1. Consultants for Community Resources
Foundations 101
Presented by:
Michael Marcus
Consultants for Community Resources
(847)

2. Distinguishing Characteristics of Foundations
Type
Source of
Funds
Geographic
Focus
Kinds of
Charge or Purpose
Public Charity
Community:
About 900 in
the U.S.
Contributions
from
individuals,
families,
corporations,
and other
entities
Local
community
area
Designated,
restricted,
unrestricted,
“hybrid.”
Donor/advisor
Broad, public
benefits,
community needs
in areas of health,
social service,
education, arts and
humanities, and
civic affairs
Classified as “public
charity,” favorable
tax implications,
asset management
by community-based
trustee banks, public
distribution
committee
Corporate:
About 3,000 in
Corporate
profits
Communities
in which
corporation
does business
Not
applicable
Determined by the
corporation –
scope may be
broad or limited
Classified as private
foundation, less
favorable tax
implication, asset
management at
discretion of
corporation, private
Independent
Family: About
47,000 in the
U.S.
Private Assets
Determined by
the donors –
local, national,
or international
Applicable
donors – scope
may be broad or
limited
implications, asset
discretion of the
donors, private
Conversion:
About 170 in
Sale of not-for-
profit health
providers
Community
Area
Usually
restricted to
health
determined by
documents of sale
Classified as Public
Charity
Note: With thanks to the Chicago Community Trust,100 E Wacker Drive, Suite 1400, Chicago, Illinois (312) ,
Note: With thanks to the Chicago Community Trust, 100 E. Wacker Drive., Suite 1400, Chicago, Illinois (312)

3. 2004 CONTRIBUTIONS: $254.00 BILLION BY SOURCE OF CONTRIBUTIONS
Source: AAFRC Trust for Philanthropy/Giving USA 2002

4. 2004 CONTRIBUTIONS: $254.00 BILLION BY TYPE OF RECIPIENT ORGANIZATION
Source: AAFRC Trust for Philanthropy/Giving USA 2002

5. THE FOUNDATION GRANT PROPOSAL
The most common format for foundation grant proposal includes six parts:
Executive summary;
Description of the organization
Need addressed by the proposal
Project description (including a plan for evaluation)
Budget
Appendix

6. THE GRANTMAKING PROCESS
Initial Screening
Review by Staff
Preparation for Board Action
Board Action
Notifying the Applicant
Staff Follow-up
Reporting
Closing the File

7. THE GRANTMAKING PROCESS: APPLICATION
Initial Screening:
Assignment to Staff
Sufficient information
Development of project folder
Determine relationship to foundation’s policy and program focus
Eligibility, i.e. 501 (c) (3), geography, etc

8. THE GRANTMAKING PROCESS: APPLICATION
Review by Staff :
Further consideration of relationship to foundation focus
Evaluation of utility of the project
Evaluation of organizational capacity
Review of time table and cost estimates
Review of the organization’s budget and strategic fundraising plan
Other project and organizational funders

9. THE GRANTMAKING PROCESS: APPLICATION
Review by Staff :
Relationship to other funding made by the foundation Evaluation of utility of the project
Review of evaluation component
Submittal to technical experts for outside review

10. THE GRANTMAKING PROCESS: APPLICATION
Review by Staff :
Site visit, not your ordinary dog and pony show
Other project and organizational funders
Staff decision, i.e. hold for further study, recommends grant, recommend decline, return for re-write and amendment.

11. THE GRANTMAKING PROCESS: APPLICATION
Preparation for Board Action
Summary of proposal prepared and distributed to the Board of Directors or Distribution Committee, including
history of similar projects
statement of the relationship to foundation program, policies, and focus
staff recommendations including contingency requirements, i.e. matching grants, budget revisions, staff hiring, program plan, timelines, etc.

12. THE GRANTMAKING PROCESS: APPLICATION
Board Action
Discussion in light of knowledge, experience, and interests of Board members, Foundation policy and program focus, and available funds:
Grant or decline
Grant with contingencies
Refer back to Staff for further study .

13. THE GRANTMAKING PROCESS: APPLICATION
Notifying the Applicant
Letter to the grantee including :
Grant or decline
Grant with contingencies
Refer back to Staff for further study .
Letter from grantee acknowledging the grant
Transmittal of grant payments on schedule
Notification of decline, almost always by letter - a call to follow-up is usually okay.

14. THE GRANTMAKING PROCESS: APPLICATION
Reporting
Semi-annual fiscal and program narrative reports received from grantees;
Classification of projects in grant taxonomy;
Annual written report published by the Foundation and made available to the public;
Reports filed with the IRS

15. THE GRANTMAKING PROCESS: APPLICATION
Closing the File
Make certain project folders contain all correspondence, reports, and required IRS materials;
Organization of file for permanent storage.
© Michael S. Marcus, 2002

16. Private Foundation Grant Proposal Process
Michael Marcus
Consultants for Community Resources
1123 Hull Terrace
Evanston, IL 60202
(FAX)
(Direct)