Prospecting for Foundation Grants

Prospecting for Foundation Grants

By Jonathan Weber-Mendez, Director of Mission Impact

The world of grants and grant writing is often shrouded in unnecessary mystery. At networking events, in professional circles, even at the family BBQ, grant writers are frequently regarded as perplexing beings and approached with that most esoteric of questions: where do even you find grants?

Dozens of websites and programs exist to assist nonprofits in "finding grants." While these are great resources, they don't provide much of a process for prospecting (researching) for foundation donors.

When prospecting foundation donors, it is helpful to think of the process in three steps, which we at Write On refer to as:

• The Fishing Net

• The Funnel

• The Friend

The Fishing Net

The fishing net is an analogy for scouring the internet to identify every possible foundation that may be interested in your organization or the type of work you do. You can use tools like Candid (formerly Foundation Directly Online), Instrumental, GrantStation, or countless others to identify these foundations quickly. Often a simple Google search and a glance at the foundation's website will get you started. 

Before jumping into a robust database, like Foundation Directory Online, it can be helpful to have a clear idea of your funding needs. By focusing your search and thinking outside the box when defining these needs, you can elevate your research skills and will be able to find more viable prospects, A few key questions to consider before you begin your search for prospects may include:

• What geographic communities does my organization serve?

• What social groups or individuals does my organization serve?

• What services does my organization provide for its target community? 

Using these questions begin to describe what you are trying to fund. Type a brief sentence of what you are trying to fund, such as "health, an after-school program for children in Minneapolis". Using that simple description you can begin to segment your needs and start searching using terms associated with your needs, such as "health and wellness grants", "child welfare grants", and "Minneapolis after-school program grants". Segmenting your search in this way allows you to discover every potential donor that may align with your organization.

The Funnel

The funnel, otherwise known as the qualifying phase, describes the process of separating donors that are a good fit for your organization from those that are not. There are four basic steps to qualifying a grant prospect:

• Qualifying the giving region(s) (where they give)

• Qualifying the giving purpose(s) (what they give to)

• Qualifying the giving amount(s) (how much they give)

• Qualifying the giving type(s) (how they give)

The primary tool to find that information is the IRS Form 990. Every foundation is required to list the grants given in the previous year on their IRS Form 990. This list will include the city and state of the nonprofit that received the gift (a simple Google search of a nonprofit will provide insight into their mission and if it is similar to your mission), the size of the gift, and the type of the gift (general operating, programmatic, or capital). 

Write On recommends reviewing the following sections of each Form 990:

• Part I – General Foundation Info: Foundation assets are on this page and can help quickly determine the size of the foundation and its ability to give.

• Part VIII – Foundation Trustees and Staff: Take some time to determine if there is any overlap between the foundation’s trustees and the spheres of influence of your own board members. 

• Part XV – Solicitation Process: Here you will find all the information needed to submit a grant.

• Part XV (Page 2) – Grant List: This section lists all grants awarded by the foundation that year and can help determine a donor’s interest in your mission and programs.

The Friend

Once you have a list of strongly qualified foundation donors, the last step is to go out there and make a friend. Pick up the phone, introduce yourself, and invite the donor out to see your programs in action. Always remember that the strongest written grants in the world can only get you into the race - not across the finish line. People give to people and cultivating authentic relationships with the donors in your community will propel your mission forward and ensure a reliable funding, year after year.