Introducing a Grants Program at a Small
Non-Profit:
Opportunities and Challenges
Sheila Lischwe
Many of us are one-person development shops in small non-profits
that typically rely on annual appeals as our main sustenance. Integrating a
grants process into fundraising activity more than supplements these annual
appeals -- it can take the organization to the next level of development. Before
sending off that first proposal, however, there are some fundamental tasks that
must be addressed before a full-fledged grants program can take off. Each of
these tasks comes with their own opportunities and challenges.
I. Conduct a Due Diligence Effort
with the Files and Database
The first order of business is to gauge the extent of any previous private support
the organization has received, and the nature of any proposals that have been
submitted. Small organizations typically do not have well-developed tracking
systems, so it is crucial that you thoroughly review all paper files and record
any previous grant support the organization has received, and what the purpose
of that support has been. Submitting a proposal to a funder without acknowledging
their previous support, even if it had been 10 years ago, could de-rail even
the most persuasive proposal.
Opportunities:
Having a fundamental understanding of the organization's constituency
forms the foundation of your development strategy. Knowing what individuals
and organizations have relationships with your organization informs the
initial steps of your prospect-research, proposal writing, and solicitation
plans.
Oftentimes, previous support has been received from only direct-mail pieces,
or a "shot in the dark" approach. With some focused research and
persuasive writing skills, a greater level of support may be secured.
Knowing which foundations or individuals haven't been approached, but
should have been, gives you another starting point, and one of the best
opportunities to bring money in right away.
Challenges:
This is a time-consuming but necessary activity that is well-worth the effort,
but can tax the patience of any development professional wanting to get to business
raising money right out of the gate.
II. Manage Expectations and Priorities
The terms "fundraising" and "development" can have many
different meanings to people, from bake sales and raffles to seven-figure endowments.
As the newly hired expert in the field, it falls to you to define what that
means for your organization and communicate that to the staff and board.
Challenges:
Countering the expectation that all money raised will be unrestricted
or dedicated to operating funds. As development professionals, we know that
general support is traditionally the hardest category of funds to raise
from foundations. Educating management and the board about this is imperative,
but it doesn't have to be psychologically defeating. Placing the issue in
the context of a one year time-frame, most board members will appreciate
that foundations are more apt to fund a small, specific project first, so
they can gauge the organization's ability to steward their funds adequately.
It is acceptable to review operating costs and bundle those expenses that
can be attractively packaged as a program or project. Once your organization
has proven its metal, securing general operating support is much easier
the next time around.
Unrealistic Timelines -- Staff unfamiliar with the grants process are
likely to think that needs are identified, a proposal is written, and the
money flows in almost immediately. Emphasize the presence of deadlines,
the fact that it may take two or three months after a proposal is submitted
before its reviewed, and perhaps as long to find out about the disposition.
Grants programs typically are not they way to go for quick fixes, so ask
staff to be thorough in anticipating all their needs.
Tendency to Think "Small" -- Most small non-profits are used
to operating on a shoe-string budget, settling for the minimum quality of
items and "making do". Helping staff visualize what the program
would be like if they had all the money in the world, is not only a wonderful
way to inspire creativity, but also inspires program improvements and ideas
for fundraising.
No plan for self-sustenance -- Foundations are very interested in what
plans an organization has to become self-sustaining. Requesting grant support
to build capacity in an area that has revenue generating potential demonstrates
to the foundation that your organization is thinking ahead and isn't relying
solely on year-to-year grant support to continue operating.
Opportunities
These activities are paradigm changing -- requiring staff and board to broaden
their perspective about the role and mission of the organization, and where
it fits in making valuable contributions to the community. In addition to producing
material for a compelling case statement, the thought process engages staff
and board much like a strategic planning process does. It is likely that all
those involved will enjoy the creative process -- seize the opportunity, then
to make it an ongoing, if not annual, exercise in planning, with a 5-year vision
of where the organization should be, each year considering what needs to be
done to reach that goal.
III. Gather Content
Once the broader vision is set, you must now gather the statistics and data
necessary to support your needs statement.
Challenges
At a small non-profit, the folks who hold the supporting data, research,
etc. are often too busy delivering their service, meeting with clients,
etc., to write up their needs statements. Therefore, it becomes your job
to conduct focused Q&A sessions with staff to answer the questions a
funder might ask: What is the problem? How many people does it affect? What
evidence supports the solution that your program offers? In addition to
staff feedback, information supplied by the professional organizations or
journals are valuable sources that can be used to develop background and
supporting data.
Opportunities
Familiarity with professional organizations in the field is helpful for
the "lay" person to quickly get up to speed on the critical issues
facing provider organizations, and can lend a professional tone to your
proposals. After all, it's hard to be persuasive about something you know
little about.
Adeptness at communicating the problem and solution your agency provides
also translates into effective public relations materials that will expand
the awareness of your organization to the public at large, another "hat"
that you will probably wear in your role as development director.
You are ready to compose that first proposal only when you have a complete
knowledge of the organization's constituency, realistic expectations of
staff and board, and a broad vision of the organization's reason for being
supported with convincing data. Ready, set, write!
Sheila Lischwe is the Director of Development for the Wildlife Rescue Center
in Ballwin, Missouri and a freelance development researcher. Her career has
involved all aspects of development from fundraising research, grant-writing,
annual giving appeals, database and information management, and strategic planning.
Ms. Lischwe is one of the founding members of the Missouri-Kansas Chapter of
the Association of Professional Researchers for Advancement (APRA) and served
as that organization's Public Relations Director and Vice President.
