getting more grants

Foundation Fundraising Making the Case for Support

& More

Reid A. Zimmerman, PhD, CFRE

The 35th AnnualCommunity Radio Conference

June 9-12, 2010 | St. Paul, Minnesota

June 9, 2010 Reid A. Zimmerman, PhD, CFRE 2

Introductions –ExpectationsYou are…

◦Organization & Position◦Experience with Grant Writing and

Management

I would like to take away…

Agenda

•The Process•Making the Case•Budgeting and Strategy•Measurement, Evaluation &

Communication


Pick a verb and a noun that describe the work you do.

Food Shelf: Feed HungryHousing: Shelter Homeless CD Treatment: Treat AddictsCommunity Radio: Inform Community

Enlighten People


Dear Foundation Officer:

I want to take this opportunity to tell you about our organization.

We __________ _______________.



We _______ _______

very well.


We need mega $ $ to

continue to _________

_________.

Please send it to us right away!

God Bless You.

Executive Director


Thank you so much for your

gift of mega $ $ this past

year.


Dear Foundation Officer:

With it we were able to

_________ x # of

_________.


We hope you will continue to support our work as we ________ __________. Thank you. Executive Director


The Dream:

Your Board Chair is a golfing partner with the Foundation President.


The Foundation President knows your organization very well and likes your work.


Part of the Foundation’s Mission is to support the work you do.


At the 18th hole, the Foundation President tells your Board Chair to submit a letter of request for $100K general operating support.


2 weeks later a check for $100K arrives with a letter saying this is the first payment of a 5 year pledge of $500K.


The Reality:

Nobody on your Board or staff knows anybody at any Foundation.


Foundation guidelines are unclear, but seem to indicate your programs do not fit.


Phone calls to Foundation staff are not returned.


Nobody on your board or staff has ever written a grant proposal before.


So…You are here today because you want information to help.

YES???June 9, 2010 Reid A. Zimmerman, PhD, CFRE 21


Sometimes Fundraising may feel something like this…


Or This…

Fundraising in the Social Sector:

is NOT begging!It is supporting those facets of our

culture which are of the highest value:◦Health & well-being◦Artistic expression◦Spirituality & religion◦Education & new ideas



2007 charitable giving Total = $306.39 billion ($ in billions)

Individuals$229.03 74.8%

Foundations$38.52 12.6%

Bequests$23.15 7.6%

Corporations$15.695.1%


Types of recipients of contributions, 2007 Total = $306.39 billion ($ in billions)

Environmentand animals

$6.962.3%

Foundations$27.73 9.1%

Humanservices$29.64 9.7%

Internationalaffairs$13.224.3%

Arts, culture, and humanities

$13.674.5%Public-society

benefit$22.657.4%

Unallocatedgiving$23.677.7%

Health $23.157.6%

Religion $102.32 33.4%

Education$43.32 14.1%

You have program and operational needs for support.

Your individual annual and major or planned giving programs

may not be sufficient or appropriate.


Foundations have $$ they must give away each year as part of their mission and to satisfy IRS guidelines.

Usually 5% of assets Based on a rolling 12 quarters

Inclusive of expenses


Matchmaker, MatchmakerMake me a match. Find me a find.

Catch me a catch. Make me the perfect match!!


Since they are not going to be looking for you…

You need to be looking for them!


Let’s Narrow our Search!

100,000 + Foundations in the USA

$ 40,000,000,000 given away annually


Geographic Focus

Organization Location(s)Program Service Location(s)


Subject Area

Be as specific as possiblePublic Broadcasting:

NewsMusicPolitical IssuesCultural Topics


Beneficiary Group

Subset of the Subject AreaMay be a diverse groupSome funders only look at one specific

subsetKnow the percentages of your

listeners/service area


Grant Type

Program◦New - Innovative◦Ongoing

General Operational for OrganizationCapitalInfrastructure Development


Amount

$500 or $5,000,000?Single or Multi-year?Total or Partial need?Who else is supporting?


Grantee Characteristics

SizeComplexityPast RelationshipTheir interest in Recognition


Do Not Fund List

98% AccurateSave their time and yoursDon’t try unless you have an inside

track or long history


In-Direct Information

LibrariesFoundation CenterCouncil on FoundationsCouncil of Nonprofits



Basic: $195/yr 10 K Funders - 12 search fields

Plus: $295/yr 10 K Funders + grants

Premium: $595/yr 20K Funders

Platinum: $995/yr 80 K Funders – 500 K Grants

http://fconline.fdncenter.org/http://lnp.fdncenter.org/finder.html

http://fconline.fdncenter.org/

http://lnp.fdncenter.org/finder.html

MN Grantmakers OnlineGrantmakers Deadlines Calendar


http://www.mcf.org/mngrants/default.asp

http://www.mcf.org/mngrants/default.asp

Semi-Direct Information

Foundation Grant GuidelinesAnnual Report 990 PF Other Grant Recipients


Semi-Direct Information

Print◦Annual Report◦Guidelines etc.

Web◦Grantmaker / Foundation Web Site◦Guidestar◦Search Engines



GuideStar Basic – FreeKeyword – Name - Location

GuideStar Select $300 yrGuideStar Premium $1000 yr—Try the demo Analyst Reports Grant Explorer—Try the demo Custom Data Sets

http://www.guidestar.org/Guidestar Search

https://commerce.guidestar.org/GuideStar/gcategory.aspx?cs_catalog=products+and+services&cs_category=0.5+Select+Search&userid=

https://commerce.guidestar.org/GuideStar/gcategory.aspx?cs_catalog=products+and+services&cs_category=0.6+GuideStar+Premium&userid=

https://commerce.guidestar.org/GuideStar/gcategory.aspx?cs_catalog=products+and+services&cs_category=30+Analyst+Reports&userid=

https://commerce.guidestar.org/GuideStar/gcategory.aspx?cs_catalog=products+and+services&cs_category=10+Grant+Explorer&userid=

https://commerce.guidestar.org/GuideStar/gcategory.aspx?cs_catalog=products+and+services&cs_category=20+Data+Services&userid=

http://www.guidestar.org/

http://www.guidestar.org/pqCriteriaEntry.do?type=new&partner=guidestar

Guidestar Basic Search

Keyword: Public Radio

Friends of Public Radio Arizona assures the future vitality and excellence of our community's public radio stations and broadens their support through: 1) Expanding the fundraising capacity of public radio. 2) Promoting public radio's interests and role in the larger community.


The Otto Bremer Foundation accepts grant applications for the following purposes:

Program or project development General operations Organizational development Capital: building and/or equipment Challenge/matching grants Program Related Investments

http://fdncenter.org/grantmaker/bremer/index.html



The Foundation looks to support projects that meet its mission of promoting human rights.

The Foundation works to insure that the impact of its funding results in all people fully participating in

community life. The Foundation is interested in its resources being

used for programs that work to empower beneficiaries, not just serve them.

The Foundation’s resources are available to organizations that serve the public without

discrimination on the basis of race, color, creed, sex, religion, age, disability, sexual orientation,

marital status, or national origin.

http://fdncenter.org/grantmaker/bremer/hr_index.htm


The Foundation is supportive of organizations that are constituency-controlled, have an impact on the future wellbeing of the communities, and advocate systemic change. The Foundation funds a variety of programs and services whose relevancy and value have been identified by the community and work with other community members to create broad-based solutions to common issues. The Foundation looks to see how the program or project is sustainable. Most grants are awarded for a one-year period, however the Otto Bremer Foundation will consider multi-year funding as well. The Foundation values working with new and emerging groups as well as established organizations.


Funding QualificationsGrants are only made to organizations whose

beneficiaries are residents of Minnesota, North Dakota, Wisconsin, or Montana with priority given to communities with Bremer affiliates. The Foundation

does not have a staff discretionary fund. While the Otto Bremer Foundation does fund some

post-secondary programs, it does not fund Kindergarten through 12th grade education. Proposals that are turned down may not be

considered again for one year, but requests will be considered for a different project. More than one

project may be considered at a time.

http://fdncenter.org/grantmaker/bremer/BBC.htm


Requests for the following types of projects are discouraged: • Annual fund drives

• Benefit events • Camps • Commercial and business development • Medical research • Sporting activities • Building endowments other than for the development

of community foundations• Capital requests for hospitals and nursing homes • Theatrical productions, including motion pictures,

books, and other artistic or media projects • Municipal and government services • Historical preservation, museums and interpretive

centers.


Civic Engagement 75 PAYMENTS2,341,854

Child Care Works 10,000Minneapolis, MN

To purchase equipment related to office relocation.Ann Kaner-Roth (612) 455-1055

212 2nd Street SE, Suite 116Minneapolis, MN 55414

Children's Defense Fund, Minnesota Office26,250

St. Paul, MNFor direct outreach to people who are uninsured to ensure that

they have health benefits.Jim Koppel (651) 227-6121200 University Avenue West

Suite 210St. Paul, MN 55103

Direct Information

Phone Call ◦Do your homework FIRST!

Visit ◦If you have a good case!

Site Visit◦If you have a really good case!



HR Finance

Program Manager

CEOBoard and

Mission

Evaluation

Grant Writer

Beginning the Process

IT & Infrastructure


The Process

HR Finance

Program Manager

CEOBoard and

Mission

Evaluation

Grant Writer

Where the Sausage Gets

Made!

IT & Infrastructure


Submitting the Proposal

CEO

GrantWriter

Grantor

Finance Evaluation HR IT


Staff

Finance

Program Manager

Evaluation -Reporting to

Grantor

Process

During the Grant

CEO


Evaluation

Grantor

Finance

CEO Board

Mission

Program Manager

HR

Staff

Ending the Grant

February 4, 2009 Reid A. Zimmerman, PhD 58

Questions?Comments?

Jim Collins: Hedgehog Concept

1) what you are deeply passionate about, 2) what you can be the best in the world

at, and 3) what best drives your resource engine.

(Not “How much money do we make?” but “How can we develop a sustainable resource engine to deliver superior performance relative to our mission?”)

Good to Great, 2001


Hedgehog Concept:


Passionate about Best in the

world

Drives your Resource Engine

Logic ModelJune 9, 2010 Reid A. Zimmerman, PhD, CFRE 61

InputsResources dedicated to or

consumed by the program:◦ Money◦ Staff and staff time◦ Volunteers and volunteer time◦ Facilities equipment and supplies

Constraints on the program:◦ Laws/regulations ◦ Funders‘ requirements


Activities

What the program does with the inputs to fulfill its mission:

◦Feed and shelter homeless families◦Provide job training ◦Educate the public about signs of child

abuse◦Counsel pregnant women◦Create mentoring relationships for youth


Outputs

The direct products of program activities

o Classes taughto Counseling sessions conducted o Educational materials distributedo Hours of service deliveredo Participants served


Outcomes

Benefits for participants during and after program activities

New knowledge Increased skills Changed attitudes or values Modified behavior Improved condition Altered status



Output / ProductEssential Attributes

Attributes required to meet or exceedcustomer needs:

"Do the Right Thing"EfficacyAppropriate

Characteristics to meet or exceedcustomer wants and expectationsof excellence

"Do the Right Thing Well":EfficiencyDignity and RespectEffectivenessTimelinessReduce WasteSafetyContinuityAvailability

What inputs need to go into theprocess to make the productthat produces the desiredresult?

What steps need to be taken tocreate the product that achievesthe desired result?

What features / characteristics should the producthave?

Systems Logic Model

CustomerOutcomes

&Satisfaction

MeasureEffectiveness

MeasureSatisfaction

InformImprovementneeds

Effect

Inputs

Staff ResourcesFinancial resourcesInternal StandardsExternal Requirements

and InformationEquipment/Materials

Key Processes & Functions

Inputs organized and utilizedProceduresStepsKey processes

Measure VariabilityAssess Process ControlAssess fidelity to planned

proceduresAssess impact of variationEvaluate opportunity to raise the

bar

Cause

Feedback into process

What is the desired result?What should customerexperience?

Planning

Implementation

Structure Process OUTCOMES

Show your Logic ModelJune 9, 2010 Reid A. Zimmerman, PhD, CFRE 67

Defining “Case”The reasons why an organization both needs and merits philanthropic support, usually by outlining the organizations programs, current needs and plans.Most importantly, by sharing the

anticipated OUTCOMES!


Developing Your Case

Introduce the Issue…Introduce Yourself…Share the Solution…Why is this the Best Solution?Why is Now the time?How will you know if you have been

Successful?What will be the Outcomes for people?


Tell the story…

Logically and economically◦How will the community benefit?◦How will the individual benefit?

Forcefully and emotionally◦Share a real story◦People give to people…not to programs


Avoid…Too much emphasis on the

organizationBelieving that your process is the

outcomeTelling everything you knowAssuming your reader knows what

you knowGoing on….and on…and on…


Your Case for Support…

Some call it an “elevator speech.”It is the essence of why you do what

you do and with whom.Without a case there is no support.

Your turn…



Cultivation

GiftStewardship

Donor

The Donor Development Cycle

Organizational Memory

They will (sometimes) remember you…

Will you remember them?◦Database of correspondence, notes,

contacts, contact info – as much as you can keep and use!


“Nonprofit”

Is an IRS tax status,

NOTa management technique!


Sustainable Income:

Current Income MixNot all types of Income are equalDifferent Income streams have different Impacts on your Organization Reliability / Autonomy Graph

Thanks to Jon Pratt, ED, MN Council of Nonprofits Nonprofit Quarterly, Summer 2004

Accounting - Net Asset Classes



Low Medium High

Low

Medium

High

Fu

nd

ing

Reli

ab

ilit

y

Organizational Autonomy

General Endowments

IndividualContributions

Memberships

Program ServiceFees

Planned Gifts Special Events

Foundation OperatingGrants

Foundation ProjectGrants

CorporateContributions

Major IndividualGifts

GovernmentGrants

RestrictedEndowments

FederatedGiving

Programs

Dynamics of Nonprofit Funding Sources

Your Organization…

Use the scale to rank your organizational revenues as to their reliability and the capacity for autonomy they provide

Multiply % by number to equal score ( 10% X 3 = .30) Add column for total

Keep this information for use later as you develop your fundraising plan



Sources % of Revenue

Reliability Reliability score

Autonomy Autonomy score

1 Individual Contributions 3 3

2 Other supporters, sponsors, corp. matches

2 3

3 Government Grants 2 1

4 Advertising 2 3

5 Other Earned Income 2 3

6 Foundation Gen Op Grants

1 3

7 Foundation Program Grants

2 1

8 Other ? ?

Index (Total) 100%

Low: 1.0 – 1.6 Medium: 1.6 - 2.3 High: 2.3 – 3.0


Questions?Comments?

Planning & Leading for Sustainability

"Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan."Tom Landry Football coach (1924-2000)


http://www.profootballhof.com/hof/member.jsp?player_id=119




Developing a Fundraising Plan

Your Plan

Not to plan is to plan to fail Realistic expectationsResponsible marginsDiversification is critical


SMART GoalsS PECIFICM EASUREABLEA CHIEVABLER ELEVANTT IME BOUND


GOAL: To increase general operating support from individuals in 2011 by $5000

Tactic or Activity

Process Measure & Timeline

Outcome Measure

BudgetaryRequirement

Responsibility (or team lead)

Increase direct mail volume and mailings

Number mailedDates of mailings

% Responses$ Generated

Cost for additional printing and postage

Exec. Director ?

Volunteer ?

Focus on larger gifts from previous donors

Number of Individuals Contacted

% of increase in gifts

Total $ Generated

Minimal…Lunch or Coffee

Board Chair (lead)Board Members and Exec. Dir.


GOAL: To increase earned income from sales of ancillary products in 2011 by $10,000

Tactic or Activity


Outcome Measure


Responsibility (or team lead)

Survey patrons to determine interest in various products

Completed after the first two productions of the year

Survey information compiled and analyzed

$500 for printing and staff to collect and analyze

Executive Director

Test market top three items on a limited basis

Vendors confirmed, products ordered, etc.

Some products sold and sales analyzedBreak even on small sample

$2000 for initial purchase…income reinvested if successful

Marketing Committee Chair


Revenue and Support Goals for 2010/11

Develop 3-5 SMART goals and support tactics for 2010/11 income

Document necessary learning to attain goals


NOW YOU…GOAL:___________________________________ ________________________________________

Tactic or Activity


Outcome Measure


Responsibility or Team Lead


Performance Management & Evaluation

This is not about databases & / or the data collection process

It is about using your performance data to manage & lead


Organizational Context

Operational Plan

MeasurementSystem

Budget

Strategic PlanStrategic Plan


Process MeasureMeasured by time

Output MeasureMeasured by accomplishment

Budgetary Require-mentsMeasured by cost

Development of curriculum or search for and purchase of appropriate texts

Curriculum completed or acquired

Purchase price or Staff time for writing Printing & Production costs

Staff trained in content and presentation skills

Staff knowledge and competence Staff timeTrainer / Consultant

Job skills workshop presented to clients

Clients better equipped to apply for and secure employment

FacilitiesWorkshop suppliesStaff time


Aligning Budgets to StrategyThere is often a disconnect between the

Strategic Planning Process, the Budgeting Process and the Measures

XXX

XX

XXX

XXXXX XXX

XX

XXX

XXX

XX

XX


Strategic Planning & Budgeting

Strategic BHAGs

What you did last year or just need to do

Managing Budget Performance:

Getting and Staying Compliant

OR….

“How to Stay out of Jail as a Grants Manager!!”


How NOT to be Compliant

Don’t worry about the detailsHave verbal policies and agreementsTrust your staff implicitlyLook at your results only at the endLet your accountant be the only one to

deal with all the financialsIn Minnesota “Pretty Good” is OK…

For the Feds, it might land you in jail!!


OMB Circulars: A - 122 & A - 21

Direct Costs

Indirect Costs


Direct Costs

Those costs that can be directly attributable to performing the functions of the grant.

Often utilized by an organization that is managing only one grant or by smaller organizations where the costs are easily distinguishable.


Direct Costs

Org. Admin.Hours

Dedicated

Mgmt Staff

Program

Supplies

IT $ per

computer

Finance – Hours

HR- Time to Hire -

IndividualStaff costs

BuildingSq. Ft.


Indirect Costs

Represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the organization and the conduct of activities it performs


Org Admin

Mgmt Staff

ProgramCosts

Supplies

Indirect CostsBased on organization & programs/grants operated

IT

Finance

HR

Building

X %

100%


Allocable Costs

The cost must have a direct benefit and be directly attributable to the project or activity being performed.


Allowable Costs

The cost must be allowed by: Organizational policySponsor policies, and OMB Circular A-122 or A-21

Reasonable and Necessary Costs

The cost must be reasonable and necessary for the performance of the project.


Costs are Consistently Treated

All costs incurred for the same purpose, in like circumstances, are either Direct costs only or Indirect costs only.

Organization cannot double charge the government for similar costs by directly charging a cost to a sponsored project and by including the same type of cost in the indirect rate charged to that sponsored project.



Communication

Internal – Other departments and programs

Up – To senior leaders and the BoardDown – To line staffOut – To stakeholders and funders and

clients

Million Man March – Washington D.C 1995

How will you evaluate and communicate its

effectiveness?


Million Man March (10-16-1995)

1. Who gets counted? Women? Children?2. Do Spectators count?3. When will counts be made?4. What about transients – those who

came/left?5. What is the geographical boundary?


Million Man March, cont.

6. Sympathy & Support Marches in other cities…do they count?

7. A single number or variability? 900 K – 1.1M

8. Who should do the counting?9. How should data be analyzed before

publication?10. Who should publicize the results?


Crafting and Communicating your Message

Who reporting to?What DATA is being communicated?What INFORMATION is being

communicated?Why communicating it?Feedback?Begin with communication in mind!!

Next Steps…

•What do you need to learn to make your goals attainable?

•How will you tie income development goals to marketing goals?

•How can you manage your culture to think about income development?



Questions

Changes or “I Missed” Delta

Ideas Generated

Thank You!

RAZimmerman Consulting

Reid A. Zimmerman, PhD, CFRE4729 550th St.

Pine City, MN 55063320-358-3583

[email protected]


mailto:[email protected]

getting more grants

Documents