Foundation Prospect ResearchFoundation Prospect Research

Many nonprofits want to seek foundations to fund a portion of their work, often for a special project or expansion. But with more than 95,000 foundations in the United States, it is hard to know where to start. One great source is the Foundation Center, a national nonprofit organization supported by over 550 foundations that has created a data center of information to help fundseekers research what foundation might support their missions.

We offer two ways to help you explore potential funders:

Peter White Public Library Foundation Center Cooperating Collection
At Peter White Public Library in Marquette, nonprofits can freely access the online Foundation Center data base to research possible funders. Reference librarians on the second floor of the library can help nonprofit representatives get started. There are also up-to-date reference books from the Foundation Center that can be used to learn about different private and corporate foundations, look at grants they have made, review funding criteria, and learn how to apply. This same information is available online.

Foundation Prospect Research
Great Lakes Center for Youth Development offers a service through which the online searching for funders is done for the nonprofit for a fee. The nonprofit receives a report with potential funders identified that match search criteria provided by the nonprofit. The analysis is completed by an experienced researcher. Once received, the nonprofit is ready to begin information gathering about the targeted group of potential funders, making the job of research faster and more effective. Foundation Prospect Research is a time saver and investment in your funding search.

Seeking Funding for Your Mission

Foundation funding can be very attractive to nonprofits. First, the only institutions in the world that have the mission to give away money are foundations. Second, foundations give away larger amounts of money at one time. It may be hard to find individual donors to give larger amounts like $10,000, but foundations do it all the time. Finally, there is lots of information available about foundations, so as a donor, you can readily find out what organizations they have funded, what they like to fund, and how much they have granted.

On the other hand, competition for funding is fierce and only a small percentage of proposals that most foundations receive are ever funded. The time it takes to secure a foundation grant can be significant – expect to take at least six months and often, more than a year. Foundation funding is typically short-term, usually 1 to 3 years. Grant funds also are often not available for general operating expenses.

In 2007, Foundations provided 12.6% of the contributions received by nonprofit organizations. Individuals provided almost 75% of all gifts. Corporations provided approximately 5% and bequests made up 7.6% of all gifts. (Source: Giving USA Foundation - AAFRC Trust for Philanthropy/Giving USA 2008)

Once an organization determines that grants will help it meet its funding needs, the next challenge is deciding where to apply for funding. With thousands of foundations, corporations, and funding entities nationwide, the task of identifying the best potential funders to approach is significant. Our staff at Great Lakes Center for Youth Development can help you analyze your needs, determine criteria that will help narrow your search, and utilize specialized software to identify the best potential funders to match your funding needs.

Some of the criteria we consider include:
· The location of your program – e.g. Michigan, Upper Peninsula
· The audience your program serves – e.g. youth, families
· The needs/problem the program addresses – e.g. literacy, substance abuse, youth activities
· What you need resources to fund – e.g. staff, equipment, supplies
· What other resources you have – e.g. building, donations, government support
· Specific interests – e.g. technology, science
· The size of the grant you need
· The type of organization you represent

Foundations and corporations also have many differences that must be taken into consideration:
· The geographic focus
· The purpose and activities of the grantmaker
· The type of grantmaker – e.g. family, corporation, community foundation
· The fields of interest of the grantmaker – e.g. health, youth development, arts
· The limitations of the grantmaker’s giving program
· The types of support the grantmaker will fund
· How to apply for funding and when grants are awarded
· The size of grants provided
· The annual amount of giving

GLCYD can help you plan your grantseeking efforts and navigate the large sea of funders so you can make the most of your proposal development efforts. Our Foundation Prospect Research services can provide you a targeted list of potential funders for you. Let us assist you so you can utilize your time and efforts to develop winning proposals for the funders that best match your needs.

References:

Giving USA. (2008). 2007 by Source of Contributions. Retrieved June 23, 2008, from
www.philanthropy.iupui.edu/News/2009/docs/GivingReaches300billion_06102009.pdf.

2003 Contribution information available