Table of Contents
General
- 50% from earned income, such as fees for service, admissions, enrollments or seats;
- 30% from government, from local municipalities to federal agencies;
- 20% from contributed income, including foundations, corporate giving and individuals. (The New Nonprofit Almanac & Desk Reference, 2002)
- Scope and character of government support is changing
- Reduced federal spending, state and local government deficits
- Governments diminished role as provider of safety net services and core community benefits
- Government priorities have shifted away from social spending while needs have increased
- Nonprofit sector being asked to fulfill increased demand for services
- Nonprofits have less access to government support
- Funding programs have been reshaped by new priorities, altered values and philosophies, changing constituencies and increased requirements, especially documentation and evaluation.
- Nonprofits eligibility for support can change from year to year
- Corporate giving has been hard hit by economy
- Many corporations are aligning their giving with marketing and business goals
- Many foundations have suffered from several years of significant reductions in their assets
- Total dollars awarded by the nearly 65,000 U S foundations decreased 2.5% in 2003
- Foundation assets have dropped an average of 10% since 2000 but recent asset growth is encouraging
- The number of new foundations being created has slowed since the bubble of 1990s
- Competition for limited government, corporate and foundation support is intensifying
- Many nonprofits are attempting to diversify or expand their revenue streams
- The overall number of nonprofit organizations recognized by the IRS has grown by 5.3% each year since 1993 and by % between 2002 and 2003, to a total of 964,418 nonprofits in the US
- According to Charity Navigator, new charities are being created at a rate of 50,000 per year
Foundations add value to a community by selecting the best grantees and helping them obtain a higher social return.
Foundations bring additional resources to a community by identifying effective projects and attracting other funders to support the work.
Foundations create value when they work closely with a grantee as a partner bringing information, an outside perspective, and management assistance to improve effectiveness of a particular organization.
All foundation have a framework within which they do their decision-making:
* Mission of Grantmaking Organization
* Focus general, issue specific
* Philosophy conservative, risk taking, traditional, entrepreneurial
* Geographic Limitations
* Asset Size Payout requirement of 5% of assets
* Type of foundation - public, private, corporate, family, operating
* Governance Structure
* Process for Grantmaking
What do funders look for?
* Legal tax exempt status
* Mission match
* Organizational strength and qualifications to carry out program
* Leadership board and staff
* Demonstrated need
* Community support
* Planning & realistic business model
* Financial health
* History and track record with programs
* Application of best practices
* Outcomes
* Collaboration, no duplication of services
* Sustainability
Click here to read about the different 501(c) organization types from Wikipedia: http://en.wikipedia.org/wiki/501%28c%29#Types
Click here to read about nonprofit laws in the US from Wikipedia: http://en.wikipedia.org/wiki/United_States_of_America_non-profit_laws
Amy Sample Ward and Megan Wentworth
Findings
The Bridgespan Group "The Bridgespan Group is a nonprofit, 501(c)(3) organization applying leading-edge management strategies, tools and talent to help other nonprofits and foundations achieve greater ...
Resources
Where to start
Of all the People & Organizations involved with Foundation grant-seeking, who knows most? What are the best contacts for people just starting out on this topic?
Add +where to start
People & Organizations
Here are all the People & Organizations working on Foundation grant-seeking:
click here to add your organization (don't forget to indicate that they focus on Foundation grant-seeking)
Supporting Foundations and Affinity Groups
click here to add your foundation or affinity group (don't forget to indicate that they focus on Foundation grant-seeking)
Other
Foundation grant-seeking



