Feeling Overwhelmed About Fund Raising and Your Non Profit?



I was recently invited to work with an upandcomer non-profit interested in securing funding.  So many people were interested, I was prompted to post the notes from my talk here, on my blog. This is just an outline and a brief overview, but I hope it will help educate and inspire you to reach out as far as is needed for you to pursue your dreams – no matter how overwhelming they may seem at the beginning of your journey.

Basically, my experience encompassed two main scenarios in my quest to acquire funding through grants.  

Sometimes, I would find money available, then match it to a relevant project I would design according to what one of my clients needed.  In most cases, they were heretofore unaware of even the availability or desirability of funding for a project.  Needless to say, a lot of projects fell by the wayside.  “Rails to Trails,” converting old, abandoned RR tracks to hiking and biking trails is a perfect example as 99% are happy to have them-for all of the obvious reasons, but never realized there was free money available for the asking to fund a conversion that seemed too unique and overwhelming to pursue. During the process however, everything fell into place with no out of pocket dollars spent. 

Another scenario was when a client would come to me and say, “I have a project in mind; is there money anywhere for such a project?” A unique example: A DAs mom wanted to form a dance company with her senior friends to perform at various events around the city so he called me. Ironically, I was able to find money for that so never ever despair, no matter how unique or non-traditional a project seems.  You may need a very creative advisor and grants writer to put the project together is the only caveat, but this one was funded and the ladies were ecstatic to begin a new chapter. 

I've worked with non profs and non prof hopefuls; everything from city and county governments seeking $millions to United Ways and down to the little guys like PTAs. There are commonalities and a  few basics relevant to all.

The paperwork to put together that you will need to begin the application process is typically:

Your IRS Determination Letter 

Your latest 990 or 990N and financial statement

Most I’ve seen want the specific mission statement of your organization; the one you filed for your 501. That also reminds me that you will want to keep your mission as specific and as open as possible, to keep you more competitive for future funding.

A Line-Item Budget detailing how your monies were spent for at least 1 year, and how the funds being requested will be used is another common requirement. 

Try to prove as much solvency and in this case, dedication of your members.

A proven track record sometimes is required; usually helps swing things in your favor. Keep this in mind when appointing and recruiting your Board, consultants, and advisers.  Match it as closely as possible to your funders' priorities. For that, you need to read between the lines. While funders have specific priorities, they're also open to new and innovative projects that excite not only you, but will them as well. Having sat on the other side of that fence and been on the approval side of funding requests, I promise that finding a new creative project constructed by your applicant is exciting and if you convey that excitement, it very often will get funded.

Here are some things you can start compiling now, so if you get an invitation, or you find out about a grant at the last minute-which is more common than you think, you will have these on hand. 

Copy of resumés or qualifications for the following people:

Board of Directors 

If applicable: 

Project Manager for the project Not for the organization, but the specific project(s) for which you require funding

Grant Supervisor is also optional but this is extremely helpful as it’s usually a full-time job and they’ll need to be very organized, accountable, and most of all - very good at delegating. 

Speaking of delegating, I've seen tensions rise unnecessarily in organizations where the leader is not one able to delegate. Creating a team and empowering people to work together, vs dominating them can definitely make or break your project(s). And you won't get future funding when that dynamic becomes evident so best to have honest open communication and choose wisely at the beginning.

Piggybacking, I call it, is another way to acquire funding. For that, you’ll need an entity that already has it’s 501 and you will piggyback on it. That means, they will be the “official” applicant and keep anywhere from 15%-50% of the total grant has been my experience.  The amount is totally negotiable and you would be dependent on them to apply and dole out the funds to you, remember.  Sometimes they’re completely philanthropic and sometimes it’s a requirement for them to partner or fund other entities, either to keep their non prof status or their funding.  Sometimes both.

As a 501 wanna-be, you can pursue that avenue first, then acquire your own funding once you have your official non profit status, a history, and credibility. Beware though, the other agency is not always happy with that decision since that means you are now a competitor vs the more less symbiotic relationship you once had with them so heads up and evaluate the pros and cons of such a partnership. 

A lot of grants require a 50/50 match; some will accept in-kind contributions so jot down what you think you may have to offer. Don’t discount anything. One member may have left over roofing shingles to donate for example, and his in-kind contribution would be broken down to how much they’re worth retail, plus $/per hour to install them along with perhaps left over gutters or other improvements to your building that a member(s) would contribute.  That said, brick and mortar grants are rarer, but they do exist.

Retirees and employees in your organization may very well have a foundation attached to their company. If possible, ask your members where they work/worked and we’ll find out if they have one if they don’t know. Most don’t even realize the foundation exists. 

Remember, mum’s the word; lose lips sink ships…….

If you are interested in acquiring grants, so are a lot of other people and it’s highly competitive.  Sometimes you must be invited to even apply for a grant. Sometimes you are allowed to submit an RFP out of the blue. Sometimes you will have to become a recognized member of the community, whether it be your location or your genre. Just don’t despair, grantors are for the most part, always willing to find new, exciting and innovative projects. 

You should be aware that government grants most always require a 50/50 match, and most often require you pay for everything first, then submit the receipts for reimbursement after the project is completed.  That’s especially important for you to know if you’re requesting a $200,000 grant for example, and are a new organization with no money in your coffers.

Government entities also have the option of reallocating funding no matter what they’ve promised you.  For example, after 9-11, most all grant money that was budgeted for specific organizations/projects was reallocated to activities relevant to protection; the safety of our country. That meant, no matter how much you spent and how meticulous you were at keeping receipts, your funder reprioritized and the phrase, “you can’t fight city hall” has never been more relevant. Not to mention, crushing to your budget and emptying pockets of those who put up the funds for the project, assured they would be reimbursed. 

A suggestion would be to announce to your group that you’d like to start fund raising and ask for a confidential Wish List from members with ideas that would benefit you.

Ask them to think about whatever they could contribute so if you find funding, you will know what’s in your toolbox, especially for a match. It may be as simple as a donated space which also shows your dedication to and respect in the community you're serving. Remember, there are dollar for dollar matches and there's the contribution of donated materials, time and effort to which you assign a dollar amount. Remember to be completely honest and realistic.

Another important lesson I learned is that, “too many cooks can spoil the soup.”  A grant or project committee is highly recommended and should be mostly or all board members, provided they work well together, so your initial explorative discussions will be meetings that include only them.  It sounds a bit clandestine and perhaps negative, but again-remember you’re competing, and the worst truly does come out when people are competing for money.  

Check your bylaws and see if board members would be allowed to participate in a project that generates funds. When the wrinkles are ironed out, meet and decide when and how to announce the project to the entire organization, evaluating where you are in the funding process and remembering how many loose lips will now be in the wind. Always always be open and honest and have documentation for everything you do. 

There are always simple fund-raising ideas to get the ball rolling and get everyone familiar and serious.  A simple thing like a Brag Jar is also a fun and easy ice breaker. People are invited to express a 40 second brag, i.e., “I’m a grampa now,” “My son finally mowed the lawn.”  Whatever…….. and the member will put whatever donation he wishes into the Brag Jar at every meeting, and that will be deposited in your account keeping a record of the “Brag Jar donation” in your minutes.  There are of course other small, informal fund raisers like a pig pickin.’  It's fun and also helps you gain popularity and networking opportunities with your community.

You may uncover more talent and contributions than you ever imagined when you ask members for their list(s), and it’s an excellent start to your match or contribution lists. Any thoughts or notes you can contribute to prove how hard you are willing to work and how much you are willing to contribute will ultimately help move you to the top of the pack of applicants. 

Federal Grants used to be rubber stamped; then they were relegated to states, then cities, and on down the line.  The last big change – in my opinion was when the philosophy went from a handout to a hand up and a different philosophy became the norm.  United Way and their Planned Parenthood affiliation in the 90s was the perfect example. 

Always, always, always keep your grant funds separate from your regular account.  It’s extremely important that you have proof positive of where every cent went should you be audited by your granting organization or the IRS. Even if you are challenged by a competitor, you have nothing to worry about if you have receipts for every cent. 

Remember, the worst comes out in people when money’s involved, no matter how dedicated, honest, philanthropic, and committed to the cause they were initially.  Strong leadership and consistent communication with complete records above all, is paramount during this process.  

I highly recommend that the funds from your grantor be deposited in your special account, delegated just for grants, whether it’s one lump sum or it dribbles in after receipts are submitted.  I’ve always required 3 signatures on that account as well.  Make them easily accessible if you’re not doing it online.  Then there is a printed, indisputable hard copy check and bank statement – or credit card log depending on how you pay.  For example, “$60 for postage” on June 1 proven by a cancelled check and the receipt from the USPS; or for “Ten 2x4s at Home Depot for the project” on the subject line and proven by the same.  Most funders will require everything from a very loose to a very detailed account every week or every month or every quarter; even perhaps at the end of the funding round of the hours you worked and monies you spent so this is the easiest and indisputable way to provide that.  It’s not a problem and much easier to keep track of what you’re spending and where, than scrambling at the last minute and your memory will not be what you think.  This is the best case of being proactive and prepared that you will ever learn, and will be invaluable for another grant from them, or from other funders in the future. 

That said, sometimes grants are just rubber stamped simply because there’s money left over that a funder wants or needs to spend, whether it be government, a particular group, or foundation grants.  That’s the very best-case scenario and the good of grants.  Unless that’s the case, and you are a known and trusted friend of the funder, a funder never ever wants to feel manipulated of course, so trying to negotiate with them to customize some off the wall project you dreamed up to make it meet their funding criteria is the worst thing you can do.  It’s probably the biggest temptation and happens too often.  You will probably lose whatever rapport and credibility you have, have tried to build, or ever will have with them or their board.

When you do receive your grant, it's exhilarating on so many levels. You probably spent a lot of time, sweat and tears designing a project that was creative enough to be the best.  Your hard work is rewarded and you are on the road to accomplishing the goals for your organization that you've had since you began so I can't stress enough that it's a challenge well worth pursuing.

Good luck and happy hunting! 

 

Comments

Anonymous said…
These are excellent points and tips condensed so well for fund raising for my new non profit.

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