Fundraising for theSmall Nonprofit

Special WorkshopCity of Dania Beach

Grantsmanship Part II:Corporate & Foundation Grants

September 10, 2011

© 2011. Kurt R. Moore. All Rights Reserved

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Outline

• Types of grant support (review)• Some things to be aware of• Basic concepts• Full Proposals• Short Proposals• Q&A • Resource Slides: Writing Resources (not

discussed)

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Types of Proposals

• Full proposals• Verbal proposals and oral presentations• Short proposals

• Letters of inquiry (LOI)• Letter proposals• Sponsorships• Pre-proposals

• On-line proposals

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TYPES OFGRANT SUPPORT

(review)

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What Kinds of Support do Private Grant Makers Provide?

• Operating support = $• Unrestricted• Restricted

• Project support: Seed money• Program support: Ongoing or multi-year

grants• Endowment support (sometimes)• Capital needs

• Construction• Renovation• Equipment

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Corporate Support:Sponsorships

• Seeks to underwrite part or all of a fundraising initiative

• May be monetary ($) or GIK• Generally in written form after visit or

discussion• Often related to Annual Support or

Special Event• Levels & benefits may be “tiered”• Benefits back to sponsor

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Corporate Gifts-in-Kind (GIK)

• Ask for the item you need rather than the money to buy it

• Product loans next best thing• Eliminates a step• Some companies are “product rich” and

“cash poor” but willing to help• Last year’s model may do the job• Helps company build brand recognition• May also aid your special events effort

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Private vs. Government Grants

• http://literacy.kent.edu/Oasis/grants/publicVSprivate.html

• http://www.proposalwriter.com/grants.html

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SOME THINGS TO BE AWARE OF

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Reality Check

• Most foundations do/will not fund • “research” or “policy”• fund entire projects

• Most may fund particular line items, activities, or part(s) of budget

• Tailor your proposals to ask for funding for specific components

• Send “non-competing” proposals to several sponsors simultaneously – best prospects first

• When one gets funded, let others know you have a “vote of confidence”

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Realistic Expectations

• Sponsorship requests have quicker time frames

• Proposal writing to Foundations may have long time cycles

• A good proposal writer cannot make up for a mediocre program or half-baked idea

• Not all good programs get funded• If you think you can fund your nonprofit

entirely on grants, you are doomed.

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GRANTWRITINGBASICS: SOMECONCEPTS

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Key Concepts:It’s not enough to think out of the box

Think Different!

• Value proposition• Logic model• Evaluation• Accountability• Sustainability

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Value Proposition:Definition

“marketing statement that summarizes why aconsumer should buy a product or use a service”

• Should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.www.investopedia.com

• Communicates why your solution will give the buyer/investor a competitive advantage in the market

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Value Proposition:Application to Proposal Writing

• Answers the question “Why should we fund your project?”

• Communicates:• How your values align with those of

funding organization• How your program will further the

mission of the funder• How your organization can do it better

than anyone else

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The Logic Model

-> INPUTS -> ACTIVITIES OR PROCESSES

-> OUTPUTS -> OUTCOMES

“…an approach to measuring the effects of a project, or an institution's, services and activities on the target audience that these programs seek to benefit or serve.”

http://bindings.lib.ua.edu/outcome.html

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The Logic Modeland Outcomes-Based Evaluation

• Developed by The United Way (1996)• “Outcomes” relate to the successful

achievement of an organization’s mission or programmatic goals.

• By focusing on ultimate outcomes or systemic change, planners can think backwards through the logic model to identify how best to achieve the desired results

• Evaluation phase uses the logic model as a framework within which to assess program effectiveness

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The Logic Model:Application

Applied to programs and proposals• Program design must incorporate logic

model• Proposal must communicate the logic

model• Part of the Evaluation Section of the

proposalwww.managementhelp.org/evaluatn/lgc_mdl.htm

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Sustainability

Answers the question: What happens when our foundation’s money is gone?

• Do you have skin in the game?• What is your fundraising plan for the project?• Part of proposal• Include in Budget Section• Report new funding while your proposal is

still pending• Update in final report• www.councilofnonprofits.org/sustainability-programs

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Accountability

• Part of stewardship• Communicating back to the funder

• Interim reports• Final reports• After the project

• Budgetary as well as activity• Use outcomes-based evaluation format• http://managementhelp.org/evaluation/

outcomes-evaluation-guide.htm

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REMINDER:BEFORE & AFTER

YOU WRITE

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Teamwork

• The proposal process may involve a team, but one person needs to be in charge

• Divide and clearly define responsibilities early

• The “project director” needs to write the meaty stuff

• One person responsible for editing & assembly

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Before you Write: Getting Organized

Brainstorm the proposal with your team before you writeMake sure everyone on same pageDevelop a proposal writing timelineDevelop a checklist www.proposalwriter.com/checklist.html

Remember “Murphy’s Law”

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Some “DO’s” and “DON’Ts”

DoRead guidelines

? Ask questionsWrite clearlyUse their terminologyAllow plenty of timeKeep it short <10 ppGet to the point in the

beginning of the proposal

Don’tSkip guidelinesMake assumptionsBe vagueUse jargon Wait until last minuteSend 30+ pagesWait until page 7 to

explain why this is really important

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FULL PROPOSALS

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Full Proposals:Basic Elements –the Normal Stuff…

Cover letterTitle pageExecutive SummaryIntroduction Organizational InformationBackground and Case for FundingMethodsPersonnel and other resourcesEvaluationBudgetAttachments

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Proposal as Business Plan

• Reviewer will perform “Due Diligence”:“The process of investigation, performed by investors, into the details of a potential investment.”

• Your organization as well as your proposal will be reviewed

• Example of “DD”:www.emcf.org/how-we-work/our-theory-of-change/

• Remember the “value proposition”!• Use logic model to tie your proposal together

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Effective Proposals:Additional Focus Points

• Cover letter• Title page

Executive Summary = value proposition• Introduction = value proposition

Organizational Information = inputs• Background/Case for funding (still important!)

Methods & Projected Outcomes = activities, outputs, outcomesPersonnel and other resources = inputs(Outcomes-based) Evaluation & accountabilityBudget & Sustainability

• Attachments

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Cover Letter

• More than transmittal letter• Introduce organization and proposal• Reference previous contacts • Make a strategic link between the

proposal and the funder’s mission and grant making interests

• Often better to have Exec. Dir. or Board Chair signature than Development Officer

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Title Page or Cover Sheet

• Optional on very short proposals• Funder may have preferred or required

format• Appropriate signatures• Slick and glossy covers won’t get you

funded

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Introduction or Executive Summary:First Impressions

Normal stuff:• Statement of problem, target group served• Significance of program or activity,• Proposed solution, program plans or activity• Benefits to stakeholders• Blah, blah, blah...

But, … let the prospect know that you have• Organizational Capabilities• Clearly defined plan and projected outcomes• Evaluation component• Plan for sustainability

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Executive Summary Sheet:Basics

• In one or two paragraphs describe the project: target group, problem/need, solution, how it will be used, projected outcomes/benefits & amount (or item) requested

• Communicate the value proposition• If applicable – funds already committed• Provide contact info• Similar to abstract for journal article• One page or less• Optional, if information already included in

funder’s cover sheet

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Cover Letters & ExecutiveSummaries: Examples

How to write a cover letter• http://nonprofit.about.com/od/foundationfund

inggrants/a/coverletters.htm

How to write and executive summary• http://nonprofit.about.com/od/foundationfund

inggrants/a/proposalsummary.htmSample executive summary• http://nonprofit.about.com/od/foundationfund

inggrants/a/proposalsummary_2.htm

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Introduction

• Statement of problem & target group• Purpose of program or activity• Significance of program or activity in

terms of projected outcomes• Very briefly describe benefits to

• Community• Funder• Your organization’s mission

• Communicate the value proposition

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Organizational Information:Yes, We Can!

• Organization’s mission and goals• Brief organizational & program history• Supports financial credibility

Focus on the organization’s past or current programs or activities, related to proposed project or program, including successes

• Answer the prospect’s question: “Why YOUR organization”?Avoid:“Great idea; should be at Harvard or Yale.”

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Background or Case

• Get to the heart of the problem• Full literature review/history generally not

needed for most funders• Many reviewers will not have in-depth

understanding of problem• Takes up valuable space• Only appropriate for research proposals

• Keep references to minimum (think freshman term paper)

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Methods & Projected Outcomes:We Have a Plan

• State/define your goal(s) clearly in terms of projected measurable outcomes; quantify where possible

• Describe your methods or approach to the problem

• Milestones/major activities• Evaluation checkpoints and outputs• Timeline• Research Design (if research proposal)

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Personnel and Other Resources:Inputs

• Personnel (inputs)• short bios tailored for specific grant highlighting

previous relevant work = track record• Short resume or c.v. as attachment

• Description of other relevant institutional resources (more inputs)• Internal funding• Facilities• Equipment• Other• Partners (financial and technical)

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Evaluation:Defining and Measuring Success

• Describe criteria for program success: immediate & long-term effects of organization’s activities (desired outcomes)

• State these effects in terms of Funder’s grant making interests

• www.managementhelp.org/evaluatn/lgc_mdl.htm

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Evaluation:Part II

• Systemic vs. short-term change; systemic outcomes vs. process outputs

• Connect evaluation back to your methods plan (logic model)

• How will your organization measure/evaluatethe outcomes/changes?

• Who will be involved in the evaluation?• Accountability: what will the organization do

with the evaluation and/or results?• Stewardship – keep them informed

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Budget Narrative = Funding Request

Normal stuff• Restate funding request• Provide short budget narrative• Provide itemization/breakout figures as

needed• If required, provide organization’s annual

budget as attachment• Yada, yada, yada …

http://nonprofit.about.com/od/foundationfundinggrants/a/grantbudget.htm

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Budget Narrative includes:Sustainability Plan

But, … let funding agency know you have a long-term funding strategy or Sustainability PlanYour and Other’s funds committed for successful launch – this is a “plus”Fundraising plan to continue programProgram income and other sources of incomeInstitutionalization (transformative effects)

Answer the prospect’s question: “What happens when my money runs out?”

www.councilofnonprofits.org/sustainability-programs

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Budget sheet

Online Course Development ProjectItem Requested College share Foundation XPI (1 month summer) $11,637

Computer, software $950 $2,000

Travel * $1,294

Marketing ** $674

Student asst. $500

Subtotals $3,168 $12,587 $2,000

Notes: Foundation X award contingent on external match

PROJECT TOTAL $17,755

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Budget:Breakout Figures

* Travel cost breakout: 2006 Conference, Atlanta , GAConference registration $ 365.00Airfare: RT Tallahassee – Atlanta (Delta) $ 315.00Hotel: 4 nights @ $120/night $ 480.00Per diem: 4days @ $21/day; 1 day @$50 $ 134.00

Total estimate $1,294.00

** National marketing costs:Hosted on College web pages NCMailing to approx 50 state agencies, 75 Florida

school principals & 75 district consultants $ 74.00Advertisement in Research Quarterly (1/4 page X 4) $ 600.00

Total estimate $ 674.00

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Attachments

• If requested• Press clips• Letters of support

• If it really helps your case• Use URLs in electronic proposals

• www.mynonprofit.org• www.mynonprofit.org/project

• Sometimes electronic version of proposal required in addition to hard copy

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When You are Done Writing,Save Time for the Following

Put it asideHave someone else read it

Swallow your prideGive them a red pen

? Let them ask “dumb” questionsCall program officer with questions

√ Revise, format, spell-checkMail it on time!

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The Evaluation Process

Approximately 1/3 of proposals not read because writers did not do homeworkApproximately 1/3 rejected because the

proposed project is just not that goodThe other 1/3 gets evaluated for a limited

number of fundsMost of those are not funded & some only partially fundedTop 10 reasons that proposals fail:www.csn.edu/pages/2830.asp

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How To Kill Your Proposal

• Late • Not a good fit (did not do homework)• Incomplete• Did not follow directions• Unclear/not well organized• No measurable outcomes• “Shotgun” approach obvious• Budget/fiscal accountability lacking

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If Funding is Not Offered

• Try, try again• Try to get a debriefing if possible• Re-evaluate your proposal/project

www.csn.edu/pages/2830.asp• Re-apply if possible• Seek multiple sources of funds

simultaneously• Fact of Life: Good proposals often do

not get funded

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SHORT PROPOSALBASICS

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Types of Proposals

• Verbal proposals and oral presentations• Short proposals

• Letters of inquiry (LOI)• Letter proposals• Sponsorships• Pre-proposals

• On-line proposals• Full proposals

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Short Proposals:Basic Elements Outlined

• All the elements of a full proposal• The trick is keeping it

• Short,• Complete, and• On point!

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Verbal Proposals & Oral Presentations

• Not uncommon in corporate funding• Conversation may begin with your at

local level for a large companyfunding program

• Often a PowerPoint presentation or simplya meeting

• Opportunity for Q&A with potential sponsor, especially non-technical people

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Verbal Proposals & Oral Presentations: Structure

• For research or technical proposals presentations focus on the solution

• What is the “competitive advantage”?• More often it will be at corporate, not

local, authorizing the check• Graphics help• One-page bullet point handout w/costs• Concept paper as part of presentation or

may precede meeting

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Verbal Proposals:Follow-up

Goal• When you leave, you want them to ask

you to submit a formal proposal• Formal proposal submitted if potential

sponsor interested• Invitation for formal proposal does not

guarantee funding

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Letters of Inquiry (LOI)

Letters of Inquiry• Idea testing - Would or do you fund this?• Major elements of a full proposal boiled

down to about 2 pages• Sometimes preferred by foundations• Different from a Letter of Intent• Examples

www.grantproposal.com/inquiry.htmlhttp://literacy.kent.edu/Oasis/grants/samplefoundation.html

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Letters of Inquiry:Elements

• Introduce organization and proposed project• Statement of problem• Purpose of program or activity• Target group• Make a strategic link between the

proposed activity and the funder’s mission and grant making interests

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Letters of Inquiry:Elements cont’d

• Why is your organization best suited to do this project?

• State an amount of funding sought• Ask for the opportunity to submit a full

proposal• Often better to have Exec. Dir. or

Board Chair signature than Development Officer

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Letter Proposals

Letter format• All the elements of a full proposal

boiled down to 2-3 pages = concise• Very similar to letter of inquiry• Attachments optional• Sometimes a full proposal or additional

information may be requested later by the funding organization

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Letter Proposals:Elements

• Statement of problem/need • Target group• Solution/program• Amount (or item) requested• How funds will be used• A word about evaluation• If applicable – funds already

committed

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Letter Proposals:Elements cont’d

• Answer the question: Why yourorganization?

• Very briefly describe benefits/outcomes to:• Community• Funder• Your organization’s mission

• Summary budget may appear as table• Provide contact info• May require telephone follow-up

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Letter Proposal:Budget table

Online Course Development ProjectItem Requested College share Foundation XPI (1 month summer) $11,637

Computer, software $950 $2,000

Travel * $1,294

Marketing ** $674

Student asst. $500

Subtotals $3,168 $12,587 $2,000

Notes: Foundation X award contingent on external match

PROJECT TOTAL $17,755

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Sponsorships:Overview

• Seeks to underwrite part or all of a fundraising initiative

• May be monetary or GIK• Generally in written form after visit or

discussion• Shorter “turn around” time• Often related to Special Event

• Major sponsor = significant underwriting• Co-sponsors – sponsors at lesser amount• Activity sponsor – breakfast, hole sponsor, etc.

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Sponsorships:What the Sponsor Wants

• Visibility!• Sponsors often associate funding with

advertising not philanthropy• See audience as potential clients• Bigger audience = more funding potential• See organization as marketing partner• Sometimes done for community goodwill

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Sponsorships:Sponsorship Letter

• Describe the event• Audience it will reach• What the funding will be used for• Ask for a specific level of sponsorship• List sponsor benefits & tax benefits• Thank you • Contact information• Examples:

• www.wikihow.com/Write-a-Letter-Requesting-Sponsorship• http://acomprof.hubpages.com/hub/Sample-Sponsorship-

Proposal

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Sponsorships:Benefit Package

• Recognition at event and in event materials• Mentioned in press releases• Graduated levels of recognition and benefits

• Gold – 1 @ $2500• Silver – 2 @ $1000• Bronze – 3-5 @ $500• Activity sponsor - $100 or GIK

• Exclusivity helps• Continued, non-event recognition important• Tickets and other tangible benefits

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Pre-Proposals:Overview

• Pre-proposals• Part of 2- or 3-step structured process• Easier for sponsor and grant seeker• Full proposal is last step

• Used for screening applicants• May be in response to RFP• May have elements of a Letter Proposal

• All the elements boiled down to 2-3 pages

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Pre-Proposals:Process

I. LOI or Application FormII. Short proposal focuses on problem and

proposed solution, with other elements of a full proposal in briefer format

III. Full proposal often longer• In-depth discussion of project, methods,

timelines, outcomes, evaluation, organizational capabilities

• Detailed budget• All the attachments

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Online Proposals

• Often short – may be limited to number of words or characters

• Defined template - funder will tell you what information to submit

• Fill in the blanks• Although short, writer must be very

organized• High premium on very tight writing• In some cases, grammar may be compromised• Use abbreviations and acronyms

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Online proposals often very shortThe Sun Microsystems Learning Laboratory will be a 30-seat multi-use facility for student instruction (www.fsus.fsu.edu/EducationCurriculum/guarantee/ technology.html), applied research in educational technology, and community accessible training. FSUS (www.fsus.fsu.edu) supports the university’s mission through research, development and delivery of on-site and distance instruction for K-12 and postsecondary students and teachers (www.fsus.fsu.edu/abouttheschool/ researchdevelopmentguidelines2000-01.doc). Our design, development, evaluation and dissemination of curriculum, instruction and assessment are key school components. FSUS develops, applies and disseminates topical educational research fostering leadership and collaboration in K-12 reform (www.fsus.fsu.edu/idealab). It is the only one of 140 university laboratory schools nationwide that operates as a charter school. Supplementing this nationwide network is a regional partnership with several universities in the Southeast. Florida is also one of 4 “bellweather” states (also TX, NY, CA), thus our K-12 research findings receive a national audience. Additionally, from 4-10 P.M. on Mondays through Thursdays we will make the lab available via FSU’s Center for Professional Development (www.cpd.fsu.edu/computers/index.html) and Tallahassee Community College (www.tallahassee.cc.fl.us). Other hours, including weekends, will be available for state worker training. This project facet emphasizes the school’s role in adult education (www.fsus.fsu.edu/search.asp?target=adult+education) and workforce development (www.fsus.fsu.edu/search.asp?target=workforce+development), providing a replicable model that the Sun-FSU partnership can demonstrate to K-12 schools in other communities.

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Online Proposals:Editing

Print the application window/frame(s)“Save” capability may not be presentWrite the proposal in Word

Easier to editEasier to pass among team membersUse hot links since you can’t send

attachmentsCut, paste, final review, hit <SUBMIT>

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Summary:The Long and the Short of It

• All proposals contain the same elements regardless of length

• Clear & concise writing gets the reader past the first paragraph

• Logic model - focus on “outcomes” and work your way backwards

• Answer the question “Why your org?”• Good writer will not make up for a

badly conceived program

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Q & A

Kurt R. Moore, CFREnp2np SM

21000 Windemere LaneBoca Raton, FL 33428Ph: (850) 559-2100

Bikehasher@comcast.net

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PROPOSAL WRITINGRESOURCES

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$how Me the Money!:Finding a Funder

Foundation Centerhttp://fdncenter.org/fundersInternet Prospector – corporationswww.internet-prospector.org/company.html (2008)Additional funding resourceswww.research.fsu.edu/contractsgrants/resources.htmlwww.proposalwriter.com/grants.html

Government grants www.grants.govCatalogue of Federal Domestic Assistancehttps://www.cfda.gov

their websites

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Proposal Writing Resources

Proposal writing resources on the webwww.fau.edu/research/techtransfer/tech_proposalres.phpTutorials

Foundation Center short coursehttp://foundationcenter.org/getstarted/tutorials/shortcourse/index.htmlhttp://nonprofit.about.com/od/foundationfundinggrants/tp/grantproposalhub.htmProposal writing tipshttp://www.cpb.org/grants/grantwriting.html

Grant seeking and proposal writinghttp://literacy.kent.edu/Oasis/grants/resources.html

DO’s and DON’Tswww.aspcapro.org/dos-and-donts-for-first-time-grant-see.php

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Resources:Texts

• Too many out there to recommend• No “one size fits all”• Better to

• Attend workshops• Use web-based tutorials• Clear concise writing

www.emcf.org/publications/other-resources/• Follow directions

• Nothing beats experience

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Outcomes-Based Evaluation:Resources

• Measuring Program Outcomes: A Practical Approach (1996) United Waywww.unitedwaystore.com/product/measuring_program_outcomes_a_practical_approach/program_film

• “Reader’s Digest” versionhttp://managementhelp.org/evaluatn/outcomes.htm

• Other online resources:http://managementhelp.org/evaluatn/outcomes.htm#anchor182947

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Resources: Professional Education

• Professional Associations• College courses available in grants• In-service training (like this!)• Certification programs• Colleagues & networking

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Resources: Professional Education - Associations

• Your own professional association• Grant writers’ organizations:

• Grant Professionals Associationhttp://grantprofessionals.org/

• American Grant Writer’s Associationhttp://www.agwa.us/

• AFP, CASE, AHP educational seminars• AFP www.afpnet.org• CASE www.case.org• AHP www.ahp.org