W. Edwards Deming

When a colleague sent me a link to a web page with the following claims and asked me if it was legitimate, I had to smile.

Hundreds of Billions Up For Grabs — Every Year!

… there are the more than 75,000 foundations that give away billions more every year — large organizations you may have heard of, like the Bill and Melinda Gates Foundation (with over $35 billion earmarked for giving — and upwards of $2 billion handed out each and every year) … all the way down to smaller, little-known family and community foundations set up to help places like local food banks and animal shelters with a few thousand dollars at a time.

In fact, according to the U.S. Government and The Foundation Center, there are over $544 billion up for grabs each and every year from thousands of sources. (To put that number into perspective, its about what the U.S. Government spends on Social Security in a year — and about $40 billion more than what’s spent on Medicare and Medicaid!)

Yet another Internet site with shades of Matthew Lesko’s *free money* scam.  You remember Matthew?  The guy in the goofy question mark suit who regularly shows up on late night TV proclaiming that anyone can get *free* government grant money by following his program?  His pitches are so outrageous and his style so over-the-top that it seems like anyone with an ounce of common sense would know better than to believe his claims.

And yet, when it comes to winning foundation grants, many otherwise intelligent people believe that there are *secret* writing tactics to writing funded grant proposals, when, in reality, the truth about winning foundation support for your mission is simple.  If you were to believe the pitch above, knowing how to write *the* perfect case statement or putting together a great budget or finding a foundation that provides an ideal fit with your mission would be all it takes for your organization to enjoy a stream of foundation grants resulting from your well-crafted proposal.

This isn’t meant to say that writing foundation grant proposals doesn’t require thought, persuasive writing skills and attention to detail.  I worked for a sizable family grant-making foundation for seven years and if I had just one dollar for every grant applicant who failed to follow our guidelines, I’d be a wealthy woman today.

So, yes, you should be constantly honing your writing skills, living your mission and researching prospective foundation funders.

And following these basics will guide you in establishing a foundation grants system:

1. Study the foundation’s giving histories, preferably for the past three years. Note the range of grants – and tailor your request accordingly. Is this your first request? Come in on the low end.
2. Study the foundation’s last three 990’s you can find – most assets are declining but not all
3. Target local foundations. Send as many targeted proposals regularly as possible. (Note: I did say targeted – do your research!)
4. Clean up your website. Why? In addition to your proposal itself, your website is one of the first things a foundation will look at during the review process. Red flags? No online giving, a site that was last updated in 2005, outdated contacts …
5. Study the guidelines.  If they say no to videos, do not include your organization’s latest dvd.  If the guidelines say to include 3 copies of everything, include them.  Pay attention.
6. It’s good to have 2-3 sets of extra eyes to proofread your work – and one writer. (I’ll cover that topic in a later article).
7. Make weekly research a priority, and
8. Maintain your foundation stewardship. Before you reapply to the XYZ Foundation who funded you last year, if they didn’t require a reporting, send them a gracious letter giving them an update. You didn’t miss that reporting deadline, did you?

So, what is the number one secret to winning foundation grants you ask?  I’ve already given you a hint above …

The number one secret to winning foundation grants is by establishing systems for your success.  When it comes to foundation funding, it’s an unfortunate but often true reality that oftentimes *third time is the charm.*  Many organizations give up on grants following a few declinations.  Don’t make this mistake in your organization.  Seth Godin said it best:  Obsessing about the last inch of follow through ensures that the important parts of what you do get just as much (if not more) commitment.

Learn how to follow through and build genuine relationships with foundation funders.  It takes time but the rewards are worth it!

“I have been writing grants for seven years and it has taken me that long to develop some of the processes that you outline. I wish someone had shared that information with me years ago.”

John Mercer
The Washington Hospital Foundation

Early on, though, during introductions, one of the sisters remarked, half-jokingly to me that “we hate development people.  We like to talk to the program staff.”  I responded that, yes, I did too – it was the only way for me to learn what was going on to be able to write about it.

Then I got to thinking about the whole divide between program staff and fundraisers.

I wondered if foundation funders, as a rule, shared the opinions of the sisters I had just met and asked a friend of mine, a senior program officer at a large grantmaking foundation.

Her response?  “Yes. development directors are viewed as “sales people”. They know just enough about the program they are selling whereas the program people live it.”

Is that you?  Do you know “just enough” to write about your agency’s programs?

Maybe it’s time to start living it.

Heck, one of the first things that I did when I landed my first fundraising job, working for a regional ambulance corp was to run with the ambulances for a few hours.

Talk about eye-opening!

Later on I became certified at CPR.  And, while I never became an EMT or saved anyone’s life I did gain a first-hand perspective of the challenges and the phenomenal work of rescue workers.

You must remember that your job is not to go, hat in hand, begging for dollars.  Your job is to inspire donors.

What steps do you take to fully acquaint yourself with your organization’s programs?  Is there something that you could be doing that would give you a broader picture of your agency?  Remember, you might be surprised – something as simple as answering the phones for an afternoon, monitoring your agency’s after-school program, or spending two hours calling donors can put an entirely new perspective on your work.

How are you living your agency’s programs?

• accepts grant proposals, and
• whose mission aligns ideally with yours

The problem?  Their deadline for accepting proposals is Wednesday.

No problem, you’re “grant ready” with the following updated documents at your fingertips:

1. A copy of the IRS letter confirming your organization’s 501(c)(3) status
2. Your annual operating budget and actual income and expenses for most recently completed fiscal year AND for current year-to-date.
3. Three (3) largest funders in the last fiscal year and type of grant and/or master list of awarded grants for last five years
4. Itemized project budget (if applicable) for how this specific grant will be used. Identify each source of revenue, the amount, and whether funds are either committed or pending. If request is for a multi-year grant, include multi-year program budget.
5. Your most recent AUDITED financial statement (if budget greater than $100,000) or Form 990 (if budget between $25,000 and $100,000). If neither document is available, include unaudited financial statement.
6. Latest annual report or summary of the organization’s prior year activities.
7. Current board list
8. One-paragraph description of key staff, including qualifications relevant to the request.
9. Grantee report (if previously funded).
10. Letters of agreement from any collaborating agencies, if applicable.

Create a pdf of each document as well for online submissions and be sure to maintain updated resumes of key program staff.

It’s a good question because it shows that the asker understands that relationship-building is just as important when it comes to seeking grants as it is in building a sound individual donor base.

And would you believe that the simple, one-word answer to this question is “persistence?”  It’s true.

Early on in my career I attended a Philadelphia chapter of the Association of Fundraising Professionals’ (AFP) “Meet the Funders” panels.  It was a breakfast meeting featuring three regional foundation presidents.  They discussed their own foundation’s giving priorities and answered questions from the audience.

When one of the panelists, the president of a small regional foundation, was asked what to do when your grant proposal is declined, I took notes.

His response?  When your grant proposal has been declined, call the foundation offices, ask to speak to the program officer who reviewed your proposal.  Thank them for their review of your proposal and ask these three questions:

1. Is there anything we could have done differently in our proposal?
2. May we resubmit for your next funding cycle?
3. Are you aware of any other foundations that we might approach?

In the ensuing years this simple process has raised millions for my clients.  Foundations don’t, as a general rule, communicate terribly effectively with grantseekers.  It’s up to you to communicate and take the relationship forward.

Want more?  Download my simple grant proposal tracking worksheet.  By using it regularly you’ll ensure that you always follow up!

One reviewer wrote “I’ve taken two day accredited courses that didn’t cover as much material as this book.”  Another said “I have been writing grants for seven years and it has taken me that long to develop some of the processes that you outline. I wish someone had shared that information with me years ago.”

Featuring the latest up-to-date online resources for research, effective proposal writing and news of the non-profit sector:

• Why the actual foundation research is your most important step
• Everything you need to know to research potential funders, including little known foundations with big assets (often requiring little more than a letter of application!)
• How to build relationships with foundation funders
• The one thing you should NEVER do when applying for a grant
• How to market your organization and programs to prospective funders
• How to tell a compelling story about your organization

Even better?  It’s on sale.  Regularly priced at $79.99, Five Days to Foundation Grants is on sale for $29.99 a limited time.

How can you get on their radar?  Join us for a live chat at 1:00 ET today, April 25.

Foundations are required by law to spend 5% of their investment assets each year (although not necessarily solely via grant payouts).  Foundation Source, a company that works with family foundations, found that “among 700 of its clients, the number and size of grants less than $1-million increased by 15 percent last year.”  Typically these were foundations with less than $100-million in assets.

According to Foundation Source’s president, Andy Bansger, “small to midsize family foundations stepped up dramatically in this tough economy to assist a wide variety of people, organizations and causes.”

Exciting news!

So, what, exactly does this mean to your small nonprofit organization?

I hate to say “I told you so” – truly I do, but what this says to me is that every small to mid-sized nonprofit out there needs to establish a sound grants system in place within their organization, one that includes:

1.  Regular foundation prospect research (weekly at the bare minimum; preferably daily). Don’t have a subscription to Foundation Directory Online?  I’m offering a limited time personalized webinar teaching you my secrets to learning how to find foundations to support your mission.  Attendees are guaranteed a minimum of 10 prospective new foundation funding sources – and will receive a free copy of my book “Five Days to Foundation Grants” along with my grants toolkit – filled with samples of funded grant proposals (a $79 value!).  Sign up now.

2.  A compelling case for general operating support.  One recent Foundation Center report noted that, not only has foundation giving increased by 14.6% in 2006, but foundation grants for overhead costs grew by 6.7%. Likewise, the Center for Effective Philanthropy, after surveying 20,00 grantees and 79 foundation executives, noted that foundations “should make larger, longer-term operating grants” of unrestricted funds that can be used to support the organization and its overall mission, not just specific projects or programs.”

Your time may be more effectively spent if, instead of spending weeks developing a program-based grant proposal to that $300-million dollar foundation for $75,000, you seek out 10-15 smaller foundations for general operating support grants from $1,000-15,000.

I personally guarantee less headaches when reporting time rolls around.

3.  Lastly, don’t forget your follow-up.  Read Behind the Scenes at a Grant-Making Foundation to learn the importance of good follow-up and the three questions you need to ask following a proposal declination.

In the six years I worked in programming and communications for a grantmaking family foundation I learned a lot about nonprofit management just from observing the grant proposals that crossed my desk. Of course there are all the proposals that arrive missing important documentation, like the 501(c)3 letter or the program budget or the annual report. You know, the things requested in the grant application guidelines.

But what was the number one reason a lot of organizations failed to get funding?

Would you believe the answer is simple follow-up?

Many foundations will tell you. It’s rare that the first-time grant proposal gets funded – no matter how well written it is.

Yet you’d be amazed at the many organizations who fail to follow through with a foundation when their grant proposal is declined. I’m guessing that these individuals let loose with a world weary sigh and file the letter with the grant proposal … never to reapply.

That’s why I created this simple Grant Proposal Checklist.

I introduced the Checklist to my email subscribers last week and my in-box was flooded with responses – from authors, other consultants and nonprofit development directors.

“This follow-up sheet for foundation submissions is FABULOUS!  I’m going to recommend that all my clients start using it.   Thank you so much for sharing this great resource.  I really appreciate it, and so do many nonprofits who don’t even know it yet!” Tina C.

It’s just one of the many tools created for the one-person nonprofit development office who needs to do it all – faster, smarter, better.

Download it yourself today. You’ll find that it makes creating a system of follow-through a whole lot easier!

Email Marketing You Can Trust

When I worked for a grant-making foundation, you wouldn’t believe how many times my colleagues and I would look at each other with dropped jaws:  “Did they even BOTHER to read the guidelines?” we would wonder.

It’s truly astonishing how many organizations fail on this basic.  They omit to include their 501c3 letter.  Project budgets are left out.  The audited financial report is missing.

Here’s a tip:  Take note of what is to be included and state it directly within the cover letter:

• In addition to our grant proposal, enclosed you will find the required:
• 501c3 tax exemption letter
• audited financial report
• etc.

With the checklist directly in the body of the letter, you’ll be less likely to omit key pieces.

2.  Have you contacted the foundation funder?

In the past, I’ve always believed that an organization’s first grant proposal served as an introduction.  However, with current economic conditions, I am more inclined to follow the advice given by Steve Cebalt of Do It Yourself Communications in his recent blog post, Adapting to the ways foundations have changed in the new economy.

I recently took on a new client and discovered a foundation providing an ideal match between my organization and the foundation’s stated funding mission.  Two problems:

• my organization had applied twice in the past and been declined
• the deadline was the next day

On the plus side, there was a new executive director at the helm of this foundation (someone another funder had assured me would be more receptive), past experience had taught me that the third time is often “the charm,” and, finally, all that was required was a simple 2-page letter of intent.

It was a no-brainer.  I spent the next hour drafting a scathingly brilliant (if I do say so myself) letter of intent and hand-delivered it that day.

The declination letter arrived the following month.

When I called to speak with the program I learned that the programming area under which I had applied had been added during boom economic times.  I also learned that, until the economic climate improved, only previously funded organizations were being invited to apply.   If I had made that call initially I could have saved some time and gas.

3.  Are you putting the reader to sleep?

Foundation program officers are people too.  Imagine being assigned 15 different grant proposals to review, each one bearing the same tired, standard lingo?

Yes, you need to provide statistics and outcomes, but use creative storytelling to paint a picture in the mind as well.  Try to find actual examples to accompany your stats.  Maintain files of stories and simple quotes and regularly use them.

4.  Have you done your homework?

In addition to regularly researching funders using services such as the Foundation Center Foundation Finder or Grantstation, I recommend an additional review of the foundation’s 990.  In fact, I generally download the past 3 years of a foundation’s IRS form 990 to get the best possible indication of a foundation’s operations.  For more information, see my article Six Critical Things to Look for in a Foundation’s 990 for Successful Grant Funding.

5.  Have you proofread your proposal?

Spelling and grammatical errors are a big no-no in a grant proposal.  While the best proposals are not drafted by committee, it pays to have another set of eyes proofread your work.

6.  Is the proposal sloppy and difficult to read?

Use small blocks of text.  Break up paragraphs.  Match the format of the funder.  Stick to Times New Roman or Ariel font.  Lose the justified paragraphs.  Seriously – just lose them.

7.  Is your proposal filled to the brim with the latest jargon?

You don’t need me to tell you that this went out of style in the 90′s.  Simplicity is key.  Save the vocabulary lesson.

8.  Does your budget match the narrative?

If you’re writing for a specific program, develop the budget for that program first – and then write your proposal.

For six years I worked for a regional private family foundation.

It was an amazing learning experience on so many levels, including teaching me how donors respond.

In a recent post on Kivi’s Nonprofit Marketing Blog, Kivi notes that people’s hearts tend to overrule their heads.

She raises a number of good points, backed by sound research.

Yet still, nonprofit organizations have a strong propensity for the dry, didactic prose that sets no ones heart aflame.

Whenever I’ve had an annual campaign to write, I’ve always put myself in the shoes of a donor. And usually that donor is standing over the trash, opening her mail. Will the standard “Dear friend: We are writing you today to seek your support blah blah blah” letter make her pause, walk away from the trash can and pull out her checkbook? Hardly.

So I write and rewrite and write some more.

The resulting letter will be something that will make the reader either think – “It could happen to me.” “This organization deserves my support!” “Wow; they’re doing amazing things – I’m going to add this group to the charities I support” – or cry, or, hopefully both.

And then there are those otherwise savvy development folk, who have mastered the art of bringing emotion to their development writing – their annual campaign, their thank you letters, their web copy and brochures – and yet completely toss it all aside when it comes to a grant proposal.

Foundation funders are people too.

Imagine yourself as a program officer with a stack of fifteen grant proposals before you, every last one of them starting out with “We are pleased for the opportunity to submit our grant request to the XYZ Foundation in support of our youth mentoring program/mental health clinic/afterschool program/community arts organization, etc., etc.”

Zzzzzzzzzzzzzzzzzzzzzz.

I well recall one faith-based organization that was funded by my foundation on a regular basis. Every time a proposal came in from this organization both of our vice presidents and the entire program staff couldn’t wait to read it. Their proposals were filled with emotion, passion and, yes, always new stories. They read like a never-ending novel of hope.

I’m sure it didn’t hurt their cause any that they’d had the same executive director for going on twenty years and her passion has never waned.

But you, too, can bring that passion and emotion, those stories, to your development writing, and – not to be forgotten – to your grant proposal writing.

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?

If you have, then you should 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 fiscal year, and e) 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 are launching a new mentoring program this year and, based on the site visit XYZ paid your organization following the $60,000 grant, you know that they would be as excited about this new program as you are. 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 building.

John Fitzgerald Kennedy

The other day I was chatting with a fellow nonprofit consultant on Twitter about business and she noted that “organizations are cautious in spending.” When I stated that that was the understatement of the year, she came back with “Yes, the caution has become paralysis!”

And, in a sense, who can blame ‘em?

Everywhere we look we’re hearing gloom & doom statistics. A recent Chronicle of Philanthropy survey noted that last year, assets of the foundations in their recent survey totaled $163.4-billion, compared with $213.8-billion in 2007.

But, hey, guess what? According to Giving USA, in 2008, foundations gave a total of $41.21 billion in grants to nonprofit organizations.

You will be best served by remembering the words of Gautama Siddharta: “The mind is everything. What you think you become.”

Fill your mind with gloom and doom – and fear – and you will reap what you sow.

Last night I had dinner with a good friend, one who also happens to work at the grantmaking foundation where I worked for six years. Clearly I knew that they had suffered some investment losses and were giving less in terms of overall dollars, so I asked her if anything had changed with their proposal review process.

She did note that, while this particular foundation might have previously worked with a proposal if they liked the organization’s work, these days if a proposal arrives missing components (the IRS 501©3 letter, budget, etc.), they will no longer call to request these items but will immediately decline the proposal.

My friend also disclosed that the foundation is giving more to health and human services because of a perceived greater need, and that they are looking for a strong base of support within the community, including diversified funding.

All of which points back to my oft-repeated mantra of development systems and, within your organization’s grants system, having a strong system for research.

So what’s the smart grantseeker to do?  Probably what you should have been doing all along:

• Study the foundation’s giving histories, preferably for the past three years. Note the range of grants – and tailor your request accordingly. Is this your first request? Come in on the low end.
• Study the foundation’s last three 990’s you can find – most assets are declining but this particular foundation’s may not have!
• Target local foundations. Send as many targeted proposals regularly as possible. (Note: I did say targeted – do your research!)
• Clean up your website. Why? In addition to your proposal itself, your website is one of the first things a foundation will look at during the review process. Red flags? No online giving, a site that was last updated in 2005, outdated contacts …
• Study the guidelines.  If they say no to videos, do not include your organization’s latest dvd.  If the guidelines say to include 3 copies of everything, include them.  Pay attention.
• It’s good to have 2-3 sets of extra eyes to proofread your work – and one writer. (I’ll cover that topic in a later article).
• Make weekly research a priority, and
• Maintain your foundation stewardship. Before you reapply to the XYZ Foundation who funded you last year, if they didn’t require a reporting, send them a gracious letter giving them an update. You didn’t miss that reporting deadline, did you?

Despite the economy, there is good news on the foundation front. One of the best, in my opinion, is that foundations are beginning to recognize the folly of program-based grantmaking and are awarding more general operating funding.

Continue to demonstrate how your organization is having an impact and persevere, not only with your grants systems, but with all of your development systems.

I was fortunate for the opportunity to work at a private, family foundation for over six years. I worked for them during their early days, when they were just beginning to establish guidelines and programming areas in keeping with their founder’s intent – throughout their growth as a structured, grantmaking entity with their own programs, clearly defined policies and funding areas.

When I first began, the foundation’s founder had passed away quite recently and the foundation had moved from his corporate offices to our own.

Previously there had been no formal grant application process. Organizations had applied and, if the founder liked them, they got a check. Simple as that.

Once the offices moved, guidelines were established and the foundation began grantmaking in a more formalized manner.

In the early days, though, program areas, guidelines and deadlines, weren’t quite finely honed. It was not at all uncommon, in those days, for our limited staff to realize, late in the year, that we were off target in spending the required 5% of assets.

Private foundations must abide by “the payout requirement” and make “qualifying distributions” of at least 5 percent of the average market value of their investment assets in any given fiscal year by the end of the following year.

Many lucky organizations, which normally might not find favor with the foundation, found themselves the recipients of grants made simply because we had to get money out the door – fast. Other, favored organizations might receive a grant in the amount of $25,000 – when their proposal had requested $15,000, merely because they were lucky in their timing.

Throughout the years guidelines were tweaked and deadlines added, additional program staff were hired, financial overseers were brought in, and these days a tighter reign prevails.

Of course every private family foundation doesn’t operate alike.

But there were lessons to be learned from my tenure working at a private grantmaking foundation.

My biggest lesson was in learning that you never know what goes on behind the scenes …

I can’t begin to tell you how many times a new organization presented a proposal for funding, received a favorable review from the program staff and vice president of programming, yet was declined and put aside because funding in that particular program area had already been committed.

And nine times out of ten the organization never reapplied.

It’s why I constantly stress systems and communication.

With a solid grants system in place, you’ll have a procedure for every declined grant proposal.

A procedure something like this …

Call the foundation and ask to speak with the program officer who reviewed your proposal. After you’ve thanked them for their thoughtful review, ask these three questions:

1. Is there anything we could have done differently in our proposal?
2. May we resubmit for your next funding cycle?
3. Are you aware of any other foundations that we might approach?

Follow up by dropping a thank you note in the mail.

Communicate! Because you never know what’s going on behind the scenes.

It was the first time I’d ever been away from Abigail overnight.

I was gone five days and when I returned Abbey couldn’t quit asking about the great grandmother she’d never known. A cousin had thoughtfully put together wonderful scrapbooks of photographs of my grandmother, Grace, and passed them out to family at the funeral. Every night before bed, Abbey poured over the photos, asking questions.

Her repeated question was “mommy where did your grandma go?”

It was her first experience with death and I explained to Abigail that her great-grandmother had gone to be with the angels in heaven.

This went on for several nights until, about four nights after my return Abbey asked plaintively, “mommy is your grandma asleep?”

“Abbey,” I replied, a little impatiently since I had already repeated myself three times, “I told you, your great grandma is an angel in heaven now.”

“I know mommy,” Abbey said patiently, as if I were a bit slow, “but do angels sleep?”

I looked at her in some surprise. “Well, that’s a good question Abbey – I don’t know if angels sleep!”

With that she sat up – in her recently acquired “big girl bed”  - with her hands on her hips and replied “well just how did you get to be a mommy anyway?!  You don’t know anything!”

I still laugh when I remember that night.

We don’t take any classes or get any kind of special training to be a mother, although God only knows we could use some.

I started writing grant proposals six years ago without any training whatsoever. Just a background in writing, a passion for my organization’s mission and a need – since I was the sole development person and a lot needed to get done – to get proposals out the door quickly. Our budget didn’t allow for much by way of training either.

Fortunately I’d spent six years working for a foundation and reviewed a whole lotta grant proposals. I’d also always been a great one for self-learning – and a frequent visitor to the now defunct “How to Do It” bookstore in Philadelphia.

Seven years later I’ve had the opportunity to attend numerous courses and seminars on grant proposal writing, read countless books on writing the perfect proposal, and even written a book!    But I think what separates a good writer from an adequate one is the ability to constantly learn and grow.

We gain strength, and courage, and confidence by each experience in which we really stop to look fear in the face… we must do that which we think we cannot.

Eleanor Roosevelt

Awhile back I did a poll on the biggest fears grantwriters face in writing a grant proposal.

Not surprisingly approaching new foundations, fear of rejection and facing a blank page were near the top of the list.

After all, who hasn’t suffered writers’ block at one time or another?

And, when you’ve got far too much on your plate, it’s easy to fall back on the tried and true funders – those foundations with whom you’ve built up good relationships over the years – and let new foundation prospect research slide.

I was surprised, however, to find that contacting the foundation was one of the top fears grantwriters faced.

But, hey, it makes sense. It’s a little like cold calling in sales – something anyone who has ever been in sales generally acknowledges is not fun. It can be rather intimidating to place a call to foundation offices.

Yet, isn’t it true that by doing that which you fear, on a regular basis, you produce the greatest outcome?

Several years ago when I was just beginning my career in nonprofit development, I had spent considerable time and effort researching a new foundation grantmaker, and that research had led me to believe that the goals and programming of our organization meshed perfectly with this particular grantmaker’s funding priorities.

Bingo!

I spent a good amount of time drafting the perfect proposal … the quintessential cover letter … pulling together statistics and stories … only to learn, just prior to sending the package out in the mail, that the organization had applied for funding to this particular foundation.

Indeed, they had applied three times – and been declined every time.

I was sorely tempted to throw my hard work in the trash.

Why was there no record in the database? Why hadn’t the Executive Director known about the prior proposals? Why hadn’t the funder funded us? How did the files disappear?

Good questions.

But the high staff turnover and lack of organization prevalent in many nonprofit organizations is not what this article is about.

I promptly picked up the phone to place a call to the Foundation to learn what I could, imagining myself leaving a voicemail.

Imagine my surprise when the foundation’s Executive Director, a man well known in Philadelphia philanthropic circles, answered the phone himself.  He was warm and genuine and I introduced myself, explained my role in this wonderful organization and then … rather baldly, asked him point blank why they had never funded us.

He laughed.

“Send in an LOI,” he said, “we’ll take another look.”

I scrapped the proposal and drafted a two-page letter instead and off it went. Within weeks the foundation called to schedule a site visit.

We were fortunate to be able to schedule his visit during a particularly busy time in the organization’s programming.

The Executive Director arrived, spent an hour watching our marvelous little program in action and we were fully funded within a week.

Since then they have become good friends and regular funders and their grants have increased. Their participation has brought other funders on board.

Be fearless grantseekers. It will pay off!

So when the phone rings and it’s program officer Samantha Jenson from The Smith Foundation to tell you that the foundation would like to schedule a site visit, you’re pretty excited.

After all, if The Smith Foundation planned to decline your proposal, it is doubtful that they would arrange a site visit.Grantmakers like to keep in touch with the community and regularly schedule visits to programs and organizations they fund.

So, your foot is in the door.

How to make a favorable impression on The Smith Foundation for future grants?

Follow these simple steps for your next site visit.

1. Do ask the foundation what their expectations are for the visit, what they’d like to see and who they’d like to meet.  If possible, arrange the visit during optimal times.If you run programs, schedule for a time when energy is high. I once worked with an educational initiative and arranged two separate site visits for them.Due to scheduling difficulties, one was held at a time when nothing was going on – just the ED, myself, a board member, the program director, the Foundation’s representative and an office.The other was scheduled during peak programming and the potential funder – someone we had been pursuing for several years – was impressed with the energy level and genuinely delighted to see the program in action.  Aside from the resulting fully funded grant check, the funder became a passionate proponent of our work, funding our organization every year – and drawing in several other new funders!
   
2. If possible, arrange for one or two board members to attend – as well as yourself and your Executive Director.It demonstrates commitment to the potential funder.
3. Share your challenges as well as your successes.
4. Provide directions to the Foundation.  Confirm the appointment the day before.
5. Have a representative join you.You run a program for teenage mothers?Bring in one of your brightest success stories. Coach them on what to expect.
6. Serve refreshments.Coffee, tea, water, fruit, pastries. You are welcoming the foundation officers into your nonprofit’s home – be welcoming and gracious.
7. Relax!

If they’ve gone to the trouble of arranging a visit to your organization, chances are that The Smith Foundation was intrigued with your organization and want to learn more.

Follow up with a thank you letter expressing your appreciation for their time and trouble, preferably signed by your ED or a board member.

Congratulations! You’ve just launched the first step in a wonderful relationship with a brand new funder.

For more information on preparing for a foundation site visit, check out The Chronicle of Philanthropy’s discussion on How Charities Can Benefit from a Foundation’s Visit.

Addendum:  When this article was posted to LinkedIn, one foundation officer didn’t take too kindly to my suggestion to offer refreshments, likening it to “bribery.”  Folks, we’re not talking high tea here.  How well I recall one blistering day in August when I made my third site visit of the day – and was not offered so much as a glass of water!  Hospitality goes a long way.

Looking for foundation grant funding for your organization?  Five Days to Foundation Grants and my grants system is on sale for a limited time only.  Grab yours now!

JOHN DEWEY

Charity Channel, always a great barometer of the world of nonprofits, recently posted a question from a member:

We are trying to put some numbers to a part time grant writer. We are a $35 million agency and have sporadically applied for grants. We are now trying to formalize our program. Any ideas on approximately how many grants should be submitted per week to justify the position? Any feedback would be much appreciated.

In my experience, it’s not unusual for an organization to completely misunderstand the grant proposal writing process and assign ridiculous productivity goals.

After all, if you’re writing a proposal for regional family foundations, you may well be able to crank ten of ‘em out in one week’s time.

A proposal to Kellogg or Pew, on the other hand could take weeks . . . months!

Let’s examine a hypothetical situation.

Sarah is a recent college graduate working as a development director for a young nonprofit organization with an operating budget of $235,000. She sends out fifteen proposals within the course of her first six months of employment. Within the next six months, eleven proposals have been declined, one has been fully funded for $10,000 and another $10,000 request has been funded, but at $7,500, for a total of $17,500.

Sarah is the organization’s first development staffer.  Her supervisor considers Sarah’s performance in the area of grant proposal writing mediocre.

Sarah accepts a position in the for profit world. Her successor, Molly, also a recent college graduate, sends out ten new proposals to different foundations within her first six months, netting a total of $7,500 in grants in her first year. A $5,000 grant from Sarah’s earlier efforts comes in during Molly’s first week. The executive director deposits the check and thanks the donor, but forgets to pass the information along to Molly.

Molly has been given direction, through a board member’s vociferous intervention, to focus on events as a fundraising venue. Somehow, reporting on both the $10,000 grant and the $7,500 grant falls through the cracks as Molly invests time and energy in the organization’s golf outing, which ends up netting $7,500.

Does the scenario cited above ring any bells? I’ve personally witnessed situations such as this in organizations both large and small.

The problem is that the organization has not made a commitment to pursuing grants as a part of their overall development strategy.

Let’s take a quick peek at another hypothetical.

Sarah’s initial grant proposal to The Smith Foundation for $15,000 has been reviewed favorably by their program officer, who writes glowingly of the organization’s approach and recommends a first-time grant of $10,000.

Unfortunately, The Smith Foundation has allocated all of their resources in that particular program area, so Sarah’s proposal is declined, with a note made in the files to give her organization preference during the next funding cycle.

Of course, as you can see, because the organization didn’t make a commitment to pursuing grants as a part of their overall strategy, and didn’t have a grants system in place, Sarah’s successor, Molly, didn’t apply to The Smith Foundation the following year.

Grant proposal writing is a process – a process of building relationships and following up.

Without a commitment to this process and a systematic approach, an organization’s chances of winning consistent grant funding are slim.

For another perspective, read Tony Silbert’s excellent posts on Goal Setting and  How to Hire a Grant Writer.

I was surprised at the responses that I got.

“Pam! That’s not good for you!”

“Yeah, you never want to use weights heavier than 5 pounds or so …”

Frankly I thought that the myths about women and weight lifting had been put to rest years ago.

I have been using weights – dumbbells from 5 to 35 pounds and a barbell loaded at 45-125 pounds – for a number of years. Truth is, the heavier I lifted, the leaner I got. As a matter of fact I joined a gym recently so that I would have heavier weights at my disposal.

As a female, the simple fact is that I don’t have much testosterone. Testosterone is the hormone responsible for increasing muscle size. Most female bodybuilders, unfortunately, use anabolic steroids (synthetic testosterone) along with other drugs in order to get that high degree of muscularity that turns a lot of women off to weight training.

There is also the common myth that women only need to do cardio and if they decide to lift weights, they should be very light. First of all, if you only did cardio then muscle and fat would be burned for fuel. Women need to lift weights in order to get the muscle building machine going and thus prevent any loss of muscle tissue – not to mention bone loss. Women who choose to concentrate on cardio will have a very hard time achieving true results and will, in the long run, lose both muscle mass and bone density. As far as the lifting of very light weights, this is just more baloney. Muscle responds to resistance and if the resistance is too light, then there will be no reason for the body to change.

So, what, pray-tell does women’s weight lifting have to do with writing grant proposals?

Well, just like women and weight lifting, a lot of myths have built up around writing grant proposals over the years. Here are just a few:

We can’t rely on foundation funding.

Truth: Nonsense. I have worked with organizations that derive a good 70-80% of their overall budgets from foundation funding. And, while diversified, sustainable funding is important, there is no reason why, with a well run system of developing compelling proposals and sending and tracking your grant requests and reports on a regular basis, you can’t begin relying on foundation grant funding for a major portion of your budget today – while you build “multiple streams of income.”

The “XYZ” Organization’s board member knows one of the trustees at the “XYZ foundation.” We don’t know anyone.

Truth: Yes, building relationships is crucial to establishing a pattern of growing foundation grants. And, yes, cultivating relationships with foundation funders takes time. But, in less than one month I was able to raise over $55,000 in foundation grant funding from foundations with which my organization had no prior relationships. Some grants were sizable … others fell into the $250 to $500 range. I didn’t “know” anyone at any of these foundations.

And, if you’re not in the habit of regularly submitting proposals, how will you establish relationships with funders in the first place?

Foundation grants are large and come from large foundations. They wouldn’t be interested in our modest non-profit.

Truth: See above. A veritable plethora of smaller, little known foundations exist throughout the United States, with assets of $1.5 million or less. And by virtue of their very size they often require little more than a letter of application. Learn how to locate and target these foundations, and, most importantly, when to target them.

XYZ Foundation only supports grants for education and human services. They wouldn’t even look at our arts program …

Truth: Don’t be too sure of that. Many development professionals make this common mistake. When I was seeking funding for a crucial component of an organization I worked with I came across a regional foundation with the some of the most specific funding criteria I’ve ever seen. My organization was health-related but we certainly didn’t have anything to do with their pet cause, Crohn’s Disease, yet I managed, with a single one page letter, to generate the funding necessary to buy expensive and very much-needed equipment.

Foundations don’t support funding for general operating support.

Truth: Here’s a common misconception that I took away from spending six years working in programming for one of the nation’s largest foundations. My foundation did not generally support general operating costs, however nearly 70% of the family and corporate foundations in the United States do. Trends in grant making change and project-based funding is being reevaluated. Recently the Center for Effective Philanthropy, after surveying 20,00 grantees and 79 foundation executives, noted that foundations “should make larger, longer-term operating grants” of unrestricted funds that can be used to support the organization and its overall mission, not just specific projects or programs.

Finally – when it comes to the one-person development shop, I am all about finding the most effective ways to raise the most amount of money with the least amount of effort – and establishing creative systems to do it.  There’s a big difference between being busy and being effective.  Frankly I do not have the time or energy to bust my butt in a 90 minute high impact aerobic class every day when 25 minutes of lifting heavy weights three or four times a week will yield much better results.

By incorporating a grants system, one that includes regular, weekly research, I’ve found that an organization can develop a reliable base of funding.

What myths about grant proposal writing do you believe?

It’s one of the grantwriting myths that even I bought into.

Why not? The foundation that I worked for for a number of years most generally dissuaded grantseekers from applying for general operating expenses, preferring to fund specific programs and capital. Foundation trends did, for a number of years, steer away from funding organization general operating expenses.

Because foundations’ founders and their leadership tended to be from the corporate world, there was a major push in the 1980’s through the 90’s for nonprofits to be accountable and goal driven. Funding was directed to short term projects – ones that could deliver measurable outcomes.

But we all know that project-based accounting often forced grantees to sacrifice long term effectiveness.

After all, if your organization is continually adding more programs or sites while your underpaid (frequently revolving) staff is working on obsolete computers without proper supplies, where will you be in five years?

I am pleased to report that that is changing.

In 2004, the Independent Sector Board of Directors unanimously endorsed a statement to “opt for general operating support over project support when feasible and when the goals of the two organizations are substantially aligned.”

Further, they encouraged foundations, when providing project support, to pay “the fair proportion of administrative and fundraising costs necessary to manage and sustain whatever is required by the organization to run that particular project.”

And now a recently issued report from the Foundation Center notes that, not only has foundation giving increased by 14.6% in 2006, but foundation grants for overhead costs grew by 6.7%. Likewise, the Center for Effective Philanthropy, after surveying 20,00 grantees and 79 foundation executives, noted that foundations “should make larger, longer-term operating grants” of unrestricted funds that can be used to support the organization and its overall mission, not just specific projects or programs.

Hallelujah! Foundations are finally recognizing that nonprofit organizations don’t operate in a vacuum!

So where do you find foundation grants for general operating costs?

Check out your core of current donors, those who have been most consistent in the past, who are already enthusiastic supporters of your programs. If you’re doing your foundation research on a regular basis, you should be compiling a steady roster of new foundation prospects. And don’t forget those foundations to which you’ve applied but have never funded you.

Make your case for support not only as clear as possible – but as compelling as possible as well.

If you feel like you’ve done a solid job describing your non-profit’s mission, the population you serve, and how your proposed grant would help your clients, then take another look at the foundation’s mission. Did your proposal help the foundation meet its goals? Was it really a good fit in the first place? Foundations routinely turn down the best conceived projects simply because the goals of the non-profit and the foundation aren’t aligned. Explore the foundation’s website to see what kind of projects they’ve funded in the past, and compare those projects to your own. See what you can learn, and if this step wasn’t part of your last round of proposal applications, make it part of your next.

If you’re confident that the goals of your proposal met the goals of the foundation, then go back to the original Request for Proposals. Consider the following questions:

• Did the foundation recommend or require a letter of intent?
• Did your project meet all of the eligibility requirements?
• Was your request for funding in line with the foundation’s guidelines?
• Did you complete all of the required forms correctly, including strict adherence to page limits?
• Did you meet all of the foundation’s deadlines?

Next, evaluate the writing in your proposal.

• Did you state your needs clearly and specifically, right up front?
• Did you include information about your non-profit’s other sources of funding to help show that you’re a worthy cause?
• Did you use testimonials to bring the needs of your clients to life, and did you use meaningful, accurate data to support your organization’s needs?
• Is your writing clear and compelling?
• Does the proposal sound like it’s been written by one person, or do several different voices make it choppy and scattered?
• Is the formatting clean and consistent?
• Did you use headings and subheadings to make your proposal easily navigable?

After you’ve reevaluated your proposal, call the foundation and ask to speak with the program officer who reviewed your proposal. After you’ve thanked them for their thoughtful review, ask these three questions:

1. Is there anything we could have done differently in our proposal?
2. May we resubmit for your next funding cycle?
3. Are you aware of any other foundations that we might approach?

Follow up by dropping a thank you note in the mail.

And in your next round of grant proposals, build upon what you’ve learned. Send your applications to a diverse group of foundations, and be sure to explain how your project can help each foundation meets its own goals, not only how the foundation can help you meet yours. Above all—be patient, be persistent, and be positive.