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Topic Fundraising- grant-seeking
+context

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

 

see also:

main Topic: Nonprofit Fundraising

 

see

Funding Opportunities section to research listings of grants and requests for proposals

 

browse our directory of Foundations

 

 

Definitions

fundraising is the process of soliciting and gathering money or other gifts in-kind, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gather funds for not-for-profit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for for-profit enterprises. - Wikipedia at: http://en.wikipedia.org/wiki/Fundraising Amy Sample Ward

 

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 or public concern for non-commercial purposes. Nonprofits may be involved in an innumerable range of areas relating to the arts, charities, education, politics, religion, research, sports or some other endeavor. - Wikipedia at: http://en.wikipedia.org/wiki/Nonprofit_Organization



501(c) is a provision of the United States Internal Revenue Code (26 U.S.C. § 501(c)), listing twenty-eight types of non-profit organizations exempt from some Federal income taxes. Sections 503 through 505 list the requirements for attaining such exemptions. Many states reference Section 501(c) for definitions of organizations exempt from state taxation as well. - Wikipedia at: http://en.wikipedia.org/wiki/501%28c%29

+resources and best practices

Foundation Center

An independent nonprofit information clearninghouse

http://www.fdncenter.org/

 

Foundation Directory Online

an online funding research tool, developed by the Foundation Center, a national nonprofit service organization founded over 50 years ago to help open U.S. foundations to public view. Over the past half-century we have evolved from one small library into philanthropy's information hub.

https://fcsecure.fdncenter.org/fdo_signup_prof/about.php

 

GEO 2004 Due Diligence Tool

Publisher: Grantmakers for Effective Organizations
Date Published: Monday, January 01, 0001

Designed for grantmakers- with a complete guide to the due diligence process; includes worksheets and interview questions grantmakers can use to create or refine their own due diligence process. This is an excellent tool for grantwriters to review how foundations will evauluate your requests.

Download PDF: http://www.geofunders.org/document.aspx?oid=a0660000003YTYJAA4

Comprehensive list of GEO pulbications: http://www.geofunders.org/publications.aspx

 

Foundation DataBook

Craig McPherson's comprehensive guide to foundations in Iowa, Kansas, Kentucky, Louisiana, Nebraska, Nevada, Oklahoma, Oregon, Tennessee and Washington.

http://www.foundationdatabook.com/index.html

 

The Chronicle of Philanthropy

The newspaper of the nonprofit world

http://philanthropy.com/

 

Council on Foundations

An association of foundations and other funders whose purposes include assisting its members in conducting effective grantmaking and promoting the growth of philanthropy

http://www.cof.org/

 

Idealist

Idealist is an interactive site where people and organizations can exchange resources and ideas and locate opportunities and supporters, with an office in Portland, OR.

http://www.idealist.org/

 

Community Nonprofit Resource Group

CNRG provides a resource network for engaging people in the nonprofit community. CNRG connects people, communities and organizations, and helps individuals gain skills to act as agents of change in collaboration with others.

http://cnrg-portland.org/

 

Nonprofit Association of Oregon

Member organization that provides a web tool for managing human resources and fringe benefits.

http://www.ornonprofits.org/

 

 

Alltop's Fudraising Page

a real-time round up of fundraising resources and articles on the web

http://fundraising.alltop.com/

 

Future of Philanthropy

"Gifts of money, time and knowledge help shape the future of us all. But there have been very few explorations of the future of philanthropy itself. Our project was launched in 2000, as a new century began, to fill this gap.  This project was dedicated to understanding the whole spectrum of philanthropic giving, rejecting the once-neat distinction between foundations and other giving that is not "organized.""
The final report can be found on the website or in pdf form.
http://www.futureofphilanthropy.org
Monitor Institute
101 Market Street,  Suite 1000
San Francisco, CA 94105

 

The Foundation Growth and Giving Estimates: 2011 Edition

reports that foundation giving held steady in 2010, with some $45.7 billion awarded. More than half of foundations surveyed expect to increase their giving this year.

http://www.pitchengine.com/foundationcenter/foundation-giving-held-steady-in-2010/137824/

 

Foundations are known for extensive due diligence performed during the grant review process. Although rigorous, organizations often find this process helpful, whether or not their funding applications/proposals are ultimately approved. Applicants may find it helpful to review The Due Diligence Tool (PDF download) published by Grantmakers for Effective Organizations (GEO).

 

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

+other

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 social impact."
http://www.bridgespangroup.org/
One Embarcadero Center 35th Fl.
San Francisco, CA 94111
415-627-1100


Foundation Strategy Group
"FSG Social Impact Advisors is a nonprofit organization dedicated to accelerating social progress by advancing the practice of philanthropy and corporate social responsibility in three ways: advice, ideas, action."
http://www.foundationstrategy.com/
216 1st Avenue South, Suite 460
Seattle, WA 98104
206-624-6745


Grantmakers for Effective Organizations
"GEO encourages and assists grantmakers as they adopt and maintain practices that increase their organizational effectiveness and enhance their ability to achieve their goals and mission. GEO identifies and highlights grantmaking practices that improve nonprofit performance."
http://www.geofunders.org/
1413 K Street, NW, 2nd Floor
Washington, DC 20005
202-898-1840


Center for Effective Philanthropy
"The Center for Effective Philanthropy (CEP) is a nonprofit organization focused on the development of comparative data to enable higher-performing foundations. Based in Cambridge, Massachusetts, CEP's mission is to provide management and governance tools to define, assess, and improve overall foundation performance."
http://www.effectivephilanthropy.com
675 Massachusetts Avenue, 7th Floor
Cambridge, MA 02139
Contact:  Alyse d'Amico
617-492-0800  ext. 206

+discussion