Insights Into How Foundations Make Grant Decisions
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1 Insights Into How Foundations Make Grant Decisions Oran B. Hesterman W.K. Kellogg Foundation October
2 Outline!The Context The World of Foundations!About the W.K. Kellogg Foundation!How Foundations Make Grant Decisions / What We Look for in a Grant Request!Top Ten List!Other Resources 2
3 The Context The World of Foundations!Foundations are forming at a rate of 3,000 per year!currently, more than 50,000 foundations in the United States!In 1999, $190 billion donated for charitable purposes, 76% from individuals donors!foundations typically fund 1 in 10 requests 3
4 The Context The World of Foundations!Competition for dollars is very keen, regardless of the intrinsic value of your project!important that your goals match the goals of the target foundation 4
5 About the W.K. Kellogg Foundation! Established in 1930 by the founder of the Kellogg cereal company, Will Keith Kellogg, with the goal of helping people to help themselves! WKKF focuses on building capacity of individuals, communities, and institutions to solve their own problems! WKKF programs in the United States, Latin American and the Caribbean, and 6 countries in southern Africa! WKKF programs in four major areas: health, food systems and rural development, philanthropy and volunteerism, and youth and education 5
6 About WKKF Grantmaking! Grantmaking activities are aligned with strategic priorities set by each programming area! Primary approach for addressing strategic priorities is through initiatives! An initiative is a proactive, deliberate, and significant investment of WKKF resources, around $40-50 million dollars and lasting 8-10 years. They are designed to create desired changes by integrating selected stakeholders, stimulating synergy among them, and leveraging their collective knowledge and capacity 6
7 Food and Society Initiative Vision: A future food system that provides for all segments of society a safe and nutritious food supply grown in a manner that protects health and the environment and adds economic and social value to rural and urban communities 7
8 Food and Society Purpose To create and expand community-based food system enterprises that are locally owned and controlled, environmentally sound, and health promoting 8
9 Food and Society Goals 1. Raising the profile and value of the scientists, institutes, and organizations that support the advancement of sustainable food system approaches, specifically the creation and expansion of communitybased food systems enterprises (CBFEs). 2. Broadening the agenda for scholarship at land-grant universities and other education institutions to include engagement with community and partners toward a comprehensive approach to improving the food system that includes attention to support of community-based food systems enterprises (CBFEs). 9
10 Food and Society Goals 3. Informing public policy that rewards private and public actors who support expansion of community-based food systems enterprises (CBFEs). 4. Increasing the number of farms/acreage that utilize environmentally sound agricultural systems. 5. Increasing the number of economically successful food-related enterprises that are locally owned and controlled, environmentally sound and health promoting 10
11 Food and Society Mission, Purpose, and Goals 6. Increasing the number of funders and partners supporting the creation and expansion of community-based food systems enterprises (CBFEs). 7. Fostering public debate on and response to the human health impacts of the current food production/distribution systems and their nutrition and diet implications 11
12 How Foundations Make Grant Decisions 12
13 What is a Grant Request?! A prospectus for an investment opportunity. In this case, the return on investment is not monetary profit, but public benefit! A request details one of society s needs or problems. It outlines a strategy for addressing the problem and justifies the methods for achieving a solution and what the intended outcomes and impacts will be. It indicates who will handle each important task, for what duration and at what cost 13
14 The Pre-Proposal Proposal! A pre-proposal, NOT a proposal, should be the initial point of contact with a foundation.! Pre-proposal should be about 2-3 pages long and contain the following: Brief statement of the problem One-line grant purpose statement (summary of how your project plans to solve the problem) total dollar amount requested project activities, objectives, targeted audience(s), operational procedures, duration of grant, sustainability plan, evaluation plan Personnel and financial resources available and needed 14
15 The Pre-Proposal Proposal! At this preliminary stage, personal visits to the Foundation by prospective grantees are discouraged.! If the pre-proposal is favorably reviewed, a program director will be in contact with the organization to develop a full proposal. A site visit usually follows. 15
16 Requests That Stand Out From a Crowd!The applicant has done their homework!the applicant s idea is innovative!clarity around goal to be achieved, why it s important, and how it will be carried out!the applicant is committed and determined to carry out the project, no matter what!the applicant has the capacity, expertise, and know-how to make the project work 16
17 Requests that Stand Out from a Crowd!The applicant is other-centered and not selfcentered!the applicant has a comprehensive approach to the problem!the applicant is willing to work collaboratively with others who can help 17
18 Requests that Stand Out from a Crowd!The applicant is willing to let an impartial evaluator assess the project!sustainability the applicant will continue the project after foundation funding ceases and has a plan for how to do that in the proposal!the project has support from other funders 18
19 Common Proposal Problems!Lack of knowledge about best practices; failing to demonstrate staff s grasp of the field or their own organization s experience!no sustainability plan!evaluation plans are sketchy or absent!little discussion of external needs or internal organizational challenges that may affect the chances of success. 19
20 Common Proposal Problems!Budget expenditures not justified!financial information missing or incomplete 20
21 References and Additional Resources! Orosz, J. (2000). The Insider s Guide to Grantmaking: How Foundations Find, Fund, and Manage Effective Programs. San Francisco: Jossey-Bass.! Kibbe, B., Setterberg, F., & Wilbur, C. (1998) Grantmaking Basics: A Field Guide for Funders. Washington, D.C.: Council on Foundations, Jossey-Bass Publishers.! W.K. Kellogg Foundation website: The Foundation Center: One of the most authoritative source of up-to-date information on private philanthropy in the U.S., the Center provides print, CD-ROM, and online resources to help grantseekers identify appropriate funders and develop targeted proposals. The Foundation Center website: Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership. Nonprofit Good Practice Guide. 21
22 Preferred Practices! Fundraising begins at home! You have to ask!! All fundraising (like politics) is personal! Know your donor! Thank your donor! Put eggs in many baskets! Concentrate on individuals and earned income! Create fund development plan with specific goals! Keep your promises! Keep meticulous records 22
23 Pitfalls! Not holding people to their commitments! Conducting fund drives without experienced/professional help! Having no fundraising goals! Having board members in name only! Having board members who do not give! Keeping inadequate records! Failing to do your homework re: potential donors! Not giving top priority to individual donors! Being reluctant to ask! Insufficient planning 23
24 Presentation Available Online Programming Area: Food Systems and Rural Development What s New 24
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