The Role of Grants in a Diversified Fundraising Portfolio Presented by: Maureen A. Ryan Write Connections, LLC www.write-connect.com

What is the Current Grant Funding Climate? Federal Government level: Most federal departments do not have leadership Some federal departments have already made changes to eligibility requirements or intent of funding (DOE, DEP) Some departments have already been threatened with elimination or reduction in funding (NEA, NEH) Legislative/policy changes directly impact local nonprofit operations State and Local Government level: PA budget often in limbo Possible shift of responsibility for federal funding allocations – states to allocate w/o federal oversight? Foundation Level (community, independent, family): Foundations being more strategic in who they fund and for how much Foundations often shift their giving priorities every 3-5 years Open to working with nonprofit organizations on innovative ways to collaborate for long-term sustainability

Securing grant funds takes PLANNING and PREPARATION What Can Nonprofit Organizations do in Response? PLAN & PREPARE!!! Winning a grant takes more than an idea and a funding source. It takes an organization that is well managed, that understands its purpose, and one that utilizes its staff and board efficiently. A successful grant program requires the organization to identify its long and short term goals, the priorities of the proposed project, and the strengths and limitations of its staff and their procedures. Securing grant funds takes PLANNING and PREPARATION

Effective planning strategies: Look to your organization’s Strategic Plan to identify organizational priorities – where are there opportunities for new programs or the expansion of existing programs? Direct service interventions Education Outreach & Advocacy Policy/Legislative change Fee-for-service Funders want to see that your organization has a robust scope of programs and services that address the needs of the population(s) that you serve – that your organization is being “responsive” to the community’s needs.

Effective planning strategies: Develop new partnerships Look for opportunities to collaborate with other nonprofit organizations that can offer complementary services to your proposed program. Consider partnering with other mission-similar organizations to submit “joint” grant requests. With grant funds being ever-competitive, funders want to see innovative and sustainable partnerships between and among nonprofit organizations.

Effective planning strategies: Develop a DIVERSIFIED fundraising strategy. Membership fees Individual Giving Major Gifts Planned Giving Events Grants Crowdsourcing Space rental Fee-for-service (i.e., training other nonprofits) Corporate sponsorship Foundation/Endowment/Investments

So how do you determine a level of effort for securing Grant funds?

ABC Historical Society Property & Grounds Rental Admission Fees Special Events Donors Grants (Gov’t & Foundation) Individuals paying average of $6 admission fee to Museum. Current: 900 visitors = $5,400 Target Grow # of visitors to 1,600 Individuals paying for annual membership $25/yr. $35/yr. $55/yr. = $13,000 Target: Grow # of memberships by 350 (at average $35/yr. rate) = $12,250 High-Net worth individuals Individuals/members donating $100+/year. Annual giving in December = $4,000 Grow individual giving by 100% Independent & community Foundations (SWPA and National) PA Foundations Federal Agencies/ Departments No grants. Solicit grant funds to support educational programming, archives, and special events. Signature Events Festival Days Fall Fest Festival Days = $40,000 Brew Fest = $0 Grow FD 2017 by $5,000 Grow revenue for Fall Fest to $5,000 Members $ 10,000 $ 25,250 $ 8,000 $ 50,000 $ 1,000 Revenue Growth Targets for Operating Budget (FY 2017): Goal = $250,000 (Baseline Approx. $100K) Proposed Projections Museum Shop $15,000 Annual revenue from retail sales in Museum Gift Shop. $5,000 in annual sales. Grow retail sales by $10,000 Property & Grounds Rental Property and grounds rental to community. $500 annually Grow rentals by 100% Educational Programs School Tours Educational workshops Classes $8,000 annually Grow by $5,000 $ 13,000 $ 107,750 Corporate Sponsorship $20,000 Sponsorship for underwriting of special events and/or programs or publications. Current: Festival Days = $12,000 PNC Bank = $4,000 Target: Grow corporate sponsorship for events and programs by $4,000

Keep in Mind: Planning for grants should be LAST! Grant funding should only be considered as funding support for: Launching a new program/project Expanding an existing program/project Helping to support a deficit or funding shortfall Grant funding is TEMPORARY – never expect that grant funding will always be available

Why is it important to know where “Grants” fit into your fundraising? Programs & Services Helps to support sustainability of the program you are proposing. Example: “The Lone Star organization has established a diversified fundraising strategy. Future funding costs for the XYZ Project will be secured through “individual giving dollars,” “profits from our annual golf gala,” “board contributions,” etc. Funding /Revenue Helps to support your ability to show in a grant budget that a portion of the program/project funds will be covered by the organization itself – putting up “committed funds” helps show the funder that your organization is willing to commit operational funds to the proposed program/project.

Build the Best Case for Support Strengthen your case for support both NARRATIVELY and FINANCIALLY. Proposal narrative: - Develop a solid Need Statement/Case for Support - Refer to your Diversified Fundraising Strategy in your Sustainability Statement Budget: - When possible, show that your organization has “skin in the game” by putting up operational funds to support the program/project (25% Rule)

Helpful Takeaways: “Are You Grant Ready?” video at www.write-connect.com Grant Ready Checklist: The Practice of Preparation in Grantseeking

Questions & Comments? Maureen A. Ryan Write Connections, LLC Phone: 412.352.3170 Email: Maureen@write-connect.com www.write-connect.com