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Latest Action Alerts from the Youth Policy Action Center
Sometimes building a better world for kids takes more than good ideas and good intentions. Money does matter. That's why the first in Connect for Kids' new series of on-line discussions will give you a chance to ask Executive Director Cecilia Garcia for tips on how non-profits can find the funds to meet their goals. Cecilia Garcia:There’s no such thing as too much information when it comes to raising funds for non-profit organizations. Connect for Kids hosts today’s Talktime to provide a space for sharing resources and ideas on how to fund all of the terrific programs and activities that non-profits generate. Joining me with his considerable knowledge and expertise is Bob Reeg, public policy and program development consultant. I can personally attest to Bob’s skills, as he helped us secure 2004 grants from two foundations we had never approached before. If you don’t have your question answered here today, check our archives in the coming weeks. Anonymous:What written materials will I need to prepare as I seek foundation, corporate, or public funding? Bob Reeg: Get ready to write! Be ready to prepare at least these three types of fundraising documents: Case Statement—A case statement describes your organization’s need for external funding (either for general operating purposes or for a specific project) and justifies that need. Letter of Inquiry—A letter of inquiry introduces a prospective funder to your organization and your project concept and makes a request for financial support. Full Proposal—A full proposal describes your
organization’s need for external funding (either
for general operating purposes or for a specific project),
justifies the need, and outlines in detail the scope
of activities you will undertake with the funds and
the expected benefits of the project. Teri Stoddard (single mom and grandmom) :I
run a very successful online peer support group for
single parents. You can see it here: http://groups.yahoo.com/group/SINGLE-PARENTS-/.
I would love to take this a step bigger, but I would
need help. I'd like to attain funding so I can start
a Web page that supports this group, and offers links
to government, medical, mental health and charity
services, which could be searched so members can find
them locally. If I had funding I could spend more
time on this. I'd like members to be able to have
different areas to post in, like Parents Of Infants,
Abused Parents, etc, along with a general area. These
are all things that my members have asked for. Can
you tell me where to go to achieve my goal? CG’s response: Teri, It looks like you’re offering a valuable service for single parents and you’re at a critical decision-making stage – do you continue to do what you’re obviously doing well, or do you take the next step? I think you have to carefully think through what the next step really is. You stated that you want to build a Web site for your support group, but I can tell you from the experience I’ve had with Connect for Kids, foundations do not fund Web sites; they fund organizations that utilize Web sites as a major communications component of their work. I suggest you take a look at our (Toolkit for starting a nonprofit). This resource will help you carefully think through the many steps required to qualify for tax exemption as a public charity by the Internal Revenue service. Without this tax exemption, you’ll be hard-pressed to solicit donations from foundations, corporations or individuals. BR : If you are leaning toward starting your own nonprofit, you really need to investigate whether there may already be other organizations providing the services you want to offer, or generally serving the group(s) you intend to reach. It is critical that you conduct this “environmental assessment” to validate that there truly is a niche for the work you want to do. The best way to do this is to start your colleagues and peers if they are aware of other sources of assistance such as that you offer. You may want to poll the parents who participate in the on-line support group to ask them if they go anywhere else for such support. You may also want to conduct an elementary Web search to see how many hits are made on the topic. Open those Web sites and see what kinds of services are already being offered. You may find an organization serving your “target audience,” but not providing them the service you offer. If that’s the case, you could approach them with your great idea and see if they will work with you to move it forward, perhaps incorporating it into their service line. This advice is not intended to discourage you from “doing your own thing.” I applaud you for your passion and your persistence. But, in terms of fundraising purposes, you will find that as the “new kid on the block,” there may already be other established groups already doing what you want to do, and you will have a harder time securing funds accordingly. While securing funding as an individual is rare, it is not impossible. See the Foundation Center Web site at http://www.fdncenter.org for information about their Directory of Foundation Grants to Individuals.
From: Naola Brown CG’s response: In order to answer your question, I looked at a few science museum Web sites for guidance. My first suggestion, Naola, is that you go to the following two sites: the Detroit Science Center (www.sciencedetroit.org) and the and browse their “About Us” and “Donations” pages. Both are nonprofit museums. The Detroit Science Center explicitly states that it does not receive federal or state funding for operations. The Ann Arbor Hands On Museum has received grants from the National Science Foundation (federal funds). Both museums provide individuals, corporations and foundations a variety of ways to support them. Detroit has its 2001 annual report available online, and you can take a good look at its funding sources. What’s clear in both of these examples is that local support is critical to the success and sustainability of these museums. The bottom line is that individuals in these two communities recognized the need for a good community resource and engaged a wide range of community resources (big and small) to make them a reality. Once you get a sense of how other science museums are funded, see if your community has the corporate and philanthropic resources required. BR adds: An organization’s annual report is a useful document for familiarizing yourself with the financial picture of a nonprofit. Also, the organization’s financial picture is reported in the tax filing submitted by nonprofit organizations called the “990” (for IRS Form 990) by nonprofit organizations. Nonprofit organizations are required to release copies of their 990 to the public on request. You can also access basic financial information about a nonprofit organization through on-line services such as GuideStar at http://www.guidestar.org. Your questions regarding information about sources of funding for science museums generally may be answered by the association representing such institutions, the Association of Science-Technology Centers. Visit them at www.astc.org. Carla, Atlanta, GA:: I run a grassroots nonprofit for girls that was founded in November 2001. We are volunteer-led, with very limited funds, and I am wondering if you have funding advice for smaller organizations that do not have an established track record with foundations. BR: Couple of thoughts on this. First, start out asking for a small amount of funding. This will provide the funder an opportunity to get to know your organization and to witness that you are wise stewards of funding. You may also want to look for a funder that is interested in supporting your special niche area. Or a new funder (such as a new family foundation) that is looking to build its own portfolio. Yes, believe it or not, there are new funders as well as new organizations seeking funds. From: Judy Stauffer Will you address the topic of finding “operating” dollars to operate after school programs for small nonprofit sites? From: Pat Hunter We are a 501(c)(3), youth/community center in a rural
area of northeast Ohio, about 50 miles east of Cleveland.
We are renting a building in a village where all the
middle school and high school students attend and
some elementary students (other elementary schools
are located in townships within 10 miles of the site).
We provide after school activities and a safe place
for students who need a place to be between school
and other school related activities as well as special
programs. Judy, Pat and Laura, Thanks for having such similar questions! Basically, you both are looking for funds that are unrestricted in their use. The good news is that many foundations are recognizing the need to support the basic operations of nonprofit organizations, rather than tying the use of their investments to a specific program area. The bad news is that it takes a fair amount of research to find these sources of unrestricted dollars. I worked for one major nonprofit that successfully raised its annual operating budget at one huge fundraising event, but it was a major enterprise that took months of staff time to execute. You both may be well aware of the Afterschool Alliance, a national nonprofit organization dedicated to raising public awareness of the importance of quality afterschool programs. This organization’s web site is a very rich resource, with a special section dedicated to funding sources. http://www.afterschoolalliance.org/funding_main.cfm Anonymous: What should I think about specifically when preparing a case statement? BR’s response: Once you have concluded that you need external funding
to sustain your current operations or launch a new
venture, make your idea concrete by preparing a case
statement. Don’t wait to put pen to paper until
you see a funding opportunity announced that aligns
with your purpose. Be proactive by preparing a case
statement and then shopping your proposal to potential
funders. Also, having a case statement (or set of
statements) on hand will ensure that you always have
some material at the ready to take rapid advantage
of unplanned encounters with funders, such as sending
a follow-up letter to a funder introduced to you at
a networking event or referred to you by a colleague.
Finally, having a case statement on hand will make
it easier for you to respond to funding announcements
when they are issued. You can simply cut and paste
the bulk of your text into the application format,
and then adapt and tailor it to the specifics of the
funding announcement. The case statement can be as short or as long as you wish, as long as it includes the elements listed above. Crafting a comprehensive document from the outset will better enable you to use it as the source of “boilerplate” for letters of inquiry and full proposals (see below). But make sure that the case statement has a crisp summary not to exceed one page for those funders who want only a brief introduction to your idea. Mike, Missoula Montana: Finding private funds available to Montana childcare is a time consuming task. How do I find funders in a minimal amount of time, for Montana childcare? BR:First, let me caution you that finding funders in a "minimal amount of time" is not truly realistic. One way to narrow your search is to look for foundations that focus primarily or exclusively on giving in your state. You could use the online or paper directories of the Foundation Center and search for funders with a history of giving to your state. Also, check out the Association of Small Foundations (www.smallfoundations.org) to see what's available in Montana. The world of philanthrophy is pretty vast, and you should look into community and family foundations as well. All of this is available on the Foundation Center's Web site. www.fdncenter.org Tammy, Ceres, CA: How can I bring attention to my community's needs in a proposal, when neighboring communities statistics are worst than ours? CG’s response: Tammy, I understand your concern, but I believe that the rule of thumb for every proposal I write is clarity of purpose. Funders want to see a compelling statement of need, a solid plan that describes how your organization is meeting or will meet those specific needs, and an evaluation that will document successful outcomes. I think you have to really focus on your specific community. In my experience, foundation program officers are pretty sophisticated in their knowledge about the geographic area they serve, so they will know without you telling them the different socio-economic conditions of your community. The point is for you to be absolutely clear about why your organization deserves consideration. BR’s response: You may also want to consider a services approach that includes your neighboring communities. You may be able to make an even stronger case for funding if your proposal involves a collaboration among neighboring communities. R P, Williamsburg, VA: : With funding sources drying up for grant writing is starting a non-profit organization a good idea now??? CG: & BR:I understand your concern, but the impetus for starting a non-profit organization should be in identifying a real community needs, and having a strong organization approach to address this need. As tough as things are, I believe it's getting better, with the stock market rebounding to some degree. I believe the signs are getting more positive. Also, be sure to conduct an environmental assessment to determine whether there may already be other organizations already doing the work you wish to commence. Troy, Pikeville, KY: What are some good fundraising efforts that work in rural areas? CG’s Response: I’ll throw this question open to those of you who are far more familiar with rural areas than I am. What has worked in your areas? Troy, I’d also suggest checking the following sources for foundations in your geographic area: The Foundation Center (http://fdncenter.org/) is an excellent resource for starting your research, regardless of what your issue or geographic area is. When you go this Web site, check the “Quick Links” section for individual grantseekers. This section will help you use this online resource effectively. This site has a great section called “SearchZone” that can be very useful. The Chronicle of Philanthropy (http://philanthropy.com/) is another “must” Web site for your research. Even if you don’t subscribe, you can go to the section called “Deadlines” and browse through current postings by foundations on what their funding priorities are. from Michigan:I’m having trouble with my letter of inquiry. Any advice? BR’s response: Many charitable and corporate foundations include a letter of inquiry as a stage in their grant-making process. This allows the funder to review a summary of your proposal and determine whether it aligns with their priorities and funding availability. After the review, the funder will then either ask you to submit a full proposal (see below) or inform you that it will not be in a position to entertain a full proposal from you. Many funders accept “unsolicited” letters of inquiry, that is to say you do not need to be formally invited by the funder to submit the letter. Also, a funder may invite a letter of inquiry as the next step to a personal or telephone conversation with a grant officer. Typically the funder has a published set of instructions for submitting letters of inquiry. The instructions are likely to discuss whether a letter of inquiry is required to initiate the grant-making process. The instructions may also describe the contents, format, and length of the letter of inquiry. If no such instructions are given, then use your own method. We recommend that your letter of inquiry not exceed three pages. The letter should include your organization’s mission statement; a brief description of your target population(s) and services; a summary statement of the problem or issue your proposed project will address; a summary description of your proposed scope of work; an explanation as to how your proposal aligns with the funder’s priorities; organizational revenues and expenses for past and current fiscal year; proposed project budget; and the level of funds requested (the funder instructions usually include information about the maximum and average sizes of grant awards). The instructions also will likely give you direction on how the letter of inquiry should be sent. Some funders desire a paper copy letter. Others will accept letters sent to an e-mail address or, through an on-line application system. If no instructions are given, then address your letter to the chief executive of the foundation and send a paper copy by postal mail.
From: Charles and Ann Palmer CG’s response: Charles and Ann, I took a look at your Web site to see your contributor base. It looks like you’ve been very successful at attracting support from individuals, with a few foundations and small businesses. I then took a look at the Greater Austin Chamber of Commerce Web site to get a sense of the business community in which your child development center operates. As I suspected, the Austin CC draws its membership from a pretty good range of businesses and corporations. You might consider launching a corporate campaign that targets a number of area businesses to establish a Trinity CDC Tuition Fund. If I were doing this, I would start by examining the Greater Austin Chamber of Commerce’s board of directors (it’s easy to find on GACC’s Web site) to see if there are any connections or possible relationships between its directors and your own board of directors or governing board. By the way, this is a perfect project for your own board to help you with. I’ve been fortunate to have a board of directors who recognizes its responsibility to govern AND fundraise. BR’s response: You may also want to invite congregations or service clubs (such as Elks, Kiwanis, Zonta) in your area to “adopt your charity” and pledge annual contributions to a tuition assistance fund. Congregations have various methods to make contributions, including special collections at services, allocations of funds from social ministry committees, or special fundraising drives. Service clubs may be looking for charitable organizations to donate some of the proceeds of their general purpose fundraising. Be sure when establishing any dedicated fund that you adopt the requisite policies and procedures for accounting for those funds and segregating them from your general operating funding. Contributors making donations for a particular purpose will want proof that the funds indeed went to that purpose. Work with your accounting and bookkeeping professionals to establish the dedicated fund. Work with your board of directors to establish the criteria by which the funds will be distributed (for you, the criteria by which families requesting tuition assistance will be considered.) Mary,
Omaha, Nebraska: CG’s response: I’m most familiar with funding sources for non-profit organizations, but you might have luck with federal grants. I’d think about concentrating on a specific program area that you’d like to provide for your student population. Then, take a look at Grants.Gov, (http://www.grants.gov). This is a really good resource for finding federal grants. I spent a few minutes on the site and found it to be very user-friendly. Mike
Schreibman, New York, NY:: CG:As you know, Connect for Kids really likes your work! Maybe you've tried this route before, but let me suggest that you approach the Knight and Gannett Foundations, as their focus is journalism, not necessarily political issues. You can also go the youth development route here, which seems to be a pretty popular funding area. You should make sure your proposal intends to cover both conventions, so that you do not appear to be partisan in your work. Washington DC: How can I make my full proposal complete? BR’s response: Many charitable and corporate foundations permit or invite full applications for funding only after they have reviewed a letter of inquiry and determined that your proposal aligns with their priorities and funding availability. Some foundations may permit the submission of “unsolicited” full proposals. Public funders tend to skip the letter of inquiry stage of grant-making and start at the full proposal stage. Typically the funder has a published set of instructions for submitting full proposals. The instructions are likely to describe the expected contents, format, and length of the application narrative. If no such instructions are given, then follow the content recommendations suggested above for case statements. In addition to an application narrative, you will
also likely be required to submit various attachments
including proof of nonprofit status; copies of past
audited financial statements; proof that your organization
adheres to generally accepted accounting practices;
position descriptions of key staff; biographical sketches
of key staff; and maps of the proposed service area.
You may also be expected to submit various assurances
and certifications—the “conditions”
the funder asks you to accept in order to receive
funds through them. Lisa, Nashville TN: I am the coordinator of an enrichment program for inner-city children in grades 3-5. We are in partnership with the Tennessee State University College of Business and the focus is to introduce children to basic business concepts, encourage vocational development in areas of business and instill effective leadership skills. Would you know of any individuals, foundations or otherwise that would want to support those efforts? CG’s response: Lisa, I suggest searching the Foundation Center’s Web site for foundations that are interested in financial literacy. American Express Foundation (http://home3.americanexpress.com/corp/philanthropy/default.asp) comes to mind. Also, check the banks that serve your geographic area. Many of the larger banks also have foundations and may be interested in this topic area. Kathy, Harlingen TX: We are a small non-profit with only three part-time employees who are so busy running the programs that they don't have time to research and/or write grants. Do you know how we could find someone with expertise in preparing grant proposals for our organization? BR's response: One idea is to ask peer organizations in your community who they use for grantwriting. They may have a favorite consultant or cadre of consultants to recommend. Second, there are some Web sites where organizations can post their grantwriting needs, and then consultants can respond to them. For example, you might want to post your need to Idealist.org. Also check out the Association of Fundraising Professionals and their state affiliates. They may have a list of "vendors" to recommend. Finally, search the Web and see what comes up. K.L. Quincy, IL: Cecilia, In answer to Troy, Pikeville, KY, question about rural fundraising ideas, our school receives a newsletter called Fundraising For Schools that has event and fundraising ideas included each month. The Web site is www.encouragementpress.com Jessica, New York City: I've been working on a proposal for a couple of years to start a high school journalism program to work in 4-5 high schools in NYC. I've been told by any number of people that it's a very good proposal. However, what I've found is that a number of funding sources are less interested in working directly in the schools than in after-school programs. Is this a trend? Do you see it changing any time soon? CG’s Response: Jessica, There are a number of foundations tied to the newspaper industry that might be a source of funding for your project. I would start with those. It’s certainly true that after-school programs are a major priority for a lot of funders, as is youth development. You may want to re-think your rationale a bit, as semantics is really important in the funding arena. Here are a few places for you to start: Sally,
Washington, DC ANONYMOUS : I am external relations manager for a children's research organization. While our company has hired development firms to advise them HOW to raise money (specifically operating support - we're already very good at raising funds for specific research projects), they don't seem to want to hire someone as a consultant or as part of our staff to do the actual fundraising. I know some of this has to do with how well they perceive that the development consultants did their work, which is, as I'm sure you can guess, not very well. But how can I help convince them to give a "real" development expert a try, especially when they don't think they have the money to hire a fundraiser? CG & BR: Somehow your management team needs to understand that there is a tremendous amount of work that goes into successful fundraising. I personally was in a similar situation where the people who were paid for running specific programs were also tasked with raising the money to support those programs. It was pretty inefficient, because there are people who are very good at raising funds, which requires a different set of skills than running or managing program activities. The most successful efforts involve partnerships between the program staff and the developer. Renee, Baytown Texas: I have a 6-year-old Cochlear Implanted son. Right now he is in the public school district with total communication. I want him in a total oral school, which are private schools. I have an appointment for an evaluation at one in MO. However, I do not have the funds to get there or pay for the $700 2-day evaluation. Do you know of any means or resources that help out with this sort of thing? CG’s response: Renee, Generally, the foundations I’m most familiar with do not provide funds for this kind of very real need. There may be some organizations in south Texas that can help. I recommend that you start your search with your representative in Congress. There is nothing more important (especially during an election year) to members of Congress than constituent services. If you don’t know who your representative is, here’s how to find out. Log on the U.S. House of Representatives’ Web site (http://www.house.gov/). At the top of the page, enter your zip code. It’s that easy. Then go to your representative’s web site and find the contact information for his or her district office. From my experience, the staff in a congressional district office is generally well-connected to local resources and are there to help us. Best of luck with this. LaTisha, Memphis, TN:: I am the program coordinator for a transitional housing program for homeless pregnant women and their children with a non-profit organization. Currently we are only able to serve 6 women and their children but wish to diversify and expand our funding to serve more families. Do you have any advise or know of organizations that offer funding for this type of program? BR: Keep your eye out for a federal funding announcement through the Transitional Living Program of the Runaway and Homeless Youth Act. TLP funds may be used to serve pregnant and parenting youth without stable living arrangements. Register your e-mail address at www.Grants.gov to be posted of all federal grant opportunities, or grant opportunties from only those agencies of interest to you. In this case, RHYA programs are funded out of the Department of Health and Human Services. You may also want to contact your state TANF agency to determine how they may make TANF or other state social services dollars available to you to provide housing for this group of vulnerable families. Also check out a resource directory at www.spanonline.org. Frank, New York: Are there any resources out there to fund attorney fees for setting up 501c-3s? We have a non-profit called the North East Region Coalition for Youth (NERCY). NERCY was set up by a group of parents to support an ongoing program called the Corps of Cadets. This program is year round and free to young men and women ages 10-17. We work on dangers of substance abuse, life skills, leadership development, community awareness, violence resolution skills, vocational opportunities, and physical fitness. We currently need assistance both monetary and in-kind service to continue what we have and with full intentions of expanding. Any assistance in moving forward our mission would be greatly appreciated. CG’s response: The Foundation Center has just what you’re looking for in its “Frequently Asked Questions” section. Go to http://fdncenter.org/learn/faqs/html/probono.html and see if any of the resources listed can help you out. Cathy, Jonesboro, AR: Exactly what are the parameters of what I can say to elected representatives as the director of a non-profit? I know there are limits to what I can say to abide strictly by the 501(c)3 rules, but they always seem so nebulous. CG’s response: Cathy, This can be complicated and it’s critical for nonprofit organizations to understand the law. Rather than paraphrase the legal firm that provides guidance for Connect for Kids, I’ll refer you to Harmon, Curran, Spielberg and Eisenberg’s excellent online newsletter that addresses this and other legal issues: http://www.harmoncurran.com/navigator/index.html Mark, Vancouver, WA: I have an additional response Renee in Texas concerning her expenses for hearing evaluation. Contact Sertoma International at www.sertoma.org for information on a local service club that would be very interested in supporting her needs. Hearing and Speech disorders are a focal area for this service organization--headquartered in Kansas City, MO. Kate, Wallingford,CT: What are your thoughts and experiences in seeking funding for start-up non-profits? Suggested resources? CG’s Response: Kate, Connect for Kids just went through the process of becoming independent from the Benton Foundation, and although we existed as a project for six years, believe me, what we went through during 2002 and 2003 was close to a start-up experience. Our experience was a little different in that we did receive foundation funding while a project of Benton. I spent a lot of time discussing our status transition with foundation program officers and was fortunate to have their continued support through the process. I think you need to conduct your funding research around your area of interest, rather than your status. In preparing your letters of inquiries, keep in mind that while stating the problem or the need is important, it is even more important that you accurately reflect how you can make it better and why your organization is the best org to do so. Phyllis, Kansas City, MO:: I'm interested in finding funding to provide child safety seats to children living in poverty in the greater Kansas City community. As you may know, funding for child passenger safety activities is usually driven by the federal governtment - through the state's department of transportation. As a non-profit, we do not qualify for that type of support. Do you have any suggestions? Thanks. BR: Even if the federal funding is restricted to state units of government, the state has to spend those funds somehow. Often they delegate that funding to nonprofit organizations via contracts and grant opportunities. Perhaps this arrangement can be structured in your situation. Thank you all for spending this time with us and a special thanks to Bob for his input! I hope this information and resource sharing has been as helpful to all of you as it has been for me. Time to go write some proposals! Remember, if you don’t have your question answered here today, check our archives in the coming weeks. |
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