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General


Traditionally the nonprofit sector has received support from three distinct revenue streams:
  • 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)
Government
  •  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
Corporations
  •  Corporate giving has been hard hit by economy
  •  Many corporations are aligning their giving with marketing and business goals
Foundations
  •  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
Increased Competition for Funding
  •  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
The Value-add of Foundation Support:  Money, Influence, Time

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 Wikipediahttp://en.wikipedia.org/wiki/501%28c%29#Types

Click here to read about nonprofit laws in the US from Wikipediahttp://en.wikipedia.org/wiki/United_States_of_America_non-profit_laws

Amy Sample Ward and Megan Wentworth


A nonprofit organization (abbreviated "NPO", or "non-profit" or "not-for-profit") is an organization whose primary objective is to support an issue or matter of private interest ...

 

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 ...

Oregon Community Foundation For information on giving in Oregon please see OCF's 2005 report: http://www.gosw.org/grant/makers/info/regional Amy Sample Ward and Megan ...

 

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