Foundation and Corporate Funding

A Half-Century of the Five Percent Rule

In the philanthropic Dark Ages (before 1969) there was no rule that said foundations had to make any grants with their money. Congress more or less closed that loophole with the Tax Reform Act of ’69. There were complications and ambiguities, but in 1976 the “five percent payout requirement” was set in stone. It’s been the default standard for grant-making foundations ever since.

Nonprofit Myths: #3 - Public Charities

MYTH: I am starting a foundation to give out school supplies to kids who cannot afford them. I can’t wait to see their little faces when I give them new backpacks and markers!

Government vs. Foundation Grants

When it comes to applying for grants, most small to mid-sized nonprofits don’t have a lot of staff resources or a bountiful budget for consultants. The challenge is to decide what funding “suspects” are actually good prospects and to make choices about what to pursue. Often the decision is about whether to put more effort into public / government funding vs. private foundation grant-making.

Dealing with Closed-Door Foundations

Gaining entry into the world of closed-door foundations is more like courting major donors than developing grant proposals. While grant professionals may do the initial research, your organization’s board members and administrators may be best positioned to do the personal outreach.

Looking for Grantmakers? Start Close to Home

When looking for the grantmakers most likely to support your organization’s work, start close to home. The idea of a fat grant from a large national-level foundation is alluring, but unless your organization is doing work of national importance, these large funders probably aren’t a good bet.

Grants: Passion Matters, But So Do Cold Facts and Calculated Action

Many nonprofits are born from the grave concern of someone who’s experienced a tragedy, suffered from a problem, or witnessed others’ suffering first-hand. These nonprofits radiate an intensity of purpose that inspires others to action and captures the interest of grantmakers who want to partner with authentic organizations working deeply within their communities.

What's (New)ish with Grants

The field of grant development is dynamic. The basic elements of a strong proposal don’t change, but the environment in which funding decisions are made is in constant flux. The trends below remain current. Although not new, they point towards grantseeking realities we’ll be contending with over the coming year.

Who's Eligible for Federal Grants?

We often hear that grantseekers aren’t sure whether their organization is eligible for federal grants. The federal government makes thousands of grant awards annually to many types of organizations, and even to some individuals. Don’t write off this important funding source until you’ve examined the possibilities. Here are a few thoughts to consider.

Knowledge Makes the Difference

The energetic and imaginative changemakers who staff nonprofits are full of great ideas. They’re constantly coming up with ways to make things better and looking for grants to support their vision.

Junk Money?

Junk Money

In the field of fund development, grants aren’t all that well respected. Once, after I was well known for bringing in millions of grant dollars, a local fund development director recognized me as “the woman who raises all the junk money.” Junk money?

Fund development professionals focus on individual giving because it’s the largest piece of the philanthropic pie. Individual giving represented about 73% of all giving in 2011, and 81% if you throw in bequests–the dollars total about $242.20 billion. Fund development professionals also focus here because the dollars are generally flexible, renewable, and growable. Individual giving done right can be the beanstalk to the golden eggs that just keep coming. I get that.

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