Part II: Private
Foundations/Corporation Grants
Why Foundations/Corporations?
• As government funding diminishes, private
foundations and corporations can fill in the gap.
• Especially useful for new programs and special
efforts.
• Strong interests in programs that involve local
communities.
• Funding is substantial; foundations give away $41
billion a year and corporations $20 billion.
• Top three areas of interest are education, health and
human services.
Federal Grants vs. Foundations
• Foundations, corporations and federal agencies
have fundamentally different approaches to
funding decisions.
• Not understanding the difference often leads to
failure by grant seekers
Federal Process: Fairness
• All applicants should have an equal
opportunity with a “level playing field”.
• Detailed written criteria (Requests for
Proposals)
• Review panel of peers who are outside experts
• Staff members who are assigned to answer
questions.
Foundation and Corporate Process:
Stewardship
• Purpose is to honor donor’s intentions and
interests.
• Often favors programs known to be successful.
• Makes use of information not in the grant
proposal.
• May not have any written proposal process or
staff access.
• Final decision makers may not be experts.
Goal is the Same
• Both federal agencies and
foundations/corporations want to fund
excellent projects
• Approach is very different
• Successful applicants tailor their proposals for
each foundation or corporation, unlike the
federal process which is similar across
agencies.
Why Do Corporations Give?
• Good corporate citizenship; positive community
image in locations they operate.
• Enlightened self interest. For example, they need an
educated workforce, so they support education.
• Individual leadership initiative. The CEO or senior
leaders often shape giving priorities.
• Civic participation. Often restrict giving to locations
where they operate.
• Quid pro quo. What’s in it for us?
Why Do Foundations Give?
•
•
•
•
To honor the donor.
To meet community needs
To gain prestige or visibility (sometimes)
Because they have to (IRS 5% rule;
donations only to 501(c)organizations)
A Step by Step Approach
• Writing the proposal comes at the end of the
process
• Many of the steps will take time.
• Respect each foundation/corporation’s process
and procedures.
• Make use of all the resources you have,
including connections to the foundation or
corporation
Step 1: Nurture Relationships
• Essential to get to know the foundation or
corporation through attendance at social and
business events.
• Provide a regular stream of information about
your research interests.
• Invite staff to events.
• Don’t let the proposal be your only
communication.
Step 2. Advertise Your Success
• Smaller foundations and local corporations
especially want to ensure that they are giving
to good programs.
• Make sure your efforts are seen and
appreciated in the community.
• Foundation and corporate giving people stay in
communication with each other.
Step 3. Do Your Homework
• Find out what the foundation or corporation funds
and at what level.
• Proposals that request funding above this level are
rarely successful; nor are identical grants submitted to
different foundations/corporations (double dipping).
• Tailor the proposal carefully to match the language
(“buzz words”) of the foundation or corporation.
Step 4: Look Locally
• Most foundation and corporate money is local, but
most people look nationally.
• Become acquainted with local influential members of
advisory boards.
• Receiving support locally will help you compete for
national foundation funds.
Step 5: Understand the Funder’s Needs
• What is the foundation or corporation trying to
accomplish?
• Is visibility and/or prestige a goal?
• Look at the history of the organization and
background of trustees or corporate officers.
• Corporations often take cues from employees in
deciding what to fund; try to contact local employees
to understand their needs and opinions.
Step 6: Talk before Writing
• Always talk to the program officer before submitting
a proposal.
• Ask for advice; they often can and will steer you in
the right direction.
• A lot of time and effort can be saved if they tell you
what they would never fund.
Step 7: Create the Proposal
• Answer the “Three Whats”:
-Do What? Clear statement of the project
-So What? What difference will it make
-Then What? How will the effort continue once
funding ends.
Step 8: Simplify and Clarify
• Poor writing is often the downfall of nonprofits
• Develop a verbal pitch that is at maximum 2-3
minutes long.
• Write it down and memorize it
• Answer the obvious questions (cost, length, why you)
• Try the “mother test”.
Step 8: Simplicity and Clarity cont’d
• Talk about benefits rather than process
• Combine emotion and reason:
-Emotion is putting a human face on the problem you
are addressing and your success; consider
testimonials.
-Reason is providing sufficient quantification of your
accomplishments in making changes the donor wants
to fund.
.
Step 8 cont’d
• What are the numbers that prove you are special?
-What are the most important numbers in your
organization?
-Are efforts focused on enhancing these numbers?
-Is funding/compensation related to these numbers?
• You don’t have to effect a large number of people but
do need to have a big impact
Step 9: Remember Your Goals
• Don’t respond to every foundation or corporate
announcement; you will not be successful and will
likely give up.
• Be politely persistent
• Do not let the pursuit of funding warp your strategic
goals. Know what is important to you and what you
do well and stick to it.
Thank You!
Jeanne M. Manson, PhD, MSCE