Funding Insight Directly From Funders

February 23, 2010

Everyone is talking about the “new reality,” but what exactly is this, and what could it mean for nonprofits, funders and the relationship between the two?

How is this new reality affecting funding and grantseeking? How can nonprofits access insight directly from those who review grant applications and make funding decisions?

Drawing on its connections with grantmakers who account for nearly $900 million in grants each year in Minnesota, the Minnesota Council on Foundations has encapsulated grantmaker knowledge and insight into its Grantseeking for Beginners seminars to help nonprofits learn what makes a proposal rise to the top, get noticed and get funded in an era of intense competition for extremely tight resources.

A group of corporate grantmakers and family, private and community foundations recently shared these nuggets of advice for grantseekers:

  • “Those who are able to convey their message the best will win out in a tighter grant reality.  Poorly written applications will not get noticed, and grant funders may no longer be as accessible to work with groups to help them improve their application.”
  • “I would encourage collaboration and research to avoid duplication.  In a tighter funding reality, grantmakers will be looking closely at the amount of collaboration between organizations and seek to ensure that there is as little duplication of efforts as possible in the grants that they award.”
  • “Don’t assume ‘same as last year’ when it comes to a foundation’s contact information, focus or funding guidelines. Many foundations have made internal changes, tightened budgets and changed processes.”
  • “Prepare and educate yourselves on the funder. Visit websites first; don’t call with questions on information that can be found online.  Use that information to your benefit to show you have educated yourself. Organizations need to do homework.”

If you’d like to learn more directly from funders, attend one of MCF’s Grantseeking for Beginners one-day seminars – we’re offering four this year, including some in greater Minnesota.

First up is 9 a.m. to 3:30 p.m. Wednesday, March 3 in St. Paul. Sign up by February 25 to save $30 off the registration fee.

At this session, learn all the basics – from researching relevant funding sources to developing strong and effective grant applications. See the proposal review and decision-making process from grantmakers’ points of view during a grantmaker panel discussion featuring:

If you can’t make the seminar, but want to learn more about a resource that can help you do your grantseeking homework on funders, check out Minnesota Grantmakers Online, MCF’s searchable database of funders and grants.

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Posted by Chris Noonan

Bringing to Life the Buzzword “Leverage”

February 15, 2010

Over the past year, as I’ve been writing for various publications of the Minnesota Council on Foundations and reading extensively on philanthropy, the word that’s rising to the top more and more is “leverage.”

Dictionary.com defines the word several ways, but the most relevant to philanthropy are:

  • The power or ability to act or to influence people, events, decisions, etc.; sway.
  • The use of a small initial investment, credit or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.

Kevin Walker, president and CEO of Northwest Area Foundation, has described “leverage” the most vividly. At MCF’s 2010 Outlook Program for Minnesota Grantmakers and Nonprofits on Jan. 29, as part of the panel discussion, he said leveraging is “making sure our dollar pushes other dollars in a direction in pursuit of our mission.”

As part of my research for our spring issue of Giving Forum, which will focus on innovation in philanthropy, I am reading the annual reports of several MCF members. The 2009 report of West Central Initiative (WCI) was filled with stories of how it is leveraging its funding in the nine counties and 83 communities the foundation serves in west central Minnesota.

Among the highlights:

  • WCI’s Community Organizing and Visioning Grant was joined with a variety of public and private funding to energize stewards in Bemidji, Alexandria and Fergus Falls to create “destiny statements” envisioning the future of their communities and measurable goals to achieve.
  • WCI is acting as fiscal host, grant writer and coordinator of the Early Childhood Dental Network, which has grown into a regional effort to combat a deficiency in access to oral health care.
  • Gap financing – such as that provided to local entrepreneurs, including TFC Poultry in Ashby – is supporting job creation and business establishment and expansion in rural Minnesota.
  • WCI used its expertise to help community organizers map out a fundraising effort and create the Pelican Rapids School Fund to raise and administer funds when the school levy referendum failed and the school district faced dire cutbacks.

These are energizing, motivating and inspirational ways WCI is bringing to life the concept of “leveraging” – using its resources to push other resources as WCI pursues its mission in greater Minnesota.

– Chris Murakami Noonan, MCF communications associate

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Posted by Chris Noonan

Is philanthropy via TXT a fad or a revolution?

January 19, 2010

I heard a “fad vs. revolution” question posed on the radio this morning on the way to work. It was in reference to another topic, but it struck me, because I’ve been thinking this past weekend about all the various ways individuals are donating to the relief efforts in Haiti – via text messaging being the vehicle most prominently publicized.

Two men pause to send text messages on their smartphones.

Fad or future? What's your take on using SMS or texting to make donations?

I’ve been keeping my eyes open for any organization that is asking people to send in checks, but those appeals are almost nonexistent as most organizations are directing donors to their websites. A few are promoting phone numbers that take credit card donations, but these also are rare.

Is appealing for financial support via text messaging a fad or a revolution? How many more people will donate who wouldn’t have given otherwise, because it’s just a quick few punches with the thumbs and $10 is on its way? Preliminary numbers certainly point to the success of this appeal. If people give $10 via texting, but they would like to give more, will they? How?

Charitable giving is a $5.5 billion endeavor in Minnesota, according to MCF’s Giving in Minnesota, 2009 Edition research. Of this, 76 percent or $4.19 billion came from individuals. Over the past decade, charitable giving in Minnesota increased 67 percent, and the number of grantmakers in the state rose by more than 65 percent. In just a year, from 2006 to 2007, foundations and corporate giving programs increased their giving by 10.1 percent to $1.32 billion.

Has innovation or evolution in philanthropy contributed to this increase? What factors – technology, outreach strategies, messaging, donor-advised initiatives to name just a few examples – are redefining how and what we give? Which individuals and organizations are leading the way? These topics and more will be the focus of our spring issue of Giving Forum.

In the meantime, join the conversation on texting to support relief efforts in Haiti by commenting on this entry. I’m interested to hear others’ perspectives.

- Chris Murakami Noonan, MCF communications associate

Image CC Kiwanja

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Posted by Chris Noonan

Happy New Year(-End Giving)!

December 28, 2009

I’m sure your mailbox has been like mine these past few weeks – plenty of letters soliciting year-end financial contributions mixed in with the holiday greetings. The challenge has always been how to sift through all this and make the decisions to give to some causes and not to others.

Champagne

Before you uncork a bottle of bubbly on New Year's Eve, will you be making any last minute donations?

How is the tough year affecting your year-end giving? Do we choose to support nonprofits that address hunger and housing? How about organizations that are filling a need created by government budget cuts such as those providing education or medical care and support to those who struggle to afford it?

Or do we support those nonprofits that may have experienced a drop in giving this year (like arts groups, for example), because a good base of their support now is being directed toward basic needs and they are not perceived as such? Do we support dire needs in our own zip code, state, country or across the ocean?

In this economic climate, difficult choices are coupled with our own decisions about how much we’re capable of spending, giving away and saving.

Given the amount of mail I’ve received (via the regular postal service and via email) now is a time of great need for the causes I support (as well as for those for which I’m not sure how I got on their distribution list).

Working in the nonprofit field, I tend to view fundraising appeals through a somewhat more critical lens, thinking about messaging, impact and other nuances.

A couple of recent articles caught my attention. In his monthly e-newsletter free-range thinking, Andy Goodman recounts a study conducted in 2007 at Carnegie Mellon University in which researchers studied the giving of students who received appeals using data alone to illustrate need, a personal story alone outlining need, and data plus story. The results in a nutshell: Story alone is a more effective appeal than data alone and surprisingly, data plus story.

A New York Times article recently touted Dec. 31 as the “most lucrative” day of the year for many nonprofits, especially those that solicit online giving. Nonprofits, the article says, are increasingly using a last-minute email appeal to entice people to take advantage of any tax benefits for giving during the preceding year.

Join the conversation: Has your mailbox seen more, less or about the same amount of fundraising mail this season? Which appeals do you find most impactful? Any examples you’d like to share? What’s your experience with New Year’s Eve giving? How much giving do you do then? Or, if you’re a nonprofit, is that a “lucrative day” for you?

- Chris Murakami Noonan, MCF communications associate

Image CC Oskay

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Posted by Chris Noonan

Minnesota Council of Nonprofits: Current Economic Conditions

December 21, 2009

On Friday of last week I joined more than 200 attendees to hear Jon Pratt, Christina Wessel and Ruth Duran Deffley of MCN present the findings of their Nonprofit Current Conditions Report and the Minnesota Nonprofit Economy Report.

Their findings in a nutshell — “grim”:

  • Sixty percent of organizations reported an increase in need for services, compared with 42 percent in 2008.
  • The ability to meet this increase in need for services is undercut by the reduction in revenues to these organizations.
  • The types of organizations most frequently reporting declining total revenue were environment related, education and employment/jobs related.
  • Organizations with budgets under $400,000 have faced the most difficulty in 2009.

Many nonprofits are trying to stay afloat by cutting staff, creating hiring and salary freezes and reducing employee benefits. The outlook for 2010 according to survey’s nonprofit respondents? Gloomier still than 2009. What are nonprofits to do?

Marcia Avner, public policy director at MCN, says, “This is not a time to wring our hands.” Marcia went on to make a plea for nonprofits to band together in these troubled times and create a unified voice to advocate for creating a sustainable state budget through participation in Invest in Minnesota, a coalition of nonprofit, faith and labor organizations.

The response panel carried forward this theme of defiance in tough times. Mark Peterson of Lutheran Social Services challenged attendees to build “a culture of possibilities” by developing practices in their organizations that encourage everyone from staff to board to innovate, create goals and execute them.

Similarly, Kate Barr of the Nonprofits Assistance Fund stated that, whereas 2009 was a time for “trimming the edges,” survival in 2010 and beyond will be determined by how willing nonprofits are to rethink their way of delivering services and maintaining back office operations. Short-term thrusters will no longer drive solutions for maintaining operations; organizations must look to the long term — three years out — and develop a plan for sustainability.

Renae Oswald-Anderson, director of MAP for Nonprofits’ Project ReDesign, asked nonprofit leaders to look within and define first what they do best as an organization, and then seek partners to shore up gaps. She stated that this strategy — sticking to your core services and finding opportunities to collaborate and share resources with others — may be the key to continuing operations for many nonprofits that are facing hard times in the recession.

“Now is the time to ask, What can we do better together?” Renae reiterated in her closing statement. Fortunately there are resources available for funders and nonprofits considering just this question. Project ReDesign has many resources available on its website, and Grantcraft recently released a guide for grantmakers on funding collaboratives.

Upcoming program: MCF’s 2010 Funding Outlook for Minnesota Grantmakers and Nonprofits
Registration is now available online for MCF’s Outlook event happening on January 29th in St. Paul. At the event philanthropic and nonprofit colleagues will convene to learn about the funding outlook for 2010, based on MCF’s survey of grantmakers conducted in October-November 2009, and to network and discuss opportunities to work toward shared goals. For further information and to register, visit mcf.org.

- Cary Lenore Walski, MCF web communications associate

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Posted by MCF Webmaster

Wow, Minnesota. You Gave to the Max, and Then Kept on Giving!

November 18, 2009

We here at MCF would like to take a moment to salute all those who participated in GiveMN’s Give to the Max Day — the donors, nonprofits, foundations, and the staff who made it possible.

The official results aren’t in yet, but according to the tracker at GiveMN.org $13 million dollars were raised for over 3,000 nonprofits in the state of Minnesota yesterday. We at MCF are fond of talking about the amazing generosity of Minnesotans to pretty much anyone who will listen, and it’s truly inspiring for us to see such an outpouring of that spirit of giving that we’re so proud to be a part of.

Give to the Max Day was made possible thanks to the generosity of The Saint Paul Foundation, The Minneapolis Foundation and the Bush Foundation who committed $500,000 in matching contributions to support community needs in Minnesota and to cover transaction fees so that 100% of all donations go to the nonprofit organizations. For information on the results of Give to the Max Day, stay tuned to GiveMN.org.

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Posted by MCF Webmaster

No excuses: The 50+ers ramp up their giving

August 24, 2009

I can rattle off a myriad of reasons why those over age 50 might choose to cut back their giving: concerns about future income streams, limited spare time as they care for aging parents, their children’s college tuition expenses, rising health care costs and insurance premiums, and on and on. 

But, last week The Hartford Financial Services Group Inc. announced the results of a volunteerism and charitable gift survey of the 50+ population.  The results showed that, excuses aside, this group is ramping up giving of both time and money.

In commemoration of The Hartford’ 25-year relationship with AARP, part of the survey focused on comparing AARP members with non-members.

Some of the findings:

  • 53 percent of consumers age 50+ participate in volunteer work, compared to 45 percent for those age 49 and younger.
  • Of those who volunteer, almost 14 percent of AARP members volunteer one day per week as compared to 7.5 percent of non-AARP members.
  • 76 percent of those over 50 give monetary donations to causes they support. This compares to 83 percent of AARP members over age 50, and 60 percent of those under age 49.
  • The causes most favored by the 50+ group include Alzheimer’s disease, social services, the environment and military support.  

- Chris Murakami Noonan, MCF communications associate

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Posted by Chris Noonan

Contribute to My “Recommended Reading” Stack

August 18, 2009

Last week, the Minnesota Council on Foundations hosted a summer gathering for our members.  As a relatively new staff person here at MCF, I didn’t know most people in the room.

Got any good stories of Minnesotans giving? We'd like to hear about them.

When I left the event, I had an extra spring in my step (even though my feet were killing me). Why?

Because my evening was filled with shaking hands and hearing story after story of foundations working to make a difference. Sometimes the storyteller was a staff person implementing an organizational mission that looked out a decade. Some storytellers were new hires at an emerging foundation that had just put ink to paper on how it was going to create change or raise the bar. I even met a few storytellers whose names matched the foundations’ and whose aspirations for their grantmaking were straight from their heart.

Why did a particular foundation choose that mission? How are they working to achieve it? What’s the story behind the giving? After all, someone somewhere sometime decided it was better to give than to keep.

So, I’m in search of books or articles that tell the giving story of our philanthropists and our foundations – both well-known and lesser-known.  If my experience at our summer gathering is any indication, there are plenty of great stories out there. What are your favorites?  What’s enlightened and inspired you?

– Chris Murakami Noonan, MCF communications associate

Photo CC Ruminatrix

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Posted by Chris Noonan

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