EFFECTIVE FOUNDATION GRANTSEEKING STRATEGIES

Mark W. Jones

Presented at the CASE Corporate and Foundation Relations Conference

Wednesday, May 7, 1997

Chicago, Illinois

I. Let's Define "Foundation Grantseeking" in the Context of This Session

1. This session will focus on the private Independent Foundations
2. It will not cover Corporate Foundations or Operating Foundations
3. If time permits, we may discuss Family Foundations and Community Foundations

II. Foundation Giving in America Today

1. Foundation giving as percentage of all philanthropy
2. Distribution of Foundation giving to education and other purposes
3. Recent trends in recipients of Foundation giving
• Increased competition
• K-12 education and pre-K child development
• Community building and re-building; social welfare
• Public health • Science and technology
• Global issues
4. Recent trends in types of Foundation giving
• Emphasis on program and project initiation grants ("seed money")
• Challenge grants and partnerships
• "By invitation only"
• Bigger big grants

III. Foundation Grants are the Most Challenging Form of Educational Fundraising

1. No "natural" constituency; no built-in advantages
2. Institutions have to rely on merit and their powers of persuasion
3. Requires Foundation grantseekers to have sharp intellect, broad interests and the facility to work with a wide range of demanding constituents
4. Patience and persistence are essential

IV. Ingredients for Success in Seeking Foundation Grants

1. Programs, projects and an institution of demonstrable value
• Identify institutional needs
• Establish institutional priorities
• Prepare the case for each goal
• Demonstrate "worthiness" of investment
2. Evidence of a promising Foundation prospect base
• Current and past Foundation supporters
• Geographic proximity to Foundations
• Formal affiliations
• Personal ties
• Compatibility: Common program interests
• Capability: Value of assets and grants
3. Qualified staff with adequate time and skills to provide:
• Focus
• Continuity and consistency
• Writing and editorial support
• Stewardship
• Ability to see projects from foundations' perspective
4. Research tools and the staff and/or time to use them (see list of research tools and strategies below)
5. An effective system for filing, record-keeping and reminders
6. An adequate budget
7. Institutional support
8. Patience

V. Step One: Clarifying the Institution's Needs, Priorities and Goals

1. Know your institution so well that you can be in a position to identify possible matches whenever they arise
2. Be crystal clear about your institution's top strategic priorities and fund-raising needs; be able to repeat them at any time
3. "Knowing your institution" also includes the following:
• Understanding its mission statement and educational philosophy
• Being familiar with its academic programs
• Knowing the strengths and research specialties of its faculty
• Being familiar with its financial position and budget
• Knowing its past history of Foundation support (or lack thereof)
• Knowing what services it offers to off-campus constituents: continuing education, community service, internships, use of campus facilities, consulting and/or contractual research, etc.
• Being familiar with its volunteer leadership and their personal contacts
• Knowing its "skeletons in the closet"
• Reading everything about your institution you can get your hands on

VI. Step Two: Identifying the Most Promising Foundation Prospects

1. The universe of possible Foundation funding sources can be winnowed through the following narrowing process:
1. The possible: All possible funding sources that might match any of the institution's needs
2. The feasible: Narrow the many options according to possible matches with your priority needs, as well as the time and resources available
3. The appropriate: Further define and clarify matches with particular priority needs
4. The accurate: Review Foundation guidelines and objectives to verify that the institution can apply and that the proposed project is compatible--and that the institution doesn't compromise principles
5. The persuasive: Prepare necessary rhetoric and concepts to guide writing of the inquiries and/or proposals to the remaining Foundation prospect(s)
2. How to find current information on Foundations:
1. Foundations' own publications and resources
• Annual reports
• Miscellaneous publications
• Private Foundations on the Internet
• Conversations with Foundation staff
2. The IRS
• Forms 990-PF
3. The Foundation Center
• The Foundation Directory (assets of $2M or grants of $200K)
• The Foundation Directory Part 2 ($1-2M; $50-200K)
• The Foundation 1000
• Guide to U.S. Foundations
• The Foundations Grants Index
• Foundation Center Libraries
• Electronic Reference Desk
• Philanthropy News Digest
• Custom research services
• Foundation Center Associates Program
4. DIALOG Information Services
5. The Council on Foundations
• Foundations magazine
6. Search engines and web sites
• http://www.philanthropy-journal.org
• http://www.looksmart.com
• http://www.infoseek.com
• http://altavista.digital.com
• http://plains.uwyo.edu
7. Other Periodicals
• Giving USA
• The Philanthropy Journal
• The Chronicle of Philanthropy
8. Other organizations and resources
• Association of Prospect Researchers for Advancement (APRA)
• National Association of Fund-Raising Executives (NSFRE)
• Regional Foundation networks (Association of Baltimore Area Grantmakers, etc.)
• Various state and local directories of Foundations and other grantmakers
3. Information that you'll want to accumulate about key Foundations:
• Name of primary contact or program officer
• Address (including street address for express delivery)
• Phone number
• Fax number
• Operating procedures
• Restrictions
• Programmatic priorities
• Deadlines and board meeting dates
• Financial information (market assets, grants made, etc.)
• Officers and directors
• Reports on your institution's past contact with the Foundation
• Past grants to other organizations
• Any known associations with your institution
4. The basics elements of Foundation research:
• Keep all the information you need
• Keep no more information than you need
• Keep information in one place
• Spend majority of research time on Foundations with greatest capacity and propensity to give
• Research should result in a clear plan for cultivation and solicitation
• Quality not quantity is most important
• Read and be curious
5. Analyze and synthesize the data:
• Patterns and trends of support
• Relationships of officers and directors to your institution
• Identify and rank all prospects
• Remember that "people give to people!"

VII. Step Three: Formulating and Implementing a Plan for Initiating Contact with Top Foundation Prospects

1. For each of your top-ranked prospects, determine what is the best match or matches between project and funding source (the "goodness of fit") and develop a reasonable strategy for making an initial contact.
2. "Letter of Inquiry" approach:
• Ensure the inquiry won't waste institution's or Foundation's time
• Inquiry shows strong evidence of understanding of personality and preferences of the Foundation
• Inquiry shows evidence of research about the right amount and project to ask for
• Inquiry shows desire to have a collaborative, not adversarial, relationship
• Inquiry is not cold or impersonal; it is tailored to the addressee
• Letter states a future date on or about which you will place a follow-up call
3. Telephone approach:
• Ask for program officer and seek his or her reaction to proposed idea or to ask for more information about Foundation priorities
• Be positive in opening remarks
• Speak in simple terms
• Bring up one specific message
• Project confidence, enthusiasm and believability
• Ask for advice on next steps
• Seek appointment with one of the institution's administrative or academic representatives who will lead proposed work
4. Appointments:
• Do your homework and have all bases covered
• Talk to peers who may have visited the same Foundation
• Send letter to confirm appointment date, time and who will participate
• Show up early
• If visiting with administrator or faculty member, brief them and practice in advance
• Listen carefully, take good notes and follow-up precisely as requested
• Send prompt thank-you letter, reiterating any next steps you have promised
• Do contact reports

VIII. Step Four: Application Process and Proposal Preparation

1. Never send an uninvited proposal
2. Assuming you have been invited to submit one, what will the Foundation be looking for in your proposal?
1. Who are you?
2. Who provides overall administrative leadership?
3. What is the state of your institution's financial health?
4. What are your institution's short-term and long-term plans and aspirations?
5. What do you want? (State your request--in plain language)
6. What is your objective?
7. What evidence is there that what you want to do needs to be done?
8. Is your proposed project appropriate for your institution?
9. How does this project fit with your institution's long-term goals?
10. How successful have you been in the past with other projects?
11. Did you explore other ways of accomplishing the objective? If so, why did you choose to use this proposed project as a means to accomplish it?
12. How does your proposed project compare with others in the same field?
13. How much risk is there that you may not achieve your state goals?
14. Do you have the internal capabilities to operate this project? Equipment? Staff? Space? Expertise?
15. Who, specifically, will be responsible for carrying out the proposed project--and how will the carry it out?
16. How will you know that you have accomplished what you set out to do?
17. What do you think the results of the project will be over time (5 years, 10 years)?
18. What other secondary benefits will be gained as a result of this project?
19. How will this project continue when the funds requested have run out?
20. Have you given us all the facts?
3. Outline of the Proposal
1. Before writing:
• Have a strong title
• Be ready to state succinctly the problem to be addressed
• Talk about timetable, costs and evaluation
• Remember to write person-to-person
2. What to include:
• Cover letter from appropriate institutional officer
• Table of contents (if it's a lengthy proposal)
• Abstract or executive summary (states problem you will address and outcomes you expect: Who, what, for whom, why, how and how much)
• Statement of problem or rationale
• Goals and objectives
• Methods and procedures
• Evaluation process
• Budget
• Appropriate appendices
4. Brevity Counts: Provide the Foundation with everything they want--but don't given them anything they don't want. Keep your proposals as succinct and to the point as possible. If a Foundation asks for three pages, give them not one word more!

IX. Step Five: What Happens After "No"

1. Review the rejection letter for clues: Why were you turned down? Can you reapply? Will you ever have a chance with this Foundation?
2. Write gracious letter, thanking Foundation for their time and consideration, regardless of how disappointed you may be.
3. If the Foundation's "no" letter is not clear as to your next steps, if any, call your program officer for further advice.

X. Step Six: What Happens After "Yes"

1. Acknowledge the grant promptly and graciously
2. Continue to report on the funded project throughout the grant period and the remainder of the project; continue reports on the project in future years if appropriate and/or requested
3. Visit the Foundation at the conclusion of the grant and/or project; encourage the Foundation to make a site visit to your campus
4. Continue meaningful communications with the Foundation after the grant expires (president's letters, annual reports, etc.)
5. Return for an additional grant?

XI. Your Internal Role vs. Your External Role

2. The Internal Role
• Greater emphasis on it than any other Development job
• Knowing your institution, its people and its priorities
• Developing relationships with many constituent groups
• Access to senior leaders
• Developing trust
3. The External Role
• Being an articulate and effective advocate
• Remembering that Foundations consist of people, too
• Developing on-going relationships with Foundation officers
• Carrying news and trends from the external community back to your on campus constituents
4. Positioning yourself to be a successful matchmaker

XII. Involving Faculty in Foundation Grantseeking

1. Know your faculty and their scholarly activities; be interested in their work and demonstrate your interest
2. Inform faculty of grant opportunities
3. Be honest
4. Make it easy:
• Be prepared to do preliminary research
• Faculty may be reluctant to initiate projects E. Help with proposal writing...but let the professors do it
5. Offer to help with budgets
6. Make sure you have institutional policies and procedures for reviewing any cost-sharing commitments in grant proposals
7. Remember deadlines--and be a stickler about them
8. Consider conducting workshops on faculty grantwriting
9. Don't hesitate to put professors in direct contact with program officer
10. Do enlist the assistance of your chief academic officer in saying "No"
11. Publicize the successes of faculty's grantseeking activity

XIII. Institution-wide Priorities vs. Faculty Grant Opportunities

1. Get clear direction from the CEO
2. How much time do you have?
3. What are the expectations for your involvement in actual writing and editing of faculty grants? Are they reasonable?
4. What incentives are there to encourage faculty grantseeking (tenure review, release time, stipends, etc.)?

XIV. You and Your CEO

1. The value of taking your institution's CEO to the Foundation
2. Your role? Manage all aspects of the process:
• Getting the appointment
• Setting the strategy and briefing the CEO
• Taking good notes
• Overseeing the follow-up

XV. Proactive vs. Reactive

1. The complete Foundation Relations program is both
2. Work proactively to identify those Foundations that might fund your institution's priorities and needs, then develop strategic plans to contact, engage and solicit them
3. You should also strive to be in the position to react quickly when you learn of unsought or unexpected opportunities that are great matches for some of your institution's less critical needs, such as faculty grant support, etc.
4. Do not, however, spend your whole life being reactive!

XVI. No Foundation is an Island

1. Foundation program officers do talk to one another!
2. If you mislead one Foundation, others may learn of your misbehavior
3. Make a good impression at one Foundation and it can lead to other contacts and additional successes
4. Don't hesitate to ask program officers for advice about other Foundation sources--they might even help you leverage the grant they gave you

XVII. A Few Words about Family Foundations and Community Foundations

1. Family Foundations
• Often an agent of the creator's personal philanthropic priorities; sometimes established for tax or estate-planning purposes
• Many have pre-selected recipient lists
• Individual donors to your institution may use them as the vehicle to fulfill their personal major-gift and campaign commitments
• Institutions receiving grants from Family Foundations sometimes have to make hard to decisions about which staff "gets the credit" and how the grants are reported to CAE and CASE
2. Community Foundations
• Accessible and not unduly burdensome in paperwork requirements
• By definition, they have a broad community focus and thus are unlikely to help with your internal campus needs
• Can be interested in helping you develop inter-institutional collaborations that assist the community
• Best to initiate contact via telephone or other personal contact
3. Should you pursue Family Foundations and Community Foundations?
• It depends on an assessment of your situation: Your institution's programmatic focus, personal connections to the Foundations, and your resources of time and staff

XVIII. The Characteristics of a Successful Foundation Grantseeker

1. A sharp mind
2. Curious, with a broad array of interests
3. Creative and imaginative
4. Ability to see projects or concepts from foundations' perspective
5. Outstanding organizational and time-management skills
6. Strong follow-through
7. Excellent communication skills, especially one-on-one and in small groups
8. Superior writing skills
9. Understands research techniques--and not hesitant to do it for themself
10. Savvy; politically sensitive
11. Has a "sixth sense" for good prospects
12. Leaps tall buildings in a single bound....

XIX. Concluding Remarks