Category: Financing & Loans

Clear/concise writing is an important component of the government grant proposal development process. But, as John C. Lauderdale – the author of The Complete Idiot’s Guide to Getting Government Contracts (2009) – points out, there are some tried and true maxims that you should follow to write well.

Two of those maxims are:

• Proposal quality is greatly improved by a structured, disciplined review of the writing process.
• No one should ever say, “My work is so good that it does not need to be reviewed by anyone else.”

Critical Steps in Government Grant Writing

A good way to address those “rules” is to follow these simple but critical steps:

1: Outline your proposal first. This should be based on the instructions in the grant guidelines. If there are no instructions about organizing your narrative, use the evaluation criteria to create your outline.

2: Review your outline.

3: Revise your outline.

4: Have your outline reviewed by others and approved.

5: Begin identifying good graphics/visuals to support your outline. Good graphics increase understanding and enable reviewers to understand your main points quickly and effortlessly. For example, if you are writing about a growing increase in the number of people using your services, include a bar graph depicting this increase over the years.

6: Write your narrative.

7: Have your writing reviewed by others. Your best reviewer may be someone who knows the subject of your application well but who has not been involved in developing the proposal.

8: Revise what you’ve written.

9: Receive constructive advice about your revision.

10: Rewrite and review again.

Good government grant proposal writing is a repetitive process that should include plenty of revision, and it involves stepping back from your keyboard as much as it involves writing.

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Dr. Jayme Sokolow, founder and president of The Development Source, Inc., helps nonprofit organizations develop successful proposals to government agencies. Contact Jayme Sokolow.

When I began my career in development, over 30 years ago, the certificate program that provided my initial training emphasized that Board Members of NPOs are Trustees, not Directors.

The rationale was that, unlike a for-profit corporation where Directors could be compensated and often were involved with directing aspects of corporate operation, Board Members of NPOs represented the community, held the NPO (as a community asset) in trust for the community, were not supposed to be compensated, and (with the exceptions of very new and/or very small NPOs) were not supposed to be involved in the day to day operation of the corporation.

In my experience, the vast majority of EDs who complain about Board micromanagement have Boards of Directors, not Boards of Trustees. In that context, if you can get Board Members to understand their roles, they’re more likely to function as Trustees, not Directors.

I have also found that when I meet a Board of Trustees for the first time, they are more likely to understand their roles, responsibilities, liabilities and limitations than have been the NPO Boards of Directors I’ve met for the first time.

And, in relation to the question of Board “Giving-And-Getting,” my experience has been that Trustees are much more likely to understand and participate in the process than would be Directors.

I expect that there might be a bit of “halo effect” impacting my perceptions, but I believe I’m objective enough to notice a difference that’s really there.

In addition to the difference between the duties and responsibilities of directors and trustees as perceived by experienced development professionals, there are also legal definitions of the terms.

So, I’m looking for a word, without legal entanglements, that we can adopt/use to refer to the “ideal” non-profit board member.

I like “trustee” because of the relationship to an NPO being a public trust and, of course, because it’s a thirty+ year habit. But, because of the legal definitions in a number of States, I’d be willing to go with another term if we (the professionals in the sector) can agree, adopt a word/term, and agree to spread the word.

I submit this question to you, and hope that this posting will engender a substantive discussion. Look forward to your comments.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? Contact me at Hank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions.

The Usability of FaceBook

“My organization’s website is static and boring, frankly. Our FaceBook page is updated all the time and very popular.” The Executive Director of a local nonprofit told me that.

This local humane society has 1,214 friends on FaceBook. That’s 3.3% of the rural population of the county it serves! That’s equivalent to a national organization having just over ten million FaceBook friends!

When I pressed her for details, the following additional contrasts arose:

 • One reason our FaceBook is updated more often than our website
   is that it’s easier to update FaceBook.
 • There are many more people, even our own supporters, on
   FaceBook at any one time than there are on our website. Of course
   there are more potential supporters on FaceBook!
 • It’s easier for supporters to share thoughts with us on FaceBook
   because of the ease of leaving comments and tagging us in photos.
   (FaceBook users are already “trained” in using your FaceBook page;
   they may have trouble navigating your web site.)

Taking these observations to actionable recommendations, it makes sense to put some serious effort into “FaceBooking” your nonprofit:

 • Build and maintain your organization’s FaceBook page. Add photos,
   use the FaceBook involvement widgets like surveys, and
   encourage friends to tag you in their posts (friends bring friends).
 • Consider FaceBook ads, which let you target to a great degree and which
   only cost money when people click on them (and come to your
   FaceBook page).
 • Create a “welcome” tab for your FaceBook page that new visitors come
   to first. It can entice them to “friend” your page and encourage
   their involvement.
 • Add FaceBook’s widgets to your website, which will update with your
   FaceBook activity and encourage web visitors to join your FaceBook crowd.
 • Consider adding donation tools to your FaceBook page.
   PayPal has some tools, and third-party widgets like Razoo and FundRazr
   allow you to use the PayPal interface to set up fundraising pages that your
   FaceBookfans can promote on their walls!

The humane society takes a photo of every family as they leave with the animal they’ve adopted, and posts it to FaceBook immediately. Can you think of similar ways to use FaceBook to demonstrate the effectiveness of your organization?

Questions about online social networking? Or, how to improve your results?
Ask Me.
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Rick Christ has been helping nonprofit organizations use the internet for fundraising, communications and advocacy since 2009, and has been a frequent writer on the subject. He delights in your questions and arguments. Please contact him at: RChrist@Amergent.com or at his LinkedIn Page

A recent email posed the question:

I am the Director of Philanthropy for a small nonprofit foundation. Our Board of Directors and committees are all comprised of physicians. I am beginning to build a lay component and am working on developing a Development Advisory Council – made up of lay members. I am looking to create a job description for this group the purpose of which is to expand our lay base and raise money. We are also having discussions on whether the Foundation should pay for travel and expenses. I am having difficulty with the advisory council description. Can you help guide me in the right direction?

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1. Since it’s all about perception, a director of philanthropy is seen as the person whose job it is to raise money; a director of advancement is understood to be working to help advance the mission of the organization.. (In addition, the D.O.P. title is more than a little pretentious !!)

2. An Advisory Council is created to provide advice. If you ask people to join such a group, you’d better be prepared to take their advice. If the primary purposes are to broaden the base of non-physicians and raise money, then call it just a Development Council or Advancement Council.

3. An essential question you must be able to answer is: Why would any non-physician want to be part of such a “council”? And the answer should probably not have anything to do with your Foundation.

4. If this volunteer group you’re assembling will be constituted to raise money, then one can assume that they have the money to set an example. With that as a given, they should also pay their own expenses.

5. I don’t know the difference between your development committee and the soon-to-be-created council. So I can’t offer a lot in the way of suggestions regarding a job description. I would say, however, keep it simple — i.e., The mission of this “council” is to help provide the resources needed to pursue the Foundation’s mission by providing direct support to the Foundation and encouraging others to do the same.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Relationships Are Key.

Those three words summarize all practical and academic research about fundraising.

It takes a great deal of effort, thought, capability, energy, systems, and committed people to actually develop a sustainable, growing, and effective development program, but the idea that relationships are key is one that is at the root of all successful development efforts.

When people ask me which books I recommend for learning about fundraising, the first one on my list is not about fundraising, it’s about communication: “The Tipping Point, How Little Things Can Make a Big Difference,” by Malcolm Gladwell.

In the book, Gladwell shows how word-of-mouth communication can proceed more rapidly and more effectively than any other type of communication, and he describes three types of people necessary for this to happen: mavens, connectors and salesmen (or “persuaders”).

“Mavens are data banks. They provide the message.
“Connectors are social glue: they spread it.
“Salesmen are a select group—they have the skills
to persuade us when we are unconvinced of what we
are hearing, and they are as critical to the tipping point
of word-of-mouth epidemics as the other two groups.”

These principles apply to how your non-profit develops its messages and communicates with the public. Ideally you want all three types of people in your non-profit network: mavens, connectors, and persuaders.

In terms of developing a CFC revenue stream, here are some of the key items to consider as you develop your communications plan and messages:

1. Which Supporters Have a Federal Connection?
How many of your supporters have a Federal connection (Federal employees or former employees or retirees; or their spouses, children, or parents are Federal employees)? Please note that “supporters” are not restricted to “donors.” You may very well have supporters who think well of your organization, but, for whatever reason, are not in a position to be a donor at the present.

2. A Thank You Program for Those Anonymous Donors
A basic principle one learns in Fundraising 101 is to say, “Thank you.”

Do you have a creative program for thanking CFC donors, even when you do not get their individual names until May (or perhaps never)? Create a program where you publicly thank your supporters who have given to you through the CFC, not by individual name but by group, in your publications, website, and programs for special events:

THANK YOU CFC DONORS
Last year CFC contributions to our great non-profit helped
us keep the doors open and continue to provide services
to our clientele, even in times of economic hardship.
Please support us again this year through the CFC
with your gift through payroll deduction.
Our CFC Number is 00000

Messages similar to this should run throughout the year, in the spring when you learn the totals for your organization, and again in the publications that your supporters will see in the fall, during the CFC solicitation season.

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In the next post about the CFC, I’ll talk about the most powerful tools
available to non-profits in the 21st century – and the tools are free!

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During his 25-year career in the Federal sector, Bill Huddleston, The CFC Coach, served in many CFC roles. If you want to get involved in the Combined Federal Campaign, maximize your nonprofit’s CFC revenues, or just ask a few questions, this is the guy to contact … Bill Huddleston1@gmail.com .

This is a follow-up to an earlier posting – see: Who/What is a Fundraising Consultant?

Sometimes a client will accept as gospel every bit of advice/direction that a fundraising consultant provides. Sometimes everything the consultant advises/suggests is questioned.

I’ve worked with organizations/institutions that fit each category, and of course I prefer working with the former type. [In fact, if/when I can identify the latter type during pre-contract discussions, those conversations terminate early.]

The best client to work with, however, is the one that asks questions so they can learn. Working with a client that wants to learn is better than working with NPOs that never question or question everything.

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Often, when working with a client, I have found that the advice/direction I was providing duplicated what their (development) staff person had already suggested. They’re willing to take advice from a stranger, but not a person they’ve hired….

The old phrase, “Familiarity breeds contempt,” may be a partial explanation for why that happens so often, but it’s probably not the only explanation.

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Sometimes I find that organizations view fundraising consultants with a jaundiced eye. They just feel uncomfortable about talking with/hiring/using consultants.

I imagine that they’ve had and/or have heard of other NPOs that have had bad experiences with consultants. After all, not every consultant can be highly rated !!

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I recently met with an executive director who said that she called me because all of the other fundraising consultants she’d contacted had the “template” that they were going to apply to whatever situation they encountered !!

Some fundraising consultants are so locked into one pattern, one philosophy, one approach to every problem, that their mind-set doesn’t allow them to approach a client’s needs with an open mind.

I expect that one of the things that “fundraising consultants” need do is focus on the needs of the NPOs they (want to) serve, not on a method that puts process over the interests/needs of the “client.”

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When a consultant’s ethics don’t put the effective pursuit of a NPO’s mission above the pursuit of a consulting fee, when those ethics consider what the client wants above what the client needs (to pursue it’s mission), one of the frequent end results is some degree of discomfort/distrust of consultants.

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Right now, anyone can say that s/he is a consultant – anyone can hang out that shingle.

If we don’t, by our actions, convince the public that we’re honest, honorable and ethical, and that our advice is based on experience and expertise — not a couple of courses we’ve taken or some volunteer works we’ve done, fundraising consultants won’t engender the level of trust that we’d like.

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If you’re a fundraising consultant, work with an NPO that hires fundraising consultants, or just have a thought (or two) that can add perspective to any of the above “questions,” I’d really like to hear your thoughts on the subject.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? Contact me at Hank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions.

Not Exactly…
There are a variety of grants available, but they’re not all the same. Sure, the basic proposal stuff will be the same: organization information, mission, history, and general agency overview, but the guts of these proposals may differ significantly.

Program/Project Support Grants

• The most common type of foundation grant, and funded by most foundations
• Grants to support specific projects or programs
• Require detailed program description, including: program need, target
  audience, and program goals and objectives
• Require program evaluation section that specifically relates back to program
  goals and objectives
• Require program budget including revenue and expenses in addition to annual
  operating budget
• Often require a detailed listing of program activities and timeline
• May also require personnel section with qualifications of program staff

General/Operating Support Grants

• Grants to support operating costs of an organization, also called unrestricted
  grants or general-purpose grants
• Desirable, as they help “keep the lights on,” but not available from all
  foundations
• In place of specific program information, usually require section on programs
  and general activities of the organization
• Require section that addresses the need to be satisfied and the population
  to be served
• Evaluation section is often less specific than for program/project support
• Require annual operating budget

Capacity Building Grants

• May seem very desirable – after all, what nonprofit doesn’t want to build
   capacity – but, and this is a big but, they have a very specific goal, and
   they are not funded by many foundations
• Goal is to assist nonprofits in securing the professional assistance they need
   to address organizational development and effectiveness and enhance
   organizational capacity
• Include support for short-term initiatives, including: strategic planning,
   organizational assessment, board development, financial management,
   information technology assessment/planning, among others
• Most exclude hiring staff from list of allowed activities
• Require capacity building plan, list of activities, timeline and evaluation
   methodology

Capital/Building Grants

• Grants to support capital campaigns for building construction or acquisition
• Not funded by many foundations
• Usually require extensive financial data to show that completion of the project
   is financially feasible

Matching/Challenge Grants

• Help nonprofits increase their fundraising effectiveness by matching other
   donors’ contributions
• Not funded by many foundations
• Grant money is most often released after the challenge has been met;
   i.e., $100,000 in contributions has been raised as 1:1 match for the grant

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Lynn deLearie, owner of Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grant programs, and helps them secure funding from foundations and corporations. She can be contacted at lynn.delearie@gmail.com..

In response to an email request….

“This” committee was created with the understanding that, to obtain the gift income needed for this organization to effectively pursue its mission, an organized approach to the acquisition of major gifts must be designed, and assiduously followed.

Major gifts, for this purpose, are those that are obtained from a relatively small percentage of this organization’s donors and that (should) constitute a large percentage of this organization’s income.

Committee Membership shall include selected Trustees, Volunteers, Major Donors, and this organization’s Chief Executive and Chief Development Officers.

Committee Members shall be well educated about the organization’s Mission, History and Strategic, Development & Marketing Plans.

Committee Members shall Participate in:
   •   Identifying Prospective Major Donors —
            Suggest Names and Prepare & Review Lists
   •   Generating Timetables for the Identification,
            Education, Cultivation and Solicitation of Prospects
   •   Educating/Cultivating Prospective Major Donors —
            Invite/Escort Prospects to Events/Presentations
            Contact Regularly, based on developed timetable
   •   Evaluating Prospective Major Donors
   •   Soliciting Appropriate Prospects
   •   Weekly (periodic) meetings to review plans, timetables and progress

Committee Members shall take, and present to the Chief Development Officer, notes on the dates and substance of all contacts with those prospects that have been assigned to him/her.

Committee Members shall also respect/maintain the confidentiality of all information relating to all prospects and donors.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Being able to tell a convincing story is an important issue for anyone working on a government grant proposal; but, sadly, too many proposals tell no story. Proposals may contain plenty of information, but they must also incorporate a cohesive story line that unifies the narrative.

What is a Powerful Story?
According to Jennifer Aaker, a well-known author and business school professor at Stanford University, powerful stories can be a great asset. As Aaker illustrates, a well-told story can become a powerful tool for advocacy and persuasion.

“Tell me the facts and I’ll learn.
Tell me the truth and I’ll believe.
But tell me a story, and it will live in my heart forever.”

In our grant proposals, we are supposed to be clear and factual. There is no place for emotion and subjective thinking. But throughout human history, great stories have always inspired, motivated, moved, and persuaded others. The Bible – a collection of stories – is perhaps the best example of the incredible power of storytelling.

One of the books Aaker recommends to her students is Annette Simmons’ Whoever Tells the Best Story Wins (2007). Simmons recommends that you consider using these kinds of stories throughout your proposal:
  • Who I Am Stories: What lessons have your NPO’s experiences taught you?
  • Vision Stories: What is your NPO’s vision for the future?
  • Values-in-Action Stories: What programs of your NPO typify its values?
  • I-Know-What-You Are-Thinking Stories: What stories can you tell that
    will dispel the objections that reviewers might have about your proposed
    project? Good proposals dispel the element of risk or uncertainty which
    always unsettles reviewers.

Stories and Reviewers
The reviewers of your proposal are submerged in a deep ocean of data that may appear disconnected and overwhelming. They are reviewing many proposals, not just yours, and they may have trouble remembering one proposal from another.

In this choppy sea, meaningful stories can act as life preservers by enabling you to connect with them and create meaning in ways that no mere recitation of facts can accomplish. Stories help win reviewers over to your point of view, and help reviewers remember who you are and why your project is important.

The most powerful communications tool in human history has been and will remain the art of storytelling. We were entranced by good stories as children, and we still read them as adults.

Use effective stories to create meaning in your grant proposals, and you will be more successful.

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Dr. Jayme Sokolow, founder and president of The Development Source, Inc., helps nonprofit organizations develop successful proposals to government agencies. Contact Jayme Sokolow

A couple of months ago I wrote my first posting on fundraising ethics. In that posting I posed three questions — three situations that required ethical resolutions. And, although there have been a few emails from readers that related to ethical questions, the situations that I posed have not been addressed.

So, in the context of the rights of the donor, the public’s right to know, the appearance/reality of conflict-of-interest and how those issues impact the people served by a nonprofit organization, I’ll try to address those questions … without giving direct answers.

1. Is it ethical for an NPO to hire a firm to run a “fundraiser” where the NPO realizes $10,000 it wouldn’t
have had, while the vendor actually retains 90% of the generated income ??

Would your donors feel comfortable giving to you if they knew that only
10% of their giving would actually go to help the people you serve?

Would you inform the people paying to attend your fundraisers that
only 10% of their giving would actually go to help the people you serve?

If you wouldn’t so inform the attendees, why not?

Would you want to see that information on the front page of your local
newspaper? If not, why not?

Where the cost of most fundraising doesn’t exceed 20%, is it reasonable
to use a fundraising method that costs 90% of the gross?

2. Is it ethical for a major donor to a hospital to get his/her child moved to the top of the “treatment” list ??

How would the parents of children already on the waiting list react
to having someone jump to the head of the line?

How would the public react to an article on the front page on the
local newspaper that children in need of treatment were delayed
in getting that treatment because a major donor got “special
treatment?”

What would happen to an institution’s reputation of being fair and
caring? …or don’t people care?

3. Is it ethical for the CEO of a nonprofit to recruit family members to serve on the organization’s board ??

How would current and potential donors react to learning that the
CEO’s family has a vote on what the CEO is paid?

Assuming that the CEO and his/her family members are in
agreement on the issues that the CEO must decide, would the
public see the decision-making process as one designed to
benefit the community? …or the CEO and his/her family?

A good rule of thumb (but not the only rule) to use in judging whether something is or isn’t ethical is whether it feels right. If you’d rather not see it on the front page on your local newspaper, then it probably doesn’t pass the smell test.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? Contact Hank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.