Category: Finance

My previous posts provided a lot of introductory information on foundation and corporate grants, organizational readiness, grant management, and … on Step One of the four-step grantsmanship process: Prospecting For Foundation Funding.

I begin, now, to addresses the second step in the process: Grant Cultivation.

For those familiar with non-profit fundraising, grant cultivation is very similar to that for individual donors. According to majorgivingnow.org, “cultivation consists of all the relationship-building steps that lead to donorship – and cultivation continues as part of a stewardship program once gifts are made. Through cultivation, you learn more about donors, and they learn more about you.”

That same thinking can be applied to cultivating foundation and corporate grants.

The following are some of the most effective methods I have found to cultivate grants from foundations and corporations:

1. Involve your Board Members. As I wrote in my May 17, 2012 post, What Is Your Grant Win Rate? What Should It Be?, “the connections that your board members have in the community are vitally important.”

After identifying new prospects for foundation and corporate grants, you should always share the names of their leadership (the foundation manager and trustees and the officers and directors of the corporation) with your NPO’s Executive Director and Board Members. Ask if anyone has a personal or professional relationship with any of those “leaders,” and if they would be comfortable signing a letter of inquiry and/or making a phone call.

These relationships help get your letter read and your phone call answered … and they help you win the grant. Some statistics from a recent client will help illustrate this point: over the course of one year, proposals to new prospects with a board connection were funded at a 75% rate and those without a board connection were funded at 35%. That’s quite a difference !!

2. Start with a Letter of Inquiry/Intent. When seeking grants from new prospects, I recommend that you, first, send a two-page letter of inquiry (sometimes called a letter of intent) to the appropriate foundation or corporate “leader.”

LOIs are a very important cultivation tool, and they should be written by you, the Grants Manager, in first person.

One of your Board Members could sign them, if that person has a connection to the “leadership” that you are cultivating for new grant funding. Alternatively, your Executive Director could sign them, and should reference the “connection” your Board Member has with their leadership. These letters should be specific to your NPO AND to the foundation from which you are seeking funding.

The basic components include:
  •  Introduction. If your Board Member is signing the letter, include information on how long he/she has served on the Board, and why he/she believes in your NPO. If your Executive Director is signing the letter, indicate that your connected Board Member suggested that your NPO apply to this foundation for grant funding.
  •  Background. Include the mission and history of your organization, a description of who you serve, and a brief summary of your major programs/services.
  •  Pitch 2 – 3 Ideas. Include a short paragraph for each of two or three programs or projects that you think might be a good fit for funding from this foundation. Briefly describe why you think these programs/projects are a good fit with the foundation’s mission, and the impact their funding will have on the people you serve.
  •  Conclusion. Indicate that you will follow-up by phone to discuss your NPO’s fit for funding within the current priorities of their foundation.
  •  Include a Photo. I usually include a photo with a caption on page one. This helps to personalize the letter, and to connect the foundation manager/trustee to your service population or your mission.

Be aware that some foundations require that you submit an LOI as part of their application process. In these cases, follow their specific LOI guidelines.

You might also want to refer to the Foundation Center’s website (http://foundationcenter.org/getstarted/faqs/html/loi.html) where they provide “resources with actual letters of inquiry or templates.”

Part 2 of Cultivating The Grantor (on November 1st) will outline three additional methods that I have found to be effective in cultivating grants from foundations and corporations.
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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.
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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.

(A Pair of Postings from two of this blog’s regular contributors)

Fund-Raisers are not Friend-Raisers
by Tony Poderis.

I have always held that special event fund-raisers must/should be just that, fund-raisers, not friend-raisers. There may be exceptions, but we cannot count on the exception for successful fund-raising.

To my way of thinking, it is poor fund-raising strategy to put on an event with the expectation of having attendees become good prospects for future giving. This is not very likely when those in attendance often have little real interest in the organization’s mission; are attending an event held at a site other than the organization’s location; and are eating, drinking, and socializing.

Relationship building is further limited by the added distractions of cocktailing, dining, auctions, other spending opportunities, and entertainment. Even if informational handouts are supplied, a video of the organization’s services is shown, or some other display of what the organization does is presented, the exposure is fleeting at best and has little lasting impact.

Just two weeks ago my wife and I were at a non-profit’s Gala to inaugurate its new performing home. While eagerly waiting to dig into the tantalizing dinner, two or three of the organization’s officials took center stage to tell us how the new facility came about, who made it possible, and the added value of what the organization will bring to the community. We were seated at a table for ten, and I can state with no exaggeration that there was a steady, though perhaps rude, rolling of twenty eyes as the “education” and “cultivation” efforts of the evening droned on and on.

From the hard lessons we learned over time with our orchestra’s fund-raising events, we finally realized that event attendees were there only or mainly to make social and business contact and have a good time. They just wanted to have fun.
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Every Event Should Be An Opportunity….
by Natalie Shear

It is not often that I feel compelled to respond to one of my fellow bloggers, but Tony struck a nerve.

Based on my 30+ years as an Event Planner, I must disagree with the idea that it is “a poor fund-raising strategy to put on an event with the expectation of having attendees become good prospects for future giving.” To the contrary !!

As with anything else, the right event at the right time with the right motivation can be a good way to gain prospects for the future. Keep in mind that people love events and love to socialize and network as part of the “in crowd,” not to mention having their pictures taken with some of the other “important” guests … strong reasons for spending another night at another fundraiser!

Obviously an event is not the best place for a long-winded spiel about the nonprofit, but it is and should be the place for a very brief, cleverly produced video that makes the audience sit up and take notice – it’s a lot harder to ignore a visual presentation than to ignore a speaker.

And, forget the handouts, unless you like to see your materials strewn across the ballroom floor when the place has emptied-out. There are, however, more effective alternatives to handouts — alternatives designed to make an impression well after the “tantalizing” dinner memory is long gone.

You might, for example, send a photo of the person (prospect) with some of the other guests along with a lovely note thanking them for attending. That little warm and fuzzy photo can be followed up at a later date with an invite to a briefing, or to a small, intimate gathering at someone’s home to hear a speaker, or meet an author, or enjoy a special dinner prepared by a new chef in town!

Look around your community and see what you can offer that is new and different and enables you to woo the prospects.

And, while you’re wooing, your development staff is busy researching each likely prospect to learn about these people’s interests, what other groups they support and, most important, what-or-who got them to attend your event.

In other words, any event can be a cultivation opportunity and just because people are having fun does not mean they have no interest in a bit of education (presented appropriately of course). If the exposure time at the event is fleeting, then you had best find a way to making a lasting impact even after the fun is over.

Just don’t lose the opportunity to identify and cultivate potential new constituents.

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You can learn more about Tony, and find many in-depth fundraising articles on his website: Raise-Funds.com
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To read about Natalie, check out her website: Natalie Shear Associates, and take a look at Natalie’s ebook on Special Events
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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 one-or-both of the authors of this posting.

Much has been written about the core beliefs of great managers and CEOs. Many of those core beliefs can be directly applied to grant proposal managers. There are eight fundamental core beliefs that I think are highly appropriate for nonprofit grant proposal managers to follow.

1. Proposals are an ecosystem, not a battlefield
Developing a grant proposal is not like going to war, and it need not involve conflict and aggravation. Great proposal managers build teams that thrive on cooperation and partnerships, even with competitors. To build such relationships, treat your proposal team members like colleagues. Provide them with direction and support and help them succeed.

2. An organization is a community, not a machine
Members of proposal teams are professionals, not cogs in some impersonal machine. Great proposal managers help inspire team members to help each other and their organization, not treat each other as expendable parts. Proposal development often involves long hours, tough deadlines, and nighttime and weekend work. Within your hectic schedule, be sensitive to team members’ schedule and workload.

3. Management is primarily a form of service, not control
Proposal teams work best when they are not micro-managed. Great grant proposal managers set a general direction, coach and mentor provide team members with needed resources, and help them succeed. When your teammates become stars, you become a star. You can coach and mentor your team by:
• Holding a kick-off meeting to start the proposal effort.
• Conducting a training session at the beginning of the proposal effort to orient everyone, provide direction, and set expectations.
• Having frequent meetings with the team to check progress and provide advice.
• Frequently meeting one-on-one with team members to review their work and provide advice.
• Communicating face-to-face as often as possible.
• Adding “mentoring” and “coaching” to your job description.

4. Proposal team members are colleagues, not children
Team members are not immature, inferior beings who cannot be trusted. Great proposal managers treat their colleagues with the respect due professionals and adults. Proposal development often is a frustrating process, but that is no excuse to yell, belittle, and undermine your colleagues. Patience and restraint will go a long way to building collegial relationships.

5. Motivation comes from something positive, not from fear
Good proposal managers do not strike fear in their teams or manage through threats. Instead, they inspire the team to perform well by forging a culture that thrives on cooperation, support, the sharing of knowledge and resources, and that expects great things from everyone.

6. Change leads to growth, not pain
Change is inevitable and need not be upsetting or threatening. Great grant proposal managers help their proposal teams make the kinds of changes that lead to the submission of winning proposals.

7. IT offers empowerment, not control
IT can be used to monitor proposal teams, but that is not an important function. Great proposal managers use technology to help teammates achieve their goals and build better relationships.

8. Work should be enjoyable, not just toil
Great grant proposal managers try to help teammates work in ways that will lead to satisfaction and even enjoyment. Find ways to enjoy your work and achieve balance in your life. When was the last time you took a long walk in a beautiful park and smelled the flowers?

Great grant proposal managers have great core beliefs, which they use to develop highly competitive proposals. Having a sterling vision is not enough, but successful proposal managers must find ways to use the workplace, their organizations, and team dynamics to accomplish an ambitious goal. And what could be more ambitious than developing a winning grant proposal from scratch?
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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.
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Have you seen The Fundraising Series of ebooks ??
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If you’re reading this on-line and 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. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

There are many different types of recognition programs, the most effective of which are often the face-to-face variety. Sometimes, the best form of recognition is a handshake offered by the appropriate person.
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Another form of recognition that can touch a donor is a personal note from someone who has been impacted by the donor’s gift.
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Recognition programs should be tailored to the needs of the programs being supported, the needs of the donors and the circumstances. The potential for these kinds of recognition programs is limited only by the limits of your creativity.
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Speaking of Creativity, your website could be a great place to provide donor recognition. I don’t mean a page with lists of names. I’m thinking of the same kind of articles that’d go in your newsletter … about how a donor’s gift made a difference; a photo of a donor being thanked/congratulated by a highly recognizable, highly regarded person; a photo of a donor being inducted into your “honor society.” Again, the potential is limited only by the limits of your creativity.
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Caution is urged for the creation of a permanent, wall-mounted, visual display. Use your wall space judiciously. It’s not infinite.

Typically, wall-mounted recognition is reserved for major gifts for capital campaigns, estate gifts, etc.

Many of the wall-mounted, permanent, recognition modules are impressive and well worth the money. But…. only under the right circumstances.

Using impressive wall-mounted displays for everything detracts from their significance.

When getting advice as to the type of recognition you might want to use for a program, don’t rely on vendors. Their advice must, by its very nature, be self-serving…. Not that they’d be dishonest — just that there’s a built-in bias.
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Many institutions divide their gifts along arbitrary lines for recognition purposes:
$1-$100=Friend; $101-$500=Good Friend; $501-$1,000=Very Good Friend;
$1,001-$5,000=Bosom Buddy; $5,001-$10,000=Blood Brother/Sister; etc.; etc.

The problem with that system is that it assumes every donor wants/needs to see his/her name on a list and/or wants/needs everyone else to see his/her name on a list. Some donors might even object to having their names listed.
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Any thoughts about recognition?? I’d be pleased to address your comments in a future posting.
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Have you seen The Fundraising Series of ebooks ??
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Have a comment or a question about starting, evaluating or expanding your fundraising program? Contact me at [email protected] 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.
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If you’re reading this on-line and 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. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

In my post on August 28^th, I discussed financial readiness and outlined the organizational financial records and project financial information that you will need to have ready in order to submit a grant application.

This post provides three additional points for you to consider before launching a corporate and/or foundation grants program at your NPO:

The “25% Rule”
The most common measure of nonprofit organizational efficiency is the percentage of total expenses going to program costs. Charity Navigator, GuideStar, other non-profit ranking services, the federal government and foundations definitely evaluate this percentage.

According to Charity Navigator, 7 out of 10 charities that they evaluated spent at least 75% of their budget on programs and services, and 9 out of 10 spent at least 65%.

The Combined Federal Campaign requires that participating organizations certify that their combined fundraising and administrative costs constitute no more than 25 percent of the organizations’ total revenues. (Note that this calculation differs from that used by Charity Navigator because it is a ratio of admin + fundraising costs divided by total revenue instead of total expense.)

Most foundations expect a similar if not greater level of organizational efficiency. I recently ran across a foundation that requires, “administrative and fundraising expenses of less than 20% of the total expenses of the organization.”

So, if your NPO is spending at least 65% (ideally 75% … or more) of total expenses on program costs, then you might want to consider starting a grants program to secure income from foundations.

Program Readiness
In addition to having your financial house in order, you will also need to have well-established program (or project) goals, activities and metrics in order to seek grant funding.

The Missouri Common Grant Application, referenced in my last post, downloadable here, provides a good example of what will be required. Specifically:
•   What are your project goals?
•   What activities do you intend to engage in or provide to achieve these goals?
Please provide an in-depth description of the activities/services, including:
1) how much, 2) how often, 3) how long activities/services will be provided
•   What are the anticipated short and long-term measurable outcomes that would be
achieved by this grant?
•   What is your organization’s evaluation process?
•   How do you plan to track and measure the effectiveness of your project?

These goals, activities and metrics need to be included in your grant applications, and if funded, outcomes will need to be included in your grant reports.

Capacity
My final point for you to consider before launching a grants program at your NPO is capacity, both within your program staff and development staff.

Are your program staff members capable of implementing the program according to the plan outlined your grant application? Can they collect and document the outcomes that will need to be included in grant reports?

Do you have the capacity in your development department to work closely with your program staff to define program goals, activities and metrics, and compile results for grant reports? Do you have the time to adequately steward your foundation donors with ongoing communications, meetings, tours, etc.? If you spend time on a grants program, would you lose individual donors because you don’t have the time to steward them appropriately?

And, of course, I strongly recommend that you review these points with your development team. Then, if everyone is on board, you can launch your grant program; and, be sure to check back here for my continuing series on effective grant programs!
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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.
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Have you seen The Fundraising Series of ebooks ??
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If you’re reading this on-line and 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. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

Whether by mail, by phone, by a combination of both or face-to-face, there is language that will make your “asks” more productive.

But, first, to address what distinguishes a “smaller gift” from a “larger gift.”

If the gift makes a significant impact on your bottom line, it’s a larger gift. If it takes some time/planning to get the donor to make it, it’s probably a larger gift. If you get it as a result of a mass solicitation method, it’s probably a smaller gift. If it’s not a Major Gift, it’s a “smaller” gift.

A mass solicitation should never ask a (potential) donor to “give what you can,” to “give what’s comfortable, or to say that “any amount will help.” That’s not fundraising, that’s begging/whining/crying. Fundraising is about raising funds, about reaching fundraising goals, about raising enough to fund your programs.

Fundraising is about asking for a specific dollar amount, and there are a number of ways to do that:

By giving choices: 1) … indicating that $XXX will feed a hungry child for a month; 2) … that $YYY will pay the rent for a homeless family for a month; 3) … that $ZZZ will provide vaccinations for every child in a village….

By asking for $XXX and giving the choice of: 1) $YY per month; 2) $ZZ per quarter; or, $YZ twice during the year.

By asking for $XXX and giving the donor the option to send in the full amount right away, or spread out payments over the next twelve months.

By giving the donor the option to charge his/her gift to a credit card — at $YY/month.

By giving the donor the option to make their (first) payment later – “Would next month be good for you, or would the month after that be better?”

Whether you’re asking by mail, by phone or in person, you should know enough about your prospects to know what amount to ask for and what choices to offer.

Knowing that, you need to segment your prospect base so that the “asks” are appropriate for each constituency you’re addressing – different $Xs, $Ys and $Zs.

To support/strengthen your ASK, your gift return slip (for a mailing) should only give the choices you discuss in your letter.

For a conversation (by phone or in person), you never ask if your prospect would like to give, would like to support “the cause,” or would “like to think about it.” The choices you provide do not include “No” as a potential answer. The only options relate to how the donor will be most comfortable making the gift for which s/he was asked.

Now don’t get all worked up about how that’s not a “nice” way to treat a (prospective) donor !! Nice is attitude. Nice is a warm voice. Nice is sounding like you’re glad to be “talking” with the prospect. Nice is how you treat someone. “Nice” does not preclude doing your fundraising in an effective manner.

What do you think ??
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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 [email protected]
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Have you seen The Fundraising Series of ebooks ??
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If you’re reading this on-line and 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. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

Having just finished the enjoying the spectacle that is the Summer Olympics, it’s now time to turn our attention to the CFC solicitation period, which began on September 1 and runs to December 15^th.

The CFC is a Mandatory, Voluntary Program — That’s Not A Contradiction
The government requires that CFC campaigns be conducted in every Federal agency/office/location world-wide, but all participation and giving is voluntary.

We’re now in the CFC Solicitation Period. If your nonprofit is in the CFC, and you’ve taken the steps outlined in previous posts, this will be the busiest time of the year for your CFC Action Team.

What Matters – Communication and Teamwork
By now, you should have named your CFC Team Leader, a staff person who is responsible for organizing and getting the word out about your nonprofit’s participation in the CFC.

The biggest mistake made by CFC charities is that some go through the application process to enroll, and then they run a stealth campaign!

7 Tips To Help Ensure A Successful CFC Campaign

:
1.  Website: Homepage: Make sure your homepage has the CFC logo with your charity’s
      five-digit code number under the logo. This will answer 95% of the questions that
      potential Federal donors will have when they come to your website. The logo itself
      is a million dollar benefit made available to charities in the CFC, and just like the
      Coca-Cola and Nike logos, it is recognized by millions of potential CFC donors.

      Website: Workplace Giving Section– In addition to the homepage, in your donor
      section, include info about workplace giving, thank people in advance, and ask them
      for a payroll deduction pledge. It is also helpful to have examples of how a periodic
      pledge will be used by your nonprofit, e.g. “Twenty dollars per pay period will pay for
      food for a rescued puppy for a month,” etc.

2.  Teamwork Leadership Exercise #1: Make sure every board member, staff member
      and volunteer know that you’re in the CFC and what your code number is.

      Note: To see how well this has been learned, have someone unknown to the staff call
      your organization, and ask, “Are you in the CFC?” The answer from whomever they
      reach should be “Yes we are, and this is our CFC code number. May I provide any
      other information?”

      This is a good test of how well your staff members are acting as part of your CFC team.

3.  E-mail signature: Add to your e-mail signature that you participate in the CFC, and
      thank any CFC donor in advance for their payroll deduction gift. This should be part
      of every staff person’s e-mail signature block, and ask
      your board members if they can include it on their e-mails as well.

4.  CFC Special Events – Kickoffs and Charity Fairs: Register with your local
      CFC office to let them know that you’re interested and able to participate in either
      kickoffs or charity fairs. If you have a leader or board member who is a compelling
      speaker, let them know that you’re able to provide a keynote speaker as well.

5.  Location, Location, Location – If you have one, use it! If your charity is in a
      location where there is drive-by or pedestrian traffic, put a sign up in your window,
      or along the roadway with your name, the CFC logo, and your CFC 5 digit code. The
      American Red Cross hangs a banner off the roof of its headquarters building, proving
      that 18^th century tools still work.

6.  Teamwork Exercise # 2: Ask your constituents (e.g., donors, volunteers, staff, board
      members, friends, etc.) if they have any “Federal Connections;” and, if so, ask them
      to let those “connections” know that you’re in the CFC, and that their support in the
      current CFC campaign would help a lot of people/kids/animals. They could even carry
      a couple of your brochures to give to their “connections.”

7.  Say Thank You Early & Often! With a CFC campaign you won’t get the names of your
      donors released to you until next spring, so at any contact you have, let your potential
      Federal donors know that you appreciate their gifts. If you are invited to charity fairs,
      make sure to thank the charity fair organizer and the CFC Campaign manager. If you’re
      invited to be a keynote speaker, thank the agency head in addition to the CFC volunteers
      just mentioned.

These tips, however, can only help if you’re in the CFC campaign. If you’re not, yet, now is the time to begin thinking about applying for next year’s campaign. For a special free guide to help you make that decision, send me (Bill Huddleston) an email with “Guide” in the subject line, and I’ll be glad to send it to you.

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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 participate in the Combined Federal Campaign, maximize your nonprofit’s CFC revenues, or just ask a few questions, contact … Bill Huddleston
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Have you seen The Fundraising Series of ebooks ??
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If you’re reading this on-line and 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. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

Shopping once again on L.L.Bean’s website, my attention was taken by the company’s customer service credo, proudly posted there for as long as I can remember.

During the time I spent in a for-profit business, before beginning my non-profit career, I became aware of the extent to which the for-profit sector was (had to be) steeped in customer service. From that perspective, L.L.Bean’s corporate customer service philosophy and practices are easy to recognize as having an extremely close parallel to what we do in our non-profit world.

Simply, the for-profit world’s “customer relations” is the equivalent of the non-profit world’s donor relations.

L.L.Bean’s customer service philosophy has served them well … over their (almost) 100 year existence, and is an example that we in the non-profit sector must emulate.

The following definition of a customer was a favorite of Mr. Bean’s, and I take license to show how it could/should apply to the non-profit world:

What is a Customer? (Who is a donor?)

(1) “A customer is the most important person ever in this office in person or by mail.”
 • What if we were to make that read: A donor is the most important person ever in contact
   with this organization.

(2) “A customer is not dependent on us. We are dependent on him.”
 • How about: Donors do not need us. We need them.

(3) “A customer is not an interruption of our work. He is the purpose of it.”
 • How about: Contact with donors is not an interruption of our work.
   Our relationships with donors make our work possible.

(4) “A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer.”
 • How about: Donors are not people from whom we can demand support.
   No organization is entitled to its donors’ money … we must earn it.

(5) “A customer is a person who brings us his wants. It is our job to handle them profitably to him and ourselves.”
 • How about: Donors bring us their resources and philanthropic desires.
   It is our job to use those resources and meet those philanthropic desires
   efficiently, effectively, and as we have promised.

L.L.Bean’s five customer imperatives, after a little adapting to the non-profit setting (and to Bean’s outdoors’ focus), make fine “trail markers” for a truly donor-centric path. But it is to often a path where many people would rather hide behind the trees, ignore donor cultivation and leave all fund-raising responsibility to the development department.

The donor-centric path is blazed by the development director, executive director, and board chair. They are/should be followed by department heads and board members until, finally, it becomes a wide road to organizational success … well traveled by all staff and volunteers.

Our job as development professionals is to show our organizations where the path can take them.

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If you have a question or comment for Tony, he can be reached at [email protected]. There is also a lot of good fundraising information on his website: Raise-Funds.com
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Have you seen The Fundraising Series of ebooks ??
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What is a sticky idea?
One of the most stimulating books I have read in recent years in one by Chip Heath and Dan Heath called Made to Stick: Why Some Ideas Survive and Others Die (2007). By sticky, the Heath brothers mean that “your ideas are understood and remembered, and have a lasting impact – they change your audience’s opinions or behavior.”

Sticky ideas are important in proposals. If you cannot get reviewers to understand and remember your major themes, your grant proposals are not likely to be successful. Too many grant proposals are LMO (Like Many Others). You need to find ways to stand out in a crowded pack. Sticky ideas will help you do this.

According to the Heaths, there are six basic principles at work in all sticky ideas:

Simplicity
Sticky ideas are stripped down to their essential core. Here is an example from a grant proposal: “Over the past five years, we have received “Excellent” ratings on all of our government grants.”

Unexpectedness
To get people to pay attention to your ideas, you need to challenge people’s expectations. The most basic way to get someone’s attention is to break a pattern by surprise or interest. Curiosity occurs when we feel a gap in our knowledge, and knowledge gaps create interest.

Concreteness
Being concrete helps make ideas clear and memorable. Concrete language helps people understand new concepts – especially novices and those in a hurry, like reviewers. For experts, concreteness helps construct higher, more abstract insights. Here is an example from a grant proposal: “Each year, more than a million children in developing countries die from dehydration. This problem can be prevented at a very low cost. Oral Rehydration Therapy saves children’s lives.”

Credibility
People need to test your ideas to see if they are true. A credible idea makes people believe. Here is an example from a grant proposal: “In the past year, we have successfully catered two State Department dinners at the White House.”

Emotions
People will care about ideas if they can feel something. An emotional idea makes people care. Use associations, appeals to self-interest, and appeals to identity to create empathy.

Stories
People are more likely to act on your ideas if you can tell a great story. Stories are powerful because they provide simulation (knowledge about how to act) and inspiration (motivation to act). A good story makes people act.
The Heaths’ advice has obvious applicability to the content of your grant proposals. By using sticky ideas, you can help overcome problems that commonly plague proposals. You can:
• Get reviewers to pay attention to your message.
• Get reviewers to understand and remember.
• Get reviewers to believe you or agree.
• Get reviewers to care.
• Get reviewers to act.

How Sticky Ideas help Reviewers
Most grant reviewers use fast and frugal mental processes to make decisions about your proposals. Their cognitive resources are limited and they do not have a great deal of time. Consequently, your grant proposals should be designed so that reviewers can evaluate them with as little mental effort as possible. Sticky ideas will help reviewers remember, understand, and believe your proposal, quickly and easily.

You can make your proposals stickier if you simplify your messages, make them concrete, emphasize the most telling details, use interesting and inspiring stories, and stimulate curiosity. The challenge in any proposal is to make your proposal understandable, memorable, and effective.

Made to Stick: Why Some Ideas Survive and Others Die will help you accomplish this task. I strongly recommend this book to all proposal professionals.
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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.
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In my (May 12, 2011) post, “Grantsmanship: The Good, the Bad and the Ugly,” I quoted from a 2010 WealthEngine white paper stating that the average cost-per-dollar-raised for grants is 20 cents … an ROI of 500%. With such an impressive return on investment, starting a grants program at your NPO might seem like a great idea…

But, as Hank Lewis wrote in his (May 14, 2010) post, “Grants: Free Money – Not Quite !! ,“ “Grants come with a variety of obligations. Corporations, foundations and government agencies don’t just give it away. It takes more than mailing applications and waiting for the checks to arrive.”

So, what do you need to consider before starting a grants program?

I advise (potential) clients to consider the following four points before launching a grants program at their NPO:

Financial Readiness
Hank wrote in his post, “The vast majority of grantors want to see your audited financial reports and your budgets. They want to know where the rest of your funding is from, and you will need to prove that you are fiscally responsible, can be trusted and that you operate in a business-like manner.”

In my experience, all of this is true. You will need to provide detailed financial information with most of your foundation grant applications. The exceptions may be with family foundations that don’t always require this level of detail.

A good example of what will be required can be found in the Missouri Common Grant Application, downloadable here.

The application requires the following financial attachments:

    Internally prepared income statement for current fiscal year

    AND A complete copy of organization’s audited/reviewed/compiled financial
    statements for the last fiscal year which includes two (2) years of financial
    information

    OR An organization’s most recently filed Form 990 plus internally prepared financial
    statements for the past two (2) years.

Along with these organizational financial records, you will also need to provide a project budget, your long-term funding plan for the project, and often a budget justification. The Missouri Common Grant Application and Budget Templates provide good information on what will be required.

Stay tuned for Part 2, in my September 20^th post, where I will outline three additional points for you to consider before launching a grants program at your NPO.

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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.

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