Author, coach, copy-writer, nonprofit marketing consultant and political junkie, Pamela is the author of “Five Days to Foundation Grants”  and  the creator of Simple Development Systems, the only online coaching program created for the overwhelmed fundraiser in the one-person marketing and development shop.

Pam segued from six years working in programming and communications at a regional grantmaking foundation to the world of fundraising in 2001.  In her first position as a 15-hour a week development director for an agency with a $3 million dollar budget, she increased individual giving by 25% – while reducing costs by 31% – and increased foundation funding by an astonishing 93%! She’s raised over $10 million in funding since then and has been positioning small nonprofit organizations on the path to sustainable funding ever since  with her “Simple Development Systems” of donor-centric fundraising methods.

With an eclectic 20 year background in politics, sales, marketing and philanthropy, Pamela’s greatest satisfaction lies in teaching the small community-based nonprofits how to, in her words,  “market like the big boys” with limited time and resources.

How Simple Development Systems Will Create Sustainable Funding

In the past six months my daughter has lost 45 pounds. She watches her diet, runs several times a week (she’s surpassed me – a runner or over 30 years – in that department!) and looks and feels amazing.

The other day I suggested to her that her experience would be prime fodder for a book, even an e-book, to help others struggling with their weight. After all, she has been struggling with her weight for over ten years and seems to have hit upon the perfect solution!

“Are you kidding mom?” she responded. “I lost this weight through diet and exercise! It was hard work! No one wants to hear that! Everyone wants a quick fix or a pill …”

You know what?

She’s right.

Lately it’s occurred to me that many of us in the field of nonprofit fundraising have the same mindset.

Whenever I’ve met with potential clients, I always hear the same questions or concerns:
“What about a signature event?”
“How do you get major donors?”
“How do we use social media to raise money?”
“We tried grants a few years ago and it didn’t work …”

As Charlie Brown used to say: “Argh!”

What I have found, in my 14 years working in the nonprofit arena, is that organizations who commit to their development in the same way that they commit to their mission, and who establish sound fundraising systems will always have the tools at their disposal for sustainable funding.

Great development is all about systems and relationship-building. There is no magic pill. There isn’t one single technique or tactic or trick that will set your organization on the path to sustainability.

Nonprofit organizations need tried and true systems – systems for:

• Grants management
• Individual giving
• Donor stewardship & communications
• Website creation & management

And the backbone of all these systems is a strong case statement presented with engaging story telling.

An organization doesn’t “try” grants one year and decide it doesn’t work! You’ve got to engage the foundations, reapply, research on a consistent basis and steward the grants that you have received well.

After all, you wouldn’t go the gym once, decide exercise didn’t “work” and never return would you?

Repeat my mantra: systems and relationships, systems and relationships, systems and relationships …

Author, coach, copy-writer, nonprofit marketing consultant and political junkie, Pamela is the author of “Five Days to Foundation Grants”  and  the creator of Simple Development Systems, the only online coaching program created for the overwhelmed fundraiser in the one-person marketing and development shop.

Pam segued from six years working in programming and communications at a regional grantmaking foundation to the world of fundraising in 2001.  In her first position as a 15-hour a week development director for an agency with a $3 million dollar budget, she increased individual giving by 25% – while reducing costs by 31% – and increased foundation funding by an astonishing 93%! She’s raised over $10 million in funding since then and has been positioning small nonprofit organizations on the path to sustainable funding ever since  with her “Simple Development Systems” of donor-centric fundraising methods.

With an eclectic 20 year background in politics, sales, marketing and philanthropy, Pamela’s greatest satisfaction lies in teaching the small community-based nonprofits how to, in her words,  “market like the big boys” with limited time and resources.

Six Critical Things to Look For in a Foundation’s 990 For Successful Grant Funding

By Pamela Grow

When it comes to foundation grants, researching prospective foundations is crucial for locating the ideal match. And there is no finer tool for truly observing the inner workings of a grant-making foundation — and whether or not their mission provides a match with your organization — than with a thorough investigation of a foundation’s federal 990-PF form (downloadable at a number of sites for free, including Guidestar and Nozasearch).
What, exactly, should you be looking for?

Let’s take a walk through a typical grantmaking foundation’s 990-FP:

Do take a look at the foundation’s Fiscal Year. Why? Well, here’s a take-away from seven years working at a foundation. If the foundation in question happens to be closing in on the end of their fiscal year, they may have already spent the required 5 percent payout. On the other hand, if they’re fairly new to grant-making, the foundation may have yet to hone their grant-making policies – and you may get lucky if they’re looking to send some last minute grant checks out the door.

Assets: Note, of course, the total fair market value of all assets recorded in Part One for the last year reported. Now take a look back – has the XYZ Foundation’s assets declined or grown over the past few years? Are they a fairly new operating foundation?

Part I, Revenue and Expenses summarizes other sections of the report. If major contributions have been made during the year in question a founder or trustee may have recently deceased – and an increase in giving could be in the future.

Part VIII – Take note – here’s one of your most important resources. Information about officers, directors, trustees, foundation managers, highly paid employees and contractors. You will certainly want to note the names and locations of the trustees. Could members of your board possibly know any of the trustees of XYZ Foundation? Does the XYZ Foundation have staff members or is it entirely family-run? Are the trustees paid?

Part IX-A – Summary of Direct Charitable Activities: Here’s where you find out the exact dollar amount given in grants. If the foundation you’re researching tends to give many grants in the $2,500 to $10,000 range (as opposed to a few grants in the $25,000-$100,000 range) and you are a first time applicant, you’ll want to frame your first ask accordingly. (See How Much Should You Request in Your Grant Proposal?) http://www.pamelasgrantwritingblog.com/269/how-much-should-you-request-in-your-grant-proposal-how-much-do-you-need/

Part XV: This section will tell you how grant applications should be prepared, if there are any deadlines, etc. along with a listing of grantees. Although it’s still a good idea to phone and get grant application guidelines directly from the foundation in question, this section will get you started (and don’t write a foundation off if they specifically note that they only grant to pre-selected organizations – I’ve had success with smaller grants of $250-1,000 with these foundations when there was an otherwise good match in giving!) Are there organizations similar to yours on that listing of grants given in 2003? What is the dollar range in their grantmaking and where would your organization fall?

By performing a little preliminary detective work on the foundation you’re seeking funding from, you’ll dramatically increase your chances of successful funding!

Author, coach, copy-writer, nonprofit marketing consultant and political junkie, Pamela is the author of “Five Days to Foundation Grants”  and  the creator of Simple Development Systems, the only online coaching program created for the overwhelmed fundraiser in the one-person marketing and development shop.

Pam segued from six years working in programming and communications at a regional grantmaking foundation to the world of fundraising in 2001.  In her first position as a 15-hour a week development director for an agency with a $3 million dollar budget, she increased individual giving by 25% – while reducing costs by 31% – and increased foundation funding by an astonishing 93%! She’s raised over $10 million in funding since then and has been positioning small nonprofit organizations on the path to sustainable funding ever since  with her “Simple Development Systems” of donor-centric fundraising methods.

With an eclectic 20 year background in politics, sales, marketing and philanthropy, Pamela’s greatest satisfaction lies in teaching the small community-based nonprofits how to, in her words,  “market like the big boys” with limited time and resources.

Seven Secrets to Great Nonprofit Leadership

1. The function of leadership is to produce more leaders, not more followers. RALPH NADER

In other words, let your leaders lead.

I worked as part of a five-person development team for a large organization for twelve long months. During that time period three development directors came and went, not to mention program staff, membership staff, the CFO and more.

The problem? A CEO with a brilliant knack for finding and hiring talent … coupled with an utter inability to let loose of the reins and let her people do their jobs.

2. You learn far more from negative leadership than from positive leadership. Because you learn how not to do it. And, therefore, you learn how to do it. NORMAN SCHWARZKOPF

Learn from bad leadership (see above). But don’t forget the lessons learned by observing a genuinely good leader either.

We’ve all heard the horrible board stories, yet how many “good board” stories have you heard?

I had the good fortune to work with one Executive Director who was nothing short of brilliant at putting together a remarkably cohesive board (and this for a tiny nonprofit agency with a yearly budget of $500,000) of remarkably diverse individuals. Every member of that board brought their own unique gifts to the table, whether it was in terms of connections, education, creative thinking or – let’s be blunt here – plenty of money.

3. Leadership is an active role; ‘lead’ is a verb. But the leader who tries to do it all is headed for burnout, and in a powerful hurry. BILL OWENS

Learn how to delegate. Given half a chance, people will rise to meet the level of your expectations of them.

4. Leadership is unlocking people’s potential to become better. BILL BRADLEY

Allocate for training.

One of my all time favorite employers mandated that every employee take a minimum of two enrichment courses per year. Thanks to her leadership, staff was always up-to-date on the latest software and business techniques.

By the same token, in nearly every nonprofit position that I have held, I have paid out of pocket for books and training (for shame!). Next to your donors, your employees are your greatest resource.

5. No man ever listened himself out of a job. CALVIN COOLIDGE

Listening involves more than sitting down with your board members and staff. Real leaders aren’t stuck in hierarchal notions. Real leaders will occasionally take on receptionist duties or data entry to gain perspective and stock of the public’s perception of them.

6. If there is anything that a man can do well, I say let him do it. Give him a chance. ABRAHAM LINCOLN

Respect creativity and give it a chance. It may work … then again, it may not.
I once proposed setting up an eBay account for a nonprofit organization I was working with. Board members and donors donated items and I photographed, listed them, sold them and shipped them. It netted over $8,000, but was, in the long run, a disappointing venture in terms of the time and effort involved.

7. You cannot escape the responsibility of tomorrow by evading it today. ABRAHAM LINCOLN

Prepare for the future by acknowledging that, like fine wine, donor-centric fundraising is your long-term solution – and it takes time.

I would like to welcome back guest writer Pamela Grow to Step by Step Fundraising today. Pam is an author, coach, copy-writer, and nonprofit marketing consultant.  She is the author of “Five Days to Foundation Grants” and the creator of Simple Development Systems, the only online coaching program created for the overwhelmed fundraiser in the one-person marketing and development shop.  Thanks for sharing with us, Pam! - Jim Berigan

How much should you request in your foundation grant proposal?

One of the most common questions I’m asked is “Pam, how do you know how much to request when drafting a foundation grant proposal?”

Well, how much do you need?

Folks, this isn’t rocket science and I refer, once again, to my constant mantra of “systems, systems, and systems.”

Have you been researching foundation funders on a weekly basis? While I’ve seen other grant gurus advising grantseekers to spend one to two days a year researching foundation funders, I’m a strong believer in making weekly prospect research a habit. That is if you’re serious about building your foundation funding.

When you do, you’ll always have a solid listing of prospective funders as well as their grant application guidelines. You should know:

a) that their funding interests provide a match with your organizational mission,
b) that they have funded organizations similar to yours in the past,
c) whether they fund general operating costs,
d) their grantmaking range (gleaned from the foundation’s 990 tax return)
e) their fiscal year, and
f) whether your organization has applied to them in the past.

Now, take a look at your organizational budget and join me as we determine two separate grant request amounts …

First off, we have the ABC Foundation. They’re a fairly “new kid on the block” to grant making, having opened their doors a scant three years ago after the founder sold his company (according to your Google research). They’ve funded an organization on the opposite end of the city providing the same services as your organization, and their giving history shows general operating grants in the $1,000-25,000 range. Your routine surveying of your board members has also revealed that one of your board members also sits on the board of the local art center – and has a friendly acquaintance with the ABC Foundation’s founder’s wife, who also sits on the board of the local art center.

Your first proposal to the ABC Foundation will be a small one. You feel rather safe in seeking a grant in the amount of $2,500 towards general operating expenses (and your board member has agreed to mention the proposal to Mrs. ABC). Without the connection, your first proposal would have come in at the very lowest end of $1,000.

The XYZ Foundation, on the other hand, has been in existence since 1962. Your organization has been fortunate to receive three nice-sized program grants over a period of ten years in the amounts of $15,000, $25,000, as well as one two-year grant in the amount of $60,000 that ended two years ago.

You’re launching a new mentoring program this year and, based on the site visit XYZ paid your organization following their $60,000 grant, you already know that they’re excited about this new program. On the other hand, you also know that XYZ’s assets have taken a bit of a tumble.

Your sixth grant proposal to the XYZ Foundation will seek $10,000 in support of your new mentoring program.

What??!! Sixth proposal??

Didn’t I say that the XYZ Foundation had funded your organization three times?

That’s right. Your first two proposals were declined.

After all, development is all about systems and relationships.

Keep on building.

Do you ask more than one donor for the same thing? We are in the beginning stages of grant proposal writing, but we got a reply back recently that said the foundation would make a decision in November. So, do we wait, or send the same proposal to others?

If we get a positive response in November, and the project has been funded by someone else, I would think that would be good all the way around. But would it? Would it look bad for us for future funding from that foundation? I hope I am making sense! There are limited funds for Christian schools, and I don’t want to do anything to hurt our chances with any of these foundations!

~ Kelly Stilwell

Remember the old saying “don’t put all your eggs in one basket?”

When it comes to programmatic or capital expenses, I’ve usually approached more than one foundation, depending upon the amount needed.

Say I needed $40,000 to buy a vehicle or $100,000 to get a new program off the ground, I’d ask anywhere from 2-4 funders, depending upon the relationship. Only a portion of your grant applications will be funded – and unless you have already established a strong relationship with them, foundations rarely fund all costs associated with a new program.

I am, as you know, a strong proponent of seeking out foundations who will fund general operating expenses.

If you’ve gone after programmatic expenses in your request and you’ve requested a grant for the entire project start-up costs, you’ll want to wait until you learn their decision before approaching other foundations.

Always remember that foundations look to fund organizations with diversified funding sources – and will often ask you to note other foundations you have approached in your proposal.

So, the short answer is: Get busy applying to additional foundations.

Several weeks ago I decided to feature a local nonprofit organization I worked with years ago for Twitter’s #CharityTuesday, thinking that I might be able to drive a few extra dollars their way.

So I paid a visit to their website to make a donation and copy the url.

I searched and searched for a way to give.  I knew that they had the capability because yours truly had set it up all those years ago.

After searching through several pages, I finally came across this paragraph at the bottom of one page:

If you would like to donate via the internet please go to www.JustGive.org or www.guidestar.org. Once on one of those sites you can just search for ORGANIZATION’S NAME. You will then be lead to our donation page.

Folks I couldn’t make this stuff up.

Aaugh!

One of the first rules of thumb is to make it EASY TO GIVE.

If you’ve been in the field of nonprofit fundraising as long as I have – particularly if you’ve been working with smaller organizations – you may well recall the time when boards argued endlessly about whether or not their organization should even have a website.

Ahem.

According to the 2009 eNonprofit Benchmarks Study, while 2008 certainly wasn’t a red-letter year for fundraising in general, even in today’s tight economic times, nonprofit organizations showed a 43% increase in online gifts.  In fact, the total amount of money raised online increased 26% from 2007 to 2008.  Further, studies show that about half of those who receive your appeal for funds in the mail will go first to your website (the same holds true for that program officer reviewing your grant proposal, by the way).

It goes without saying that your organization should be collecting email addresses (my newsletter, The Grow Report, recently featured  simple, step-by-step instructions for setting up your web-site’s email opt-in box and systematizing your email newsletters).

Now, optimize your website for online giving by following these two simple rules:

1. Make giving an online donation as easy as possible.  Include a conspicuous “Donate” button on every page of your site.  Yes, conspicuous.  Yes, every page.
2. Include a hyperlink “Donate” button on every email sent out by every staff member within the signature line (and what’s to say you can’t request that your board do the same?).

Yes, I know you’re swamped.  Yes, I know your resources are limited.  Yes, I know that there’s more to online giving than these two steps.  Confucius say:  “A journey of a thousand miles begins with a single step.”