Year End Checklist

It's hard to believe that 2007 is almost over. I always like to take some time at the end of the year to reflect on personal and professional milestones and evaluate what worked and what did not.

This is also a great time to submit grant proposals-it's not too late! Many foundations meet during the month of December before the holidays to wrap up their giving for the year. Be sure to look at their printed materials for specific deadlines, or call the foundations if printed guidelines are not available.

One of the best things you can do now to enhance your future grant proposals is to assess the programs that are already in place. Be sure to engage your program people in this process. After all, they are the ones on the front lines delivering the services. They will have a unique perspective as to what is working and what isn't. Some of the items that you want to review are:

1. Were all of the grant funds spent?
2. How were the funds spent? What did you purchase?
3. How many people did you serve?
4. Demographic information such as: Age, race, sex, and other information that is important to your particular program or project.
5. What specific activities took place to help meet the needs of your constituents?
6. What were the outcomes, or what benefits did your constituents gain from the program activities? How were their lives enhanced.
7. What methods did you use to evaluate the effectiveness of the program? These could be simple participant surveys, or more elaborate data collection methods.

If you get all of this information on paper now, you will have a nice report to send to your funders-even if they don't require one. You can also utilize this information for an annual report or other communication tools.

Happy Grant seeking and Happy Holidays!

The Magical Money Tree

My father frequently muttered something about money not growing in trees. He was right. Not even grant awards, which some people refer to as free money fall from the trees.

As a grant development professional, I would like to be able to wish up on a star, or plant a magic seed in order to help bring in the funding my clients need. It just does not happen that way.

Far too often, I receive emails or telephone calls from people who work with non-profit organizations and are in dire need of money to help them stay in a positive cash-flow situation. They want me to write a few quick grants to help solve their problems. Grants are not the answer. The process takes too long and is not inteded to take the place of other fundraising opportunites, or be a debt reduction strategy.

According to an article in the Charity Navigator, " Americans gave over $260 billion in 2005. Individual giving is always the largest single source of donations. It rose by 6.4 percent to an estimated $199.07 billion. It accounts for 76.5 percent of all estimated giving in 2005." Corporate and foundation giving totaled a little over $40 billion.

Based on these facts, a good rule of thumb that I like to use is that grant funding from corporations and foundations should make up about 20% of your organizations revenue. The other 80% should come from individuals through varied tactics such as events, annual appeals, and good old fashioned relationship building.

Don't count on grants to meet all of your organizations needs. However, grant awards can help you start new projects or improve projects you already have.

Rejection Hurts

You have strategically planned, done all of the appropriate research, written a flawless proposal, and sent it off with enough time to spare before the deadline. Ahh a sigh of relief at a job well done. A few months pass by and you finally receive a nice letter from that nice potential funder that starts with:

We regret to inform you....

Ugh! What do you do now? Bang your head against your desk, quit your job and become a recluse, write a seething response letter? No. Feel the pain of rejection for a few minutes and then try again.

It might help to know that only one in three grant proposals actually get funded. In some parts of the country people have told me that the average in their region is more like one in five. It is also beneficial to realize that the one funder that does offer the grant award may not give you 100% of what you asked for. Ugh again!

What is a grant development person to do?

1. Approach more than one funder at a time.

2. Utilize diverse funding sources for each and every program. Remember giving by individuals outpaces corporate and foundation giving by a ratio of 80:20. In other words, individuals give approximately 80% of all donations, while corporate/foundations give about 20%.

3. Don't give up. Build relationships with colleagues and others in the field. Learn your craft, and grow in your skills.

Summer Time Writing Part 2

The vacation that I joked about in my last post really turned into a joke. Over the past two months, I have submitted 19 proposals. This is a grueling pace-even for an old seasoned pro like me. Sure, a seasoned pro who really needs a vacation now more than ever:).

Some of the submissions went very smoothly, others did not. Guess which ones were well planned and thought out? You got it-the ones that went smoothly. I will always preach that grant writing is a process that starts with the recognition of a need, has clearly defined goals and outcomes. After all of the necessary documentation is in place then organizations should search for matching potential funders to help meet the specific need.

In the real world of grant development, sometimes-great opportunities come up that are a good match for an idea that has not actually made it entirely on paper or through the planning process. When this occurs try to get as much information on paper to include the goals, objectives, specific activities, outcomes (what the grant funds will help you do), and a budget before submitting the proposal. Utilize this written information to craft the proposal. Make sure all the responsible parties understand exactly what it is they are committing to do, should you receive the grant award.

Meet with the key stakeholders and go over the document to ensure their buy-in and clear up any potential miscommunication that will occur through rushed phone conversations and quick emails.

Quick proposals are not a good idea, and I try to avoid them like those dangerous summer UV rays, but every once in a while they provide funding for much needed services.

Now where is my sunscreen and beach umbrella…

Summer Time Writing

Fundraising-including grant writing should occur year round as part of a vibrant fundraising plan for your organization. I recently read an article that encouraged school based organizations to continue submitting grant proposals over the summer. I can understand why schools might slow down or stop some of their fundraising activities over the summer, but I don't encourage seasonal stops in fundraising for any type of organizations.

Your fundraising plan should have year round revenue streams that help the organization to reach its goals and objectives. Know your granting agency's due dates. Many funders have summertime deadlines, others do not.

Last year, I stopped grant activities during the summer months with an educational organization that I consult with. This was at their request, and my strong recommendation that we do not stop work because of the potential for lost momentum and eventually lost dollars.

I am sad to report that when we picked up our work together again in the fall, we spent several months creating past due grant reports that no one else bothered to file. Now, six months later we are just getting back on track with hammering out new program plans, and submitting proposals. We lost a lot of ground during our three month hiatus, and are still feeling the negative effects.

Don't get me wrong, if I could work nine months of the year and spend three at the beach, I am all for it. We all need to take breaks to get refreshed. With proper planning-our programs and our constituents do not have to take a break from providing or receiving services due to lack of funding.

Now I have to go shopping for that waterproof, sand proof laptop I can take with me to the beach...

Governor Puts Grants on Hold

Last week, Michigan Governor, Jennifer Granholm, ordered a moratorium on payment of the majority of state funded grants in order to help alleviate the nearly $1 billion State budget deficit. Grant expenditures, with a few exceptions will be deferred through the fiscal year, which ends on September 30th.

Many times, state granted funds are awarded to agencies on a reimbursement basis meaning that the organization must first pay for the goods or services and then seek reimbursement for these qualifying expenses on a monthly or quarterly basis. For already cash strapped non-profit organizations that typically do not have a cash reserve, this moratorium could be catastrophic. Especially to those organizations that rely heavily on grant funding. I am concerned for the organizations that I work with in Michigan as well as the people they serve, who will ultimately be the ones that loose the most out of this deal.

Probably the only good thing about this bold move by the Governor is that it will add more validity to the point that I always emphasize to the non-profits I work with, which is to make sure that their funding comes from diverse sources. For agencies that have varied revenues streams this moratorium may be challenging, but will not likely cause them to close up shop. I fear for the others who heavily rely on this state grant funding. One thing is for certain in the world of grants-they are never guaranteed.

The full article is available at Crain's Detroit Business.

Spring Planning

I can't believe it is the last day of March already. I still have a few things on my to-do list , but I do not feel too bad about that because it has been a productive first quarter of the year.

I have been very involved in planning with several organizations over the past few months and it has been both exhilarating and exhausting! Creating and going through the process of planning new organizations, programs and projects is like watching the tulips push through the soil this time of year. I look at them and wonder if they will survive through the still cold nights, what color they will be when they bloom, and how long they will last. In a similar way, I brood over the organizations I work with to help them through the grant development process.

Many times people will come to me asking for help in writing grant proposals, but what they really need is help in strategically planning for their programs. There are many different ways to approach planning. Planning might include:

• Identifying constituent needs
• Creating organizational goals and objectives to meet those needs
• Crafting a reasonable time line
• Assigning personnel and monetary resources
• Targeting potential donors

These listed above are just a few aspects of the planning process. Whether you are trying to expand your services, or just stay afloat with your current programs, find a system or process that works best for your organization. As you enjoy the spring weather, remember the deeper the planning, the better the results.

Different Types of Funding

When researching potential funders you will likely see interesting terms for the various categories of support they like to give. It is important to understand what the jargon means so that you are not asking an organization for an in-kind gift when you really want to ask for funding for an endowment fund. You also want to make sure you are not asking an organization for seed money that only gives to building renovations.

I can imagine your heart beating faster and your palms starting to sweat at the thought of these bizzare terms. Don't worry, you will probably catch on quickly, well at least more quickly than say... learning Greek.

Some of the more common terms include the most sought after and most elusive type of funding-General Operating Support. This will pay for pretty much anything you want in your organization. It is typically granted for general rather than specific purposes, and is least likely to be given by funders because they like to give to specific projects that will have specific results.

Building/renovation money is used for construction or renovation of buildings. These funds may be part of a Capital Campaign, which typically takes place over a longer period of time and typically is supported by a multitude of organizations and people for large causes-such as a new science building at a university.

An Endowment is typically a large gift or several small to mid size gifts that are invested to provide income for ongoing support of a particular program or other organizational expenses. Ideally, organizations grow their endowment fund (s) so that a portion of their expenses can be paid through the earned interest while the principal stays in the fund.

Seed Money is used to start a new organization or new program within an established non-profit. Ongoing or Continued Support are pretty much what they sound like-grants to help maintain the work of an established organization or particular project.

Finally, funders understand the importance of organizations exploring what/how their programs are doing and sometimes offer Program Evaluation grants to measure the effectiveness of a program.

There now...you don't have to say that grant lingo is "All Greek to me."

What is in a Name?

..."That which we call a rose. By any other word would smell as sweet." Said young Juliet to Romeo. What might this theatrical prose have to do with grant proposal writing? Mm mm nothing really except the vague connection when you are first attempting to gain employment in the non-profit world or writing your first proposal, some of the language might sound a bit Shakesperian.

If you don't know the difference between an input or outcome or a community foundation vs. an operating foundation-don't fret. Like most professions, non-profit organizations have their own lingo. You might think that you need a secret decoder ring in order to understand a grant application or have a conversation with a development officer. Not so. All you need is a little help understanding the lingo and you can feel extremely confident that you will wow your colleagues at the water cooler tomorrow with your new found knowledge.

First and foremost and the one phrase that I have seen too many people get hot under the collar about is the term "Grant Writer." We do not write grants. That would imply that I have the power to actually write out grant checks. Ahh that would be wonderful. Oh the power, the prestige the....ahem, pardon me. Anyway, most of us refer to our type of work as being Grant Proposal Writers. Off my soapbox now.

Lets look at the different types of grant making organizations. First you have your Government agencies. Typically Federal government agencies receive their funding through the Federal budgeting process. The money goes to particular government agencies to run specific programs. Sometimes these funds trickle down to the regional or state level and every so often make it to the county or city level. One non-profit group usually does not obtain federal funding via the Feds. Typically, your non-profit needs to belong to a group or consortium of other non profits that do similar or complimentary type of work in the same region in order to receive Federal government grants.

According to the Foundation Center a foundation is a non-government, nonprofit organization with its own funds, and program managed by its own trustees and directors that was established to maintain or aid educational, social, charitable, religious or other activities serving the common welfare, primarily by making grants to other non-profit organizations. Whew, that's a mouthful!

Types of foundations include:

• Independent foundations-These are usually established via an endowment from a beloved, departed family member and often referred to as a "Family Foundation."
• Company Foundations-Funds are gained from a profit making company, but the foundation is independent of the parent company. For example PepsiCo is a company and maintains a foundation in order to do good in the community.
• Corporate giving programs are slightly different than corporate foundations as the company gives direct charitable gifts to non-profits without sending the funds through a foundation.
• Community Foundations-manage funds from many different people or groups and disperse grant awards based on the donors wishes.
• Operating foundations provide direct services to clients or other non-profit organizations. These foundations rarely give funding to one, if any other non-profits.

Next time we will discuss the definitions of the different types of support grantmaking organizations give.

Feedblitz

I recently came across an interesting service that melds blog and email services together. Through Feedblitz readers can sign up for free to receive new blog entries via their e-mail. This convenient service garnered my attention because:

1. It is free.
2. It is easy to sign up.
3. Now readers don't have to remember to come back to my blog site every now and then to check out new entries on the wonderful world of grants.
4.Did I mention it is free?

If you would like new Take It For Granted articles delivered right into your inbox, just scroll down a bit on the left and insert your email address where it directs you to subscribe. This will take you to another nice site that asks you to put in a super secret code word in order to fight spam, and voila you will now receive the most up to date, important information about grants that you could ever imagine. Plus I promise not to sell your email to anyone!

First Quarter Submissions

Grant cycles and deadlines tend to be cyclical-meaning they usually occur at the same time each year. Knowing when the funder you targeted accepts applications is crucial. If possible, try to submit your application during the first funding cycle of the year. Why? Typically, the first quarter of the grant year is when the largest pot of money is available. This is not always true, but properly researching your potential funder might reveal some interesting information.

Read the funding guidelines carefully. Call someone at the organization if possible and ask if their Board prefers to receive grant proposals during a certain season. Look at the organizations latest form 990 at Guidestar where you can register free, or purchase a package for higher-level access to non-profit information. Look at several different years and study the dates (if given) to determine if there is a specific giving pattern that favors giving more or larger grant awards during a specific time of year.

Whenever you decide to submit your grant request, make sure it is a well thought out part of your organization's overall fundraising plan. Submitting scattershot proposals without properly assessing your needs, or researching and targeting potential funders will likely prove to be very unfruitful.