1. Making Smooth Moves: Identifying Prospective Foundation Funders

2.  There are more than 100,000 foundations in the United States.  Foundation fundraising is experiencing a paradigm shift and has moved from a worthiness model to a business model.  As a result, nonprofit business organizations must restructure how they present and conduct their organizations—with specific focus on professionalism, efficiency, impact, and sustainability. Fast Facts on Foundation Fundraising For now we’re going to focus on efficiency.

3. Prospecting: Why It Matters  Like gold prospecting in the 1800s, foundation fundraising requires a strategic and systematic approach.  If implemented well, your affiliate can:  Develop focus  Track progress  Identify opportunities  Focus on the most promising prospects

4. Prior to Prospecting: Make Smooth Moves  Position yourselves favorably in the community and your sector  Recognize your strengths as an organization  Perform a competitive analysis with similar organizations  Leverage current relationships and make them more dynamic

5. Prospecting Step One: Identification  Identify the best prospects  Sift out foundations with little giving potential  This will prevent frustration and wasted effort.  This means:  Research the organization’s historical information  Search Internet, similar NPO donor lists, directories  Identify prospects through stakeholders  Expand network of current connections

6. Prospecting Step Two: Qualify  Use 4-Point Assessment: 1. Capacity to give 2. Receptivity to new recipients 3. Funding trends of giving interest 4. Geography A quick side note on geography.

7. Location, Location, Location!: Foundations and the HFHI Collaborative Development Policy  Fundraise in its local area or  Connect with foundations that have a “community presence”  If a foundation’s presence is unclear, the affiliate must:  Collaborate with another local affiliate to determine the geographical service area of the foundation and  Ask permission to pursue funding from that particular foundation. HFHI policy dictates that each affiliate :

8. Prospecting Step Two Continued: Qualify As you qualify,  Prioritize:  Foundations that best matches your affiliate based on the 4-Point Assessment and  Fulfills your affiliate’s financial and/or programmatic needs  Create list of prospective foundations for each program or project  Include the amount your affiliate requests per foundation

9.  Conduct further research  Create a customized plan for each foundation  Call to confirm information and connect personally  Identify individuals who are connected your affiliate as well as to prospective foundations  Identify other levels of contact  For example, engage and invite a foundation representative to tour your facility or attend an event. Prospecting Step Three: Cultivate

10. Prospective Foundation Your Organization Analyze trends in a foundation’s giving Perform “competitive analysis,” i.e. compare the prospective foundation, as well as its trends, to a similar foundation(s) Use this intelligence to determine fundraising priorities Alignment Match your organization’s mission and goals with the priorities of the foundation. Then, begin the inquiry process. Review current relationships and partnerships Draw in stakeholders Network for information and funding prospects Perform “4-point” assessment: Ask for the right amount Align interests

11. Stake Your Claim: Where to Begin Foundation Prospecting

12.  Is a fully-searchable, online database of foundations  Contains vital information about the funding history and priorities of over 100,000 U.S. foundations  Provides specific information you need to determine foundation prospects FoundationSearch Basics

13. It’s free and available to HFH-NYS members now!

14.  Approximately 20% of foundations have websites.  This means that 80% of foundations do not have widely available information but instead provide it to specific companies and databases.  To maintain legal foundation status, foundations must give away 5% of their assets annually.  In 2011, foundations provided approximately $80 billion dollars in funding.  You can enhance your ability to match your affiliate with prospective foundations.  For example, you can vet foundations by geographical giving and stay in compliance with HFHI. Why use FoundationSearch?

15. FoundationSearch: Getting Started Your Home Page

16. FoundationSearch: Getting Started Tools to Use  Grant Analyzer  Grant Visualizer  Foundation Search  Foundation Visualizer  Prospect Generator  Profile Key Word Search  990PF Key Word Search

17.  Evaluate your affiliate and how you can fit it into the shifting foundation paradigm:  What is your affiliate’s impact?  What are your affiliate’s past successes?  Is your organization structurally and financially sustainable?  What is your affiliate’s purpose or cause?  Start prospecting foundations  Identify:  Employ the 4-Point Assessment  Qualify:  Consider HFHI policy  Cultivate Moving Forward

18. Questions, Comments? Talk to Judy. Remember, keep it smooth.