Posts tagged Nonprofits

With the economic downturn, raising money from foundations has gotten even more difficult and nonprofits need every competitive advantage to succeed. 

So, what is the key to successful foundation fundraising?  The same element that is central to all winning fundraising:  building effective relationships with your donors.

Here is a list of 5 tips for building effective relationships with grantmakers:

1)      Program Officers are people too.  You may think Program Officers are merely gatekeepers deciding whether your proposal ever sees the light of day beyond their desk.  It seems obvious, but still bears saying.  Program Officers are people, and like any group of people, some will be helpful, others unapproachable.

Some other elements of the grantmakers’ perspective to consider:

• They have their own set of internal stakeholders to whom they are responsible.
•  They have only so much leeway in stretching foundation guidelines & requirements.
•   They may feel like they are constantly being pitched and are only liked because they have access to money.
•  They are routinely swamped with e-mails, voice mails,  piles of reading and many meetings.

2)   Seek mission compatability:  When approaching individual donors you target those who will find your nonprofit’s work most compelling.  The same strategy should be applied to your foundation prospects.  Do not simply chase money because it is being granted.  Plan your foundation strategy and target those grantmakers whose funding priorities match best with your programs and services.

Partners in Effective Philanthropy

3)   Plan your foundation fund raising.  Create a Foundation Funding Calendar and submit proposals based on when funding is awarded and when you need it for your program.  If a proposal is funded, add its reporting deadlines to your foundation calendar.  Regularly set aside time ( several hours each week or every other week)  to research and add new foundation prospects.  For more about fundraising planning, see this earlier post.

4)   Write a strong proposal:

• Follow Directions.
• Use the active voice.
• Write clearly & simply. 
• Be specific, but brief.
• Do not use jargon.
• Include all information requested by the funder.
• Proofread.  No spelling/grammar errors.
• Format it so it is easy to read. Break up text with headings and bullets.  Use short paragraphs.
• Remember, you are telling the “story” of your nonprofit.  Show why your work matters and clearly demonstrate the need for your organization.
• Submit a budget that makes sense and is mathematically correct.
• Present a clear program plan that is realistic and appropriate for the issue being addressed.

5)   Work to build long term relationships with grantmakers.  Use the same practices of stewardship that you use with your individual donors:

• Give grantmakers the recognition they prefer.  Some want to be anonymous, some want to be mentioned in publicity. 
• When a grant is awarded, call or e-mail the funder to say “thank you” and then immediately follow-up with a formal, written thank you letter. 
• Make sure to file needed grant paperwork and reports on time.   
• Keep funders informed about the progress of the project.
• Work to cultivate receptive grantmakers as advocates of your nonprofit’s work.
• “No” may just be the first step to “yes.”  If a proposal is rejected, speak with the Program Officer and ask if you should re-submit the next time.  Sometimes it takes two or three attempts before securing funds.

For a list of resources related to grantmaking, see Partners in Effective Philantropy.

What other tips would you share with nonprofit grantseekers?