Funding: it’s a tireless chase that can exhaust a nonprofit, sucking up resources for insufficient financial gain and limiting the organization’s ability to achieve social good. It’s no wonder, then, that Executive Directors and Board members alike often approach Wellspring for answers to their funding challenges. Our approaches vary and depend upon their needs. They can range from in-depth analysis of government sources to identifying program outcomes that are most attractive to foundations.
While an organization’s development strategy is, by definition, client-specific and non-transferable, through our client work at Wellspring, we have come to realize that there are certain practices that are noteworthy. For example, as part of our recent work with a longstanding, youth development organization, we generated a list of best practices for attracting foundation dollars. These practices, developed through conversations with organization leaders with strong fundraising records, apply to many different organization.
So, without further ado, the list of suggestions:
- It’s all about the data: Organization leaders were clear: without strong demonstration of impact, you’re risking chances of funding. Like all savvy shoppers, foundations, and donors and corporations too, want to know that their dollars are going to good use. Identifying clear metrics and building robust technology systems to track performance are critical. Without them, many foundations won’t entertain the idea of supporting your organizations. And so, while these efforts may be time consuming and expensive, the upfront cost and hassle will pay off in the end.
- Make friends: One Executive Director put it best: “Don’t treat foundations like ATMs.” Winning grants is not transactional. It’s about building relationships. It’s about spending time in funders’ offices and bringing them along in your vision to affect the world. As a result of these efforts, you will have someone to turn to – someone who understands your organization and values its impact – when you need funding in two years’ time.
- Welcome them into your home: No matter how good of a storyteller you are, nothing illustrates a program’s power better than seeing it in action. So invite funders to watch the magic happen. Let them see what drives your organization. Let them see what compels you to show up at their door, asking for money – and they’ll be more likely to oblige.
- Be innovative: What’s new is always attractive – and this can be particularly frustrating for longstanding, even if high-impact, organizations. While acknowledging this frustration, experts noted that you can appease funders’ desire for novelty by injecting elements of innovation into the regular update of programs. Some also advocated for being strategic about program growth, incorporating areas of foundation interest. At the same time, they warn against bending to the every whim of foundations. Doing so could leave you with incoherent growth and programs that are not mission aligned – and, consequently, with an organization that is less appealing to funders.
To be sure, these suggestions are not a panacea; they won’t cure your every funding woe. But it is a strong starter kit that will put a new “oomph” in your development efforts, even those that are already strong.