Download Basic Grantwriting - Maine Community Foundation

Grantwriting:
Increasing Your Chances for
Success
Meredith Jones and
Bethany Murray
Maine Community Foundation
March 25, 2006
Maine Community Foundation
With Our Thanks To
David Rappoport, senior program
officer at MeHAF
whose PP we “borrowed” to develop
this presentation
Maine Community Foundation
Meredith Jones Bio
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Vice president of program development and
grantmaking services at Maine Community
Foundation
Economic development: strategic planning, fund
raising, grant writing (foundations and CDBG),
program development and management,
communications
Long-term care: training and communications
Political work: fund raising
Community development
Maine Community Foundation
Bethany Murray Bio
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Grants Assistant at Maine Community Foundation
College of the Atlantic graduate
Has worked with several grass roots and nonprofit groups in eastern Maine
Grass-roots and political organizing
Was a part time grant writer before joining the
staff of MCF
Maine Community Foundation
MCF Commercial
Mission to strengthen Maine communities
 Some discretionary, competitive grant
programs (project grants and capacitybuilding grants)
 Most assets in donor advised funds,
scholarships and funds to support specific
nonprofit groups
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Maine Community Foundation
Outcomes for the Day
Knowledge of resources available and how
to find them
 Clarity about elements of good proposals
 Greater understanding of
outcomes/goals/objectives and strategies
 Greater understanding of budgets and how
to develop them
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Maine Community Foundation
Brought to You in Seven Parts
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Part I: Overview of where the money is (10 min)
Part II: Part II: Overview of foundations (10 min)
Part III: Resources available to help you find
foundations (10 min)
Part IV: General tips for developing a good
proposal (45 min)
Part V: Goals & objectives (5 min)
Part VI: Budgets (15 min)
Grant Review Exercise
Lunch; Wrap Up & Adjourn
Maine Community Foundation
Our Approach to Today
Some talking at you
 Some small group work and grant review
exercise
 Lots of questions (with a few answers)
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Maine Community Foundation
Getting to Know You
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15-second introductions:
 Name, organization, grantwriting
experience: A Lot, Some, or Little/None
 What two things (count ‘em – only 2) do
you want to know or be able to do at the
end of this class
Maine Community Foundation
Part I: Show Me The Money
Who Has It
Maine Community Foundation
Today’s Fundraising Climate
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There has been a 16,000% increase in the number of nonprofits in the United States since 1940.
There has been a concurrent dramatic decrease in public
funding of non-profits during the last 20 years.
 The competition for charitable dollars is intense.
 Grantwriting is rarely the first or only fundraising tool
that should be used (More than 80% of funds donated
each year are given by individuals)
 Foundation support is a fraction of total revenues for
nonprofits
 Have realistic goals and expectations.
Maine Community Foundation
Foundations
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Public and private (Public charities, private
family foundations, corporate foundations)
Corporate Foundations: MBNA,
UNUMProvident, Bangor Savings Bank, Bank of
America, TD Banknorth, etc.
National (Ford Foundation, Surdna, Pew)
NE Region (Jane’s Trust, Cox Trust)
State (MeHAF, MCF, Stephen & Tabitha King,
The Betterment Fund)
Maine Community Foundation
How Foundations Work
If you’ve seen one foundation you’ve
seen one foundation!
Wide variance in field but some
commonalities exist:
 Power (in a good way)
 Rely on partnerships
 Are successful because of relationships
Maine Community Foundation
Corporate Support
Two buckets of money are available from
most for-profit enterprises: philanthropic
dollars and marketing dollars
 Marketing budgets frequently larger than
philanthropic budgets
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Maine Community Foundation
Individual Donors
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Best prospect is current donor
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MCF donor-advised funds
Maine Community Foundation
For Most of You
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Concentrate on local and regional funders
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Conduct research
Maine Community Foundation
Part II: Your Foundation is Your
Friend
Everything You Need to Know But
Were Afraid to Ask
Maine Community Foundation
Small vs. Large Foundations
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Generally, two types of foundations:
 Smaller “informal” foundations
 Often small family or corporate
 Generally have no staff, single staff or
volunteer staff
 Larger “professional” foundations
 May be local, regional or national
 Larger asset base (in relative terms)
 Generally have program staff
Maine Community Foundation
The Philanthropic Divide
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Grantseekers want general operating support.
Grantmakers want to make program grants.
Why is that?
Maine Community Foundation
What Foundations Think
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Most foundations want to work with applicants in
identifying good projects.
Foundations seek to be innovative but are also
cautious.
They seek to use their limited resources
effectively.
Widespread mission commitment and integrity.
Cultures, policies, procedures, and decisionmaking processes vary considerably.
Maine Community Foundation
Part III: Finders Keepers
Where to Find the $$$
Maine Community Foundation
Wishful Thinking
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If you think a particular rich person or
particular foundation ought to be giving you
money, so do millions of other people!
Maine Community Foundation
Maine Philanthropy Center
Directory of Maine Grantmakers (Maine
Philanthropy Center) is the most important
resource in Maine.
 Publishes hard copy and electronic
 (Tel) 207.780.5039
 Nonprofit memberships available: $50 $250
 www.megrants.org
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Maine Community Foundation
Foundation Center Database
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Foundation Center is primary U.S. philanthropy library
Foundation Directory Online and Foundation Finder
 Large electronic database of grantmakers (local,
regional, national).
 Free access (by appointment) at Maine Philanthropy
Center (MPC) and its affiliated libraries.
 Internet access for a fee ($19.95 per month) or can be
purchased on CD-Rom.
www.foundationcenter.org
Maine Community Foundation
Guidestar
990s = non-profit and foundation tax
returns.
 May be only source of funding information,
particularly for small foundations.
 www.guidestar.org
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Maine Community Foundation
Other Resources
Maine Association of Nonprofits
www.nonprofitmaine.org
 Regional Associations of Grantmakers (RAGs)
 Center for Philanthropy and Nonprofit Leadership
(Grand Valley State University)
Information on starting, running, and funding an
organization
www.npgoodpractice.org
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Maine Community Foundation
Research Tips
Search using many terms
 Assess each prospect:
 Does it fund in my program area?
 Does it fund in my geographic area?
 Do we meet other eligibility criteria?
 Answer “yes” to all = key prospects
 Call the funder
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Maine Community Foundation
Internet Sources
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The Internet has become a very useful fundraising
tool during the last few years.
Search to see who is funding others doing similar
work
Challenges include:
 Evaluating the quality of the information.
 Finding what you want on complex sites (such
as Federal agency sites).
 Accessing busy sites during peak periods (such
as Federal agency sites).
Maine Community Foundation
Research – Public
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Identify appropriate RFPs
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Assess each opportunity
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Internet
Electronic and snail mailing lists
Professional publications
Read RFP
Check web sites for related information
Assess competitive environment
Attend bidders’ conference (if possible)
Do likely benefits outweigh cost of application preparation?
Many foundations do not accept unsolicited proposals. If you feel they
may be interested in you, put them on your mailing list for flyers,
newsletters, etc.
Maine Community Foundation
Part IV: Your Mother Was Right
Secrets to Success in Grant Writing
Maine Community Foundation
Tips
For Successful Grantwriting
1. Interpret guidelines narrowly and conservatively.
 “Gives primarily in Vermont” means “rarely
gives outside of Vermont.”
 Make sure your project is a good fit.
2. Check both what a funder says they fund and what
they actually fund.
 If there are one or two anomalies, ignore them.
 If there are many, clarify their current giving
interests with the foundation.
Maine Community Foundation
Tips
3. Chain stores = small donations or in-kind
4. Generally, larger corporate gifts require:
 Significant presence in your community
(such as a manufacturing plant or back
office location) or corporation is locally
based or
 Exceptional interest in your mission area
and some presence in your community.
Maine Community Foundation
Tips
5. Think of yourself as the funder
6. Know why foundations and corporations give money:
 Public spirit
 Recognition
 Business locus
 Fashion
7. Clear, concise, organized, simple, accurate, realistic:
say it with no jargon in 25 words or less
Be clear! Don’t insult your reader’s intelligence, but don’t assume
he or she knows your mission area.
Spell out acronyms
Maine Community Foundation
Tips
8. Read and follow the guidelines
9. Your funder is your friend and you are each
other’s customer. You have power! Don’t be afraid
to ask questions.
10. Make precise statements and as appropriate, back
them up with data. Compare:
 “Last year, we served hundreds of
developmentally disabled children.”
 “Last year, we served 1,235 individuals
between the ages of 10 and 16, or more than
27% of all developmentally disabled young
people in Waldo County.”
Maine Community Foundation
Tips
11. Slick doesn’t count
12. Call if you’re unsure of something. Don’t
assume. Funders cannot read minds.
13. Accurate budget; in-kind support a good
thing (more about this later)
Maine Community Foundation
Tips
14. Do your homework: Know whether or not
others are doing something similar and help
the funder understand what’s unique about
you
15. Do exactly what the funder asks in exactly
the manner the funder asks.
Maine Community Foundation
Tips
16. If you’re successful, thank the funder
17. If you were not successful, call and find out why.
Remember that foundations receive far more
proposals than they’re able to fund and just
because you didn’t get funding doesn’t mean the
project is not worthy.
18. Use any opportunity you have to develop a
relationship because in the end, people give to
people
Maine Community Foundation
Application - Overview
The most common form of grantwriting for
most non-profits.
 Applications are generally short (3-5
pages), sometimes in letter form.
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Maine Community Foundation
The Application
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Cover Letter
Title Page
Summary
Introduction/Problem Definition and Need/Corporate
Resume
Goals and Objectives/Program Activities/Timetable/Future
Plans
Facilities and Equipment:/Staffing and Administration
Evaluation
Budget
Maine Community Foundation
Part V: Primer on Goals, Objectives,
Strategies, and Indicators
Maine Community Foundation
Why Evaluate??
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Evaluation is a tool for learning
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Evaluation can be a tool for sustainability
and growth
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Evaluation is a tool for accountability
Maine Community Foundation
The Five Key Concepts
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There are five key concepts in outcomebased evaluation:
 Goals
 Objectives
 Output
 Outcome
 Indicators
Maine Community Foundation
Goals
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A goal is a broad statement of policy. Generally,
goals are ambitious and may not be fully
achievable. However, they must still be realistic.
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Goal (Good): To help individuals with diabetes to
better manage their disease.
Goal (Bad): To end world hunger.
Maine Community Foundation
Objectives
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An objective is a specific, measurable outcome
achieved in a definite timeframe.
Objective (Good): During FY 2004, to improve
diabetes self-management among 20% of clinic
patients.
 Objective (Bad): To help patients manage their
diabetes better.
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Not specific and no time-frame.
Maine Community Foundation
Output
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Output = The amount of effort expended by
the agency -- the goods and services
produced.
 During FY 2004, all clinic patients will
receive individual counseling regarding
disease self-management and five diabetes
awareness educational presentations will
be given.
Maine Community Foundation
Outcome
 Outcome
= the actual result of the
agency’s work -- its impact on its
clients or community served.
 20% of client patients will exhibit
improved control of their disease.
Maine Community Foundation
Example I
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NON-OUTCOME BASED PERFORMANCE
MEASURE
 During FY 2001, Homeless Services, Inc. will
distribute 2,000 sandwiches at its soup kitchen.
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This is output. It does not measure the
program’s impact on people who are
homeless or hungry. It measures the
agency’s effort.
Maine Community Foundation
Example II
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OUTCOME-BASED PERFORMANCE
MEASURE
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During FY 2001, will improve the nutritional status of
25 people who are homeless as measured by
assessments conducted at the beginning and end of the
fiscal year.
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The outcome (nutritional status
improvement) is measured by an indicator
(two assessments). This measures the
program’s impact on clients.
Maine Community Foundation
The Relationship is Linear!
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GOAL: To help individuals with diabetes to better manage
their disease.
OBJECTIVE: During FY 2002, to improve diabetes selfmanagement among 20% of clinic patients.
Activities: regarding disease self-management and five
During FY 2002, all clinic patients will receive individual
counseling diabetes awareness educational presentations
will be given.
OUTCOME: 20% of clients will exhibit improved control
of their disease.
INDICATORS:During FY 2002, 20% of clinic patients
with current HbA1c levels >9.5% will reduce HbA1c
levels to <7.0%.
Maine Community Foundation
A few words about logic models……
 A logic model is an illustration of the flow of
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materials and processes to produce the results
desired by the organization or program.
The model can be very useful to organize planning
and analysis when designing the organization and
its programs or when designing outcomes-based
evaluations of programs.
It can also be useful for describing organizations
and programs (for example, in grant proposals).
Maine Community Foundation
Logic Model Template
Goal (s)
Objectives
Activities
Outcomes
Indicators
To help
individuals
with
diabetes to
better
manage
their
disease.
During FY
2002, to
improve
diabetes selfmanagement
among 20%
of clinic
During FY
2002, all
clinic
patients will
receive
individual
counseling
diabetes
awareness
educational
presentation
s will be
20% of
clients will
exhibit
improved
control of
their
disease.
During FY
2002, 20%
of clinic
patients
with current
HbA1c
levels
>9.5% will
reduce
HbA1c
levels to
patients
.
given.
Maine Community Foundation
<7.0%.
Part VI: Budgets
1+1=2
Maine Community Foundation
Follow directions!
If there are specific guidelines, do exactly
what you are instructed to do in exactly the
manner you are instructed to do it.
 If there are no specific guidelines, be
simple, accurate and clear.
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Maine Community Foundation
A Basic Budget
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Two categories:
 Revenues - $ coming in
 Expenses - $ going out
Maine Community Foundation
Revenues
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Line items should be logical for your organization.
May include:
 State/Federal/Municipal Grants
 Foundation/Corporate Grants
 Individual Contributions
 Earned Income (e.g.program fees, events)
 In-Kind Contributions (e.g. donated supplies)
 Investment Income
 Other Income
Maine Community Foundation
Tips
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When they give, funders are pack animals
 They like to fund in groups and not be the
only source of funding
Only one funder?
 What about in-kind contributions?
Maine Community Foundation
Expenses
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Line items should be logical for your organization.
May include:
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Wages & Salaries
Benefits/Payroll taxes
Equipment
Office Supplies
Program Materials
Postage & Courier
Printing & Copying
Rent
Telephone & Internet
Travel
Utilities
Other
Maine Community Foundation
Salaries
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Salaries are usually the biggest cost factor in any
project
You may wish to split Expenses into two subcategories:
 Personnel Services
 Wages & Salaries
 Associated costs (fringe benefits & payroll
taxes)
 Independent contractors
 Other Than Personnel Services
Maine Community Foundation
Prepare a List of Objectives
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Objectives = “specific measurable
accomplishments”
 May be broad…
 Reduce the high school drop-out rate by 27%
in York County.
 Or narrow…
 Provide a series of five basket weaving
classes for 250 middle school students in
SAD 57.
Maine Community Foundation
Estimate the Costs of Each Objective
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Develop a list of resources and activities
that will be required to meet each objective.
 This may be a simple process…
 Basket weaving classes
• Space rental
• Instructor fee
• Materials
Maine Community Foundation
Estimate the Costs of Each Objective
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Or complex…
 Reducing the drop-out rate.
• Focus groups with at-risk youth and dropouts
– Space rental, Consultant 1
• Develop intervention
– Consultant 2
• Implement intervention
– Train guidance counselors (training
materials, trainer fee, space rental,
catering)
• Evaluation
– Consultant 3
Maine Community Foundation
Estimate the Costs of Each Objective
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Identify specific costs for each element
 Space rental (basket weaving classes)
 Rental = $25/class
 Room capacity = 50 students
• ($25/class x 5 classes x 5 class series =
$625)
 Instructor fee = $50/class
• ($50/class x 5 classes x 5 class series =
$1,250)
 Materials
• (1/2 ton tender shoots = $1,500)
Maine Community Foundation
Tip
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Don’t know the cost of something or
someone?
 Check
 Advertising (such as employment ads)
 Web sites (such as computer retailers)
 Appropriate data (such as employment
data)
 Ask vendors or colleagues
Maine Community Foundation
Estimate Expected Revenues
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Compile a list of revenues associated with
the program and each resource and activity.
 Program fees
 Basket weaving
• $2/class x 5 classes x 250 students =
$2,500
Maine Community Foundation
Compare Revenues to Expenses
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Basket weaving classes
Revenues
Earned income
Total Revenues
Expenses
Room rental
Instructor fee
Materials
Total Expenses
Maine Community Foundation
$2,500
$2,500
$625
$1,250
$1,500
$3,375
($875)
Re-think & Adjust as Necessary
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Basket weaving classes
Revenues
Earned income
Private/corporate foundations
Individual contributions
Total Revenues
Expenses
Room rental
Instructor fee
Materials
Total Expenses
Maine Community Foundation
$2,500
$500
$375
$3,375
$625
$1,250
$1,500
$3,375
$0
Direct & Indirect Cost
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Direct Cost
 “Expenses that can be directly identified with
the costing object such as a product and
department.” (Barron’s Accounting Handbook,
1990).
 Examples might include program supplies,
program equipment, and wages and salaries for
program staff.
 Costs are usually presented on their own budget
lines.
Maine Community Foundation
Direct & Indirect Cost
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Indirect Cost
 “Expenses that are difficult to trace directly to a
specific costing object.” (Barron’s Accounting
Handbook, 1990).
 Examples might include rent, utilities,
telephone, office supplies, etc. and other
expenses incurred organization-wide (not
program-specific).
 Most often calculated using a formula and
not presented on individual budget lines.
Maine Community Foundation
Direct & Indirect Cost
Indirect cost is often complicated.
 Frequently negotiated with a state or federal
agency.
 Check with your financial manager!
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Maine Community Foundation
Direct & Indirect Cost
No specific requirements? Keep it simple!
 Present indirect costs as direct costs
 For example, present Telephone &
Internet as an individual budget line.
 Calculate one of two ways:
 Based on actual cost estimates
 As an appropriate percentage of total
organizational expense
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Maine Community Foundation
Tips
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Ask for help if you need it!
 Involve financial managers or others with
expertise (such as accountants).
Make sure proposal & budget agree!
Use existing budgets as templates
Be consistent with GAAP
Check your math!
In multi-year budgets, increase annual costs after
year one to reflect inflation.
Budgets should pass the “straight face” test!
Maine Community Foundation
Grantwriting Review Exercise
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Review Guidelines and Application
Consider and Discuss the Following Questions
• To what extent does the grant writer connect the project to
what the grant program is seeking to support (i..e
community building guidelines)? Does the proposal make
the case that it’s a good fit?
• Are the goals, objectives, strategies and measures clear?
Would you change anything?
• What about the budget? What does it tell you about the
project? Is anything missing?
• At the end of the day, does the grant writer make the
argument that this project will have a sustainable impact?
If it does, how?
Maine Community Foundation
Part VII: Public Agency
Grantwriting
Good Government in Action
Maine Community Foundation
Overview
Public grants are service contracts awarded
by Federal, State and larger Municipalities.
 Funds awarded in response to RFPs.
 Most advice relating to corporate and
foundation grants applies here -- such as
clarity and following directions.
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Maine Community Foundation
Overview
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Key requirements for competitive public
applications are:
 Precisely follow instructions.
 Know current trends and “best practices” in
your field and reflect them in program design.
 Support your narrative with appropriate
models, citations and quantitative data.
 Plan your application process carefully. Don’t
overlook details.
Maine Community Foundation
Tips
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Public grants are cumbersome, confusing, time-consuming,
expensive and stressful. Know this going in.
 Assume 100 hours plus.
 Can cost your organization many thousands of dollars
in staff time and direct costs. Be selective about which
RFPs you respond to.
Do the best job you can. The competitive environment is
often worse than you think it is. BUT...
 Find out if your grant is “threshold” or “competitive.”
Maine Community Foundation
Tips
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Don’t be intimated by RFPs.
 Skim the document, and identify the sections relevant
to you.
 Use a highlighter to note key points.
Ask for copies of successful past proposals from
organizations with whom you are not competing.
Maine Community Foundation
Tips
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Use the RFP as an outline for your application. Follow
and respond point by point.
If you are contemplating a collaborative grant, try and
forge a relationship with your collaborators before you
begin the application development process.
Public grants often require multiple forms and complicated
financial attachments.
 Sometimes, you may need signatures from people you
don’t even know. Allow ample time to obtain needed
signatures.
 Allow ample time for preparation of financial material
and for necessary internal approvals.
Maine Community Foundation
Tips
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Have technical applications (such as those
involving science and medicine) reviewed by
individuals inside and outside of your agency with
appropriate knowledge.
 Assume funder reviewers will have related but
not necessarily exact knowledge of your area.
Where possible, match your internal reviewers
with the likely composition of the funder’s
reviewers.
Maine Community Foundation
Questions?????
Maine Community Foundation