School Fundraising Capacity Building
Kay Sprinkel Grace
January – June, 2014
Grant Writing and Techniques for Growing
Foundation Investment
April 8 @3:30 – 4:30 p.m.; April 29 @ 7 – 8 p.m.
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Review of assigned work: volunteer job
description and foundation identification
worksheet
Foundation funding and overall support for
nonprofit sector (Giving USA)
Understanding the Foundation world
Basics of grant writing
Getting grants out: what does it take?
Resources for Foundation grants
Summary of session
Homework for Webinar #5
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Types of Foundations
The good and bad and ins and outs of
Foundation funding
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Easiest grant makers to research
They are the “venture capitalists” of the
nonprofit world: can give big money and can
give “PRIs” (program related investments)
Grants are likely to be only for one year, but
some will commit for a longer period
When the stock market is “red hot” (like it is
now) foundation assets soar
More and more foundations are addressing a
select area of issues (e.g., women and girls,
hunger, homelessness, poverty, etc.)
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Grant is usually for a finite period of time and
a definite purpose
Guidelines change with trends and emerging
needs in communities
Operating grants hard to get: will fund a
piece of your overall work, one whose impact
can be measured
Most foundation grants go to public
education, health, human services and culture
Religious organizations receive a small
percentage of foundation funds
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“Private foundations established to provide support
or distributions to tax-exempt organizations through
grants.” (IRS)
Must give away at least 5% of the value of their assets
each year
Usually established through gifts from individuals or
families; often carry the names of the original funders
(e.g., Ford, Packard, Carnegie)
“Family foundations” are a type of independent
foundation where giving decisions involve living
family members
Staff size varies with asset base and distribution
activity
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Also considered “private” foundations
Receive assets from an associated for-profit
company or business (e.g., Exxon-Mobil, AT&T)
Often serve as grant making vehicle for company
May have a separate board from the
corporation/company
Decisions influenced by employee involvement
and by alignment of corporate interest and
nonprofit purpose and mission
Staffing varies according to funding activity
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They look for the WIIFM – “What’s in it for
me?”
Many may not be able to fund religious
organizations, particularly if they are public
companies that have not included religious
organizations in their basic foundation
documents
Exceptions may be made when there is a
strong relationship between high-level
personnel in the corporation and your school
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Assets are growing at twice the rate of
independent/private or corporate foundations
They receive gifts and make gifts (e.g., California
Foundation, Ventura County Community
Foundation, others in southern California)
As a public charity, they must receive assets from
a large pool of donors and consequently fund a
wide range of community needs
Most community foundations limit their interests
and grants to a particular geographical area
Growth is due to rise in asset values for
individual donors and the growth in donoradvised funds (70% between 2008 and 2012)
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Community foundations have unrestricted
funds, donor-advised funds and donordesignated funds
Donor-advised and donor-designated funds
are permanent gifts to the community
foundation and provide an immediate tax
deduction to the donor
Staffing varies according to the number of
donor-advised/designated funds
Related structure: Catholic Education Fund,
Hispanic Education Foundation
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Tax benefit is given when the gift is made
into the foundation – there is no urgency to
push it out into the community
Community Foundations and other donoradvised funds are hesitant to connect you
with their donors (respecting privacy)
Money flows out at a rate of 16% to 17% a
year (and there are more than $13 billion
under management in donor advised funds)
BUT – 70% of donors follow their “personal
values” when giving, so it is worth it to try
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Find a connection
to the DAFs
Excite donors about
your plans
Emphasize your
vision
Engage the donor
in cultivation
Promote your
impact and value
proposition
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Seldom make grants to other nonprofit
organizations
Dedicated to conducting research and
promoting programs to support the work of
the original charter or governing body
IRS requires them to spend at least 85% of
their income in support of their own
programs (e.g., Gates)
Serve as conveners and may provide
opportunities to connect with others
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Operational/unrestricted
◦ No conditions for use
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Program
◦ Specific set of activities and plans
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Capital
◦ Building construction funds, equipment,
endowment growth
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Pilot/Seed
◦ Start up programs, projects or organizations
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Challenge or matching
◦ To encourage other philanthropic giving
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Higher expectations, more accountability
Emphasis on evaluation: grantees often
must submit an evaluation plan
Collaboration with other organizations
focusing on the same or similar mission is
encouraged
More clearly defined guidelines and
application processes
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Charitable gift funds at (e.g., Schwab, Fidelity,
Vanguard) have huge increases in managed
assets and advise donors and manage donoradvised funds
Expectation that an organization’s board and
other volunteers will reflect the diversity of
the community
Support for capacity building, which waned
during the recession, is growing again but
usually only for organizations already
receiving support from the foundation
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From what kinds of foundations have you
received support and for what purposes?
◦ Independent (private, family, other)
◦ Corporate
◦ Community
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Operations
Program
Capital/endowment
Pilot
Challenge grant
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Getting ready to approach
Making a request
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Be able to show evidence of diverse financial
sources – the foundation grant should be one
part of a fully diversified development plan
Research the foundation to determine any
linkages and interest, and make sure your
priorities are reflected in a strategic plan
Be sure your project or program is within their
guidelines and the impact can be measured
Like individual fundraising, successful
foundation partnerships are built on trusted
relationships established over time
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Ask three questions (Hank Rosso’s advice):
◦ Is there a previous relationship with the school
through funding or friends?
◦ What size is the typical gift? Total assets?
◦ Is the foundation interested in this program?
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Check the foundation’s 990 and other research
Adhere to the guidelines: if you fall within
their guidelines, proceed
◦ Make an initial phone call (some will not accept
unsolicited calls so you may need to prepare a brief
letter of inquiry that outlines the parameters and
benefits of the program but no budget – yet)
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Assemble a proposal package
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Cover sheet including contact information
Executive summary of proposal
Identification of needs statement
Case expression (Webinar #2) covering the
problem/issue
Proposed solution (program or project)
List of outcomes
Evaluation tool(s)
Description/list of governance and staffing
Budget and budget explanation
 Package should be reviewed and approved by Principal
and/or Archdiocese personnel before submission
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Get broad input on ideas and positioning,
but have only one person write the proposal
(a camel, remember, is a horse designed
by a committee!)
Draw from your case materials, and create a
proposal (a proposal is a case expression)
You must include all the information they
ask for, or the proposal will not be
considered
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Observe deadlines and don’t ask for
exceptions or extensions
Over time, create a proposal template that
can be revised according to the funder’s
guidelines – it is part of the “systems
liberate” idea
Work with the foundation program officer
who has asked you to submit; it is better to
ask questions and do it right than to submit
and have it rejected
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Review and decision process
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Received and reviewed to make sure there are
no missing materials (most submitted now via
Internet and you are given a checklist)
Verification it is within foundation funding
guidelines and has followed the submission
format or template
Sent to program officer for evaluation of
alignment with foundation priorities
If there is interest, you may be called to
arrange a site visit – engage your
Ambassadors and Advocates at that visit
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Foundation officers recommend proposals to
the foundation’s board (and/or Distribution
Committee) – Proposals are sent out to them
prior to their meeting
At the meeting, they are discussed and
decisions are made
If you are funded, it is the beginning, not the
end, of the relationship (just like with an
individual)
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You must extend immediate and appropriate
thanks and mutually agreed to recognition
(donor listing, press release, etc.)
Your success is important to the foundation
and will influence future funding
Ongoing evaluation begins, and periodic
reports are filed
If you are having trouble implementing, let
them know ASAP
If you are denied, try to keep the relationship
going – you never know when it might work
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Your goal is to have a diversified funding base
Foundations will want assurance they are not
“supporting you” entirely
Foundation funding is robust right now, but
during the recession it was not
Individuals are still our strongest and largest
gift source, especially for religious
organizations including schools
Foundations are a key part of a healthy
fundraising program
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Primary resource for research and support
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http://foundationcenter.org/ -- The
Foundation Center is the best resource both
online and through their 400+ Cooperating
Collections in every state and Puerto Rico
http://maps.foundationcenter.org/cc/CCUS.php
(interactive map with locations including LA
area which has several sites – e.g., VCCF)
The Foundation Center operates five free
libraries: California’s is in San Francisco
For Catholic education supporters, and
particularly in Southern California, use your
online search engine with key words
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There are several types of foundations: each
has its plus and minus factors
The trends in foundation funding parallel all
funding trends: accountability, metrics, etc.
Gather wide input for a proposal then assign
to one person to write
Foundations are part of a diversified funding
program
The Foundation Center is the “go to” resource
for new sources or to revalidate your base
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Webinar #5 will be the long-awaited
“Creating, Implementing and Growing an
Annual Fund at Your School”
To get ready for that session, please finish
your case elements checklist, be sure your
mission/vision/values statements are
refreshed and discussed with your volunteers,
and complete the foundation identification
assignment from Webinar #3 for Webinar #4 –
you will need all of those things in place in
order to run an effective annual fund.
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All you need to do to get ready for #5 is to
get together for a one hour meeting and lay
out a brief plan for your annual fund
including ideas about:
◦ Messaging
◦ Structure, including volunteers and staff and
involvement of classrooms
◦ Who you will reach out to for participation
◦ The financial goal you have set and what it is based
on
◦ What percentage of your overall fundraising goal is
your annual fund?
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May 6 @ 7 – 8 p.m.;
May 20 @ 3:30 – 4:30 p.m.
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School Fundraising Capacity Building
Kay Sprinkel Grace
January – June, 2014