Foundation and Corporate Funding

Who Reviews Your Proposals?

Sending off a well-written, credible proposal is the first act in the drama. Now comes the mystery – someone, somewhere is going to read it, evaluate it and decide whether or not to fund it. Who are those guys? Who reads, votes, rejects or rewards your effort?

“You Never Call, You Never Write. . .”

Many nonprofits are probably “guilty” of this understandable habit: you contact a foundation to see if you can apply; then you submit a proposal; and if you’re awarded the grant, you wait until the required report to contact them again. Perhaps three communications in the lifespan of a grant.

Opening the Doors to Family Foundations

Family foundations—relatively small, usually without paid staff and often supporting only local causes—comprise the largest section of the private foundation world. Though their grants are seldom large, support from family foundations can be extremely rewarding:

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.

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