Relationship Building Leads
to
Foundation-Based Revenues
There are nearly 800,000 charitable organizations in the United States all looking for operating and project support funding from foundations and other sources. The Foundation Center reports that the $32.4 billion given by foundations in 2004 represents a 6.9 percent increase in foundation giving over the previous year.
Byway representatives participating in the roundtable discussions for this CD expressed the need for a strategic plan for approaching foundations and said they view foundations as a largely untapped resource for byway support.
Often, to be successful at raising funds from foundation sources, byway organizations have built personal relationships and shared-mission partnerships with charitable foundation representatives. This area of fund-raising potential may require byway representatives that are not already proficient at approaching foundations to seek out skill-building workshops and how-to training.
Who/What:
Byway representatives need to skillfully target the charitable foundations (see Resources) that have the highest potential for giving to the byway organization and its mission and/or projects. The byway representatives that have been successful in developing relationships with foundations have received both funds and free services. Free services have included design services and kiosk renderings, and equipment and manpower for installing kiosks. Foundation funds have supported such efforts as byway-based curriculum development, graffiti removal along the byway, interpretive panel design, and historic building restoration. Some byway organizations have been successful at receiving operating funds from foundations.
How:
Developing a strategic plan that matches the byway organization’s needs to a foundation’s mission is key to forming a mutually-beneficial relationship.
While some foundations may require a single letter of request that, if approved, will bring funding to the byway organization, others may require a longer courtship involving multiple meetings, detailed information exchange, and byway familiarization tours.
One nonprofit organization requested multiple-year project support by developing a funding request for a feasibility study with subsequent funding for implementation of the best ideas identified for the byway region by that study. In another instance, the byway organization worked with a series of community foundations that were interested in funding brochures, signage, events or research for only their stretch of the byway.
In New York State, Seaway Trail, Inc., a 501-c-6 not-for-profit organization, developed the Seaway Trail Foundation, Inc. as a 501-c-3 educational foundation that supports the educational mission of the Seaway Trail, Inc.
In some cases, byway organizations have developed – or are looking at developing - Friends Groups as a non-profit funding raising arm.
The byway representatives participating in roundtable sessions offered the following thoughts for developing foundation-based funding:
• study a foundation’s mission and objectives and develop a match that clearly meets both the byway mission and the foundation’s goals and objectives.
• develop strategic planning that may include:
• starting with a small project to establish the byway organization’s credibility with the foundation
• proposing multiple-year projects, e.g., follow a feasibility study with implementation plans to accomplish recommendations one might anticipate from the funder
• forming a non-profit Friends group to apply for foundation funding on behalf of the byway – hotlink to How to Develop Friends Groups
• working through a conservation land trust to access scenic easements for the byway
• working collectively through the National Scenic Byway Foundation to access funding on a national basis.
• develop personal contact with foundation representatives – offer tours, invite foundation representatives to special events, etc.
• host a philanthropy event that brings key foundation representatives to the byway. Learn more about Philanthropy Days in Colorado
• consider asking for in-kind support: free rent, design services, staff expertise…
• partner with interest groups, e.g., biking/hiking associations, natural resource conservation groups, to ask for project-specific funds, e.g., a biking/hiking guide or birding tour brochure to the byway.
• if you have casinos located within 30 to 50 miles of your byway, check to see if there is a casino-association foundation. Some of these foundations support projects up to 50 miles away from their casino.
• an important question to ask when receiving foundation funding for product development is which organization will own the rights to the finished product.
Funding Potential:
Varies case by case.
Resources:
These resources are offered without any endorsement implied. It is suggested that references for any organization or business be checked before making a decision to contract with that entity.
Giving and Grants Information Sources
Catalog of Federal Domestic Assistance
Chronicle of Philanthropy - The Newspaper of the Nonprofit World
Corporate Giving Directory - enter Corporate Giving Directory as keyword for search; to be listed in Corporate Giving Directory, programs/foundations must give at least $200,000 in total cash and nonmonetary gifts combined per year.
Federal Assistance Monitor – subscription publication, includes information on private grants and legislative actions affecting community programs; indicates areas of interest and projected grant awards, as well as funding priorities for both national and regional foundations; and contains proposal-writing tips to help grant coordinators and development professionals.
Foundation Center - resources include free information; a Foundation Directory subscription service providing access to funder profiles and awarded grants database; Foundation Grants Index on CD-Rom with information on some of the largest independent, corporate, and community foundations in the U.S.; ask if your library system provides access to the Center via an online database.
Grant Station – interactive website with potential funding sources, offers mentoring services, searchable database of grantmakers by subscription
Leave a Legacy ® – information on bequests
National Committee on Planned Giving – offers software to calculate benefits to donors
National Directory of Corporate Giving - a publication of The Foundation Center
Prospect Research
American Prospect Research Association
Philanthropy News – a publication of The Foundation Center
Planned Giving Group of New England
Prospect worksheet - a resource offered by The Foundation Center
The Grantsmanship Training Center
IRS Form 990
IRS Form 990 Frequently Asked Questions – Answers to questions frequently asked about the annual reporting form that certain federally tax-exempt organizations must file. Form provides information on the organization’s mission, programs and finances
Other
Charity Malls.com - a website of charityUSA.com, links to websites benefiting nonprofit interests - an example of nonprofit fundraising via the web
Greater Good.com - an example of nonprofit fundraising
Where
the Money Is: Advancement Research for Nonprofit Organizations by
Helen Bergan, 2001
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This project was funded in part by a |
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