Dana Zupanovich LuckaDana Zupanovich LuckaDirector of DevelopmentDirector of DevelopmentCollege of Health and Human ServicesCollege of Health and Human ServicesFresno StateFresno State

EFFECTIVE CORPORATE AND FOUNDATION FUNDRAISING

Why Foundations?Why Foundations?Why Corporations?Why Corporations?

•AAs government funding diminishes, private foundations s government funding diminishes, private foundations and corporations can helpand corporations can help

•EEspecially useful for new programs and special effortsspecially useful for new programs and special efforts

•SStrong interest in programs that involve local trong interest in programs that involve local communitiescommunities

•BBig money – foundations and corporations continue to ig money – foundations and corporations continue to give away billions per yeargive away billions per year

•TTop three areas are education, health, and human op three areas are education, health, and human servicesservices

What Corporate and What Corporate and Foundation Philanthropy Foundation Philanthropy Attractive?Attractive?

•MMeet real needseet real needs

•MMatches donor demographics and interestsatches donor demographics and interests

•VVisibility and prestige of being associated with good works in isibility and prestige of being associated with good works in the communitythe community

•SSmall investment, big returnmall investment, big return

•SSustainability of programsustainability of programs

Fairness vs. StewardshipFairness vs. Stewardship•FF

oundations, corporations and oundations, corporations and government agencies have government agencies have fundamentally different fundamentally different approaches to funding decisionsapproaches to funding decisions

•NNot understanding the difference ot understanding the difference often leads to frustrated grant often leads to frustrated grant makers and fundraisers alikemakers and fundraisers alike

Government Process: FairnessGovernment Process: Fairness•AA

ll applicants should have an equal opportunity – ll applicants should have an equal opportunity – a “level playing field”a “level playing field”

•DDetailed written criteria (Request For Proposals)etailed written criteria (Request For Proposals)

•RReview panel of outside experts eview panel of outside experts

•SStaff members who are assigned to answer taff members who are assigned to answer questionsquestions

Foundation and Corporate Foundation and Corporate Process: StewardshipProcess: Stewardship

•SStewards of donor’s intentions and intereststewards of donor’s intentions and interests

•OOften favors known successful programsften favors known successful programs

•MMakes use of information not in the grant proposalakes use of information not in the grant proposal

•MMay not have a written proposal process or staff ay not have a written proposal process or staff access at allaccess at all

•FFinal decision makers may not be expertsinal decision makers may not be experts

The Goals are the Same!The Goals are the Same!

•BBoth government funders and oth government funders and foundations/corporations want to fund foundations/corporations want to fund outstanding projectsoutstanding projects

•AApproach is differentpproach is different

•EEffective grant seekers tailor their ffective grant seekers tailor their proposals for each foundation or proposals for each foundation or corporationcorporation

Why Do Corporations Give?Why Do Corporations Give?•GG

ood corporate citizenship. Positive community image in places ood corporate citizenship. Positive community image in places they operatethey operate

•EEnlightened self interest. For example, they need an educated nlightened self interest. For example, they need an educated workforce, so they support educationworkforce, so they support education

•IIndividual leadership initiative. The CEO or senior leaders often ndividual leadership initiative. The CEO or senior leaders often shape giving prioritiesshape giving priorities

•CCivic participation. Often restrict giving to places in which they ivic participation. Often restrict giving to places in which they operateoperate

•QQuid pro quo. What’s in it for us? uid pro quo. What’s in it for us?

Why Do Foundations Give?Why Do Foundations Give?

•TTo honor the donor.o honor the donor.

•TTo make the world a better place.o make the world a better place.

•TTo meet community needs.o meet community needs.

•TTo gain prestige or visibility (sometimes).o gain prestige or visibility (sometimes).

•BBecause they have to (IRS 5% rule). And only to 501(c)3 ecause they have to (IRS 5% rule). And only to 501(c)3 organizationsorganizations

Writing a Successful Writing a Successful Foundation/Corporate ProposalFoundation/Corporate Proposal

•FFirst and foremost, it is just good grant writingirst and foremost, it is just good grant writing

•EEvery foundation and corporation is unique: follow very foundation and corporation is unique: follow theirtheir processprocess

•NNever “repurpose” a government grant proposal for a ever “repurpose” a government grant proposal for a foundation or corporationfoundation or corporation

The Step by Step ProcessThe Step by Step Process•WW

riting the proposal comes at the riting the proposal comes at the endend of the processof the process•MM

any of the steps will take time and patienceany of the steps will take time and patience•RR

espect each foundation or corporation’s process and espect each foundation or corporation’s process and proceduresprocedures

•MMake use of the ake use of the allall resources you have, including resources you have, including connections to the foundation or corporationconnections to the foundation or corporation

Step 1: Nurture RelationshipsStep 1: Nurture Relationships

•EEssential to know the foundation or corporationssential to know the foundation or corporation

•PProvide a regular stream of informationrovide a regular stream of information

•IInvite staff to eventsnvite staff to events

•DDon’t let the proposal be your only communicationon’t let the proposal be your only communication

Step 2: Advertise Your SuccessStep 2: Advertise Your Success•SS

maller foundations and local corporations especially maller foundations and local corporations especially want to ensure that they are giving to good want to ensure that they are giving to good programsprograms

•MMake sure your efforts are seen and appreciated in ake sure your efforts are seen and appreciated in the communitythe community

•AA little secret: little secret: foundation and corporate giving people foundation and corporate giving people talk to each othertalk to each other

Step 3: Do Your HomeworkStep 3: Do Your Homework

•FFind out what the foundation or corporation funds and at ind out what the foundation or corporation funds and at what levelwhat level

•““Over the transom” proposals are never successful -- and Over the transom” proposals are never successful -- and no multiple copies!no multiple copies!

•TTailor the proposal carefully to match the language (“buzz ailor the proposal carefully to match the language (“buzz words”) of the foundation or corporationwords”) of the foundation or corporation

Step 4: Look Locally and be CreativeStep 4: Look Locally and be Creative

•MMost foundation and corporate money is local, but most ost foundation and corporate money is local, but most people look nationallypeople look nationally

•HHave local influentials on advisory boards ave local influentials on advisory boards

•RReceiving support locally will help you compete for national eceiving support locally will help you compete for national foundation fundsfoundation funds

Step 5: Understand the Funder’s Step 5: Understand the Funder’s NeedsNeeds

•WWhat is the foundation or corporation trying to accomplish?hat is the foundation or corporation trying to accomplish?

•IIs visibility and/or prestige a goal?s visibility and/or prestige a goal?

•LLook at the history of the organization and background of ook at the history of the organization and background of trustees or corporate officerstrustees or corporate officers

•CCorporations often take cues from employees in deciding orporations often take cues from employees in deciding what to fund – do you know any?what to fund – do you know any?

Step 6: Simplify and ClarifyStep 6: Simplify and Clarify

•OOften the downfall of nonprofitsften the downfall of nonprofits

•HHave a verbal pitch that is at maximum 2-3 minutes ave a verbal pitch that is at maximum 2-3 minutes long long

•WWrite it down rite it down and memorize it and memorize it

•AAnswer the obvious questions (cost, length, why you)nswer the obvious questions (cost, length, why you)

•TTry the “mother test” – she’s on the Board!ry the “mother test” – she’s on the Board!

Step 7: Talk before WritingStep 7: Talk before Writing

•AAlwayslways try to talk to a program officer before submitting a try to talk to a program officer before submitting a proposal if possibleproposal if possible

•AAsk for advice -- they often can and will give itsk for advice -- they often can and will give it

•HHearing that they would never fund you is not an insult, it is earing that they would never fund you is not an insult, it is a favora favor

•LListen more than you talkisten more than you talk

Step 8: Create the proposal Step 8: Create the proposal

•HHereere is where you actually write the proposal (step 8 is where you actually write the proposal (step 8 of 9)of 9)

•AAnswer the “Three Whats”:nswer the “Three Whats”:• Do What? Clear statement of the projectDo What? Clear statement of the project• So What? WhatSo What? What difference difference will it make?will it make?• Then What? How will the effort continue once funding Then What? How will the effort continue once funding

ends?ends?

Step 9: Remember Your Goals

•DDon’t respond to every foundation or corporate on’t respond to every foundation or corporate announcement -- you won’t be successful and will soon announcement -- you won’t be successful and will soon give upgive up

•BBe politely persistente politely persistent

•DDon’t let the pursuit of funding warp your strategic goals – on’t let the pursuit of funding warp your strategic goals – know what you do well and stick to itknow what you do well and stick to it

We all Need ResourcesWe all Need Resources

•The Foundation Center: most comprehensive resource• http://foundationcenter.org• Searchable databases•Membership or Shared Use

•Foundation websites and annual reports

•Corporate giving information is harder, but a search of local news stories is often helpful

•IRS 990s at guidestar.com

Thank You!Thank You!

Dana Zupanovich Lucka559-278-5590danaz@csufresno.eduhttp://dodme.wordpress.com/