Fitting Grants Into Your Fundraising Toolbox Cheryl L. Kester, CFRE The Kester Group, LLC
Fitting Grants Into the Toolbox Integrating into development team Staffing models Grants reality checks Being strategic
Grants Mythbusting Grants will fund our entire project Grants are all about the writing The grants officer is just a writer The grant consultant does all the work Anybody can write
Grantwriting Secret #1 Grantwriting is just fundraising
Grantwriting = Fundraising Same principles Same steps Good prospects Capability AND Interest The same skills, words, methods that motivate individual donors motivate grant makers
Motivating Donors Strong organization Exciting ideas Proven successes Community support Compelling stories Know your donor
Grants are Just One Tool NOT the hammer!
Diversified Fundraising Stream Annual fund Events Direct Mail Face-to-Face Solicitations Sponsorships THEN: Major gifts Grants Planned giving
Staffing Models for Grants Exec. Dir. is alone does all fundraising Dev. Dir. added portfolio divided w/ E.D. Dev. Staff added half grants/half Full-time grants director added (E.D. still may retain part of portfolio) Outsource at any stage
Grant Writer as Part of the Team The grants person belongs at the fundraising table Setting reasonable annual goals Identifying realistic grants prospects Writing Case for Support Developing RFAs for consultants
Common Grant Mistakes Grants OR staff forgotten during planning unrealistic expectations of grantwriter Omitting foundations from prospects list Not cultivating foundation prospects Failing timing to plan approach strategies and
The Naughty List Please DON T Isolate the grant writer Assume grantwriting is not fundraising Hog all the grantwriting Assume anyone can write Give the writer a wish list
Strategic Integration of Grants Grantwriter at team meetings Set organizational priorities Put in annual fundraising plan Prioritize grant requests Gather success stories Support training/resources Leverage existing materials Cross-train/mentor
Ammo for Unrealistic Expectations!
Myth #1 Grants are grants
Reality Check #1 = Foundations are People Too Different missions Different sizes Different types of funding Different things they will fund
How They Fit Together Program Grants Challenge Grants Equipment Planning Grants Construction Finishers
Typical Project Funding Timeline Project Start 2014 2014 Financial Feasibility Initial Funding 2015 Wrap up Funding 2016 2017 Public Phase 2018 2019 Project Complete 2019
Hypothetical Funder Types Funder Funder Type Type of Grant Size Frequency #1 State Agency Planning $25,000 Annual #2 Regional Foundation Challenge $100,000 2 yrs to meet challenge #3 Corporation Sponsorships In-kind or $10,000 Annual #4 Federal Agency Program $750,000 Every three years #5 Local Foundation Capital $35,000 Annual (likes to help meet challenges)
Unrealistic Expectation or Myth #2 Grants will solve our budget woes
Reality: Total Giving in the US 2012 Individuals 72% Corporations 5% Foundations 15% Bequests 8% Source: Giving USA, 2013
Reality Check #2 Grants comprise 12-14% of gifts annually Will NOT be 12-14% of your budget Not for new agencies Grants not stable yearto-year Wait-out periods Foundation giving is down Competition is fiercer than ever before
Unrealistic Expectation or Myth #3 Grantwriter can raise his/her salary... In the first year!
Reality Check #3 Can t take it from grant budgets Grants take time Constrained by deadlines Income not steady Won t fund same-old, same-old Must have fundable ideas/ projects
Unrealistic Expectation or Myth #4 Requiring foundation visits or meetings
Reality Check #4 Very few allow meetings Some won t even take phone calls! Small (or no) staff Deluged with applicants
Unrealistic Expectation or Myth #5 Hit the Big-Name Funders
Reality Check #5 Biggest names fund biggest projects National or international reach required Must have capacity PLUS interest Respond with research
Unrealistic Expectation or Myth #6 Increase proposals AND increase funding rate
Reality Check #6 High funding ratios not best measure of success More proposals = lower funded ratio That may be OK Prioritize Know likelihood of funding
Other Unrealistic Expectations?
Time for Some Good News: You CAN do This!
Grantwriting Secret #2 Grantwriting is only 20% writing...
Assets brought to Table Program Person Knowledge of org Has program ideas Expert on services Focus on current need Grant Professional Knowledge of funder Sculpts program ideas Expert on funderese Focus on potential
One Example: Campaigns Comprehensive research BEFORE campaign Who likes to give big, initial gifts? Who makes challenge grants to reach goal? Who will give only 1% of total goal? At what point in the campaign do you ask? Do normal wait-out periods apply? Timing and right-sizing essential
Typical Project Funding Timeline Project Start 2014 2014 Financial Feasibility Initial Funding 2015 Wrap up Funding 2016 2017 Public Phase 2018 2019 Project Complete 2019
Hypothetical Funder Types Funder Funder Type Type of Grant Size Frequency #1 State Agency Planning $25,000 Annual #2 Regional Foundation Challenge $100,000 2 yrs to meet challenge #3 Corporation Sponsorships In-kind or $10,000 Annual #4 Federal Agency Program $750,000 Every three years #5 Local Foundation Capital $35,000 Annual (likes to help meet challenges)
Real Grants Calendar Funding Pursuit Funder FY2014 Jan Feb Mar Apr CWSRF for Agate Beach ('14) ODEQ 319 Non-Point Source Grant ('14) ODEQ CWSRF for Bay/Moore Rd ('14) ODEQ Local Government Grant ('14) OPRD Emergency Funds Matching Grant IFA May Jun Water Storage Grant ('15) OWRD Pre-Disaster Mitigation Assistance Grant ('15) FEMA Water Supply Funding ('15) OWRD
New to Grants Just do It Add to fundraising plan (see 50 Asks in 50 Weeks book by Amy Eisenstein) Start gently local and friendly Start small short letters Use local Non-Profit Resource libraries Foundation Center Cooperating Collections Talk to colleagues
Kicking It Up a Notch Update your research Be strategic Put on your schedule Steward current grantors well Moves management New types of grants Cross-train/mentor Outsource on big ones
Best Resources **Tori O-Neal-McElrath. Winning Grants Step by Step. 4th ed., Jossey-Bass, 2013 ($25) Margolin, Judith, ed. The Foundation Center s Guide to Winning Proposals II, The Foundation Center, 2005 Susan Howlett. Getting Funded: The Complete Guide to Writing Grant Proposals. 5th ed., 2011 ($48) Warwick, Mal. How to Write Successful Fundraising Appeals, 3rd ed., Jossey-Bass, 2013 ($38) Amy Eisenstein. 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop, CharityChannel Press, 2013 ($25)
Writing to Win Federal Grants: A Must-Have for Your Fundraising Toolbox Charitychannel.com
About Your Speaker Cheryl L. Kester, CFRE The Kester Group, LLC ckester@cox.net (479) 582-1053 www.kestergroup.com @KesterGroup Grant Guidance blog & free newsletter at www.kestergroup.com