Basic Grantmaking. Grantmaking. Key Components of Grantmaking

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1 Basic Grantmaking CommunityGiving Day 2018 Presented by Kathy Grochow Grantmaking A distribution from any type of fund for a charitable purpose is a grant Grantmaking = process of deciding on distributions from unrestricted funds and field of interest funds The 5% rule does not apply to community foundations (only private foundations) Key Components of Grantmaking WHO/WHERE we fund (strategy & impact) WHAT we fund (types of grants) HOW we fund (practices & process)

2 Strategy and Impact Funding Priorities (Who/Where we fund) The importance of funding priorities/ focus Mission provides framework Identify who/what you want to impact Strategic Planning Convening Events Needs Assessment Review & modify priorities periodically Funding Strategies Grant Strategies/Parameters to consider: Geography Operating Capital Program/Project Planning, implementation, seed/start up, technical assistance, etc

3 Community Relationships Grantees are partners in achieving our mission Strive to understand and respect their environment Be conscientious of your proposal and reporting process Communicate Types of Grants Types of Grants (what fund) Discretionary / Responsive Grants Competitive Grants Strategic Grantmaking

4 Practices and Processes Process by choice RFP (Request for Proposal) LOI (Letter of Inquiry) Full Proposal Unsolicited vs Solicited Due Diligence and Budget Review

5 Due Diligence Initial Steps Legal Requirements (done by staff) Confirmation of Exempt Status Compliance with Anti terrorism Rules Prudent Stewardship of Funds Recommended Requirements (done by staff) Review Board List Review Financials & Budgets Project Budget Review Analyze budget alignment with proposed project How is your comfort level in funding requested as percent of project? Do staff expenses seem adequate to attract people to achieve goal? Do program expenses seem reasonable for the scope of the project? What other support or partners are involved? Project Budget Review Statement of Financial Position (Balance Sheet) Total Assets Current Assets Current Liabilities Statement of Financial Position (Income Statement) Revenue less expense Total organizational budget Project or program budget Amount requested

6 Proposal (narrative) Review Proposal Review (broad overview) Credibility Does the organization know what it wants to accomplish? What is the evidence that the organization is currently achieving its goals? What kind of reputation does the organization enjoy within its community and beyond? Proposal Review (Overview, cont.) Capability What skills do the organization s staff and board bring? Has the organization succeeded in similar endeavors of equal size and scale? Feasibility Can the project be done? Has the organization allotted sufficient funds, time, and expertise?

7 Proposal Review (Overview cont) Importance Should this project be done? Is it significant? Is there evidence that the proposal will trigger action the community wants? Committee / Staff Review Process Review & Score Applications Staff compiles the information Information presented, discussed and voted Staff communicates decisions, grantee agreements are drafted. Following the Grant Award

8 Grantee Reports Success Frequency/Timing Right Sized Reports Best Practices Best Practices Defined Focus Areas (Priorities) Defined parameters (501c3, churches, define exclusions) Clear Process Clear Communications (deadlines, notifications) Efficient Review Process (defined roles) Grantee Notification/Agreements Grant Reporting requirements

9 Q & A

10 Master CG Affiliate Grant Process CommunityGiving Grant Application Review the grant criteria before you begin. This will include the following: Grant Focus Areas and what they will consider funding Geographic Area eligibility Size of request requirements What won't be funded Application process CMCF Difference Maker Link to complete descriptions of the criteria for this grant: (add description and link) Funding Amount Range: $5,000-$30,000 Support Strategies* Choices Program support and development Program implementation Organization type* Choices 501(c) 3 Nonprofit Organizations Schools Government entities Geographic Area* Grant must serve the residents of at least 1 of the following counties. Select only the counties that you will be serving. Choices Benton County Stearns County Sherburne County FOCUS AREAS* Education o Support K-12 and after-school programs that promote self-esteem and career readiness. Economy o Adult education programming that increases job readiness and job advancement skills o Offer programming to increase job skills Community Engagement o Support programs that build and promote Social Capital in our community Proposed Project Project Name* Please provide a descriptive name for this project.

11 This name should be descriptive. This name will be used in news releases and on social media should this project receive a grant. Examples: 2018 High Ropes Camps vs Camp Repaving of County Trail #23 vs Trail Project Amount Requested* Dollar amount requesting for this project? Please round your number to the nearest $100. Example: $25,600 NOT $25,595 Organization Information Organization Type* What type of agency is your organization? Choices 501c3 nonprofit Public school Mission Statement* Share the mission statement of the organization. Either type in the organization mission statement Organization Activities and Programs* What services does your organization provide? Share the number of staff and volunteers in the organization. Full-time Staff* Part-time Staff Volunteers Financial Information Provide the following information about your organization's budget and financial situation. In the ATTACHMENTS section, upload a PDF of the most current balance sheet with your operating budget. Previous Fiscal Year Revenue* Previous Fiscal Year Expenses* Previous Fiscal Year Net* Total Annual Organization Budget* Total Organization Assets* Most Recent Quarter Fiscal Agency Information - If Applicable Fiscal Agent Information - If Applicable Grants will only be made to eligible non-profits. If you are using a Fiscal Agent, answer the next 4 questions about your Fiscal Agent and Upload a copy of your Fiscal Agent Agreement Fiscal Agent Organization Name Fiscal Agent Contact Person

12 Fiscal Agent EIN Number Fiscal Agent Agreement Upload Fiscal Agent Agreement. Project Proposal Executive Summary* Describe the project to be funded. Share how the request fits the guidelines for this grant. Total Project Budget* Enter the project budget amount here. The complete project budget will be uploaded in the Attachment Section. Activities to be Funded* Describe the specific activities that would be funded as part of this grant. Community Needs and Impact* Please address all of the following: What are the opportunities, challenges, issues or needs in the community that this proposal addresses? How will this impact the community and why is it important? How will stakeholders be engaged in the planning, implementation, and success of this project? Describe the plan for long-term sustainability of this program. Building Community How will this project encourage people to build new relationships and community connections? Recognition Share the plan to recognize supporters of this project? Instructions for Goals, Action Steps and Outcomes INSTRUCTIONS: Goals and Action items In the next sections, you will share the Project Goals, Action Steps (output), Timeline, and the Anticipated Outcomes (results). Space is provided for 3 Goals and the Action Items needed to complete the goal. Each project will vary in how many goals and action items it will need to be successful. Some projects may have fewer goals, other more goals depending on the scope of the project. Please use the space you need and leave the remaining goal questions blank. Goal 1 and the action steps for Goal 1 is required. Goals and activities should be measurable. You will be reporting on these goals and activities in your progress and final reports. EXAMPLE of Goals, Activities, Timeline, and Outcomes Example Goal: Assist 10 young people to learn and practice leadership skills during the next year. They will learn about civic leadership so they can become active leaders in our community. Example: Activities: Host 6 monthly group meetings that will include leadership building activities. Each session will include mentoring and an assignment to practice their leadership. ( I have included the meeting syllabus as page 1 in the extra file upload.)

13 Timeline: November - December: Recruit and set up meetings; January - June: Meetings. July: Follow up meeting/program graduation with students and mentors. Measure Outcomes: Each participant will complete a pre-survey and post-survey. Our goal is to have 10 of our 12 students active on a local committee by the end of 2 years. Share Goals and Activities and Timelines - Goal 1 Goal 1* Goal 1: Share a goal. Goal 1: Activities and Timeline and Outcomes* Goal 2 Goal 2 Goal 2: Share a goal. Goal 2: Activities and Timeline and Outcomes Goal 3 Goal 3 Goal 3: Share a goal. Goal 3: Activities and Timeline and Outcomes Demographics Share the anticipated demographics. NOTE: Grant recipients will be asked to report on the demographics of people served. Planned Population to Be Served Describe the population you plan to serve. Example: Youth grades 4-7 in XYZ School District Hispanic youth Grades K-12 in ABC neighborhood Planned Number to Serve* Enter the number of people this project plans to serve. Additional Information Optional Upload Occasionally, a picture or other document can help the committee better understand the project. Items such as a program outline or other documents can be helpful to convey more about the project. If this project has such an item, please share here. LIMIT of 2 pages (8x11) and 3mb. 1 pdf file only Attachments Board of Director List* A list of your current board of directors.

14 Organizational Budget* Upload budget for current year, including income and expenses. Project Budget* Include income and expenses. Additional Funders* Create a list of additional funders for this project and upload. Include: Organization Name Type of funder: o State grant o Federal grant o Grants from Individuals o Private Funder Dollar amounts Status: pending or committed Example: United Way - non-profit grant - $5,000 - Pending Otto Bremer Foundation -Private Foundation grant - $10,000 - Committed DEED Grant - State Grant - $10,000 total for 2 years- Committed ELECTRONIC CERTIFICATION IN SUPPORT OF APPLICATION ELECTRONIC CERTIFICATION I, the undersigned, on behalf of the charitable organization named above, do hereby certify as follows: I have the following documents available for review upon request: IRS Determination Letter Recent Audit * Recent 990 * Current Financial Documents including Balance Sheet I am an officer, managing employee, or another duly authorized agent for the eligible applicant.* The information contained in this application is, to the best of my knowledge and belief, true, complete and accurate.* Should CommunityGiving or its affiliate partners make a grant to the eligible applicant as requested by this application, I acknowledge and understand that such a grant is a one-time grant, and that there is no legal, contractual or moral obligation on the part of the Foundation to make any additional or recurring grants to the applicant at any time in the future, nor is there any expectation or understanding that any such future grants will be made.* Application Authorized Signature* By typing your name you are electronically signing this document. You must be an authorized officer of the applicant organization duly empowered to make legal contracts for Grantee. Title* Date*

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