Introduction

A wide array of human service programs, educational initiatives, natural resource based projects, information and data gathering programs, and a range of related efforts are increasingly being undertaken via the competitive grants process. While there are many forces that have contributed to this situation, chief among them are a shift in federal and state government philosophies, increasing service demands at the local level, and the substantial growth in the assets and the number of foundations in the philanthropic community.

Increasingly, those seeking to complete projects utilizing these competitive funds are non-profit organizations whose mission is related, in one way or another, to those who are providing these funds - whether from public or private sources.

What needs to be recognized, however, is that many non-profit organizations, especially smaller organizations (which make up the vast majority of non-profits across the country) frequently lack the staff, funding, and expertise to compete effectively in this increasingly competitive environment. This is compounded by the fact that most philanthropic organizations are located in, and frequently limit their geographical interests to, larger metropolitan centers. This guidebook is intended to provide non-profit organizations with an introduction to the resources and skills they need to be competitive in this rapidly changing environment.

Overview

If your organization, or the organization(s) you are assisting are IS to be competitive, the information provided here is literally just the tip of the iceberg. While not intended to be exhaustive, Finding the Funds You Need: A Guide to Grantseekers can get you started on the path toward a successful grantseeking effort.

Specifically this guidebook covers the following topics:

• Understanding the Grantseeking Process
• Preparing Your Organization for Fund Seeking
  • Ensuring Readiness
  • Choosing a Fundraising Strategy
• Understanding Foundations
  • Foundations in Pennsylvania
• Corporate Giving
• Public Sources of Assistance
• Knowing the Research Tools
  • Locating Basic References
• Doing Preliminary Research
• Applying a Research Method
• Writing Effective Proposals
  • Gathering Background Information
• Components of a Good Proposal
• What Happens Next?
• Glossary
• References
• Internet Resources
• Recommended Reading
• Writing Style Tips

• Publications and Services of the Foundation Center

Understanding The Grantseeking Process

There are two types of fundraising and grant writing in which nonprofit organizations are most commonly involved. The first is responding to a Request for Proposals (RFP). These are usually offered for project specific, pre-determined funding purposes established by the funding agency. In almost all cases, the application guidelines, timeline, requirements, and award criteria are established by a funding organization or agency and must be strictly adhered to. Although this is beginning to change, it is this type of grantseeking that public organizations, and state and local governments are most frequently involved.

The second type of grantseeking involves a proactive strategy of seeking out operational and project funds from one or more of the many philanthropic foundations and organizations in existence to assist nonprofit groups in meeting their common goals.

Novice grantseekers often mistakenly put the greatest effort into the writing of a proposal or the answering of an RFP. Although the written grant may be the ultimate product of grantseeking activity, it is only a small component of the grantseeking process. To be successful, grant-writing must be a process that entails careful planning, research, and outreach, as well as cultivating relationships.

The Foundation Center's Guide to Proposal Writing notes this process is grounded in the conviction that a partnership should develop between the nonprofit organization and the donor. When you spend a great deal of your time seeking money, it is hard to remember that it can also be difficult to give money away. In fact, the dollars contributed by a foundation, corporation, or public entity have no value until they are attached to solid programs in the nonprofit sector.

This truly is an ideal partnership. The nonprofits have the ideas and the capacity to solve problems, but no dollars with which to implement them. The foundations, corporations, and public entities have the financial resources but lack the means needed to create programs. Bring the two together effectively, and the result is a dynamic collaboration.

You need to follow a step-by-step process in the search for private dollars. It takes time and persistence to succeed. After you have written a proposal, it could take as long as a year to obtain the funds needed to carry it out. And even a perfectly written proposal submitted to the right prospect may be rejected.

Raising funds is an investment in the future. Your aim should be to build a comprehensive network of funders, many of which give small gifts on a fairly steady basis and a few of which give large, periodic grants. By doggedly pursuing the various steps of the process, each year you can retain most of your regular supporters and strike a balance with the comings and goings of larger donors.

Approximately 95 percent of all grant proposals are rejected - most often because they are sent to inappropriate sources in the first place. Unfortunately, once a need is established, eager grantseekers often write proposals before completing the necessary homework. It is frequently suggested that 75 percent of all grant-writing effort should take place before the grantseeker actually writes the proposal.

Whether you are new to grant writing efforts or have been writing grants for years, Finding the Funds You Need: A Guide to Grantseekers, will enable you to both understand and respond to these increasingly competitive circumstances.

Walt Whitmer, is a Community Development Agent, Penn State Cooperative Extension

Lucinda Baron Robbins, is an Economic and Community Development Agent, Penn State Cooperative Extension