Grants can help firm up your nonprofit’s financial foundation
There are more than 87,000 foundations in the United States — including family, corporate and community foundations — according to the Foundation Center. If your not-for-profit isn’t actively seeking grants from these groups, you’re neglecting a potentially significant income source.
Know your target
Probably the most important thing to remember when approaching foundations is that they tend to specialize, making grants to certain types of charities or in specific geographic regions. It’s not enough to be a 501(c)(3) organization — though your exempt status is critical. Your nonprofit’s mission and programs will need to match the interests of the foundation to which you’re applying.
So it’s essential to research foundations before you apply for grants. Review annual reports, tax filings, press releases and any other information you can get your hands on. One place to start is the Foundation Center’s online directory at foundationcenter.org.
Once you have a list of matches, don’t just start sending out long, detailed proposals. Call your target foundations and talk to staff members about the kind of information they need and their communication preferences. Most will be happy to provide insights into their decision-making process and shed light on your chances of securing a grant.
The most successful foundation grant proposals have several qualities in common. For example, foundations like projects that are well defined and data driven with specific goals. They also want to know that their gifts are effective, so achievement of such goals needs to be measurable.
It’s important to outline a project’s life cycle and how you plan to fund it to completion. Many foundations provide the money to initiate projects but expect nonprofits to use their own funds and other grants to continue them. In fact, if you hope to establish a long-term relationship with a foundation that has given you a grant, you must successfully finish what you started.
If at first …
Keep in mind that a rejected proposal doesn’t have to shut the door on future opportunities. If your request is turned down, ask the foundation to explain its decision and to provide tips on making your proposals stronger. Many organizations are competing for the same foundation funds, so tenacity is crucial. Contact us for more tips on getting the funding your organization needs.
No article, email, web site content, or other communication from Fox, Byrd & Company, P.C. (the Firm) may be considered advice or a recommendation to any person, business or other entity. The Firm renders advice and recommendations only to its clients. The reader may not rely on any article, email, web site content or other communication from the Firm to create a client relationship with the Firm. Advice and recommendations are rendered by the Firm only when the Firm has been specifically engaged to provide advice and/or recommendations.©Copyright, Fox, Byrd & Company, P.C., Dallas, Texas.