Grantsmanship: Grantseeking and Proposal Writing

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Grantsmanship Grantseeking and Proposal Writing

• Presented by
• The Foundation Center Cleveland 1422 Euclid
  Avenue, Suite 1600
• Cleveland, Ohio 44115 [phone]
  www.foundationcenter.org/cleveland

• David Holmes
• Regional Training Coordinator
• [phone] x 323
• dmh_at_foundationcenter.org

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Agenda

• 1000 -1100 Grantseeking Basics
• 1100 -1115 - Break
• 1115 - 1200 - Proposal Writing Narrative
• 1200 - 100 - Lunch
• 100 - 200 - Proposal Writing Budget
• 200 - 215 - Break
• 215 300 - Whats Next Communications

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What You Will Learn Today

• Foundation Grantseeking
• Planning
• Writing the Narrative and Budget
• Submitting Your Proposal
• What Happens Next?

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The Foundation Center

• Our Mission To strengthen the nonprofit sector
  by advancing knowledge about U.S. philanthropy.

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Accomplishing our Mission

• Collect, organize, and communicate information on
  U.S. philanthropy
• Conduct and facilitate research on trends in the
  field
• Provide education and training in the
  grantseeking process
• Ensure public access to information and services
  through various vehicles

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Before you seek a grant

• 501(c)(3) status
• Compelling mission
• Board of directors to exercise oversight

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What Funders Look For

• 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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Sources of Revenue for Reporting Public
Charities, 2004
Private Contributions12.5
Fees for Services and Goods70.9
Government Grants9.0
Investment Income 3.9
Other Income 3.7
Source Nonprofit Almanac 2007National Center
for Charitable Statistics, the Urban Institute
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Private Contributions by Source, 2006( in
billions)
Corporations12.72
Individuals222.89
4.2
Bequests22.91
7.8
75.6
12.4
Foundations36.5
Total Giving 295.02 billion
Source Giving USA 2007, Giving USA
Foundation,researched and written by theCenter
On Philanthropy at Indiana University
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Institutional Grantmakers

• Private Foundations
• Direct Corporate Giving Programs
• Grantmaking Public Charities

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What Is a Private Foundation?

• Nongovernmental, nonprofit organization
• Has its own funds or endowment
• Managed by its own trustees or directors
• Established to aid educational, social,
  religious, scientific, or other charitable
  activities through the making of grants

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Types of Private Foundations

• Independent
• Company-sponsored
• Operating
• 5 payout requirement
• Must disclose total giving and grants through
  Form 990-PF

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Other Types of Grantmakers

• Direct Corporate Giving Programs
• Research through sponsoring companies
• Grantmaking Public Charities
• Disclose activities through Form 990
• Includes
• Community foundations
• Population or issue-oriented funds
• Company-sponsored

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Identifying Funding Needs
Part 3 Finding Funding Partners

• Why do I need funding and what kind do I need?
• How much do I need?
• When do I need the funds?

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• Look for the match
• Who funds in my area of interest?
• Who funds in my geographic region?
• Who will provide the type of support I need?

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• Refine the match
• Has the grantmaker funded organizations like
  mine?
• How much does the grantmaker give to
  organizations like mine?

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Funding Research Resources

• Print directories and grant guides
• Foundation Center databases
• Foundation Directory Online
• Search Grantmakers
• Search Companies
• Search Grants
• Search 990s

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More Grantmaker Information

• Grantmaker Web sites
• Grantmaker documents
• Annual reports
• Newsletters
• Guidelines/brochures
• RFPs
• IRS filings (Forms 990-PF and 990)
• Look for list of grants awarded
• News articles

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Questions?

• www.foundationcenter.org
• Ask Us
• FAQs

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The Proposal is Part of a Process
Planning and Priority Setting
Result
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Planning

• IRS 501(c)(3) Status
• Project vs. General Support
• Researching Potential Funding Partners
• Timing
• Team

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Project Proposal Outline

• Name of the Project
• Problem/Issue(s) the Project Addresses
• Project Description
• Goals Objectives
• MethodsWhat, Who, and How
• Evaluation
• Sustainability
• Budget Needs

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Researching Potential Funders

• Match Foundation Interests to Your Project
• Your Subject and Geographic Requirements
• Foundation Center Resources
• Library, Website, Print and Electronic
  Publications
• Develop a Targeted List of Funders

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Writing Tips

• Keep Narrative Clear and Simple
• Tell the Reader a Story
• Use Action Words
• Use Active and Future Tenses
• Allow Plenty of Time for the Writing Process,
  Especially for Editing and Reading by an Outside
  Reader

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Proposal Contents

• Title Page Table of Contents
• Executive Summary 1 page
• Statement of Need 2 pages
• Project Description 3 pages
• Organization Information 1 page
• Conclusion 2 paragraphs
• Budget 1 page
• Appendix Supporting Materials

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Executive Summary

• State the Problem and Solution
• Your Funding Requirements
• Your Organization and Its Expertise

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Statement of Need

• The Problem and Issues the Project Addresses
• Supporting Facts and Statistics

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Project Description

• Goals
• Broad, general statement of what your project
  will accomplish
• Objectives
• Measurable outcomes in a specified period of time

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Project Description (cont.)

• Methods
• Staffing and Administration
• Replicability
• Collaboration with Other Groups

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Project Description (cont.)

• Evaluation
• Measure the outcome or product
• Analyze the process

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Project Description (cont.)

• Sustainability
• Demonstrate the long-term financial viability
• Is the project finite?
• Could it be self-sufficient?
• Will it be attractive to other funders?

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Information About Your Organization

• History and Mission
• Programs and Expertise
• Board and Staff

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Conclusion

• Final Appeal for Your Project
• What You Will Accomplish
• Why Its Important
• Who will benefit

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Questions?

• ???

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The Budget

• Important aspects of a project budget
• Components of a project budget
• How to prepare a budget for your project
• Examples of projects budgets
• Other financial components of your proposal

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Definition of a project budget

• The financial plan for a project, including all
  project income and project expenses, for a
  specified period of time.

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• Why is the budget important?
• Who should prepare the budget?

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Follow funder guidelines

• Research each funder
• Use Common Grant Application form where necessary
• Use other required forms
• Pay attention to any exclusions

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The Project Budget

• Support and Revenue
• Contributed Income
• Earned Income
• Expenses
• Personnel
• Non-personnel
• Overhead or Indirect Costs

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Personnel Budgeting Questions

• Who are all the individuals working on the
  project?
• How much time will each individual spend working
  on the project?
• How will they be compensatedon salary or by the
  hour?
• How much are they paid per year or per hour?

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Calculation of Fringe Benefit Rate
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Non-personnel costs(sample items)

• Consultants
• Supplies/Materials
• Computer/other equipment
• Postage
• Printing costs
• Travel
• Food

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Estimating Costs

• Research process
• Remember that costs go up
• Costs should be
• Reasonable
• Complete
• Realistic

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Examples of Indirect Costs

• Financial/Accounting
• Fundraising
• Human resources
• Board meetings
• Rent, utilities, telephone
• Supplies such as copier, fax, and paper

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Different terminology used when talking about
indirect costs

• Overhead
• Supporting services costs
• Administrative costs
• All costs are either direct program costs or
  indirect costs
• Need to calculate or ascertain your overhead rate

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Calculation of Overhead Rate

• For Example
• Program services for Prog. 1 200,000
• Program services for Prog. 2 300,000
• Supporting services 100,000
• Overhead Rate Total Supporting Services/
• Total Program Services
• 100,000/500,000 20

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Types of Income

• Support Grants and Contributions, In-kind
  support
• Revenue Earned Income

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Types of In-kind Support

• Time
• Space
• Materials
• Services

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Other financial information often requested

• Audited financial statements
• Organization-wide budgets for recent years
• List of supporters and other funding sources
• Budget narrative
• 990

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Budget considerations after the grant is approved

• Reporting requirements include reporting on the
  actual costs vs. budget
• Variances often require approval
• Your budget is something to be considered
  throughout the grant period

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Recap Steps to prepare a project budget

• Step 1 Know your project
• Step 2 List the various components of the
  project
• Step 3 Obtain reasonable cost and income
  estimates for each component
• Step 4 Be sure you have included everything,
  including overhead if allowed
• Step 5 Find out what format the funder prefers
  if any

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Recap Steps to prepare a project budget

• Step 6 Prepare a spreadsheet/summary of costs
  according to the funders specifications
• Step 7 Make sure that your budget is neat and
  mathematically accurate
• Step 8 - Consider whether a budget narrative is
  appropriate and if so prepare one
• Step 9 Be sure to have your budget and budget
  narrative reviewed by another person who is
  familiar with the project

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• Budget Case Exercise

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Appendix Supporting Materials

• List of Board Members and Key Staff
• IRS 501(c)(3) Letter of Determination
• Financial Documents
• Supporting Materials

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Packaging Your Proposal

• Cover Letter
• Reference Recent Contact
• Request for Funding
• Your Proposal Package Contents
• Offer to Meet and/or Answer Questions
• The Proposal
• Add a title page and table of contents
• Appendix Supporting Materials

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Proposal Submission

• Follow the funders guidelines
• Initial contact
• Telephone call?
• Letter of inquiry?
• Full proposal?
• Common Grant Application Form?
• Funders own application form?

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Follow-up with Foundations

• Cultivating Relationships After You Submit the
  Proposal
• Telephone Conversations and Appointments
• Board contact
• Keep them informed

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The Answer is YES!

• Write a Thank You Letter
• Keep the Foundation Informed about the Projects
  Progress
• The Renewal Request

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Tips for Grants Management

• Reporting requirements often include reporting on
  the actual costs vs. budget
• Variances can often require approval
• Your budget is something to be considered
  throughout the grant period

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Your Proposal is Turned Down

• Dont Take it Personally
• Find Out Why
• Inquire About the Prospect for Future Funding
• Move On - Seek Out Other Prospects

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Help From the Foundation Center

• Proposal Writing Short Course on FC Web site
  www.fdncenter.org
• The Foundation Centers Guide to Proposal Writing
  Winning Proposals
• FC Proposal Writing Seminar
• Research ToolsFC Libraries, Web site and
  Publications
• Sample documents FAQs on the Web site

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Summary

• The proposal is part of a process of planning,
  research, outreach and cultivation of potential
  funders
• Follow funder guidelines at all times
• Keep narrative clear and simple
• Include all reasonable direct costs and overhead
  where permissible
• When approved, take grants management seriously

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Grantsmanship Grantseeking and Proposal Writing

• Presented by
• The Foundation Center Cleveland 1422 Euclid
  Avenue, Suite 1600
• Cleveland, Ohio 44115 [phone]
  www.foundationcenter.org/cleveland

• David Holmes
• Regional Training Coordinator
• [phone]
• dmh_at_foundationcenter.org