Developing Donor Relations with Private and Family Foundations Erica V. Ekwurzel, CFRE, MPAff Advocacy In Motion Caroline Newman Phillips, MPAff Austin Public Education Foundation Texas Education Foundation Network Conference April 10, 2015

Agenda Understanding the Foundation Landscape Statistics on Family & Private Grantmakers Utilizing the Donor Cycle to secure funding! Identification: Finding grantmakers Cultivation: Building relationships with funders Solicitation: How the process works Stewardship: Sustaining strong relationships

Landscape of Grantmaking Entities Types of Funding Organizations Corporate giving programs Community foundations Grantmaking public charities Private foundations Family Independent Corporate Corporate giving programs (IBM – employee involvement & giving) Community foundations (ACF, DF) Grantmaking public charities (LIVESTRONG, ed foundations, themselves!) Private foundations Family (at least one member of the board is a family representative – KDK-Harman, RGK) Independent (mainly governed by non-family members – Texas Pioneer Foundation) Corporate (Dell Foundation – in line with business values and strategic aims)

Fascinating Facts on Foundations In 2012, there were 86,192 active, grantmaking foundations in the U.S. ~90% had endowments of less than $10 million with $88 billion in total endowments. Most of these are family foundations. Private foundations are required to make grants of at least 5% of their average assets annually. Education is consistently the top priority of all types of foundations. Source: Foundation Center

2013 Foundation Contributions $335 2013 Foundation Contributions $335.17 billion by type of recipient (all figures are rounded) #2: education – includes higher education, endowment. Trickle down effect of legislative cuts and more involvement in private giving. Source: Giving USA Foundation – GIVING USA 2014

How Foundations Operate—General Trend Differences by Endowment Size Small Foundations (90%--under $10M) Large Foundations (10%--over $10M) Staff Few or no staff Multi-level staff Public profile Keep a low profile Publicize, share data, and advocate Geographic scope Tend to fund locally More expansive; local/ national/ international Grant size 4-5-figure, one-year 5-6-figure, multi-year Motivation Storytelling Statistics Metrics Informal Reporting Formal Evaluation Cultivation Best to approach through personal relationships! Characteristics of small foundations: Few or no staff Keep a low profile Tendency to fund locally Make grants to nonprofit organizations with which they are personally acquainted Many do not consider unsolicited requests Best to approach through personal relationships

Utilizing the Donor Cycle with Private Funders Identification (25%) Cultivation (60%) Solicitation (5%) Stewardship (10%) Source: CASE (Council for Advancement and Support of Education

Finding Family & Private Grantmakers Network locally Online resources: Foundation Center: www.foundationcenter.org Guidestar: www.guidestar.org Urban Institute: http://nccs.urban.org/statistics FC Cooperating Collections: http://foundationcenter.org/collections/cctx.html 20+ Cooperating Collections around Texas Electronic & Print Resources such as: The Foundation Directory Online Professional Philanthropy In/Sight Foundation Center & Urban Institute Free Provides basic facts on grantmakers Most recent IRS filing – Form 990 Additional services for a fee Information on Private Foundations Form 990 – Tax Return Information includes: Assets Dollar amount of grants List of grantees, purposes & grant amount Names of board members and staff

A Valuable Free Resource for Finding Grantmakers Online National Center for Charitable Statistics Search by Texas County View Board Members See Past Grants (by IRS Form 990s)

Urban Institute - NCCS

Texas County Detail

Useful Identification Tool: Commit! Giving Profile, Dallas Download 2013 version at: http://commit2dallas.org/giving-profile/

Useful Identification Tool: Central TX Ed Funders Giving Profile Download 2014 version at: http://centraltexasedfunders.org/giving-profile/

Identifying Alignment Private Foundation Website Grant guidelines & funding priorities Current & past grantees Grant process & timeline Annual reports Staff & board biographies General information/FAQ

Next Step: Building Relationships Identification (25%) Cultivation (60%) Solicitation (5%) Stewardship (10%)

People Give to People In a survey of family foundations by Foundation Source, 58% said it is very important that: “Someone I know and respect is closely involved or has asked me to support the project.”

Strategies for Cultivation Site visits “Friendraising” events Maximize your board relationships Leverage your current funder base Storytelling and/or Statistics = Success Collaborating closely with foundation staff Transparency and trust-building

Donor Cycle: Making the Ask Identification (25%) Cultivation (60%) Solicitation (5%) Stewardship (10%)

How the Grantmaking Process Works 1-Step & “Texas 2-Step” Brief Amount requested Specific purpose of funds Why it is needed Who it will help & how many What you hope to accomplish

How to Apply Full Proposal Many foundations have their own application. Most small foundations do not want a long proposal. Be direct and honest. Be accountable to project goals and budget needs. Cut the jargon talk. State how your work differs from other similar organizations/programs.

Timing of Grant Cycles Don’t Expect Quick Results Often part-time philanthropists Small or no staff 3 or 4 funding cycles annually

What to do if Funder Says “No.” Don’t Let a Rejection Discourage You Rejection is part of the process of finding funding. Listen to the rationale for the decline and incorporate into future decision-making. Reasons for rejection may have nothing to do with the quality of your program or proposal: Funding priorities may have changed Reached annual quota for funding Timing/ Windows of opportunity If a mission match, contact them again as appropriate.

Final Step: Sustaining the Relationship Identification (25%) Cultivation (60%) Solicitation (5%) Stewardship (10%)

Importance of Relationship Building Immediate: Thank-you & IRS letters; public recognition where appropriate Short-term: Engaged funder in Foundation’s activities; keep Foundation top of mind, like offering program tours, e-newsletter, press release; and keep apprised of program evaluations Long-term: Serve as a direct liaison to ISD & priorities; create Ambassadors for your programs

Questions & Comments Thank You! Erica V. Ekwurzel Caroline Newman Phillips erica@civicaim.com caroline.newman@austinisd.org CivicAIM www.supportaustined.org