introduction to fundraising and grants
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Grants 101
Introduction to Fund Raising and Grants
Part I
Overview of the Non-Profit Sector
Facts about the Non Profit Sector
• Approx. 1.4 million NPs in the US• $1.6 trillion in revenue yearly• 5% of GDP, 8% of wages/salaries,
10% of all employment in US• About 26% of all Americans
volunteer
(Source: Non Profit Almanac 2008)
Giving to NP’s in 2009
• Total Giving in 2009 $303.75B• Giving By Source:
– Individuals: $227B 75%– Foundations: $38B 13%– Corporations: $14B 5%– Bequests: $24B 8%
Source: GivingUSA Foundation
Giving in 2009 by Recipient• Religion $100B 33%• Education $40B 13%• Foundations $31B 10%• Human Services $27B 9%• Public-Society Benefit $22B 8%• Health $22B 7% • Arts/Culture $12B 4%• International $9B 3%• Environment/Animals $6B 2%
Tax Exempt vs. Tax Deductible
• All NPs are tax-exempt - No taxes on revenue or assets
• Gifts to certain NPs are tax deductible for the giver
• Only gifts to 501c3 NPs are tax deductible
• Gifts to other types of NPs are not tax-deductible
Sources of Income for NPs
• Individuals• Foundations• Corporations• Government contracts/grants• In-kind gifts • Fees
Individual Gifts
• Events• Annual gifts• Membership• Major gifts• Planned gifts
Corporate Support
• Grants from corporate foundationsExample: Verizon Foundation
• Gifts/Donations from companyExample: Sunoco Corporate Giving
• In-kind support• Sponsorship/marketing
Government Grants
• Actually opposite of philanthropy• Philanthropy means gift with
nothing in return, no quid pro quo• Government contracts with
businesses (FP and NP) to do work it wants done—essentially paying for a service
Fees/Revenue
• Myth that NPs can’t charge for services/can’t bring in own income
• Fee for service• For profit subsidiaries• Related businesses—thrift stores,
other businesses
In-Kind Support
• Gifts of items or time• Examples: food drives, toy
collections, used computer equipment, etc.
Part II
Preparing to Raise Money Through Grants
For Grants You Will Need:
– clear organization mission– plan with organizational goals and objectives– budget development process– support of Board/Executive Leadership– fundraising plan– way to record/track your plans, work and results– support documents commonly requested by
grantors
Mission
• What is your mission statement?• One sentence to summarize what
you do and why• “elevator pitch”
Work Plan and Leadership Support• What will your organization accomplish
this year? Next year?• How will accomplish these things?• How are your organizational plans and
budgets created? • Does leadership support these plans?
How do you know?• Does leadership support grant
fundraising? • Is leadership willing to commit time and
resources to grant fundraising?
Fundraising Plans
• Create program plans• Develop budgets• Set fundraising goal• Involve all types of funding• Set goals for funding streams• Create action plans for each
funding area
“Ideal” FR PlanGoal of $100K
IDEAL Sample FR Plan
Overall goal: $100K
Funding Area GoalIndividual Gifts
Annual Gifts 20,000Major Gifts 30,000
Events 25,000
Fdn/Corp grants 15,000
Fees 10,000
TOTAL 100,000
More Common RealityMORE COMMON FR REALITY
Overall Goal $100K
Funding Area GoalIndividual Gifts
Annual Gifts 10,000Major Gifts 20,000
Events 15,000
Fdn/Corp grants 55,000
Fees
TOTAL 100,000
Plans for Each Funding Stream
• How will you get $10K in individual gifts? • How will you get $20K in major gifts?• What events will you have to raise your
$15K• How many grants will you write for your
$55K in grant funding?
Tracking
• Records for internal and accounting purposes
• Thank and communicate with grantors
• Report and reconcile grants on time• Many options—spreadsheets,
custom database, software
Documentation
• 501c3 letter• 990 tax returns• Audits for past 2 years• List of Board Members • Overall organization budget• List of largest funders/grants
Thank you!
To learn more about the grant seeking process, view the next
slidecast, “Elements of a Proposal”