CFG Classroom

II. How to Fund Your Program

1. Preliminary Information
2. Desirable Grantseeker Attributes
3. Beginning Your Foundation Search
4. Before Drafting the Proposal
5. Submitting the Proposal

This online class is designed for beginner grantseekers, and is intended to serve primarily as a an introductory class on the grantseeking process.

A Note to Grantseekers

This online class is designed for Christians who are new and inexperienced grantseekers. It provides an introduction to the funding process and to CFG's resources. With the arrival of CFG, the collection of print and electronic resources now available to Christian grantseekers is both comprehensive and convenient.

It takes time and effort to find grantmakers that are truly good prospects, but the results can be worth the research efforts you expend. Keep your expectations realistic. Foundations and other grantmakers will not likely meet even a majority of your financial needs. Individual donations still account for the great majority of the funds given to nonprofit organizations. Currently, foundations and corporations combined only provide about 17 percent of philanthropic gifts, and only a portion of this is given for Christian projects. However, these funds can make all the difference for your project!

Do not focus all your efforts on one or two "perfect" funders. Many grantseeking churches and ministries have important missions, so you must seek a reasonably broad base. Develop a list with several viable options. Even experienced proposal writers often receive multiple letters of rejection for each successful grant. On the other hand, avoid compiling a lengthy list of "long-shot" prospects; mass mailing is a waste of everyone's time. Grantseeking should be viewed as a highly individualized process to be conducted in a businesslike manner.

Preliminary Information

Foundations: At CFG, we define a private foundation as a nonprofit corporation or charitable trust, whose primary purpose is making grants to organizations or individuals for religious, scientific, educational, cultural, literary, or other charitable purposes. The foundations in CFG's database are those we believe will be open to religious-specifically Christian-grantmaking. A private foundation derives its money from a family, an individual, or a business entity. By contrast, a public charity or community foundation derives support from members of the public. CFG publications and databases cover private foundations, corporate foundations, community foundations and other grantmaking public charities. For more information about foundations, click here.

Obtaining Grants: Grantmakers usually fund nonprofit organizations that qualify for public charity status under section 501(c)(3) of the Internal Revenue Code. To qualify, the organization's purpose must be charitable, educational, scientific, religious, literary, or cultural. Public schools, libraries, and other government organizations may also qualify as public charities.

Furthermore, public charities:

• cannot benefit private individuals; and
• are restricted in their influence on legislation or political campaigns.

Funders generally do not make grants to ministries and other organizations whose tax-exempt status is not finalized; most will request proof of nonprofit status before they consider an application. Under federal law, foundations may make grants to non-qualifying individuals and organizations if the foundations follow very specific rules. The rules regarding expenditure responsibility require foundations to file various reports certifying that the funds were spent solely for the charitable purposes specified in the grant.

Individual grantseekers should consider pursuing affiliation with an eligible (tax-exempt) organization. In such an arrangement, the affiliate organization acts as a sponsor or fiscal agent for your project. For further information, click here. (Link to section for individual grantseekers-above)

Desirable Grantseeker Attributes:

Grantmakers seek to determine whether the purpose of an organization or project is in sync with its mission or objectives. They will also look for the following:

• Most importantly, foundations determine whether the purpose of an organization or project is compatible with their specific mission;
• Evidence that it is reputable in the community;
• Competent and committed employees and board members;
• A viable project budget;
• Evidence that the program or organization addresses an existing problem;
• Successfully obtaining grants in the past;
• Evidence of financial competency; and
• A history of successful recruitment of volunteers.

Some foundations only support well-established churches and ministries. Check each foundation's guidelines and recent grantmaking using the CFG database. This will help you determine whether a foundation supports new organizations.

Types of Funding Given By Grantmakers: The projects and organizations grantmakers will fund vary dramatically. Some give any kind of support; others only extend building support, scholarships, or fund specific projects/activities. The CFG database provides you with information about the areas each foundation funds. Look at the "Types of Funding" index in the print and electronic databases. Due to ongoing commitments, foundations sometimes limit the number of new proposals they will accept. Funders do not want grant recipients perpetually dependent on them.

Insider Help: Generally, knowing someone inside the organization, such as an officer, board member, or even an employee, is helpful. However, it is unwise to put pressure on those who will review your proposal. The best thing you can do is demonstrate the credibility of your organization and project. If a foundation states that it does not accept unsolicited grant requests, explore the possibility that someone familiar with your organization is also affiliated with the foundation. If this is unsuccessful, consider the challenge of attracting the foundation's interest over time.

Beginning Your Foundation Search

Searching within CFG's database, compile a list of foundations that appear likely to support your organization or project. Select funders by examining their descriptive profiles and recent giving histories. Consider foundations that: (1) have historically supported similar projects; (2) have awarded the type of support you seek; (3) are present in your geographic area; and/or (4) you are affiliated with through someone on your board.

The next step is to thoroughly research the funders you identify. To research a foundation's grantmaking patterns and trends, explore the foundation's website. You may also look at its annual reports, Form 990, and printed guidelines. Diligent research pays off in two ways: first, it may save you from submitting a proposal to a funder who will not even consider your proposal; second, it will help you draft a better (well informed) proposal. Even if your proposal is not accepted, you want to leave a good impression. Next time, the result may be different.

You will increase your chances of success by using the following three approaches in your research:

• The subject approach identifies grantmakers that have funded, or expressed an interest in funding, programs in your specific subject field. Examples of different subjects include: the Bible, children, education, or mission work.
• The geographic approach identifies foundations that fund programs in a particular city, state, or region. Although some may give nationally or internationally, many grantmakers limit giving to specific geographic areas.
• The support type approach identifies foundations that provide specific types of support. Examples include: building funds, scholarships, or general operating support.

By combining two or more of these approaches, your chances of success may be even greater. For example, if your program involves building homes for missionaries in Haiti, you may want to start by searching for foundations that have made grants for: mission work (subject), building shelters or homes (support type), and work in Haiti (geographic).

Before Drafting the Proposal

Although drafting your proposal is an important part of the grantseeking process, be mindful that far more time and effort should be spent in developing the project itself.

Making a Beginning: Describe your program in great detail; make sure you include the project's goals and objectives. The entire concept of the project should be clear to the reader. Develop a timeline and estimate costs for personnel, overheard, goods, and services. Draft job descriptions for personnel. Finally, outline how you will evaluate the success of your project. Components of your proposal may include:

• Summary
• Organization Statement
• Statement of the Problem/Situation
• Specific Plan
• Results and Evaluation
• Budget
• Supplementary Materials
• Conclusion

Assembly of these various elements into a well-organized proposal is described in the Proposal Writing Course.

Submitting the Proposal: A Step-by-step Approach:

I. First Steps

Increasingly, grantmakers are requesting brief letters of inquiry addressing how well your proposal and their interests correspond. A letter of inquiry should include-to a lesser extent-all the elements of a proposal. It should only be two pages, and should indicate what the next step will be (for example, that you will follow up with a phone call in 10 days). The objective of a letter of inquiry is to capture the funder's interest so he requests a proposal.

In some cases, foundations supply detailed instructions about what your proposal should include. Follow them. Some groups of grantmakers such as regional associations (i.e. Minnesota Council on Foundations) and the National Network of Grantmakers are now endorsing common grant application forms that grantseekers may (or must) use when submitting proposals.

Although it is unlikely that you will send the same proposal to multiple foundations on your list, you should consider creating a "master proposal" for your project or organization. This may save time, as you can simply customize it for each prospective funder.

II. Useful Guidelines for the Master Proposal

1. Make it well organized and concise. Use headings and sub-headings where appropriate. Use dark type on bright white paper. Do not bind-use clips or staples.
2. Use page numbers. If the proposal is long enough, provide a table of contents.
3. Use charts and statistics as appropriate, but realize they can disrupt the flow of the narrative. Place footnotes on the same page, not at the end of the document.
4. Include only important attachments, press releases, news clippings, resumes, and appendices.

III. Stylistic Approach

1. When drafting the proposal, consider the beneficiaries point of view. This especially applies to the Problem and Plan sections.
2. Avoid using jargon, slang, or acronyms. If you do, provide explanations.
3. Use short, succinct sentences; no rambling run-ons. Keep paragraphs short.
4. Use the active voice whenever practical.
5. You may use abbreviations as appropriate. However, excessive abbreviation may lead to confusion or distraction.

IV. Application Procedures

1. Each grantmaker establishes its own application deadlines. Read and follow them closely. A missed deadline could render your proposal worthless.
2. After a proposal is submitted it may be several months before a decision is made. Also, it may take several weeks after notification of the grant to receive the funds. Therefore, it is in your best interest to submit your proposal up to a year in advance of your proposed start date.
3. When submitting the same proposal to multiple grantmakers, inform them of the other grantmakers considering the proposal.
4. Always address your cover letter to an individual. If you cannot obtain the correct individual's name from CFG, call the foundation. Verify the spelling of names and addresses.
5. Do not fax or e-mail your proposal without determining that this is acceptable. At this time, very few grant proposals are accepted via fax or e-mail.
6. Double check to be sure all requested attachments are included. Commonly requested attachments include:
   • A copy of your organization's 501(c)(3) determination letter from the IRS;
   • A list of your organization's board members and their professional affiliations;
   • A copy of your organization's budget and most recent audit;
   • A brochure describing your agency.