Welcome to the Foundation Center’s Grantseeking Basics Did you pick up a handout packet from the table outside? PLEASE TURN OFF CELL PHONES! The Foundation Center Our Mission: To strengthen the nonprofit sector by advancing knowledge about U.S. philanthropy. Accomplishing Our Mission • Collect, organize, and communicate information on U.S. philanthropy • Conduct and facilitate research on trends in the field • Provide education and training in the grantseeking process • Ensure public access to information and services through various vehicles Today’s Program Overview of the grantseeking process: • What you need to have in place before you seek a grant • What you need to know about grantmakers and how nonprofits are supported • How you identify funding partners • How you can use the Foundation Center’s resources for your grantseeking efforts Part 1 Building a Credible Nonprofit Organization What You Need To Have In Place Before You Seek a Grant Part 1: Building a Credible Nonprofit Organization What You Need To Have In Place • 501(c)(3) status • Compelling mission • Board of directors to exercise oversight Part 1: Building a Credible Nonprofit Organization What Funders Look For • High-quality programs that meet a real need in the community • Track record of effective program delivery • Capable leadership • A strong organizational and financial infrastructure Questions? Part 2 The World of Grantmakers Who Supports Nonprofits? Part 2: The World of Grantmakers Sources of Revenue for Reporting Public Charities Private Contributions 12.3% Government Grants 9.0% Fees for Services and Goods 70.3% Investment Income 5.4% Other Income 2.9% Source: Nonprofit Almanac 2008 National Center for Charitable Statistics, the Urban Institute Part 2: The World of Grantmakers Private Contributions by Source ($ in billions) Individuals $229.28 75% Corporations 5% $14.50 7% Bequests $22.66 13% Foundations $41.21 Total Giving: $307.65 billion Source: Giving USA 2009, Giving USA Foundation, researched and written by the Center On Philanthropy at Indiana University Part 2: The World of Grantmakers National Distribution of Grant Dollars International Affairs 5% Science & Technology 3% Religion 2% Social Sciences 1% Environment & Animals 7% Education 23% Public Affairs/ Society Benefit 11% Arts & Culture 11% Human Services 15% Health 23% Source: The Foundation Center, Foundation Giving Trends, 2009 Part 2: The World of Grantmakers Distribution of Grant Dollars by Northeastern Foundations Social International Sciences 3% Affairs 5% Environment & Animals 7% Science & Technology 2% Religion 1% Education 23% Human Services 12% Health 19% Public Affairs/ Society Benefit 14% Arts & Culture 15% Total Dollars = $6.1 billion Source: The Foundation Center, Foundation Giving Trends, 2009 Part 2: The World of Grantmakers Distribution of Grant Dollars by Midwestern Foundations Religion 4% International Affairs 4% Science & Technology 2% Social Sciences 1% Environment & Animals 6% Education 24% Health 15% Arts & Culture 11% Human Services 17% Public Affairs/ Society Benefit 15% Total Dollars = $4.1 billion Source: The Foundation Center, Foundation Giving Trends, 2009 Part 2: The World of Grantmakers Distribution of Grant Dollars by Western Foundations Public Affairs/ Science & Society Benefit Technology 5% 6% Environment & Animals 9% Religion 1% Social Sciences 1% International Affairs 6% Arts & Culture 6% Health 33% Human Services 14% Education 19% Total Dollars = $7.0 billion Source: The Foundation Center, Foundation Giving Trends, 2009 Part 2: The World of Grantmakers Distribution of Grant Dollars by Southern Foundations Religion 3% International Affairs 2% Science & Technology 2% Social Sciences 0.3% Environment & Animals 5% Education 28% Public Affairs/ Society Benefit 11% Arts & Culture 11% Human Services 19% Health 19% Total Dollars = $4.1 billion Source:The Foundation Center, Foundation Giving Trends, 2009 Part 2: The World of Grantmakers Institutional Grantmakers • Private Foundations • Direct Corporate Giving Programs • Grantmaking Public Charities Part 2: The World of Grantmakers What Is a Private Foundation? • • • • Nongovernmental, nonprofit organization Has its own funds or endowment Managed by its own trustees or directors Established to aid educational, social, religious, scientific, or other charitable activities through the making of grants Part 2: The World of Grantmakers Types of Private Foundations • Independent • Company-sponsored • Operating ~ 5% payout requirement ~ Must disclose total giving and grants through Form 990-PF Part 2: The World of Grantmakers Other Types of Grantmakers • Direct Corporate Giving Programs – Research through sponsoring companies • Grantmaking Public Charities – Disclose activities through Form 990 – Includes: • Community foundations • Population or issue-oriented funds • Company-sponsored Questions? Part 3 Finding Funding Partners Part 3: Finding Funding Partners Identifying Funding Needs • Why do I need funding and what kind do I need? • How much do I need? • When do I need the funds? Part 3: Finding Funding Partners Look for the match: • Who funds in my area of interest? • Who funds in my geographic region? • Who will provide the type of support I need? Part 3: Finding Funding Partners Refine the match: • Has the grantmaker funded organizations like mine? • How much does the grantmaker give to organizations like mine? Part 3: Finding Funding Partners Application Process Follow the grantmaker’s guidelines • Initial contact – Telephone call? – Letter of inquiry? – Full proposal? • Variations on proposal format – Common Grant Application? – Funder’s own application form? • Pay attention to deadlines Questions? Part 4 Grantseeking Resources Part 4: Grantseeking Resources Resources and Services at the Foundation Center • • • • • • • Grantmaker information Funding research databases Nonprofit literature Professional reference staff Training programs Special events Associates Program Part 4: Grantseeking Resources http://foundationcenter.org • • • • • • Foundation Directory Online Catalog of Nonprofit Literature Foundation Finder Philanthropy News Digest Requests for Proposals Frequently Asked Questions Part 4: Grantseeking Resources Where and How To Access the Center’s Resources • Foundation Center Libraries – – – – – New York Atlanta Cleveland San Francisco Washington, D.C. • Web site (foundationcenter.org) • Cooperating Collections Key Points • Build a credible organization • Look for the match when identifying funding partners • Foundation fundraising is just one part of your overall fundraising plan • Foundation Center has many resources, including assistance offered by our library staff For More Information • Resource list is available at http://foundationcenter.org/course_ materials/free_training/ Questions? The Foundation Center’s Grantseeking Basics Please fill out the evaluation form in your handout packet. Thank you for coming.