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.
