When people think of philanthropy and grant making, big players like the Bill and Melinda Gates or Ford foundations generally come to mind. But it would be a mistake for nonprofits to overlook smaller family foundations. That’s because they give out more than $4 billion each year in grants, according to a survey of 2,000 foundations conducted by Exponent Philanthropy, a membership organization of smaller grant makers. More than three-quarters of that money is given to organizations in a donor’s locality, making family foundations an essential community player. And their assets are growing. In a separate survey, the National Center for Family Philanthropy found that half of small foundations expected to add to their reserves. The Chronicle spoke to several experts, and here are their pointers on how to connect with these small but essential players.
Dig into all available resources
Foundations aren’t going to come rushing to your door; you have to seek them out. There are several resources at your disposal. For starters, check the Foundation Center’s Foundation Directory Online, a database with profiles of more than 140,000 grant makers, including details on where they invest their money. Guidestar is also a good place to begin. There, you can scour foundations’ Internal Revenue Service filings, learn about their missions and board members, and look at their financial reports and grant-making history. And don’t forget regional grant-maker associations. The United Philanthropy Forum network has lists of groups in various regions and subject areas that you can use to help you find foundations in your town or those that support your cause.
Look within your own walls
Often, the best leads come from your own organization, says Jason Born, vice president for programs at the National Center for Family Philanthropy. He suggests you poll your board to see if they have personal or professional contacts who might be interested in making a grant. Also ask your staff members.
Don’t forget regional grant makers
Often, community foundations are the best sources of information about which donors and family foundations are active in your issue, says Emily Tow Jackson, executive director of the Tow Foundation. And if a community foundation points you in the direction of one grant maker that supports your cause, don’t be shy about asking that donor about other small foundations with similar interests. The foundation world is interconnected, and if a grant maker isn’t interested in supporting your work, it may be able to recommend others that will.
Research the donor’s giving history and interests
Grants from smaller foundations are often influenced by personal connections a family member may have to a particular nonprofit or cause, Born says. Potential grantees need to learn what motivates certain donors. “If they have a website, read everything on it,” he says. “If they talk about their funding values, think about whether what you’re doing connects to the values of their organization. Find out who’s on the board and figure out what their personal passions are.”
Listen to grant makers
People like to talk about themselves, says Henry Berman, president of Exponent Philanthropy. He suggests you find out what matters to them, rather than showcasing your work.
He knows from experience. In addition to leading Exponent Philanthropy, he serves as the trustee of a foundation. In that role, he was once invited to visit a school that was interested in receiving a grant. He was whisked off on an hour-long tour of special classes and programs — only some of which had anything to do with one of the foundation’s core program areas, early-childhood literacy. After the tour, the head of the school’s board sat down with him and said, “So, why don’t you tell me what’s important to you?”
Imagine, Berman says, if that process had been flipped, and the board chair had started by asking, “What’s important to you?”
“Be interested, not interesting,” he says. “Don’t start with ‘we do all this wonderful stuff.’ ”
Provide something new
Smaller grant makers are often interested in having their relatively modest grants lead to bigger investments in the future, according to Born. “They don’t feel their grant is needed as much” if it is going to a well-established nonprofit or program. Getting involved in the work of a smaller nonprofit, or a new program, can allow a grant maker to “get in at the ground floor,” he says.
Find others who will advocate for you
While smaller foundations often want to seed new projects, rather than funding the “usual suspects,” you still need to show that you’re an expert in your field, Tow Jackson says. Include letters of support in your initial communication with a foundation and consider bringing a partner from the community who can vouch for you in follow-up interviews, she suggests. “It’s confidence-building” for a foundation to see that a potential grantee is well connected to others with similar missions.
Be real; building a relationship can’t be faked
Some foundations schedule office hours in which potential grantees can discuss their work, or they may offer online forms that nonprofits can use to submit proposals. Make the most of these opportunities, but don’t act as if you already have a relationship with the foundation staff. Often, Berman says, potential grantees who have looked at his foundation’s website feel they know a lot about him. “It’s legitimate that they could have a sense of who we are that way,” he says. “But if we’ve never met, they don’t know me. And that’s OK. Every relationship begins with an initial hello.”
Don’t tell the foundation about itself
Berman says he’s lost count of the number of nonprofits that have sent him proposals with a long list of the foundation’s efforts, which conclude with a suggestion that the nonprofit is a “perfect match” because it is involved in the same work.
“It’s a waste of their words, and at some level, it’s insulting,” he says. “It suggests I’m not capable of hearing their story and understanding if we are a good fit.”
Don’t exaggerate
Berman says his favorite discussions with potential grantees occur when a nonprofit tells a complete story — with facts, figures, and compelling personal stories. But you shouldn’t try to stretch a description of your work to fit the foundation’s priorities, he says. If your nonprofit is on the periphery, not in the sweet spot, of a foundation’s grant making, say so up front. Honesty can lead to more conversations, and possibly to a grant. “Smart applicants won’t try to B.S. me,” he says. “They won’t try to connect the dots that aren’t there.”
Find new ways to get a foundation’s attention
If a foundation hasn’t expressed interest, or says it does not accept unsolicited inquiries, that doesn’t mean they are totally closed to the idea of making a grant. “You just have to find a different way of making them aware of your work,” says Born.
Remember, most small grant makers support local nonprofits. Their board members likely watch local news on television and read local newspapers. Getting featured in the media may be a good way to get on a philanthropist’s radar.
Make it a priority to participate in local events related to your cause. For example, if you work in education, attend education forums and networking events. It’s a good bet that foundation representatives will be there, too.
Keep staff in the loop
Reaching out to the trustee of a foundation can be a good strategy to get noticed, especially if that person feels an affinity with your area of focus. But if your main contact is a board member, don’t expect a speedy response. Remember, says Tow Jackson, board members probably have a host of personal and professional matters on their minds. Foundation staff members, on the other hand, are paid to process grant requests and work with grantees. If you’ve sent a board member written material about your work, find out which staff member works on your issue and send that person a digital copy, she says. And find out whether foundation executives prefer that messages be left with program officers or executive assistants. Often, Tow Jackson says, an email to a staff member has a greater chance of being acted on than one sent to a crowded inbox. “Usually there is a point-person on different aspects of our work,” she says. “I’ve empowered that person to work in that area.”
Plan far ahead
Don’t send in a funding application at the last minute and expect success. For instance, if the deadline for a proposal is June 1, “the time to start building a relationship with me is not on May 15th,” Berman says. “Things take time.”
Be patient
Sometimes, a foundation will greet your inquiry with arms crossed, demonstrating no interest in supporting your work. The timing may just not be right, and perhaps opportunities will be better in the future.
Berman counsels patience. Foundations are dynamic institutions, and their funding priorities change. Potential grantees should keep in mind that if a donor says “no,” it doesn’t mean they are always going to be closed to providing support.
“People should not think of these as ‘one and done,’ ” he says.
Nonetheless, he caution against being too persistent. Says Born: “It’s a balancing act.”
Don’t know? Ask.
Large national foundations often provide guidance to prospective grantees at regular intervals. Family foundations, Tow Jackson says, are “a little more mysterious.” Potential grantees can “right-size” their expectations, she says, by asking up front whether grants are made on a set cycle and whether the board meets at regular intervals throughout the year.
