.,

*PESTLE = Political, Economic, Social, Technological, Legal, Environmental

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External Market Shifts (PESTLE) Core Driver Factor Impact Notes

Political Deficit; Budget cuts; in-

fighting; Campaign season Reduced dollars; uncertainty in government funding,

Prove efficiency & transparency ; fund diversification

Economic Instability; mixed jobs report; gov budget & debt issues impact

Funding uncertainty, Demand for services high

Prove efficiency & transparency ; fund diversification

Social Occupy Wall Street: social/cultural/economic movement

Look for consolidation of demands based on transparency and accountability

Audit trails, accountability, and transparency

Technology “Connect-to-Compete” for consumers

Consortium of businesses & npo’s offer internet $10/mo + Micro PC’s for $250

Be aware our continuous evolution in tech savvy!

Legal / Legislative Charitable Tax reform, Head Start Regulation

Potential decrease in individual giving; under performing head starts lose grants

This will continue to be common, and we need to be proactive

Environment Solyndra Scanda; Energy Department, Political favoritism accusations

Concerns about transparency, integrity and accountability

Shady lending leading to further budget crisis; putting funding in risk

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Two Sides of the Grant World

Grantor Corporate Foundation

Community Foundation

Family Foundation

Government Agency

Grantee Nonprofit

University/Research

Government Agency

Grant-writing Consultant

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Grant Giving Market Number of Orgs/Agencies

Government Independent Foundation Corporate Foundation Operational Foundation Community Foundation

90,000 Agencies

Government agencies grant over $350(B)* annually* to non-profits, for-profits, and other Government Agencies/Programs

Foundations grant over $45(B) annually* to non-profits and government programs

Non-government grant funding grew 31%* from 2000 thru 2010 after inflation

*2008 Nonprofit Almanac , 2008 Idealware Pub, 2010 Foundation Center

75,000 Foundations

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Good News: Rise of Private Grants

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Interesting Stats: Nonprofits Approx 2,400,000 grants are given each year

Average grant award is $143,000

~17% of revenue from government grants

Private grants make up ~23% of revenue

Remaining revenue from operations and fundraising

Grant funding is only awarded 35% of the time! (on avg.)

*2008 Nonprofit Almanac , 2008 Idealware Pub, 2010 Foundation Center

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Grant Receiving Market

Arts 14%

Religious 4%

Education 24%

Environmental 6%

Healthcare 11%

Human Services 25%

International 2% Public Affairs

13%

Science 1%

Social Science 0%

Unspecified 0%

Number of Grants by Non profit Type

*2008 Nonprofit Almanac , 2008 Idealware Pub, 2010 Foundation Center

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Macro-Trend Summary

Demand is greater than grant funding available

Nonprofits looking to diversify, but grants will remain critical source of funding

Transparent, accountable, high-“impact” organizations will be awarded funds

This will be relevant to both government and private sector grants

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Challenge for Nonprofits

Funding: keep or get more Do a better job managing the grant pipeline Develop better performance measures Increase grant renewal rates

Resources: do more with less Reduce difficulty/time required for grant compliance Gain efficiencies in our processes Fill the gap between development and financial staff

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“Grantees face increased competition to win grants and increasingly strive to

provide grantors with additional financial

accountability.”

Camille Atkins, CFO, The Arc of Texas

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5 WAYS TO MAXIMIZE GRANT FUNDING

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Holistic Approach

Please help me write better

proposals so that we can become more efficient at

applying for funding and therefore expand our programs.

Please help me track the funding

that we do receive so that I can

efficiently manage our goals and

measure our project and program

success.

Please help me provide up to date

financial information to the grant writer

and balances to the project and program

managers so that they can succeed at

managing our mission.

Grant Writer / Development

Director Program Mgr Finance Dir.

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First Impressions: The Grant Applications

• Many people who apply for grants don’t follow directions

• Many applications contain typos

• Many lack the thoroughness of program budgeting and success measure definition

• Many organizations don’t thank, nor steward, grantors appropriately!

Why are you surprised when you don’t win the grant?

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• Communication plan

• Milestones

• Define and track

• Show impact

• Return on Investment

• Sustainable funding plan

• How it fits for community and agency

• Partnerships

Strategy Budget

Progress Success Measures

#1: Strong Grant Applications

If you can’t do it well, don’t do it at all

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#2: Grants Must be Strategic!

• Top-level, strategic priority with full agency engagement

• Prioritize research and target funders

• Scorecards build accountability and top-of-mind focus

“Correctly aligning funders with your organization’s goals

can result in stronger engagement, greater renewals, and more

opportunities for long-term funding…Your organization’s

senior leadership team should have quantifiable metrics for measuring and reporting on

grant funding.” Camille Atkins,

CFO, The Arc of Texas

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This is a competition…

Know your “opponents”

Know your referee

Know the ring

Know the audience

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#3: Choose wisely

• Long-term, engaged, and aligned grantor partnerships

• Fewer funders, greater investments, for longer periods of time

• Create unique ways to share in the mutual success

It takes just as much effort when applying and winning a

$5,000 grant as

a $50,000 one Be patient, it takes time

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What do you believe is the #1 method used in “grant management” today?

– Excel – Home-grown Access Databases – Mix of fundraising systems and accounting systems – Paper calendar with outlook reminders – Software specifically for grant management – Stone tablets

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I know you love spreadsheets, but…

Time-suck when it comes to tracking grant applications and deadlines, various budget scenarios, fund allocations to actuals, and performance tracking Manual nature takes away from opportunity to research new grants, manage existing awards, and develop stronger grantor relationships

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#4: Manage Grant Pipeline

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How does it help? “Grant Intelligence”

Streamline how you apply for grants, track and receive funds, budget, and report success measures

Automate your grant application process

Improve collaboration on grants

Be more responsive to grantors

Immediate visibility into program performance and success

Ensure steady supply of grants in each stage of the grant lifecycle – application, distribution, and renewal

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What to look for in Grant Management Programs

Collaboration Tools

Pipeline Management

Financial Integration

Outcome Reporting

Budgeting

Relationship Tracking

Centralized

Monitoring

Collaboration

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Science and an Art

The Science Continuously measure, monitor, adjust, report

The Art Relationship building, engaging beyond the award

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#5: Once Won, Focus on Renewals

• Grantors want to know that you achieve or exceeded your initial goals for the funds they provided – Continually measure, monitor, and report on the

success measures established in the planning and grant application phase.

– Make sure your management team is actively involved in reviewing results, as well as collaboratively and dynamically planning program changes and strategies to ensure you meet your goals.

– Also, include budget tracking in your reporting to the grantor so they will have confidence in your stewardship of their funds.

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#5: Once Won, Focus on Renewals

• Show the impact your programs are having within the community. – Include pictures to help connect the funders to your

organization and its mission. – Take the initiative to build genuine communication

by providing additional information, reporting and results of your programs.

– Regularly contact your funders for reasons that don’t involve asking for funds. This will ensure that both parties understand the perspective, goals and expectation of each other and will lead to a deeper and more permanent funding relationship.

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Numbers are for the head,

Stories are for the heart,

Without hitting both

Your funder will depart!

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The Recap: 5 Tips 1. Create strong grant applications

and subsequent communications

2. Incorporate as a strategic imperative of the organization

3. Build strategic partnerships with grantors

4. Manage the grant pipeline

5. Focus on renewals

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A Couple Resources

www.grantprofessionals.org

Federal Grant Opportunities http://new.fundbook.org/about

Private Grant Sector, and Trends http://foundationcenter.org/

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Gift from The Foundation Center

www.foundationcenter.org/whitepapers

FREE Whitepaper!

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Be Social With Sage Nonprofit!

• Like us on Facebook – SageNonprofit • Join the discussion in our group on LinkedIn. • Find content on Slideshare – SageNonprofit • Follow us on Twitter – SageNonprofit • Watch and follow on You Tube – SageNonprofit • Participate in the community forums and visit our blog

http://www.SageWords.net. • And more about Sage Grant Management:

http://www.sagegrantmanagement.com/

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THANK YOU!