Tuesday, April 14, 2009, at 12 noon, U.S. Eastern time

As the Chronicle's recent survey of big grant makers shows, some foundations are stepping up their grant making even as their assets are plunging.

Even so, competition for grants is fierce, as more and more groups seek foundation money. That means charities need to do a better job of standing out from the crowd as they write their grant proposals.

What are the best ways to tailor a proposal to a grant maker's mission? How do you highlight your group's strengths and goals? What are the ingredients of a winning grant proposal?

Related Articles

• Lean Times for Giving: The Chronicle's annual foundation survey (4/9/2009)

The Guests

Jane Geever is a New York fund-raising consultant and author of The Foundation Center's Guide to Proposal Writing.

Bernard Turner is an assistant professor at Belmont University, in Nashville, where he leads the Center for Social Entrepreneurship and Service-Learning. He is president of the board of the American Association of Grant Professionals and grant reviewer for several organizations. Previously he served as associate vice president for corporate and foundation relations at Meharry Medical College, in Nashville.

Neal Hegarty is a program officer at the Charles Stewart Mott Foundation, in Flint, Mich. Previously, Mr. Hegarty served as assistant director of the Capital Area Literacy Coalition, in Lansing, Mich. A transcript of the chat follows.

Peter Panepento (Moderator):
    Welcome to today's live discussion. Today, we're going to talk about grants, specifically how nonprofit groups can more effectively write grant proposals at a time when competition for funding is particularly fierce. We have assembled a strong panel of expert guests who will take your questions on this important topic.

Peter Panepento (Moderator):
    Our panelists include Jane Geever, a New York fund-raising consultant and author of The Foundation Center's Guide to Proposal Writing; Bernard Turner, an assistant professor at Belmont University, in Nashville, where he leads the Center for Social Entrepreneurship and Service-Learning; and Neal Hegarty, a program officer at the Charles Stewart Mott Foundation, in Flint, Mich.

Peter Panepento (Moderator):
    All three are available to take your questions during the next hour. To ask a question, simply click on the "ask a question" link on this page and type in your query. One of our guests will respond to your question as soon as possible. You are also invited to use the same link to post your comments or reactions to any of what you read during this discussion.

Peter Panepento (Moderator):
    For those who are new to this format, this is a text-based discussion. There is no need to call in, since there is no audio. We'll also post a full transcript of this discussion at http://philanthropy.com/live. There, you will also find transcripts to more than 100 other Chronicle live discussions.

Peter Panepento (Moderator):
    Ok. Let's get started.

Jane Geever:
    There are three strategies to follow in this tough economy: 1. Be brief. 2. Help the grant maker visualize your project. 3. Be sure the project is central to your organization's mission.

Question from Astrid, Grant Writer:
    I can understand why funders request an evaluation model including outcomes and I agree that grantees should show funders their money's worth. But, how do you make this compatible with the target audience? At a human services organization, where people come in times of crisis and stay for a limited period of time, is it appropriate or even fair to have expectations regarding outcomes?

Neal Hegarty:
    Funders should always expect outcomes in the sense that the grantee should be able to clearly explain what was accomplished with the funding. However, fundees shouldn't always expect a comprehensive evaluation with every grant. At the Mott Foundation, we don't expect an evaluation with all of our grants. Typically we only require evaluation of demonstration projects.

It seems to me that the grantee should make it clear that they will demonstrate accountability and accomplishments, but shouldn't be forced into a one-size fits all evaluation.

Question from Carey, Parenting Teens Resource Network:
    Ours is an organization that provides free parent education in community settings and through a Web site of constantly changing key articles and resources for parents. What are good sources of funding for an organization like this with a budget under $25,000 that does not provide emergency shelter or food or health services?

Jane Geever:
    I would stick first with very local grant makers who understand how important your work is for the community. Because you are using the web, I would look to tech companies. Because you are using articles, I would look to media/news companies. Also, how about local businesses or companies that might be interested in your teen population? Finally, if it is appropriate, I would seek church/religious support -- religious bodies give away as much as foundations and corporations do.

Question from Cliff Preiss, grantwriter for a small arts organization:
    With many foundations' endowments contracting, many are choosing to focus on supporting prior grantees. What do you consider to be the most important messages to convey to a funder in this climate when requesting support for the first time?

Bernard Turner:
    What I call the three I's - Interest, Innovation, and Impact. Your interest in the foundation is because your services match their funding interests and your organization practices innovation (services) and can prove it is making an impact in the community. In essence, you create social change/value, etc..

Question from statewide human service agency:
    Many foundations prefer to provide startup funds for new programs and ask that organizations provide a plan for sustaining the new program without foundation support. In this economy, it seems foolhardy to start up new programs when we struggle to support existing and much-needed services. Do you see any foundations that are intentionally modifying their granting policies to provide support that will keep existing services available to those in need?

Jane Geever:
    Most grantmakers today are moving away from the trend of only providing "start-up" support. That is the good news. The bad news is that they will have less to give away due to the reduction in their endowments.

Given the economic reality the majority of grantmakers are focused on the organizations they are currently funding. If you are not getting support, you should approach them knowing of their reduced circumstances but cultivating for the future when they will have more funds to give away again.

Question from Chip Madsen, Protestant Community Centers, Inc.:
    I'm looking for some solid suggestions; the article in the Chronicle was "doom and gloom" with no advice on what specifically to do. I know that with the corpi of most foundations' funds taking up to a 40% hit, it's hard to expect not to get cut even though you're a long term recipient of foundational funding. Other than normal grant-writing suggestions from "make sure your budget is realistic," to "engage your reader in the executive summary," I'm looking for real advice.

Neal Hegarty:
    It is true that many foundations are forced to reduce their grant making budgets, but I don't think that all grants and all grantees will see cuts. It really depends on the type of organization, project, and funder, but many foundations are maintaining support for core projects/grantees. At Mott, we are honoring renewals and are maintaining current levels of funding for many, many organizations. I know that some other foundations are able to do this as well.

If, however, you are seeking funding for a new project or from a new funding source, it will indeed be very difficult.

The best advice that I can give is to ensure that your organization/project is forward looking and is demonstrating a vision for the future. Funders appear to be less able to "plug gaps" and less interested in "sustaining" projects/organizations as they used to be. Funders are more interested in supporting those that have a clear plan and vision for the future despite the tough economy.

Question from Hazel, animal charity:
    We currently have a capital need for a matching grant. But the only foundations with both an interest in animal welfare and a desire to provide capital and matching funds already donate to our operations. So is it a good idea to try foundations with no particular interest in animals but which do have the type of funding we need? Or foundations that have declined us before even for operations?

Jane Geever:
    Yes on all of those fronts! Often in a capital campaign, you will find that sources that would not give become very good prospects and those that have declined support are interested in helping. The magnitude of a capital campaign and the visibility for the organization around a capital campaign help enormously. Think about piecing together the challenge from various sources -- it doesn't have to come from just one grant maker.

Question from Frederick Penn, Institute for Self Esteem & Evaluation (ISEE), Inc.:
    I am a self esteem expert. How can I use self esteem as the difference maker and an advantage in writing grants?

Bernard Turner:
    I would focus my MACFS (Making A Case for Support) argument around the change your services make in a person's life. If you have evidence (studies, your experience) I would use that information to further justify your position.

Question from R Smith, Woodruff Arts Center:
    I understand that foundation endowments run on a two year rolling average. Therefore, a real downturn in foundation giving is expected from fiscal year 10 - 12. Have you heard similar reports or is this an alarmist attitude?

Neal Hegarty:
    It isn't alarmist, but it is too early to tell what will happen in 2010. I know that foundation boards, executives, and program staff put a lot of time and energy into budgeting. It is complicated, and there is room for diverse approaches to grant budgets. So, it is hard to say how individual foundations will plan their budgets for 2010 through 2012. It is realistic, however, to assume that philanthropic resources won't completely rebound until the economy/stock market completely rebounds.

Foundations take different approaches, but the sector does have the ability to even the spending out over several years. One thing to keep in mind, however, is that granting 5% annually and annual payout of grants can be two different things. Some foundations have cash crunch issues, while others have issues related to the percentage of the endowment being used for annual grant making.

Question from Karin, planned parenthood:
    How do you "sell" a proposal that's responding in an online form that may be asking very "bland" questions, not giving you the opportunity to highlight accomplishments or achievements? And, how much is too much, is there a good length for describing your accomplishments? Are bullets a good way to set up a proposal?

Jane Geever:
    Online forms are frustraing to all of us! Don't forget that in dealing with grantmakers, it isn't just the application. You want to take time before the application to reach out to the prospect and most of them will talk with you. And once the proposal is submitted you continue your cultivation. Often it is the pre and post application work that "sells" the grantmaker. The proposal whether online or hard copy satisfys their documentation need. So don't just get frustrated by the online process. Use your energy in the pre and post time to help present the story.

Question from Nancy, nonprofit consultant:
    I am working with several smaller groups new to foundation fund raising that have long relied on government support. They have fantastic programs which I believe merit private support, particularly for unfunded program elements that make the difference to overall program quality. We believe that even if the answer is "no, not now" during the current economic downturn, that they need to be out there building relationships with potential funders for the future. Any thoughts on this conundrum of spending time/funds now, despite lower odds of short-term success?

Bernard Turner:
    I think these organizations are in a unique position since they have received government support before indicating they have a track record. Use that experience to begin cultivating foundations. We know that relationships are important in fund raising or friend raising as some of my colleagues say. Your organizations have proven programs and this is a good time to start the process of cultivating foundations. The president of the Center for Nonprofit Management recently told our local nonprofits to not only stay focused on your mission right now but do not stop building relationships even in these hard times. I agree with his assessment.

Question from Eunice Carwile, small college:
    How do we make a case for small colleges -- and higher education -- when there are so many social needs for foundations to fill?

Jane Geever:
    The same argument that you make about education, could be put forward for the arts and health! With 95,000 different grantmakers, there will always be a core who will continue to fund education, health and the arts even at a time when social needs are very great. Studies from the Foundation Center show that during periods of economic stress, grantmakers do not stray from their key grantmaking priorities. Also,educational institutions have a hidden asset in their alum group. If your giving is down in some categories, think about increased outreach to the alums.

Question from Nada Polanco, ASPCA:
    I have heard that now is not a good time to seek support from foundations we have not applied to previously. At the same time, many of our regular supporters have said that they are not giving out grants this year or are reducing their grants significantly. How do we make up for lost revenue from our long-time supporters, if we cannot rely on new funding sources?

Bernard Turner:
    Diversification is the answer. I hosted a workshop for 30 nonprofits a few weeks ago about earned-income development strategies. This is one way to diversify your funding during these times. We know that individuals comprise 3/4 of charitable contributions so ask them to pay pledges earlier, if the gift is restricted ask them if some can be used for unrestricted purposes, if you are not asking individuals now, ask them. We just have to be more strategic than ever in our fundraising efforts. And if you can, collaborate with another organization in seeking support. During these times, if two organizations come together, funders are more likely to see that as something good.

Question from Margaret Nover:
    In the past, public universities were state supported; now they are state assisted, and at a much lower level (~30%). I'd like to learn how to better approach and engage foundations in university (academic and community-based) work.

Neal Hegarty:
    That is a tough question on many levels. Higher education isn't my area. However, I don't think that many foundations are able to, or interested in, picking up taxpayer/public sector obligations for the general provision of education. It seems to me that foundations are interested in supporting programs, research projects, infrastructure, etc at universities only insofar as it meets the foundation's grant making objectives. I don't know of any that want to fund a university writ large.

We are seeing a higher amount of indirect costs requested on project grants. I can only assume that is a response to less tax support. While indirect support on a project grant is a vehicle for general support to an institution, it will not plug the gap that you mention.

Local and regional foundations seem to have a higher interest in supporting institutions in their own community. Also, foundations may be able to support enrollment growth strategies that will ultimately lead to more tuition support. Finally, foundations can and should be able to help the sector research and develop new financial models.

Question from Malcolm Furgol, AASCU:
    Do you have any words of advice for institutions of higher education (in particular public colleges and universities) seeking to work with community foundations in their region?

Jane Geever:
    I assuume that by "community", you mean foundations that just happen to be located in your geographic region. As with any other prospect, do good research and be sure that there is a fit between your university and the foundation. Once you know the fit is correct, good cultivation will win the day especially for a larger institution that might previously have been viewed as not needing that grantmaker's support. Needless to say, working the board connections carefully can help as well.

Question from Maggi Smith-Dalton:
    Best source of grants, grant info, and assistance for small ($10,000 budget) arts and humanities nonprofit (relatively new, received recent 501c3 status)?

Bernard Turner:
    There are several things I would suggest: (1) local foundations; (2) corporate sponsors; (3)The Chronicle of Philanthropy's Grants Awarded section; (4) Weekly RFP Bulletin sent electronically by The Foundation Center and; (5) Use your board and any of their contacts. One word of caution is that some funders may not want to invest in relatively new organizations. That is why I would look at the Foundation Directory Online Database and look for foundations that support start-ups, grassroots, and other keywords used in the database.

Question from Geoff Hammond, The John Marshall Law School Foundation:
    I read that many foundations are beginning to fund general operating expenses rather than programming expenses only. Do you think this trend will continue in light of the current economic climate?

Bernard Turner:
    Personally, I do not know if that trend will continue. For the past 5 years, I have been a consultant for a local grant making organization that gives between $2-million to $4-million in grants through two grant cycles every year. For this current round, we are providing the majority of our grant funds in this cycle so organizations will start getting the funds this year. It is also the first time we are giving preference to previous grantees and in essence, one may consider these general operating grants to some degree.

Question from Joshua Case, Neighborhood Christian Legal Clinic:
    Our organization has realied heavily on grants in the past and now as more and more organizations are applying for grants would you say it is better to apply for as many grants as possible or to take a focused effort on applying for a few grants while coupling those applications with other forms of philanthropy?

Jane Geever:
    First, it is important for most non-profits to have a broad base of support. So you should be looking beyond just grants. Secondly, focus your energy and efforts on those grantmakers who know and support your organization. Thirdly, identify the next tier of prospects and open the channels of communication with them with the goal of being able to submit a request, even if it is not on the short term.

Question from Liz, ILRI:
    Because of the time difference I will be unable to respond to your advice on my first question but I also want to find out‚Ķeven though we could come up with a compelling proposal based on your advice, what is the appetite for philanthropies in the U.S. to fund international research institutes that they have probably never heard of in these bad economic times?

Thanks.

Bernard Turner:
    Wow, that's a good question. I would say this is not the time to approach funders with something that will be entirely new to them given this economy. Nothing is wrong with starting to cultivate them either. Remember sometimes we must educate the funders and that is not a bad thing.

Question from Liz Ogutu, ILRI:
    We are an International research institute and my main task is resource mobilization. I have in my ‚Äúto do list‚Äù to start one new philanthropy-relationship every year. This means that I should send out several requests and hopefully one of them should pull through. However, we are located in Africa so the chances of meeting the philanthropies we are targeting are next to nil. How do we write a ‚Äúcold proposal‚Äù that will elicit some response (even if it is negative)?

Thanks.

Neal Hegarty:
    Many large international philanthropies have staff around the world, so you may be able to find contacts in your country/region. Foundations receive thousands of cold proposals, so I think that personal relationships and connections are the best way to get through the door. Network with your field and with folks in philanthropy and try to find ways to connect. It may be wise to deeepen the existing connections rather than put so much focus on finding new ones.

Peter Panepento (Moderator):
    For those who have an interest in international philanthropy, we are playing host to a special live discussion this Thursday at 2 p.m. ET on that topic. Our guest expert is Jane Wales, president of the World Affairs Council of Northern California, in San Francisco, and director of the Program on Philanthropy and Social Innovation at the Aspen Institute, in Washington.

You can join that discussion here: http://philanthropy.com/live/2009/04/international/chat.php3

Question from Seema, NAMI DuPage:
    Is it a good idea to step up grant seeking in an economic crisis year than other years, given an organization's limited resources and the likelihood that individual donations are likely to be down?

Neal Hegarty:
    Possibly, but have realistic expectations. Although the sector is down financially, there are still plenty of grants being made.

Question from Malcolm Furgol, AASCU:
    For any of the new IRS regulations being approved regarding philanthropy are there particular things proposal writers should keep in mind regarding stating the eligibility of their organization for seeking grants. In particular, college and university foundations who apply for grants have expressed concern that foundations may be hesitant to fund them since they pass the funds they receive onto their institutions.

Bernard Turner:
    In this case, I always say seek the advice of a tax expert or the college's general counsel. Grant writers, and I am one of them, play pivotal roles in their organizations but we also have to realize some areas are out of our expertise levels.

Question from Wayne Salazar, Earthjustice:
    Brevity is always valued -- but why is it the first thing you call out in response to this economy?

Jane Geever:
    For years now, grant makers have been trying to get us to be concise. Now when the grant makers are feeling even more pressed and we have even less time to bring in the dollars brevity will be a relief to grant makers and non-profits alike.

Question from Emily Minton, The Ophelia Project and Boys Initiative Tampa Bay, :
    Is it appropriate to follow up with a phone call to the grants person on the foundation side after you have been rejected?

Neal Hegarty:
    Sure, a phone call is fine, but an e-mail is probably better. Many program officers are more than willing to explain their decision and to talk about the project. My advice is to keep it brief; don't pester if they don't respond to one or two requests; ask for clarity rather than a change in their decision; ask if there are ways to make a stronger proposal in the future.

In my experience, future grants have been developed through a relationship that began over a declined proposal.

Peter Panepento (Moderator):
    We're about halfway through today's discussion. For those who have just joined us, please note that you can ask a question at any time by clicking on the "ask a question" link and then typing in your question. We're getting a heavy volume of questions today, so please try to get your questions in soon to make sure our guests have time to answer them. Thank you.

Question from Carolyn Weaver, Saint Peter's College:
    Can you speak to approaching a foundation that has never funded your organization? I have had several say that they are not working with "new" partners.

Bernard Turner:
    Yes, I completely understand and I have ran into this when working in higher education and community-based organizations. I approach the funder from a fact finding perspective. In essence, I try to start a conversation with them not about funding right now but about getting to know who we are and what we do that is directly related to their funding interests.

Question from Mary Kay LeFevour, Nonprofit consultant:
    I've been writing grants for 25 year. Are there really any significantly different approaches to grant writing in the competitive time?

Bernard Turner:
    The only difference now is that we must continually show that we are having an impact and thinking of more innovative ways to offer our services. In essence, we are still worthy of their support. Oh, one other thing, we need to be more accountable/transparent than ever before.

Question from Tom, small local performing arts theatre in TN:
    I'm writing grants for a bricks and mortar capital campaign with no luck with local-based foundations. Any suggestions?

Neal Hegarty:
    Bricks and mortar are often the most difficult grants to obtain. In most cases, the funder is more interested in the programatic outcomes, not the physical plant. So, make sure that the program meets the goal of the funder.

It may be the case that a funder would be more interested in a capstone gift or a matching/leverage gift for bricks and mortar. Most don't want to be the sole funder. Don't assume that funders are interested in naming or public recognition for a capital gift.

Question from Trudy Smith, Executive Service Corps:
    As a nonprofit that essentially raises money to subsidize affordable capacity building consulting for other nonprofits, do you see increased opportunity for us to receive funding for our services which seek to strengthen existing nonprofits?

Bernard Turner:
    Yes, because capacity and effectiveness is so important to funders these days.

Question from Linda, Skyland Trail, Atlanta, GA :
    Jane, could you expand on what you mean by "be brief?" Are there elements of the proposal that deserve more emphasis now (such as statement of need) and others less? Thank you.

Jane Geever:
    Each section of the proposal has its use to the grantmakers. I do not think you should emphasize one over another. The trick is to keep the overall document concise, realizing that if a grantmaker is excited by an idea they will reach out and explore it further with you.

Question from Carolyn Weaver, Saint Peter's College:
    Can you give some examples of cultivation activities that funders WANT to engage in? Do they want to have lunch, just a phone call, a letter? What do people have time for these days?

Neal Hegarty:
    I think that all funders expect some level of cultivation. However, it really is up to the individual. I think that I could say that most funders are comfortable with e-mail, letters, and phone calls. Lunch is often appropriate where there is a close match. As a local funder, it is of paramount importance that I stay engaged with the community, so I have frequent lunch meetings.

You should make sure that you have something substantial and interesting to discuss and are respectful of the funder's time.

In the best case, the cultivation goes both ways because it can also help the grant maker do their job better.

Question from Nycole Hampton, Schools of St. Benedict:
    As a Catholic PreK-12 school I find it hard for us to receive grant support. We are the only Prek-12 Catholic school in the city of Chicago, so we are very unique and have a lot to offer. How can we stand out even more to win the support of foundations? Is it rare that Catholic schools receive funding?

Bernard Turner:
    No, it is not rare that Catholic schools receive funding. I have a friend that works for a local diocese and she is raising funds for such schools. If you are not doing it, use your uniqueness to reach out into the community and possibly collaborate with another school. You know funders are sometimes hesitant when you restrict the persons you serve for one reason or another. I would also develop a fact sheet about the uniqueness and what you have to offer. This could be a good marketing tool for you to use. Just put it in a bullet format without too much wording so it will be read.

Question from Yana, PILI:
    Our organization supports human rights in transition societies by promoting legal and education reform and enhancing the advocacy capacity of NGOs.

How do you suggest doing foundation research for a particular country where donors aren't really prioritizing at the moment?

Bernard Turner:
    The Foundation Center's Foundation Directory is a good source. You can search by foundations or grants awarded and use keywords. I would also search grants.gov for federal grant opportunities and it can be search by keyword, federal agency, etc..

Question from Pamela Grow, consultant:
    Jane, how do you feel an organization can best "visualize" a project for a potential funder? And does the proposal necessarily need to be project-based? The smaller organizations I am working with need general operating funds.

Jane Geever:
    1. Visualize -- put a face on the numbers in the need section of the document; tell a one paragraph story of how the project will impact on one client; judiciously quote users of service.

2. Project support -- unfortunately grant makers have not been willing to give general operating support for many years now. A project, however, can be something that the organization is currently doing, as long as it is presented that way to the grant maker. In this economic environment, some grant makers are moving away from the "project only" stance but usually this is for long time grantees.

Question from Jenny Kolin, Chrysler Museum of Art:
    Any advice on approaching funders that are outside of our geographical region, for whom we don't already have an established relationship? We of course only submit proposals to foundations whose mission and fields of interest we feel is a match, but I'm concerned that such funders will shy away from orgs they aren't familiar with.

Bernard Turner:
    I always look to see who has a national focus (foundations) or which ones have locations near us (corporations).

Question from Kate, Art Museum:
    In these times, general operating support is often the most difficult to secure, but is also the most crucial. Any suggestions on how to make a strong case and make supporting gen ops as appealing as say, a smaller, more niche program, such as an outreach program or special exhibition?

Neal Hegarty:
    Generally local and regional funders are more intersted in general operating support. It is probably more difficult to obtain general support from a national/international program of a foundation.

In our case, we rarely make a general support grant to an organization that is new to us. Our general support grants often occur after several successful project grants.

The more diversified the organization's funding base, the more willing a foundation will generally be to grant operating funds. I think that sustainability of the organization is probably the strongest case to make general operating an appealing case.

Question from FDU, private higher education institution:
    How would you suggest approaching foundations that may say by invite only, but are a good match for your program?

Bernard Turner:
    One approach is to call and talk to the administrative assistant or program assistant/associate and asked the best way to approach the foundation. Also, the CASE Annual Meeting of Corporate and Foundation Relations Officer is a good place ot meet colleagues and foundation representatives. It is in NYC in June this year. There is also a listserv for these professionals that I found valuable.

Question from Laura, New York Institute of Technology:
    We have a very limited history of foundation funding. Is this a deterrent for seeking funding now? There are a variety of new programs and initiatives that would be of interest to a foundation audience.

Jane Geever:
    This certainly isn't the best time to start new funder relationships! That said, I recently chaired a panel of grant makers in New York City and everyone of them said: they are open to new ideas. So forge on. Research carefully; talk with the grant maker; even if money is not forthcoming now keep the relationship alive so that when money eases, you are at the front of the line.

Question from Jessica Pearl, non profit consultant:
    Many foundations will only provide grants on an annual basis requiring renewal applications each year. For a program that is multi-year, the proposal does not change much from year to year. How do you recommend balancing showing continuity in the program without simply copying and pasting the previous year's proposal? Particularly for online forms that only give you room to restate the problem and program objectives and strategies.

Thank you.

Neal Hegarty:
    It really comes down to demonstrating progress, even if progress is maintaining continuity. On-line forms can be more tricky, but perhaps you could send adendums.

I would advise limiting the cut and paste and try to give as much current detail as possible. I like to see two things - a solid description of what was accomplished/learned last year, and a solid descriptiono of what is being proposed for the next year.

Finally, it doesn't hurt to keep asking for multi year funding. Sometimes it can happen.

Question from Susan, Human Services Organization:
    So, how do you make your proposal stand out from the rest?

Neal Hegarty:
    Often proposals stand out for the wrong reasons. I think that an authentic match with the funder's priorities and interests is the best and only real way to stand out. It doesn't hurt to be concise, orderly, and interesting. A good and thorough budget is always a plus.

Question from Kristine, grants consultant:
    How important is it for organizations to be making personal contact with prospective funders before submitting a proposal, even where there is an open submission policy?

Bernard Turner:
    It is good to visit or talk over the telephone for sure. However, if the process is open then go for it because sometimes it is not possible to have a prior conversation. Remember, they cannot meet or talk with every applicant anyway.

Question from Lauren Hines, D.C. Bar Pro Bono Program:
    Many orgnaizations are creating excellent initiatives in response to community needs resulting from the national economic downturn. How can we demonstrate the need for our targeted, effective work while keeping a positive message? I feel like several times in any grant application lately, my sentences begin with "In response to the national economic challenges..."

Do grantmakers tire of hearing about the economy? How can we keep our message to grantmakers sounding positive and optimistic - not whining or doom-and-gloom?

Jane Geever:
    You make an important point that it is possible to un-sell the prospect with being too negative! That means walking a fine line between presenting the need and your organization's reponse in a positive way. And this is where brevity can help because you spell things out in a factual manner without overdoing the point -- no moaning and groaning. Let's give the grantmakers some hope!

Question from Kathy Miller, Public Interest Fundraising:
    Neal, when you suggest building ‚Äúpersonal relationships and connections‚Äù with foundations, what examples do you have of appropriate cultivation mechanisms? Would organization newsletters, e-news, invitations to programs, program reports, etc. be well-received?

Neal Hegarty:
    Yes, all of those are good suggestions. They won't always work, and at the end of the day it is really a lot about personal style of each institution and each program officer.

Sometimes funders/foundations are approached with a lot of formality. In some cases this could be appropriate, but many of us just like a simple hallway conversation at a conference, a card passed at a meeting, an introductory e-mail, etc. The thing to remember is that foundations have to find good projects, good organizations, and good grant opportunities. We are just as much in need of cultivation as the grant seeker. So look for two way street relationships/opportunities.

Question from Denise Rivers, smaller higher education institution in Western New York:
    How would you go about setting an amount of grant dollars brought in goal given the economic climate today and the keen competition for grants?

Bernard Turner:
    Two options - leave it flat, same as last year given there were no extenuating circumstances or take a three-year average and consider that average as the baseline.

Question from Emily Minton, The Ophelia Project and Boys Initiative Tampa Bay:
    Where can you research funding through religious sources that were mentioned in a previous answer? I have never heard of looking here for funding.

Jane Geever:
    I am sorry to tell you that years ago there was a directory but it was not continued. However, much support comes from local religious groups, so knowing those entities in your community is a good way to start. Reaching out to them in turn may lead you to other sources -- local and national.

Question from Beth Zeitlin, Arthritis Foundation, Pacific Northwest Chapter:
    Given the current economic situation, is it better to ask for less money from many foundations? Are foundations more likely to fund at a lower level per program? And should one ask a previous funder to fund at the same level or is it better to ask for less? Thank you.

Bernard Turner:
    I would be cautious about asking for little even in these times especially if they have previously funded you. If the foundation has not requested you to do so then don't do it. They will make the decision at what level to fund you given their situation. I think foundations are more likely to fund at the level in respect to your request and the funding they have available. Funders do not want to make investments that will not have an impact. Ask the previous funder to fund at the same level, it is their decision to make that call unless they have informed you to request less.

Question from Eric Blitz, NJIT:
    Would you have any advice re approaching banks or law firms that manage small foundations or donor advised funds?

Bernard Turner:
    Since they are representing the interests of a donor, just make sure you match their funding interests. If they do not have an identified way for an initial approach, I like to send short emails iquiring about the funding. This has proven very effective because everyone is busy and they respond to emails faster and better than letters and telephone calls.

Peter Panepento (Moderator):
    We'll keep the discussion open a bit longer to attempt to get to some more of the remaining questions. I know that Neal has a commitment at the top of the hour. But I hope Bernard and Jane might have a few extra minutes.

Question from Barbara Dibs, Grantmakers for Education:
    Can you cite common practices in grantwriting/grantseeking that, while appropriate for more robust times, you would recommend NOT doing during the economic downturn?

Neal Hegarty:
    I think that most foundations are going to be focused on essential projects and services. Some may still be receptive to new ideas or creative ideas, but there may be a generally lower risk tolerance. Do as much research as you can about the funder's risk tolerance for creative/new projects in this time and focus on those those that have available funds and interest in creativity.

I think it is a case by case basis. However, long-term funding is probably not the best to seek right now. Also, don't use emotional blackmail to make the case. What funders need now is a solid project plan, a good budget, and clear accountability.

Question from Nina M. Rosete, Dare to Dream Fund:
    Dare to Dream Fund is an educational non-profit that offers a curriculum of goal-setting, life preparedness & accountability for youth age 9-18. We are a start-up non-profit and we've self-financed since our organization was founded in April '08. Our results have been fantastic--our curriculum has been adopted by all the leading your organizations (Boys & Girls Club, Big Brothers Big Sisters, etc.). For a start-up non-profit, what's the most effective way to approach Foundations in a way where they get that we are already making an impact in the community? Thank you for your insights!

Jane Geever:
    WOW! Perhaps the organizations that are using your curriculum would be willing to collaborate with you in seeking grants. Grant makers love collaborations.

In addition, each community has grant makers that tend to fund newer non-profits. They look for the innovative ideas and do not ask for some of the documentation that more established organizations will have. Network with others to identify those sources.

Once you start to get in the door with grant makers, ask them for references to others.

Question from Gail, FUEL, Nonprofit:
    Please give me your opinion on how effective you think philanthropy/foundations funding grants used on community Organizing groups are compared to continued funding of services with no empowerment/organizing of the individuals, families or community. Quote "give a man a fish he has food for a day, teach a man to fish he has food for a lifetime."

Neal Hegarty:
    It really depends on what you are trying to accomplish. Some projects need to have the organizing and developmental approach built in, while there are others that don't. I think that most funders would rather "teach a man to fish," but we also recognize that there are cases where he just needs the fish.

Question from Tom , In TN:
    back to Carolyn Weaver's question on cultivation... who buys lunch? You or the funder? I tried to buy a foundation ED lunch and she said she couldn't accept but could pay for her own lunch.

Bernard Turner:
    Just ask if its okay to buy them lunch. I at least offer and let me tell them no thanks.

Question from Siiri Morley, MBA student:
    With the emergence of the L3C structure (low profit limited liability corporation), which is designed to make PRIs easier for foundations to issue, I'm curious how the philanthropy world is responding. Do you know of any foundations that are responding to this new social venture model by issuing PRIs to L3Cs?

Bernard Turner:
    It's my understanding that two states have passed laws about L3C but I do not have a lot of information about this. If you go to the Social Enterprise Alliance website you may find some more helpful information about this concept. Their annual conference starts tomorrow and there is an all day pre-conference workshop on topic.

Question from Jennifer, nonprofit:
    Jane, you mentioned "Often it is the pre and post application work that "sells" the grant maker." Can you suggest some specific strategies or actions for organizations during pre and post times?

Jane Geever:
    Pre -- call them and talk about the research that you did but be an educated grant seeker. Know your facts before you get on the phone. Once you have established your self with them, start a subtle mail cultivation.

Post application -- stay in touch on the phone and via the mails If you have board contacts use them carefully but use them.

Question from Ruth Anne in Belize:
    A crystal ball question: will U.S. based organizations that give in the U.S. and internationally, focus more on their U.S. giving? More pertinent - how do you keep international (in particular conservation) needs a priority?

Jane Geever:
    The Foundation Center studies on grant maker giving in difficult economic times indicate that giving priorities do not change. That said, you should expect those grant makers who have decided to give internationally to keep doing so.

Stay in front of those grant makers who are your donors and your best prospects. I have heard many grant makers indicate that they are hearing from fewer non-profits today. Keep your message out front and strong.

Question from Angela Tipsey, small nonprofit:
    Are some foundations being impacted more than others or are they all being impacted across the board?

Bernard Turner:
    If you go to The Foundation Center's website, they have a section called Focus on the Economic Crisis and there is a report "In Their Own Words: 2009 Foundation Giving Forecast" where foundations have publicly announced their plans and how they will respond to the current economic crisis.

Peter Panepento (Moderator):
    I'd like to note a recent Chronicle study that found 40 percent of foundations expect giving to drop this year: http://philanthropy.com/news/updates/7689/40-of
-foundations-expect-giving-to-drop-in-2009-chronicle-study-finds

Question from Leann Vernon, BethanyKids:
    What are specific strategies you've used to educate your board about their possible connections to foundation board members and then gotten them to act on those connections/relationships?

Jane Geever:
    Share the officers and directors of the foundations with them. Support them in their outreach to those they know. Have them reach out only after the proposal is in place. Never go around the staff of the grantmaker.

Question from Diane, fledgling nonprofit with global reach:
    We have a small nonprofit that is all volunteer, except for a part-time program administrator. Our budget is less than $25,000 a year. Mr. Turner mentioned that when requesting funding that we must appeal to the funders‚Äô interest. When funding mostly comes from smaller foundations or significant individual donors, questions arise about how much influence is appropriate for the donors to expect and where should the nonprofit board draw the line? Is there a way to gracefully address this upfront in the grant request? What is the best way to appeal to donors who believe in the mission and who give with ‚Äúno strings attached except for the expectation of wise fiscal management and good performance‚Äù? What is the most effective way to manage donors who seem to contribute with an eye toward advancing their ideas through an existing organization? Does it even matter so long as we attract sufficient funding to be successful and sustainable?

Bernard Turner:
    In my experience, I have not known smaller foundations that want to have influence however that may be a different case for the individual donors. Look, your organization has values and you shoud state that upfront. It is always the organization's decision to accept gifts and grants but you must also be ethical in all you do. If these restrictions donors want go across your values and ethics, do not take the money

Question from Mary, Women's Studies Center:
    Would you please address the issue of sustainability. We are a small women's studies center that has previously received start-up funding and are having difficulty addressing the sustainability issue for a female adolescent mentoring program (small budget, and a need for programming funds).

Jane Geever:
    This is tough. You need a broad base of support and you need help in building it. Use this strategy in getting foundation, corporate, individual and religious support and before you know it, you will have that broad base of support. Build one step at a time.

Question from Mark Guncheon, Grant Writer/Researcher:
    I've been writing/researching as a volunteer for over a year with 3 successful grants totaling over $75,000 for 2 different local nonprofits. What's the best way for me to approach a nonprofit in hopes they'll hire me to write/research grants for them on a paying basis? Am I likely to find work outside my local area?

Jane Geever:
    You can find work. Will those organizations for which you did volunteer work act as references? Non-profit execs like to see a track record and you have one.

Writing is writing and not affected by geographic area. My office is in NYC and we have used writers in Texas, New Orleans and Rochester, NY.

Peter Panepento (Moderator):
    With that, we are bringing today's discussion to a close. Thank you to those who took the time to join us today -- and for the bevy of fantastic questions. You all challenged our guests today with some excellent questions. And I think they answered the challenge by providing some useful and timely information.

Peter Panepento (Moderator):
    I want to thank our guests -- Bernard Turner, Jane Geever, and Neal Hegarty -- for taking time from their schedules to answer your questions. You all did great work and we appreciate your effort.

Peter Panepento (Moderator):
    Remember, we'll be back here again on Thursday at 2 p.m. Eastern time to discuss international philanthropy. And we'll host our regular discussion next Tuesday at noon Eastern time. The topic will be starting and building a career in the nonprofit world. You can find more information (and links to more than 100 chat transcripts) at http://philanthropy.com/live. Thanks.