1. 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

2. 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

3. 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)

4. 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

5. 2013 Foundation Contributions $335
2013 Foundation Contributions $ 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

6. 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

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

8. Finding Family & Private Grantmakers
Network locally
Online resources:
Foundation Center:
Guidestar:
Urban Institute:
FC Cooperating Collections:
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

9. 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)

10. Urban Institute - NCCS

11. Texas County Detail

12. Useful Identification Tool: Commit! Giving Profile, Dallas
Download version at:

13. Useful Identification Tool: Central TX Ed Funders Giving Profile
Download 2014 version at:

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

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

16. 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.”

17. 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

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

19. 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

20. 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.

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

22. 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.

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

24. 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

25. Questions & Comments Thank You!
Erica V. Ekwurzel Caroline Newman Phillips
CivicAIM