foundation fundraising

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Kavita MunjalDirector of Foundation Relations,Keck School of Medicine of USCNovember 10, 2008

Foundation Fundraising

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What is a Foundation?(Source: Foundation Center, 2008)

The philanthropic world consists of two principal types of foundations,private and public. Private foundations are the primary source for USCsupport. A private foundation can be defined by:

Non-profit and non-governmentalHave its own funds or endowment provided by a family, individual or a for-profit company Managed by its own trustees or directorsEstablished to aid educational, social, religious, or other charitable activities serving common welfareMakes grants, primarily to other nonprofit organizations; and Required to file a 990-PF form with the IRS annually

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Types of Foundations(Source: Foundation Center, 2008)

There are three different types of private foundations:

Independent or Family Foundations receive endowments from individuals or families (and, in the case of family foundations, they continue to show measurable donor or donor-family involvement) Company-Sponsored or Corporate Foundations receive funds from their parent companies, although they are legally separate entities Operating Foundations run their own programs and services and typically do not provide much grant support to outside organizations

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Who Gives the Gifts?(Source: Annual Report on Philanthropy, 2008)

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Independent Foundations

A fund or endowment designated by IRS as a private foundation whose primary purpose is to make grants

Assets from gifts of an individual or a family

Governance and management varies

May be either “general” or “specific” purpose

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Company-Sponsored/Corporate

Private foundations set up under tax law to make grants which derive funding from a profit-making business

Independent entity from the corporation

Governance and management may include individuals not affiliated with company

May have other giving programs (e.g., sponsorship)

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Operating Foundations

A fund or endowment established by charter to fund specific research or other programs

Operating foundations may make grants to other organizations

Main aim is to fund programs which they themselves conduct

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Community Foundations

Assets of these foundations are derived from many donors and may include funds restricted for a specific use by donor

Specific characteristics are:Generally serve a defined geographic areaAssets are managed by trustee banksMembers of governing boards and grant making leadership are representative of community leadership

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Foundation Trends

More professional staff but fewer staff to handle MORE requests

Narrowly defined policies and procedures

Focus on outcomes and collaboration

More post-grant evaluation

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Where Do Gifts Go? (Source: Annual report on Philanthropy, 2008)

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The State of Healthcare in the U.S.

Enormous financial pressures

Increased competition

Insatiable appetite for new medical technologies and modern patient facilities

Specialization of healthcare providers

Societal problem and political concern

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Philanthropic Trends in Healthcare

An emerging dependency on philanthropic support to meet operational and capital needs

Most gifts in support of major capital projects are motivated by the clinical care or research that will take place within and made possible by – rather than improvement to certain facilities per se * (Source: Grenzebach, Glier & Associates)

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Collaborative Efforts with the Office of Research Advancement

The Office of Research Advancement coordinates research activities across the school, integrating with university-level management offices.

Serves as a leading source of communication between faculty and foundation funding opportunities via the RFP process.

The Office of Foundation Relations (OFR) works closely with Research Advancement as a means of building productive relationships with foundations.

Office of Research Advancement

Office of Foundation RelationsContracts & Grants

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Development of a Foundation Strategic Plan

Determine priority projects or programs for foundation supportWho are the right Schools, Universities & External Partners for your projects?Who are the right foundation prospects for your projects?Determine internal and broader institutional linkagesWork with OFR in developing foundation contacts and relationshipsReview the plan with appropriate colleagues

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Foundation Cultivation and Selection

Fine tune your cultivation and solicitation strategy to recognize:

Foundation Focus – Interest in strategic philanthropyFluctuations in giving amountsRegional versus national versus internationalSize matters – small, medium and large asset baseTop down versus grassrootsTrend towards partnerships versus traditional donor/donee relationshipsShifting Foundation Culture

These differences impact how proposals are prepared & presented

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Preparation for the ASK

Determine priority projects or programs for foundation supportConnect with key decision makersEstablish common groundReciprocal exchangeDemonstrate linkagesConfirm giving preferences, guidelines, and enquire about future trends at the foundationExplore partnership potentialDescribe institutional priorities and projectsSecure advice on strategy and next stepsObtain agreement to review draft before submission

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Your Winning Proposal

Complies with foundation giving criteria Clearly customized to the individual funderSubmitted in a timely fashion to meet required deadlinesFollows foundation proposal guidelinesCompelling and attractive projectAppropriate workplan and management structureA correct ask amount/costing rationaleThe correct faculty member(s)Correct Internal or External PartnersProposal is succinct, clear and reader friendlyIncludes all necessary USC attachment documentsCover letter from appropriate personStrategic leveraging of USC relationships

A COLD PROPOSAL WITHOUT PRIOR CONTACT WITH A FOUNDATION STAFF MEMBER IS RARELY SUCCESSFUL

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Proposal Preparation Checklist

RFP/DocumentsInternal or External Partners?Technical StrategyPersonnelBudgetTechnical ProposalUSC Documents, Support Letters, Cover Letter, Etc.ProductionFinishing TouchesPackagingProposal Delivery/LogisticsFollow-up With Funder

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Making the Ask: Multiple Entries for Foundation Proposals

Avenue A• Draft proposal that has been reviewed by foundation officer• They become the champion and shepherd it through the processAvenue B• Final proposal prepared• Formal request made to CEO and/or their BoardAvenue C• Final proposal prepared• Submitted by President to PresidentAvenue D• Final proposal prepared• Submitted by volunteer/Board member to President

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Keys to Successful Foundation Fundraising

Foundation Background Research – Project submissions need to match the needs and interests of the funder & attentive to foundation strategic developmentsProposal protocol – Submissions need to absolutely follow foundation proposal format guidelines and timelinesStrategic Cultivation – Leveraging personal support through school and institutional linkagesBuilding and sustaining meaningful relationships and partnerships with foundationsContinual meaningful stewardship of success and unsuccessful project proposals

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Always Be Thinking About

Right Timing

Right Project

Right ask amount

Right Solicitor

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Presidential Foundations at USC

The foundations requiring special Presidential approval are:

Carrie Estelle Doheny Foundation Hedco Foundation John Stauffer Charitable Trusts The Ahmanson Foundation The Annenberg Foundation The Fletcher Jones Foundation The H. Leslie and Elaine S. Hoffman Foundation The James Irvine Foundation The Kenneth T. and Eileen L. Norris Foundation The Kresge Foundation The Ralph M. Parsons Foundation The Rose Hills Foundation The Thomas & Dorothy Leavey Foundation W.M. Keck Foundation Weingart Foundation

(University Advancement website, May 15, 2008)

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Tips on Proposal Writing

Get to the point!Don’t be floweryTie it to foundation/corporate principlesAdd caveats laterUse confident languageEmphasize your strengths“package” complex projects by giving research project a simple name/title – great marketing technique

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Funders Fund Strength

Philanthropists/donors MUST give a % of assets so they are LOOKING for great investments

FRAME the project as the glass “half full” – e.g., you are already strong – need funding for a GAP

Act from a position of strength versus focusing on a need

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Budgeting for a Foundation Proposal

Budget tells the same story

Tool to show funder you have a well thought-out plan

Organize budget so it is parallel to the narrative – eg, emphasis should be in the same areas (where you are asking for more, WRITE MORE)

Budget should be parallel in narrative

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Think Like a Reviewer!

12-12-12 RuleIts midnightWorked a 12-hour day12th proposal

Proposals aren’t novels!

Use headers to inform reader of the upcoming story

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After you get the gift…

Mention noteworthy events ( e.g., leadership transition)

Don’t fear change – inform the grant-maker/program officer

Inform the foundation when something good happens ( e.g., catalytic event)

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Office of Foundation RelationsContact Information

Kavita Munjal – Director of Foundation Relations(323) 442-2355munjal@usc.edu

Kerry Franco – Assistant Director, Foundation Relations(323) 442-2340kfranco@usc.edu

Frances Zepeda – Coordinator, Foundation Relations(323) 442-2356fzepeda@usc.edu