Opening the Door to the World of Foundations

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Opening the Door to the World of Foundations

• Spring 2008

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Opening Many Doors . . .
What you need to have before you decide to
approach the door What you need to know about
whos behind the door How do you know which
door to knock on? So, youve decided on a door.
. . What next?
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The Proposal

• The Basics
• People Give to People
• The Power of Simplicity
• You Wear the Shoes

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Dont even think about it!
Before you even go down the path be sure that
your organization has some really basic
components in place . . .

• 501(c)(3) status
• Compelling mission
• Board of directors to exercise oversight
• High-quality programs that meet a real
• need in the community
• Track record of effective program delivery
• Capable leadership
• A strong organizational and financial
  infrastructure

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Whos Behind the Door?

• "A non-governmental, non-profit organization
  having a principal fund
• of its own, managed by its own trustees and
  directors, and
• established to maintain or aid charitable,
  educational, religious, or
• other activities serving the public good,
  primarily making grants to
• other non-profit organizations."

There are four types of foundations . .
. Independent/Family FoundationsThe largest
segment of foundation types - the funds come from
individuals, a family, or a group of individuals
Community FoundationsDesigned to support a
specific community or region - the funds come
from a variety of sources. Corporate
FoundationsAn independent entity with close ties
to the parent company - the funds come from the
company's pre-tax earning Operating
FoundationsOrganized to "operate" their own
direct services, programs, or research - usually
do not make grants outside the foundation
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And the Foundations are ultimately

• Executive Assistant
• Board of Directors
• Program
  Officers
• People.
• Trustees
• Grants Manager
• Administrators
• Receptionists

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Where on you on the slice?
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Are You Balanced?
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So Many Doors. . . Which ones to Knock On?!
First, Know What You Are About Then Ask the
Right Questions.

• Why do I need funding and what kind do I need?
• How much do I need?
• When do I need the funds?
• Who funds in my area of interest?
• Who funds in my geographic region?
• Who will provide the type of support I need?
• Has the grantmaker funded organizations like
  mine?
• How much does the grantmaker give to
• organizations like mine?

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A Few Tools to Help You Answer the Questions . . .

• Foundation Directory Online
• Guidestar
• Foundation Search
• Chronicle of Philanthropy
• Grantmaker Web sites
• Grantmaker documents
• Annual reports
• Newsletters
• Guidelines/brochures
• RFPs
• IRS filings (Forms 990-PF and 990)
• News articles
• Word of Mouth
• A Phone Call

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So, Youve Decided On A Door.
Now the Real Work Begins!
The Proposal (or letter of inquiry, concept
paper or simple phone call)
Although online applications are becoming more
common, the majority of foundations (aka
people!) still prefer a good old fashioned
introduction before launching into a full The
most common methods of introducing your
organization and project are Letters of
inquiry (LOIs or Test Letter) A Concept PaperA
ProposalOne-on-One Meetings
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Opening the Door to a Strong Relationship

• Build a Relationship with the
• entire Foundation Staff
• Acknowledge the value of their time
• Send notes on Updates or
  Accomplishments
• Invitations to Open Houses
• Ask for Advice
• Dont let every contact be about
  asking for support

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Basic Elements of a Proposal
A Proposal is not a novella. This is not the
time to bring out your inner Danielle Steele! It
should be a concise, clear presentation of your
project or program with clear goals, objectives
and methodologies.

• The Cover Letter
• The Proposal
• Summary
• Introduction (Project and Project Staff)
• Problem or Needs Statement
• Objectives
• Methodology
• Evaluation
• Budget

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Be the Foundation. . .

• Superior Institution supports an educational
• process to increase problem visibility through
• group interaction. By channeling the latent
• capacities for strength among group members,
• we expect to harness the power to create a shift
• toward a sustainable economy.

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The Assignment

• Two real life case studies of a before and after
  proposal
• 4-5 Groups will act as Foundations
• Determine whether or not the proposal should be
  funded and provide feedback to the group on what
  worked and what could be improved.