The Fund-Raising Process

F U N D R A I S I N G

A Step-by-Step Guide To Generating Resources for Community Development Organizations

Launched in 1982 by Jim and Patty Ro u s e ,

The Enterprise Foundation is a national,

nonprofit housing and community d e ve l o p-

ment organization dedicated to bringing lasting

i m p rove m e n t s to distressed communities.

Community Development Library™This book is part of the Enterprise CommunityDevelopment Library, an i n valuable re f e rence collectionfor nonprofit organizations dedicated to revitalizing andreconnecting neighborhoods to mainstream America.One of many resources available t h rough Enterprise, itoffers industry - p roven information in simple, easy-to-read formats. From planning to governance, fund rais-ing to money management, and program operations tocommunications, the Community De ve l o p m e n tL i b r a ry will help your organization succeed.

ADDITIONAL ENTERPRISE RESOURCESThe Enterprise Foundation provides nonprofit organizations with expert consultation and training as well as an extensive collection of print and onlinetools. For more information, please visit our Web siteat www.enterprisefoundation.org.

Copyright 1999, The Enterprise Foundation, Inc.All rights reserved.ISBN: 0-942901-64-9

No content from this publication may be reproducedor transmitted in any form or by any means, electronicor mechanical, including photocopying, recording orany information storage and retrieval system, withoutpermission from the Communications department ofThe Enterprise Foundation. However, you may photo-copy any worksheets or sample pages that may becontained in this manual.

This publication is designed to provide accurate andauthoritative information on the subject covered. It is sold with the understanding that The EnterpriseFoundation is not rendering legal, accounting or otherproject-specific advice. For expert assistance, contact a competent professional.

Table of Contents

Overview of Resource Development 2

The Fund-Raising Process: An Overview 8

First Stop: Preparing a Case Statement 10

Second Stop: Prospecting for Potential Donors 14

Third Stop: Cultivation 18

Fourth Stop: Solicitation 19

Fifth Stop: Stewardship 27

Appendix A — Creative Research on Individuals 28

Appendix B — Corporate, Foundationand Individual Profiles 29

Appendix C — Research References 3 2

Appendix D — Sample Telephone Script 35

Appendix E — Sample Door-Opener Letter 37

Appendix F — Sample Thank You Letters 38

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About This Manual

What is fund raising?

Fund raising consists of finding and creating positive relationshipswith funding sources appropriate for your organization. Goodresource development is closely coordinated with an organization’sbusiness plans and strategic objectives.

The Fu n d - Raising Pro c e s sis designed for board members and staff ofn o n p rofit community development organizations who want to improvethe organization’s ability to raise funds. In this manual, you will get anove rv i ew of the process and how you work through it to create re s o u rc e sfor your nonprofit from several types of donors. The aspects of re s o u rc ed e velopment included are :

■ Understanding the different types of support and donors

■ Understanding the fund-raising process

■ Preparing your case statement

■ Finding prospects

■ Cultivating prospects

■ Soliciting donors

■ Stewardship

This manual is part of the Fund Raisingseries within The EnterpriseFoundation’s Community Development Library™. This series providesdetailed information on all aspects of fund raising — from developingresources to managing a fund-raising campaign. Manuals in the seriesprovide information to help you:

■ Stage successful special events.

■ Organize your office for successful fund raising.

■ Develop a relationship with a local federated campaign.

Nonprofits need resources to do their work.Resources “buy” the tools (personnel, supplies,space, telephone, computers, etc.) that make itpossible to provide services. They come in twoforms: cash and non-cash. Raising, accessingand using these resources requires a strategythat is integrally linked to your organization’smission and organizational goals.

Your fund-raising efforts secure the resourcesnecessary to achieve the goals of your strategicplan. It is an ongoing process.You make stopsalong the way and revisit them over time.Sometimes you may feel you are stuck atone destination and other times you will flythrough a stop. But if you stick with thejourney, you will create opportunities formore resources, ultimately helping morepeople in your communities.

There are six fundamentals to keep inmind while going through the resourcedevelopment process:

■ People give to people, not organizations.Fund-raising success is built on your abilityto develop relationships with key individualsand to know what their priorities and needsare so that you can meet them.

■ Philanthropy, or giving resources, is anopportunity for the donor to make aninvestment in something worthwhile — to make a difference.

■ Your case must demonstrate clarity andstrength of purpose. Be prepared to make yourcase by substantiating a compelling need andby establishing your organization’s capability.

■ Resource development is an ongoing process.Success happens over time — you have tokeep working on building new relationshipsand nurturing existing ones. Continuity isimportant to the process.

■ Good resource development requires goodinformation. Be creative and do your home-work about your potential and current donors.

■ Follow-through and accountability are criti-cally important. Your job is to responsiblyuse the resources given to you.

FORMS OF SUPPORT

Support for your organization will come in dif-ferent forms and will meet different needs. Itcan often be pulled together under the auspicesof a campaign with a goal, a set of strategies anda time frame. Some donors like to feel as thoughthey are contributing to a larger goal and thattheir funds are being leveraged to attract others.Because of the shifting focus of donors, thegrowing interest in leveraging funds and thebenefits of cultivating new relationships, non-profits should look to raise different types ofsupport, such as:

■ Unrestricted grants: The funds can be usedfor any purpose. They are often the hardest toget because donors often want their moneyspent on a specific project. But, unrestrictedgiving provides the most flexibility on how touse the funds.

■ Restricted grants: Restricted funds are limitedto specific purposes as outlined in the proposalor otherwise specified by the donor.

– Program or project grants support a specific program, usually with measurable outcomes.

– Seed money is for experimental, innovativeor start-up projects (pilot or demonstrationprograms). Depending on initial outcomes,funding may be renewable. Seed funding isattractive; it enables an organization to “testthe waters” and prove its viability in order toattract or leverage funding from othersources.

– Capital grants are earmarked for principalprojects to meet future service demands,such as purchase, construction or renovationof a physical facility, land acquisition ormajor equipment purchase.

– En d owments are grants providing for a no r g a n i z a t i o n’s future security. En d ow m e n tfunds are invested to provide annualincome, usually as a percentage of incomee a r n e d .

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Overview of Resource Development

■ Challenge (matching) grants: Restricted orunrestricted grants may be made in the formof a challenge to the organization to raise anequal or specified amount from other sources.The grant is contingent upon the matchingfunds being raised.

■ In-kind support: No cash is given with in-kind support. Organizations or individualsmay be able to provide you with products orservices that you need to do business. Agraphic designer might donate time to designand produce your newsletter or organizationalbrochure; a local corporation might be able toprovide a loaned executive to help you with aspecific issue; or a local hardware store mightdonate paint or other building supplies. Besure, however, that you want and can use theproducts they can provide. You do not wantto have to warehouse 100 cans of paint if youcannot use them.

OPPORTUNITIES FOR SUPPORT

Support can be garnered through a variety ofmeans. By following the process outlined in thismanual, an organization should be able to iden-tify what is the best way to ask for support fromall types of donors — individuals, businessesand foundations. Is the prospect, or potentialdonor, likely to give a major gift through amulti-year commitment? Do you need to orga-nize an annual giving incentive to attract indi-vidual donors on a yearly basis? Do you need toorganize fund-raising events to get donorsinvolved and invested in your organization? Isyour organization mature enough to attractplanned gifts? You can use all or some of theseoptions when deciding how to ask for support.

■ Major gifts from foundations, corporations orindividuals are large sums of restricted or unre-stricted money or pro p e rty with value (stocks,bonds, jewe l ry, land or houses). Major giftsusually are given by individuals who have ave ry strong relationship with the nonprofit andwant to support a special activity or pro j e c t .Often these donors are individuals or largeorganizations who have been giving annuals u p p o rt for at least a few years. In s t i t u t i o n s ,like businesses or foundations, may not beannual givers but may only give when the non-p rofit has a major gift or capital campaign.Major gifts are possible only for nonpro f i t swell-established within their communities

a n d a re the result of a we l l - p re p a red strategyi n volving re s e a rch, cultivation, solicitationa n d s t ew a rd s h i p.

■ Events may be a way to get regular amountsof support each year. More important, though,events help potential donors learn more aboutand become emotionally involved in the orga-nization. Individuals or companies can buyone ticket or a block of tickets. Companiescan also sponsor the event for additional bene-fits and exposure. Their support can help youdefray the costs and keep the ticket pricesaffordable. (See Staging Special Events,anothermanual in the Fund Raisingseries.)

■ Annual gifts are usually modest cash giftsunder $500 that an individual gives every year,often increasing the amount each year. Theycan be unrestricted or earmarked for a particu-lar use. Developing lists of names andaddresses of potential donors of these gifts isvery important; the nonprofit can start by ask-ing each board member to give 10 names andaddresses of people they think might supporttheir work.

Di rect mail is often the most efficient way ofasking individuals for such annual gifts, but yo umust evaluate whether the return on the inve s t-ment of time, direct costs (printing, postage,etc.) and staff effort is worth it. Because it takesyears to build a list that may be useful for ra i s i n gfunds, direct mail should be attempted only byorganizations with money to risk.

■ Planned gifts are securities or monetary orproperty gifts made by a donor for future orsometimes current use by a nonprofit. Mostoften, planned gifts are part of what an indi-vidual gives of their wealth when they die.Individuals who have a very strong relation-ship with a nonprofit are the ones most likelyto give planned gifts. They can be madethrough wills, life insurance, property, trusts,annuities and other mechanisms.

The major advantage of raising funds thro u g hplanned giving is that you are securing futures u p p o rt for your organization. The disadva n t a g eis that the funds are typically deferred and donot pay current expenses. You also must devo t esignificant re s o u rces to planning, implementingand maintaining a planned-giving effort .Ge n e r a l l y, only mature nonprofit organizationsa re in a position to manage this type of effort .

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TYPES OF DONORS

You can get support from a variety of sources.With the exception of government resources,you can use the fund-raising process detailed inthis manual to help you raise resources. Beloware some of these potential sources and somethings to consider when working with them.

I n d i v i d u a l s

Collectively, individuals give more money annu-ally than any other type of donor. Personal rela-tionships are crucial to successfully securingmoney from them. The personal interest theyhave in supporting your work also plays a role.For example, if a donor had a child or siblingwith a substance-abuse problem and saw thedevastating effects on the family, he or shemight support a rehabilitation program forsubstance abuse.

One of the biggest challenges is identifyingthe right individuals. Prioritizing and screeningyour potential donors will be critical. Yourboard members are the best place to start.(See the Prospecting section in this manual formore information.)

Besides hosting events and sponsoring fundingcampaigns, opportunities to volunteer time andexpertise may interest individuals in your orga-nization. And, some of the most wealthy indi-viduals in the community may be interested inyour group because of the possible tax deduc-tions they receive for their contributions.

Issues for community development organizations:Getting individuals to invest in communityd e velopment can be especially challenging.Many potential donors are not directly affectedby the efforts of your organization. It is especiallyi m p o rtant to build your case so that individualsre c o g n i ze how your work influences them.

Small Businesses

Small local businesses can be good supporters ofnonprofit organizations. Because they do notusually have lots of cash to give, they often con-tribute in-kind products and services or buy adspace in newsletters or event programs. Theowners tend to make contribution decisions,often giving to organizations that have eithertouched them or their families’ lives personally.Some owners may be more interested in donat-ing services if it can positively affect their busi-ness image in the community or, more directly,increase sales.

A personal relationship is very helpful in work-ing with small business owners, especially ifyour organization is approaching them for thefirst time. Consider putting a small businessleader on your board. Community developmentorganizations may purchase significant services,such as printing, construction materials and titleinsurance from small businesses and may turnto these vendors during fund-raising events.

Issues for community development organizations:Nonprofits have an excellent opportunity toturn their existing relationships with smallbusinesses into true resource partnerships.

Large Corporations

Big businesses with local branches, plants orheadquarters in your community may give cash,supplies, equipment or products and volunteeremployee time. Though big businesses can makelarge gifts, they may not give many of them.Some businesses use foundations, tax-exemptinstitutions designed to make their gifts, whileothers have a corporate giving or contributionsprogram. Still other businesses will make somedonations out of their marketing budget.

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Collectively, individuals give more moneyannually than any other type of donor.Personal relationships are crucial to successfully securing money from them.

Businesses may be partnerswith communitydevelopment organizations, especially housing-related nonprofits that provide thousands —or millions — of dollars’ worth of businessannually to construction and related businesses.Partners often expect to be asked for support.This support can come in the form of moneyor assistance during fund-raising campaigns.Additionally, financial institutions workingin partnership with local nonprofits are anexcellent resource.

Large corporations may give in order to:

■ Increase sales.

■ Boost employee morale.

■ Match employee interests (if the companymakes matching gifts or if there is ane m p l oyee committee deciding wherep h i l a n t h ropic dollars should be spent inthe community).

■ Improve the community (which effectively isgood for the company and employee).

■ Satisfy an executive’s personal interest.

Businesses that are more dependent on the localpolitical system for such things as regulatoryapproval (for instance, hospitals and utilities),zoning decisions (real estate developers) or con-tract approval (vendors to the school system orcity government) may be more interested inmaintaining good community relations. Look tothem for assistance during local funding drives.

Issues for community development organizations:View large corporations as partners and givethem opportunities to demonstrate their goodwill in the community. The most effective strat-egy for asking big businesses for their supportdepends on which part of the business you areasking, where that business is and what youwant. Research the kinds of nonprofit programsthat a corporation has supported in the past togain some insight into what investments it islikely to make. Keep in mind that funds fromlarge corporations are often funneled throughnational intermediaries, such as The EnterpriseFoundation, and are then made available tolocal organizations.

F o u n d a t i o n s

Foundations have one purpose: to support nonprofit work. There are three types of grant-making foundations: private (includes corpo-rate), family and community. A few communitiesh a ve collaboratives of foundations that act as onegrant-making body for specific intere s t s .

■ National and private foundations often fundthrough intermediaries, such as The EnterpriseFoundation. Local organizations may receivesupport from national foundations, but usu-ally only as part of a longer-term programinitiated by the foundation.

■ Corporate foundations are set up by compa-nies as one of the mechanisms to channeltheir contributions.

■ Family foundations typically have one or twospecificgranting interests. They are unlikelyto give to community development organiza-tions, unless they have a personal stake in suchdevelopment. Do some research before devot-ing a lot of resources to securing funds fromsuch foundations.

■ Community foundations pool contributionsfrom a variety of sources, often individuals,and then make restricted and unrestrictedgrants to programs. They usually provide fundsto smaller, younger and more c o m m u n i t y -based organizations. They rarely continueoperating support; rather, they help to launchan effort and then expect it to gain re ve n u e si n other ways.

■ Operating support collaboratives havesprung up in a few dozen cities and counties.These organizations aggregate funds froma few sources — often local and nationalfoundations, corporations and publicentities — and grant them to communitydevelopment organizations.

Issues for community development organizations:Community foundations are ideal partnersbecause they share similar priorities on a locallevel. All foundations have rules about theirgiving interests and approaches. Nevermassmail requests for support. Build a relationshipwith a key player at the foundation beforeyoumail any written proposal.

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Federated Fund-Raising O r g a n i z a t i o n s

Federated fund-raising organizations are non-profits usually structured along geographicallines for the purpose of raising charitable contri-butions and distributing them to locally desig-nated nonprofits. Their beneficiaries usuallyreflect the values and beliefs of the organization’sgoverning bodies. The most common federa-tions are United Way agencies, faith-based fed-erations and alternative funds.

■ United Way agencies are fund-raising, allocatingorganizations that support a variety of social ser-vice agencies on the local level. They re c e i ve thebulk of their support from company employe e swho have been solicited at the workplace andf rom major companies through grants.

■ Religiously affiliated federations are generallyestablished by religious or lay leadership to raisemoney from individuals in churches and syna-gogues. This financial support goes to organiza-tions that re p resent the social we l f a re and healthi n t e rests of a particular religious faith.

Issues for community development organizations:Although the United Way usually bestows mem-ber agency status on nonprofits before qualify-ing them for ongoing annual allocations, theystill may be a possible source of funding supportfor community development organizations.Some United Way agencies make grants forspecial projects as well as for general operatingexpenses. If you are addressing a problem that isof broad interest in your community, it mightbe possible for you to get some support from alocal federated fund-raising organization. (Formore information about the United Way andsimilar groups, see Establishing a RelationshipWith a Federated Campaignin this series.)

Faith-Based, Civic and ServiceO r g a n i z a t i o n s

Faith-based, civic and service organizations oftenp rovide nonprofits with volunteers, cash andsometimes space or supplies. Locally, cash sup-p o rt tends to be in the $500 to $10,000 range,depending on the organization and community.Non-cash support is much more available on thelocal level. Local civic and service organizationsa re particularly good sources of volunteers fore vents, and these groups frequently like todonate visible items that bear their logo. On thenational level, grants in the $10,000 to $50,000range are not uncommon, particularly for faith-based organizations. All of these groups have onei m p o rtant thing in common: Members decidewhat the group will support .

Issues for community development organizations:Faith-based organizations, in part i c u l a r, haveaccess to large constituencies and potential part-ners who can help you accomplish your goals.In vestigating these organizations’ priorities isw o rthwhile. Having someone from your board orstaff as an active member of these organizationsalso is ve ry helpful in establishing a re l a t i o n s h i p,getting to know interests and asking for support .Except at the national level, asking for supportf rom these groups is usually ve ry informal.

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G o v e r n m e n t

Developing good relationships with politiciansis often a necessary part of building and main-taining a successful organization. Governmentgrants or contracts will be hastened throughstrong political ties with important decisionmakers. Community-based organizations willhave the most success making connections tothe political system through their city- orcounty-council and state-legislature representa-tives. Understanding how the levers of powerwork in the jurisdiction you target will help youdetermine what to ask from representatives.

Relationships with agency representatives willalso aid your support efforts. There are lobbyingrules to be aware of, but by being a strong advo-cate for issues that match a particular govern-ment agency’s or by sending regular educationalmaterials, you can position your group forfuture support. The potential downside, how-ever, is that relationships with government rep-resentatives or administrators are oftenshort-term, given the nature of elected offices.(See Neighborhood Tours: Showcasing Results,oneof the manuals in the Communicationsseries, formore information on reaching elected officials.)

Discretionary grants and block grants are thetwo primary types of support available from thegovernment. At the federal level, the purpose ofthese grants is spelled out in government publi-cations. This may or may not be true for state,county or municipal grants, although theirrequests for proposals (RFPs) do lay out veryspecific grant interests and requirements.

Do not write proposals that are not requested.Instead, send regular information about yourgroup to specific grant officers and local, stateand federal representatives. The most viable waya nonprofit can secure government support is tobecome recognized as the expert in the state.When requests for proposals are issued, be sureto attend the bidding or information session to

indicate your interest. Also, write a formal letterof intent and be sure to copy all correspondenceto locally or federally elected representatives,depending on whom the grant is coming from.(Note: The cultivation and solicitation processoutlined in this manual may not directly applyto raising resources through governmentsources.)

Issues for community development organizations:City, county, state and federal governments pro-vide money for nonprofit purposes that meetgovernment mandates. This type of money isbest thought of as a contract. Essentially, thenonprofit is agreeing to provide services that thepublic, through its government body, hasdeemed necessary. Community DevelopmentBlock Grant (CDBG) funds are federal moniesgiven annually to all states and medium andlarge cities and counties. Through these govern-ments, CDBG funds are available only to quali-fying nonprofit housing developers, counselorsand managers who have been designated bytheir participating jurisdiction. These funds areusually for housing development but are oftenfor operating support. Other federal funding ispassed through national, regional and stateintermediaries, such as The EnterpriseFoundation, for the operating support of localcommunity development organizations.

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Re s o u rce development, or fund raising, is ap rocess. T h e re are few quick fixes or instanta n s wers to your re s o u rce needs. By follow i n gthe process detailed in this manual, you willh a ve the map and the tools to develop neededs u p p o rt for your organization. To achieve suc-cess, carefully craft your strategic fund-raisingplan to meet the goals outlined in your busi-ness plan.

Many organizations lacking formal businessplans create implicit plans through annualbudgets. Budgets are the fiscal re p re s e n t a t i o nof a business plan, enabling an organization to have specific fund-raising goals. (Mo reinformation on creating strategic and business plans and budgets can be found in the Pl a n n i n g and Money Management s e r i e sin the Community De velopment Library. )

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The Fund-Raising Process: An Overview

The Process of Fund Raising

RESOURCE DEVELOPMENT ADMINISTRATION AND SUPPORT

PROSPECTING

CULTIVATION

SOLICITATION

Network& Outreach

Research &Identification

Prioritize(Rate)

Stewardship &Donor Relations

Information

Investment(or decline)Follow-up

Interest

Proposal Personal Involvement

CaseDevelopment

STEWARDSHIP

Re g a rdless of who your donors are, you willmake five stops on your fund-raising journey:case development, prospecting, cultiva t i o n ,solicitation and stew a rd s h i p. You may visitsome longer than others, depending on whatand who you know, but each is an import a n tdestination. The previous chart demonstratesw h e re your various fund-raising activities fitinto your overall re s o u rce development effort .In an ideal situation, you start with your caseand move through the other phases. Si t u a t i o n sdo not always flow this way, but by understand-ing the pieces, you will be equipped to addre s sre s o u rce development. The following are quickdefinitions of each stop. An expanded explana-tion of each stop follow s .

■ Case development. This is the first step inyour journey to any potential donor — indi-vidual, business, government, foundation, etc.People are more inclined to support organiza-tions with a clearly defined and compellingrationale for existence. Your case starts with amission statement that highlights the worthi-ness of your efforts. It is the cornerstone ofyour fund-raising efforts.

■ Prospecting. Your next destination along theroute is to stop and look for prospects —potential partners — who have an interest inyour work and have resources you need, eitherin cash or non-cash (in-kind contributions,pro bono services, etc.). Prospecting involvesnetworking with peers, identifying the rightgroup to approach and prioritizing who yourbest bets are. It is critical that you identify adiverse set of prospects. You never know whenany one source will dry up.

■ Cultivation. Next, you must cultivate yourprospects so they will want to be involved.Offer them opportunities to get to know youand your organization. Supplying potentialdonors with information may pique interestin your group, and helping them get involvedwill foster a sense of connection to yourefforts. Cold approaches for resources, without prior relationships or involvement, are rarely successful.

■ Solicitation. Now you are ready to ask forsupport. Once prospects show interest, you areready to encourage them to make a specificinvestment in your organization. This solicita-tion process involves making personal contact,writing a proposal and following up.

■ St e w a rd s h i p . You have asked for and gottenyour re s o u rces. But once prospects becomedonors, you cannot forget about them. You needto continue informing them about your organi-zation and how you are using their re s o u rces. Ifyou continue cultivating the re l a t i o n s h i p, thedonors will continue to support your work .

Your journey is never over. You will make thistrip over and over again as you work with newdonors and prospects. The following sectionstrack the process in detail, helping your organi-zation successfully negotiate fund raising.

Note: Each of these sections is enhanced by hav-ing your office organized for fund raising (seeOrganizing Your Office and Staff for Your Fund-Raising Efforts,another manual in the FundRaising series).

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Information gathering is a two-way street. Notonly do you want to know a lot about potentialdonors, but they will want to know about you.A carefully prepared case statement will providethem with answers.

A nonpro f i t’s case statement is a clear, concise,written description of its mission, historya n d activities. It is generally 6 to 12 pages inlength, but it can be short e r. It is a dynamicdocument that should be revisited at leastannually in conjunction with your strategicplanning efforts. As the cornerstone of all ofyour re s o u rce development, communicationand marketing efforts, it is designed to elicits u p p o rt from funding and other support i veindividual and organizational p a rt n e r s .

Good case statements should expand on yourmission, demonstrate why your organizationis uniquely qualified to address the specifiedchallenges, show how your nonprofit’s activitiesmirror a potential donor’s motivations toaddress social needs, and explain how a donorcan make a difference. An effective case state-ment will also position your organization as acredible partner and funding recipient.

STEPS TO PREPARE A CASE STATEMENT

■ Wo rk with your staff and board to develop ac l e a r, credible and compelling description ofyour organization. Compare it with your mis-sion statement, marketing sheet, pamphlet,annual re p o rt or other communications mater-ial to ensure its consistency. (If the mark e t i n gsheet already exists, you may use language fro mthat document. See the C o m m u n i c a t i o n ss e r i e sfor more information about these materials.)

■ Emphasize opportunity rather than need. Forexample, use language such as, “Our programwill create new home owners,” rather than“Our program will rehab derelict houses.”Remember, you are asking for an investment,not charity. Link your work to people and thebigger cause you are working toward.

■ Accent the timeliness of a donor’s potentialcontribution; for example: “Winter is here.Your contribution to the energy fund willhelp keep families warm!”

■ Use simple words and short, straight-forward sentences.

■ Be concise. Although 6 to 12 pages is mostcommon, only say what needs to be said.T h e description of a new program will re q u i rem o re detail than an ongoing program thereader is familiar with.

■ Be constructive. Use positive language toportray your organization as striving to makethe world a better place and portray everydonor as contributing to that effort.

■ Focus on outcomes. Quantify the benefitsthe donation will generate, such as, “Yourcontribution will result in 14 beds for homeless adolescents.”

■ Speak the prospect’s language. Fundingsources receive many requests, so you mustmake your group stand out. You must showwhy helping your nonprofit is a good ideafor the prospective or current donor.

The following chart will help you think aboutyour case from a potential donor’s perspective,such as what they want to see included in yourcase. For each benefit listed on this chart, anexplanation clarifies why you should include thebenefit, and an example illustrates the point.The worksheets following the chart also willhelp you develop your case.

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First Stop: Preparing a Case Statement

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Benefit Explanation Example

Goal Enhancement Show how your project coincides Greenleaf Gas Co. could sponsorwith the donor’s goals, enhances an energy-efficient house its image in the community, developed by ABC communityappeals to its market segment or development organization.contributes to its bottom line.

Links Connect your work to important Ten employees of XYZ Corpora-people in the funding organization. tion — as well as many other Here are three examples: The program residents in the neighborhood — for which you seek support is focused have become first-time home within its hometown; your work serves buyers through our housingits employees or retirees, or involves counseling program.its employees as volunteers; one of itsofficers is a member of your board.

Credibility Demonstrate your credibility John Doe, manager of our local with compelling examples of past Stay Here Hotel, participates in successes in your program. Include our fund-raising solicitations endorsements from other prominent because he knows our Communitycivic or business leaders. Jobs employment training program

works. “Stay Here Hotel has hiredfive graduates from this program, and all five of them have been onthe job since they were hired,” saidJohn Doe.

Flexibility Present the option to participate by Harry’s Computer Store donated giving other-than-cash support, such six computers for an after-school as in-kind contributions and pro tutoring program. Jones CPA, Inc.,bono services. provides pro bono accounting

services to three local nonprofits each year.

WORKSHEETSPREPARING A CASE STATEMENTUse these pages to develop an outline for your case statement. Write down any key words or phrasesthat come to mind and expand on them when you complete the final version. Including your board,staff and other stakeholders to craft your case is the best approach.

Who are you?

Describe your history. Tell the reader about your organization as concisely as possible. Explainwhere you work, the neighborhoods where your nonprofit works, the location of offices and the number of staff. Include a paragraph on why your organization was founded and who was instrumental.

Why does your organization exist? What problems do you address? How severe are these issues?

State your mission. Assure your audience that your organization’s work responds to real needs. Use specifics, such as, “We renovated seven houses last year, and we are on line to renovateanother 10 this year.”

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© 1999, The Enterprise Foundation, Inc.

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What makes your organization uniquely qualified to lead this effort?

Quantify your organization’s experience and the expertise of your staff, board and volunteers.

What programs and activities do you propose to help solve the problem? What can you realistically hope to accomplish?

State the objectives of the specific program for which you are raising funds. Describe how accom-plishing these objectives will address real needs. Show how your nonprofit can accomplish theseo b j e c t i v e s .

How much will it cost to solve the problem? Include the estimated cost of ignoring it.

Describe and substantiate your program costs as well as your request for support. Outline plans to generate other revenue, including other fund raising.

© 1999, The Enterprise Foundation, Inc.

Prospecting has three components that oftenhappen simultaneously: networking and out-reach, research and identification, and prioritiz-ing whom to approach. As you are networking,you are researching, and as you are researching,you are prioritizing and so on.

NETWORKING AND OUTREACH

Ne t w o rking and outreach is what you do eve ryd a y. From discussions with community re s i d e n t s ,to social events, to meetings with your bank, yo ua re networking. During the course of these dailyactivities, keep your eyes open for re s o u rce deve l-opment opportunities. Because people give topeople, it is critical to build these more informalrelationships. They will pay off in the end.

Your board is central to your success in net-working and ultimately in resource develop-ment. Often, board members have connectionsto business leaders and wealthy individuals thatyou can expand into a relationship with yourorganization. When a nonprofit starts out, itsonly supporters may be the board members orfounders. If the organization is to survive, theboard must help develop the resources necessaryto make the organization grow. This oftenmeans that board members may have to supportthe organization with their own money and askfriends for help purchasing equipment as basicas paper and pens.

As owners, the board is legally responsible forthe care of the nonprofit but has no legalresponsibility for giving or securing support.The nonprofit’s success, however, is actually intheir hands. Giving and obtaining resources aretwo tasks that are essential to an organization’swell-being and future. The consequences of nothaving the board involved in these activities canbe great. If each member of the board does notgive on some level, donors and prospects willquestion whether the board is committed to thework of the nonprofit. Donors expect to see fullcommitment from the board. And, board mem-bers can be very instrumental in convincingdonors to contribute if they can openly speakabout their own personal commitment.

RESEARCH AND IDENTIFICATION

Thorough preparation is a mark of professional-ism, and it increases your credibility. Know yourpotential donors beforeyou approach them.What they do, what their funding philosophiesare, why they should support your nonprofitand what they will expect in return for theirdonation are some questions to answer. Youmust also be ready to answer any questions theyask about your organization and the project youare seeking to fund.

If the prospect is an individual use personalnetworking to collect information, because peo-ple give to people. Develop the habit of clippingnews articles about potential donors and filingthem for future reference. There are a host ofresources available to you for researching indi-viduals, corporations and foundations, much ofit available on the Web and in public libraries.(See Appendices B and C.)

When researching individuals and organiza-tions, you should be respectful of and supporttheir fundamental rights to privacy. Informationgathered should only be used for the pursuit oflegitimate organizational goals.

By learning the answers to the following sets ofquestions, you can construct an accurate pictureof a prospect, regardless of the type of donor —a local bank, board member, foundation, etc.Using this information, you can determine thatthe organization (or individual) is worth yourtime and effort, as well as how best to presentyour nonprofit successfully.

For more information on how to manage yourresearch and other fund raising, see OrganizingYour Office and Staff for Your Fund-RaisingEffortsin the Community Development Library.

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Second Stop: Prospecting for Potential Donors

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Nature and history of the funding organization:

■ When, why and under what circumstanceswas it created?

■ What type of corporation or foundation is it?

■ Does it have an office of corporate philanthro p y ?

■ Who are the officers and trustees? Are thereany ties to your organization?

Nature and history of an individual:

■ What business is the individual in?

■ What is this person’s philanthropic history?

■ Does this person have ties to the same neigh-borhood or target area as your nonprofit, or arethe interests of the person broader? If the per-son does have ties, how we re they established?

Interests and priorities of an organizationor individual:

■ What are the prospect’s programmaticand geographic interests? What are examplesof programs that this potential donor currently funds?

■ What type of grants does the prospect offer?Support may include restricted or unrestrictedgrants, challenge or matching grants, seedmoney, capital support or sponsorships.

■ What programs, activities or geographic areasdoes the prospect not fund?

Funding practices and policies of an organization or individual:

■ What is the smallest, largest and average grant size?

■ Does the prospect have funding cycles withspecific application and decision dates?

■ What is the total annual distribution of grants?

■ For how many years does the donor usuallyfund the same project or the same organization?

■ What is the average number of requests forfunding that the prospect receives in a year?

■ What is the asset base?

■ Is preference given to organizations that serve employees’ needs or involve employee volunteers?

Application and review process of an organization or individual:

■ Are there published guidelines or applicationdeadlines in its application process? Are therespecific forms to fill out? Should proposalsonly be mailed or will the organization accepthand-delivered requests?

■ After a proposal is submitted, how long is thereview process? Will the funding organizationmake a site visit before it makes a decision?

■ When are applicants notified of the final decision?

■ When are grant funds distributed to successful applicants?

■ Will the funding organization meet withan applicant whose request was rejected toexplain why it was not funded and, if it can be resubmitted, how to improve its chances of success?

Expectations of grant recipients:

■ Does the prospect have requirements fordepositing grant funds, such as a separate bankaccount, or may the funds be co-mingled butrequire separate accounting?

■ Does the donor expect publicity announcingthe grant award? If so, how does the donorwant to be involved?

■ What are the timing and format requirementsfor reporting to the donor?

■ Does the donor require notification orapproval if the recipient wants to change theoriginal plans?

You can also use the sources suggested inAppendix A (Creative Research on Individuals).In the case of foundations or corporations, mostof the information you need should be readilyavailable in published guidelines, annual reportsand other sources. See Appendix B (Corporate,Foundation and Individual Profiles) and C(Research References).

P R I O R I T I Z A T I O N

As you are networking, re s e a rching and identi-fying your prospects, you need to screen poten-tial donors to ensure that they are worth yo u rtime and effort. T h e re are four basic steps yo ushould walk through when determining whomto approach. Based on your answers, thep rospects with the best all-around fit shouldb e the ones to pursue first.

S T E P 1FIRST-CUT TEST

Do they fund within my geographic area?

■ yes ■ no

Does our work fit within their priorities andstatement of purpose?

■ yes ■ no

Do they support organizations with similar purposes?

■ yes ■ no

S T E P 2SPHERE OF INFLUENCE ASSESSMENT

Screen your prospects to see where they fall onthe scale of how likely they are to support yourorganization (score 1–4).

1 = most likely to invest with you because yourwork will directly benefit them (board mem-bers, current donors, volunteers, staff, etc.)

4 = least likely to contribute now, but couldconceivably respond well to your cultiva-tion efforts

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S T E P 3

RATE PROSPECTS

Next, consider how the prospect rates regarding the following criteria. Much of this information should come from research you have already completed.

C a p a b i l i t y

■ What are the foundation’s or individual’s assets?

■ How financially sound is the corporation or business?

■ What were the total contributions in the lastreporting period?

■ What is the size of the average grant awarded?

■ What is the potential for in-kind donationsof goods or services?

■ What is the potential for a strategic part n e r s h i p ?

R e l a t i o n s h i p

■ Has the prospect supported your organizationin the past, locally or nationally?

■ Is there a relationship between the individualor an officer or director of the foundation orcorporate prospect and your organization(you, a national board member or officer, or advisory board member)?

■ What are some related business interests?

■ Does the prospect live, work or have aninterest in your neighborhood?

I n v o l v e m e n t

■ Is the prospect actively involved as a boardmember or volunteer?

I n c l i n a t i o n

■ Is the prospect active in philanthropy?

■ Has the potential donor given to organizationsthat have a compatible mission or that serveconstituencies similar to your own?

■ Guidelines indicate the prospect’s priorities include:

■ housing ■ community development■ poverty ■ other related programs

S T E P 4DEVELOP A PLAN TO CULTIVATE THESEP R O S P E C T S

Once you have researched your prospects andidentified your best candidates, you mustdevelop a plan to cultivate them. This can bea long, but worthwhile, process.

The third stop on your journey is cultivation,one that you will probably visit and revisitoften. Cultivation is often referred to as theFive I’s: Identification, Information, Interest,Involvement and Investment. You want tocultivate and engage interest in your work sothat donors will give you resources. The keyis to move a prospect from identification(which you have already accomplished duringthe prospecting stage) through the phases ofinformation, interest and involvement (culti-vation) to investment (solicitation).

You want to build an appropriate re l a t i o n s h i pwith prospects so they get information about yo u rorganization, take an interest in your work andh a ve opportunities to get invo l ved. The pre s c r i p-tion for cultivation is different for eve ry pro s p e c t .

Some points to keep in mind when you arecultivating a prospect:

■ Decide who is the right person in the organi-zation to approach. Cultivating someone whocannot help make decisions is a waste of time.For example, the appropriate person to con-tact in a foundation could be the executivedirector, a program officer, a trustee or somecombination. In a business, it could be acorporate officer, a trustee or someone inthe public affairs department.

■ Decide who is going to manage the cultiva t i o ne f f o rts in your office and how they will be com-municated internally. It is a good idea to keepyour staff informed of your targeted pro s p e c t s .

■ Use existing connections and invo l ve yo u rb o a rd members if they know the pro s p e c t .Ask current donors for endorsements orletters of support .

■ It may take more than one visit with theprospect to gain his or her interest. Be sure to bring along appropriate information aboutyour organization. (For ideas on what toinclude, see the manual Organizing Your Office and Staff for Your Fund-Raising Efforts,another manual in the Fund Raisingseriesof the Community Development Library.)

■ Use your public relations and communicationsstrategies (see the C o m m u n i c a t i o n sseries) to yo u ra d vantage when promoting invo l vement. Ma i lcopies of newsletters, articles that positively men-tion the donor, or any other item of intere s t ,along with an invitation to upcoming eve n t s .

■ Organize site tours of your community. Thiscan be one of the most compelling ways tocultivate a donor, particularly an individualor organization outside your neighborhood.They will feel more involved with your visionand have more first-hand information tohelp them make a funding decision. (SeeNeighborhood Tours: Showcasing Resultsinthe Communications series.)

■ Involve prospects with your work by offeringthem opportunities to volunteer.

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Third Stop: Cultivation

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You are now fully prepared for the big moment— asking for support. The actual solicitationprocess generally has a personal contact compo-nent coupled with a written proposal.

Personal contact usually involves a series of writ-ten correspondence or telephone conversationsthat lead to a face-to-face meeting with theprospect where you ask for support.

PERSONAL CONTACT: GETTING THE MEETING

Thinking through your approach to meetingface to face with a potential donor increases theopportunity of a successful outcome.

Who will set up the meeting? Someone who hasa connection to the potential donor should makethe initial contact. Id e a l l y, this person is a boardm e m b e r. A letter or a telephone call — sometimesboth — is appropriate. For example, the boardmember can write a letter stating that a phone callabout XYZ project is forthcoming. The lettershould name the person who will be calling.

If the board member who has the connectionwith the potential donor is unable to send a let-ter or make the call, ask for permission to usehis or her name when contacting the prospect.

If none of your board members is connected to thefunding prospect, the contact should come fro mthe chair of the board’s fund-raising committee,the board president or the exe c u t i ve dire c t o r.

What information does the person makingcontact need? A written summary on yourprospect and your organization will be helpfulto the person making contact. Provide thisperson with your nonprofit’s case statementand a brief summary of your research on thefunding prospect. For a sample telephonescript, see Appendix D.

What should be the stated purpose of them e e t i n g ? Rather than limiting yourself to solicit-ing funds, frame the purpose of the meeting interms of wanting to discuss the pro s p e c t’s potentiali n vo l vement. This leaves the door open for differ-ent types of commitment and gives the pro s p e c tless opportunity to say no to the meeting.

What should the letter say? Personalize eachletter. Use the boilerplate door-opener letter as astarting place (see Appendix E). Minimize theaccompanying material; include a pamphlet,annual report or organizational marketing sheet,but not the case statement. That item should bepart of your presentation. Keep it simple. Donot overwhelm potential donors with informa-tion and do not include anything that is a directrequest for money.

THE MEETING AND ACTUAL SOLICITATION

Because you will have a limited amount of timewith your prospect, be organized and prepared.This will demonstrate your professionalism andenhance your credibility. You also will be morecomfortable during the presentation. Use theoutline below to maximize your opportunity.

Appointment Preparation: Decide who willattend. Generally, send no more than four peo-ple. The ideal solicitation team would includethe individual with a personal or professionalrelationship to the prospect, your executivedirector and either your chair of the fund-raising committee or the board chair. Agreeahead of time on the logistics:

■ Who opens the meeting?

■ What are you asking for?

■ Who describes your program’s specifics?

■ Who decides when the time is right to ask,and who will do the asking?

■ Who is designated to follow up?

Fourth Stop: Solicitation

Conduct a background briefing for everyone onthe solicitation team. If possible, do a dry runbefore the meeting. Find out the names andpositions of any people who will be accompany-ing the prospective donor to the meeting.

Make certain you have enough informationpackages — case statement, annual report, andprogram or organizational brochures — for eachparticipant accompanying the potential donor.

Getting St a rt e d : In t roduce your team and thankthe potential donor for taking time to meet withyou. By handing each participant an informationpackage, you have an opportunity to make apersonal connection. If possible — and appro p r i-ate — mention spouse, children or c o m m u n i t yactivities with which you or a member of theteam has knowledge because of your re s e a rch. Fo rexample: “Congratulations on your recent com-munity service award from the Boys Club. ”

Your re s e a rch also will have re vealed thep ro s p e c t’s previous and existing support of, orrelationship to, your organization or other phil-a n t h ropic interests. Ac k n owledge this. For exam-ple: “Your support of the community’s housingcounseling program has helped boost homeownership in our neighborhood.” Make the con-nection of how this prior support is consistentwith your organization’s priorities and intere s t s ,which are described in your case statement.

Pitching Your Cause: Your approach willdepend on how familiar the prospect is withyour organization’s work. If your research doesnot give you a clear picture, you must get a feelfor how much they know at the beginning ofthe meeting and then tailor your presentationaccordingly. You may have no more than 30or 45 minutes for the entire meeting, so yourfocus is important.

Remember that you are promoting solutions forthe community’s needs and offering the donat-ing individual or organization the opportunityto invest in those solutions. Make your caselarger than the immediate needs of your organi-zation. You are not asking the prospect to sup-port an internal agenda. State expectedoutcomes and what the donor can gain fromsupporting your nonprofit.

Listen carefully. Give the potential donors achance to ask questions and express their inter-ests and concerns. Take cues from what they sayas well as from their body language. Be preparedat any point during the meeting for questions.

Refer to the information packages you havegiven them. When you make important points,briefly mention where more detail can be foundfor reference after the meeting is over.

Be Ready to Answer Questions: While you donot have to include these questions and answersin your written case statement, whoever attendssolicitation meetings should know the appropri-ate responses in case the donor asks.

■ What are your income sources? What will youdo if your income increases? Decreases?

■ How many people do you serve? Who are they?

■ What are your results? How do you measure them?

■ What do donors get for their investment?

The “As k” : Be sure your team knows who isgoing to do the actual asking. Di rectly solicitingfunds can be difficult for many people, but thati s why you are there. While the potential donorsmay understand your reason for the meeting,yo u still must ask for the funding and support .Seek investment, not charity. Explain the benefitsto be gained by the community and the donort h rough its investment in your nonpro f i t’s work .Be sure you ask for a specific commitment.

Once you ask, be quiet. After you have statedyour request, do not belabor the point. “We areasking you for $25,000 to underwrite our hous-ing counseling program and make it possible for100 low-income families to become home own-ers.” Now wait for a response. Do not worryabout a pause in the conversation. Let theprospect respond; then you can create a con-structive conversation to close the meeting.

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Closing the Meeting: A lot can happen once you make your request, from an on-the-spot commitment to a negative reaction. Here is how to respond to the most common situations:

Follow-Up: The hardest part is over, but you are not finished yet. Within one business day, send aletter thanking the potential donors for their time. Restate any resolutions that came out of the meet-ing — their commitment or your obligation to send them a proposal. Add a copy of the letter to theprospect’s file. If you are submitting a proposal, send it as soon as possible, but at least within twoweeks of the meeting. See Appendix F for sample thank you letters.

If you did not get a commitment, but established a rapport, your letter should point out the commonalitiesbetween their interests and the work of your nonprofit. State that you hope your organizations can worktogether in the future and thank them for their time.

then…

Restate what you understand their commitment to be. Make yourown commitment to follow up with them. Above all else, thankthem and ask if they need anything in writing from you.

Narrow down what they are interested in, and commit to delivering aproposal by a certain date. Follow through by submitting the proposal.

Ask what their specific objections are and try to counter them. If youcannot get an immediate commitment, ask them to review a proposal.

Ask for a multi-year pledge, or ask what they would consider.

Explain how your work differs, serves a distinct population, or meetsa disparate need.

Empathize, but bear in mind that few people or organizationsg i v e to only one cause. Bring their attention back to your clientsb y explaining how their gift will make a tremendous differencet o these people and to the community. Your research on theirpriorities is critical here.

Explain the links you see and try to get them to agree with your statements. Presumably you are there because you did your home-work and have reasons to believe your work does fit their interests.Ask if you can submit a proposal explaining the linkages.

If…

They make acommitment,

They ask for or agree toreview a proposal,

They resist orrespond negatively,

They object to theamount you haverequested,

They say they havealready contributed to an umbrella fund, such as the United Way,

They indicate an interestin other areas,

They do not see the linkto their interests,

THE PROPOSAL

You have made the personal contact. Now youwill have to follow up with a written proposalon why you want their support and how youwill use it. Remember, you do not want to over-whelm the donor with too much to read. And,you want to be positive. The donor is makingan investment in your organization.

Elements of a Proposal

These are the basic elements you can include ina proposal for support. Tailor these guidelines toyour needs.

Cover Letter — Your proposal should beaccompanied by a short cover letter summariz-ing the proposal submission. This letter shouldinclude the following information:

■ Identify the organization submitting the pro-posal, including brief description (your organi-zation’s mission and history, if necessary). Setthe stage for the proposal.

■ Briefly summarize the project, what you areasking them to do to support it and yourorganization’s role.

■ Provide a contact name and phone number;commit to your follow-up.

■ Be sure it’s signed by the director. It may beco-signed by the board chair or member, ifthere is a relationship to the donor.

Cover Page — Present the name of the prospect(Proposal to ... ), the project name (if applica-ble), your (organization) name and date.

Table of Contents and List of Attachments —Executive Summary (often best written after youhave finished the proposal):

■ Limit this to one page or less.

■ Include an intro d u c t o ry statement of the pro b l e m .

■ Briefly explain how the project or programdeals with the problem; include experienced orplanned results.

■ Link it to the goals and priorities of the donor.

■ Describe how this program re p resents a uniqueresponse to the problem; what sets it, or yo u rorganization, apart from others? Include atleast one sentence on your cre d i b i l i t y.

■ Include a total budget and the amount re q u e s t e d .

Challenge Statement — To write a challengestatement, you should:

■ Use a precise statement of the problem and itsunderlying causes. Include documentation butdo not present a picture of doom and gloom.Show the opportunities that the individual’s orfoundation’s investment will create.

■ Demonstrate the seriousness of the problem ina positive way: How many people are affected?What are the likely results if the potentialdonor helps to correct the problem?

■ Briefly portray your organization as unique inhelping to address the problem.

Proposal Request — Ask for a specific amountof support. For example: The ABC organizationrespectfully requests a two-year commitment of$20,000 from XYZ Corporation to support ourprovision of decent affordable homes to low-income working families.

Description of Organization — Whendescribing your nonprofit:

■ Succinctly describe your national organizationand the structure of its local program, includ-ing partners and population served (history,mission, goals and objectives, structure, scopeof service).

■ Describe other programs and activities andinclude accomplishments.

■ State why your organization is interested inthe subject area of the proposal.

■ Identify other sources of support (including non-financial).

■ Mention recognition received from others. Use direct quotes.

■ Convince the reader of your credibility,professionalism and ability to manage thefunds requested.

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■ Your overarching goal is always grander thanthe immediate, practical goals of your organi-zation. This larger goal is a vision for thefuture and how and why you help realize thatvision. It’s also about offering your prospectan opportunity to make an investment thatwill bring a realistic return.

■ People and organizations offer opportuni-ties; they do not simply fulfill needs. Keep this perspective in mind as you develop your proposal.

■ Stress your successes, not your distresses.Communicate a winning attitude. Donot present your financial difficulties; instead, invite investment in a solid program or activity.

■ Key words: achievement, accomplishment,performance and success.

■ Use active verbs and, where possible, usepresent tense.

■ Avoid adjectives, acronyms and technical language.

■ Avoid unsupported assumptions. Prove pointsand assertions with facts. Do not assume thedonor knows anything about your organiza-tion. And, do not assume that documentingthe existence of a national problem is sufficientt o p rove its existence in your community.

■ In your cover letter statements such as,“We know you are committed to ...” or “We know you will find this proposal ...” may be viewed as patronizing. Avoid them.

■ The executive summary is easier to write afteryou have written the rest of the proposal.

■ Introduction to your organization:

– Find a good opening line, perhaps a strongquote or testimonial statement. This is yourfirst opportunity to hook the reader. Make it interesting.

– Do not drone on about history or organizational structure.

– Balance statements about your organization’s philosophy with documented achievements.

■ The problem statement:

– Avoid stating a problem and then simplydetermining a solution without describingits full benefits, such as: “The problem isthe lack of a community health center. Ou ro b j e c t i ve is to create a community healthcenter by building one adjacent to themiddle school.”

– The problem statement should refer to yo u rtarget population, the beneficiaries of your effort s .

– Don’t make assumptions: Document thatthe need you allege actually exists.

■ Goals and objectives:

– Goals are long-range benefits, stated inbroader terms.

– Ob j e c t i ves are pro b l e m - related outcomesdescribed in words such as “to incre a s e” or “to decrease.” Modify them with measurablecriteria: to increase by five, to reduce by 25 perc e n t .

Some Proposal Writing and Presentation Tips

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Program Na r r a t i ve — This narrative needs toinclude your goals, objectives, methods, time-tables and an evaluation. Be careful not tou s e too much technical language and jargonwhen writing your narrative. Each categoryshould include:

■ Goals: Identify what you want to accomplish;define your target population; and link yourremedy to the underlying causes of the prob-lem, making obvious why achieving the goalwill improve the problem. Be realistic.

■ Objectives: Define specific, concrete and mea-surable outcomes; identify who is responsiblefor them; state dates by which they will beaccomplished; and clarify how achieving eachobjective contributes to meeting the overallgoal. Explain why your organization is suitedto the task.

■ Methods (Activities) and Timetable: Describehow you will accomplish each objective. Ifthere are historical accomplishments to sup-port the case, include them as part of the dis-cussion. Include an explanation of staffingrequirements, job descriptions and qualifica-tions. Also, list facilities, equipment and mate-rials required. Describe how the program willbe administered and how it will be coordi-nated with your other activities; assure thepotential donor that the scope of activitiesis reasonable within the timeframe allotted.Specify the involvement, if any, of the targetpopulation in the activities.

■ Evaluation: List the criteria and procedures.Make clear who will be responsible andwhen the evaluation will be conducted(address how you will assess your progressand measure final results).

Budget — Include an itemized budget, justify-ing all cost items.

Future Funding — Include what will be neces-sary to keep the program going; identify poten-tial resources and how you plan to secure them.(Note: Goals, objectives and methods may beorganized differently around program areas. Listcommunity services, for example, as a programarea and discuss goals, objectives and methodswithin the context of the program.)

Attachments (Su p p o rting material to include) —

■ Tax-exemption letter — 501(c)(3)

■ Audited financial statements

■ Budget — operating and projected for eachyear of anticipated funding

■ Letters of support

■ Resumes of key personnel

■ List of board members

■ Any relevant printed materials such as theannual report

Following Up on Your Proposal

Following up on your proposal is critical in thesolicitation process. The guidelines below willhelp you decide what to do in various situations.

■ One to two weeks after submitting your pro-posal, the person designated in the cover lettershould call to:

– Verify receipt.

– Address any questions the donor may haveor deliver any additional informationrequested.

– Suggest meeting to discuss the proposal further and, if possible, set a time.

– Determine when a decision will be made.

■ If the proposal was sent as a follow-up to ameeting, another meeting may not be neces-sary. It will depend on your relationship withthe donor, the nature of the initial meetingand other factors specific to the situation.

■ If the potential donor requests a site visit, or ifyou feel that a site visit would be helpful atthis point, you should:

– Involve any other staff who will be instru-mental in carrying out the work for whichfunds were requested.

– Invite the advisory board chair and othermembers who might be invo l ved in the pro j e c t .

– If you provide lunch, it should not be elaborate.

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■ If the proposal is turned down, you should:

– Thank your potential donor for his or her consideration.

– Ask if you can review the proposal withthem to better understand why it was not accepted.

– Notify all involved in the solicitation.

– Keep the donor on your mailing list andcontinue to cultivate.

■ If you are approved, be sure to:

– Follow up with a letter confirming anythingagreed to over the phone, including anymodifications to the budget that thedonor requested.

– Send a thank you letter immediately uponwritten notification of grant approval. SeeAppendix F for sample thank you letters.

– Confirm what the donor expects in termsof publicity.

– Address the thank you letter to whoeversigns the notification letter on behalf of thedonor. If you have worked with others, suchas program officers, cultivate those relation-ships by thanking them for their guidance.

– Have the donor approve any press state-ment about the grant award prior to release.

– Before any public announcement, be sure tonotify all involved in the solicitation. Also,use this as an opportunity to communicatewith your board and to treat them likeinsiders. Do not let them read about yoursuccess in the newspaper; send a letter ormemo to all board members.

■ Ongoing management should include:

– Adding to your tickler file any updates,reports, etc.

– Delivering what you promise and more. Try to exceed the donor’s expectations.

■ Other considerations:

– If, during the grant period, you need torevise anything to which a commitment wasmade in the proposal, you must contact thedonor first.

– In addition to any required reports, look forothers ways to communicate with yourdonor. Send copies of publicity, testimonialsor anything that demonstrates the effective-ness of the project. Continue to cultivateand strengthen the relationship to increaseyour prospects for future support.

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PREPARATION FOR THE MEETING

■ Do your homework. Research and know asmuch as possible about your donor.

■ Know what you need and what you areasking for.

■ Be able to link your request to donors’ inter-ests and priorities. If they want to know,“What’s in it for me?” be prepared totell them.

■ If possible, make a preliminary visit to establisha personal relationship and test the waters.

■ If asked to do so, prepare a letter of inquiry.

■ Determine the most strategic solicitation team.

■ Set up the appointment and confirm by letter.

■ Agree on the strategy and roles of each partici-pant: What are you asking for? What aboutthe project appeals to this prospective donor?Who opens the discussion? Who describes theprogram? Who decides when the time is rightto ask, and who will do the asking? Who fol-lows up?

■ Conduct a background briefing for all mem-bers of the solicitation team.

■ If possible, hold a practice meeting before thereal meeting.

DURING THE MEETING

■ Ask for involvement, a commitment to a specificamount or a willingness to review a proposal.

■ If the prospect makes a commitment, restate what you understand the commitment tobe.

■ If the prospect asks for or agrees to reviewa proposal:

– Try to determine specifically what they areinterested in.

– Specify when you or someone else (give thatperson’s name) will get back to the prospect.

■ If the potential donor resists or responds nega-tively, try to counter the argument, urging him or her to look at a proposal.

F O L L O W - U P

■ Within 72 hours, send a letter thanking theprospect for meeting with you and for their com-mitment (specifically state what you understoodtheir commitment to be) — or for agreeing toreview a proposal. Commit to a deadline for aproposal submission. Also, give them your nameand number as a contact person.

■ File a copy of the letter in your prospect’s records.

■ Complete and submit the proposal within two tothree weeks.

■ Follow up with a call two weeks after submittingthe proposal.

■ Add the prospect to your mailing list.

FOLLOWING GRANT NOTIFICATION ORRECEIPT OF FUNDS

■ Within 72 hours of grant notification, senda thank you letter. File a copy in your prospect’srecords.

■ Notify solicitation participants and board of thegrant notification.

■ Within 48 hours of receiving funds, send a thankyou letter. Keep a copy of this also.

■ Set up a tickler system for:

– Progress reports to donor

– Final report to donor

– Meeting with donor to discuss renewal of support

■ Compose a press release, if donor agrees,announcing receipt of the grant.

■ Send copies of any press coverage to the donor.

■ Engage in ongoing donor stewardship.

The Solicitation Summary

© 1999, The Enterprise Foundation, Inc.

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Congratulations. You have secured the commit-ment from the donor to support your organiza-tion. Now what? You are responsible formanaging donors’ investments in your organiza-tion. You must comply with the terms of thegrant, including reporting on the program’sdevelopment. You also must continue to fosteryour relationship with donors in order to ensuretheir investment satisfaction — and to gaintheir future support. Keep your eyes open fornews stories about donors’ good work and praisethem on these accomplishments by letter whenpossible. Consider including them on yourboard or advisory committee.

ACCOUNTABILITY FOR YOUR GRANT

Here are some tips to help you manage theterms of the grant.

■ Make sure you understand the terms and con-ditions of your grant. Implement your projectas proposed to the donor and in accordancewith the terms and conditions specified in thegrant award notification or other documentsfrom the donor.

■ If you feel it is necessary to deviate from theoriginal proposal, submit a revised plan inwriting to the donor and be sure you receivewritten approval.

■ Report to the donor in fiscal and narrative for-mats, as required. Donors, especially founda-tions, usually tell you what they expect interms of progress and final reports on the useof their funds. Be sure you know when theyare due, what form they should take and whatinformation is required. If a format is speci-fied, follow it. If a form is provided, use it.

At a minimum, donors usually ask for or expectthe following information:

■ Expenditures to date (You must be able toaccount for all funds, according to the termsof the grant.)

■ Activities and outcomes to date

■ Unexpected outcomes

■ A description of problems encountered, rea-sons why project has not progressed as antic-ipated and reasons why expenditures deviatefrom estimates

Unless the donor has very strict guidelines aboutthe information wanted in the report, thinkabout ways to exceed expectations. Prepare areport that really conveys a feel for the work youare doing and for the return donors are gettingon their investment. By giving a little more thanwhat was requested, you will stand out amongother grant recipients. This is a solid advantagewhen donors conduct funding reviews.

Example:

You received support for an after-school arts pro-gram for neighborhood youth. You can send areport that merely states how many youth haveattended, how many sessions have been held anda description of the work they have done. Or youcan supplement this kind of narrative with testi-monials from the kids or a few samples of thework they have produced.

A FINAL WORD

Remember, prospecting, cultivating, solicitingand taking care of your donors is an ongoingprocess, a journey.

Think about the commitment you have justreceived as the beginningof the partnership withthe donor, not the end. Continue to revisit waysto get to know your donor — ways to involveand inform them and ways to tell your message.Your efforts will be rewarded.

Fifth Stop: Stewardship

Below are suggestions of where to look forvarious kinds of information. While you arenot likely to become involved in this level ofprospect research, you might find some ofthis information valuable when researchingor screening a major individual prospect.

Name: Telephone directories; state or countyoffice of identification; voter’s registration office;county office of births and deaths; departmentof motor vehicles; post office; telephone com-pany; tax assessor’s office; biographic references;checks; letterheads.

Address: Telephone directories; post office;telephone company; other public utilities; taxassessor’s office; city directories; social register;d e p a rtment of motor vehicles; letterheads; checks.

Telephone numbers: Telephone directories(white and yellow pages); letterhead or personalstationery; city directories; biographic referencesources such as the Who’s Whoseries; social regis-ter; club membership rosters.

Marital status: Records office for marriagelicenses; motor vehicle registration office;property assessor’s office; tax assessor’s office;property records office; court files on divorceproceedings; probate records; correspondencefiles; checks.

Date of birth or death: County records officefor births, deaths and marriages; obituaries;Who’s Whoseries; newspaper articles; motorvehicle registration; applications to school;organizational membership office.

Indicators of Worth:

Home value — County property appraiser’soffice; tax assessor’s office; public library.

Ownership of property — Tax poll; propertyrecords office; real estate brokers.

Stockholdings (for insiders, directors and 5percent owners) — proxy statements; officialsummary of security transactions and holdings;newspaper columns on insider trading and pro-files on public companies.

Alimony or child support — Newspaper arti-cles; court records.

Ownership of boats, yachts — Newspaper art i-cles; social register; Lloyd’s Register of Ya c h t s ;shipping; yacht brokers and boat sales (for va l u e ) .

Value of autos — Blue books; car dealers;newspapers; department of motor vehicles forregistration and liens.

Art collection — Newspaper articles; museums;art galleries.

Inheritance or trust income — Public relationsdepartment of company; Who’s Who.

Career history — Resume; Who’s Who;socialregister; newspaper articles (can be verified bycalling institution); professional directories andstate licensing boards.

Education — Newspaper articles; membershiplists; event programs; Who’s Who;social register.

Appendix ACreative Research on Individuals

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HINT: IT MAY BE EASIER TO PHOTOCOPY INFORMATION FROM A FOUNDATION DIRECTORY AND ATTACH.

© 1999, The Enterprise Foundation, Inc.2 9

When doing research on a corporate, foundation or individual prospect, use the appropriate profileto guide your efforts.

Appendix BCorporate, Foundation and Individual Profiles

C O R P O R ATE PROFILE

NAME: ______________________________________ CONTACT NAME: ________________________

ADDRESS: ____________________________________ TITLE: __________________________________

PHONE: ______________________________________ FAX: ____________________________________

EMAIL: ______________________________________ WEB SITE: ______________________________

TYPE OF BUSINESS: ________________________________________________________________________

PHILANTHROPY DONE THROUGH:

■ CORPORATE FOUNDATION

■ CORPORATE DEPARTMENT (IDENTIFY)

DO THEY PUBLISH GUIDELINES? ■ YES ■ NO COPY ATTACHED? ■ YES ■ NO

AREAS OF INTEREST:

CONNECTION TO OFFICERS & TRUSTEES: KNOWN CONNECTIONS TO YOUR (SEE HINT BELOW) ORGANIZATION:

CEO: ________________________________________

COO: ______________________________________

TRUSTEES: __________________________________

RELEVANT RECIPIENTS/AMOUNTS: (SEE HINT BELOW)

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

PREPARED BY: ________________________________ DATE: __________________________________

SAMPLE CORPORATE PROFILE

Copy and attach in appropriate file.

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SAMPLE FOUNDATION PROFILE

HINT: IT MAY BE EASIER TO PHOTOCOPY INFORMATION FROM A FOUNDATION DIRECTORY AND ATTACH.

© 1999, The Enterprise Foundation, Inc.

Copy and attach in appropriate file.

F O U N D ATION PROFILE

NAME: ______________________________________ CONTACT NAME: __________________________

ADDRESS: ____________________________________ TITLE: ____________________________________

ADDRESS: ____________________________________ TITLE: ____________________________________

PHONE: ______________________________________ FAX: ______________________________________

WEB SITE: ____________________________________ EMAIL: ____________________________________

CLASSIFICATION:

■ FAMILY FOUNDATION ■ INDEPENDENT FOUNDATION

■ COMMUNITY FOUNDATION ■ OTHER

FINANCIAL DATA: (SEE HINT BELOW)

YEAR ASSETS TOTAL GRANT $$$ # GRANTS

AREAS OF INTEREST: (SEE HINT BELOW)

CONNECTION TO OFFICERS & TRUSTEES: KNOWN CONNECTIONS TO YOUR (SEE HINT BELOW) ORGANIZATION:

CEO: ________________________________________

COO: ______________________________________

TRUSTEES: __________________________________

RELEVANT RECIPIENTS/AMOUNTS: (SEE HINT BELOW)

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

__________________________________________________________________________ ______________

PREPARED BY: ____________________________

DATE: ____________________________________

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SAMPLE INDIVIDUAL PROFILE

© 1999, The Enterprise Foundation, Inc.

Copy and attach in appropriate file.

INDIVIDUAL PROFILE

NAME: ______________________________________________ OFFICE PHONE: ____________________

TITLE: ________________________________________________ FAX: ______________________________

BUSINESS ADDRESS: __________________________________ HOME TELEPHONE: ________________

BUSINESS ADDRESS: __________________________________ HOME TELEPHONE: ________________

WEB SITE: ____________________________________________ EMAIL: ____________________________

PREFERRED ADDRESS: ■ BUSINESS ■ HOME

FAMILY INFORMATION: ____________________________________________________________________

SPOUSE HAS SEPARATE DONOR REPORT? ■ YES ■ NO

SPOUSE’S NAME: __________________________________________________________________________

CHILDREN: ________________________________________________________________________________

RELATIONSHIPS:____________________________________________________________________________

HOME ADDRESS: __________________________________________________________________________

TELEPHONE & EMAIL: ______________________________________________________________________

SALUTATION: ______________________________________________________________________________

SECRETARY’S OR ASSISTANT’S NAME:________________________________________________________

SIGNIFICANT RELATIONSHIPS: ______________________________________________________________

EDUCATION: ______________________________________________________________________________

CONNECTIONS TO ORGANIZATION:__________________________________________________________

COMMUNITY INVOLVEMENT: ______________________________________________________________

RELIGION/CONGREGATION: ________________________________________________________________

POLITICAL: ________________________________________________________________________________

PERSONAL INTERESTS: ______________________________________________________________________

KNOWN PHILANTHROPIC INTERESTS: ________________________________________________________

OTHERGIVING SUMMARY: AS OF (DATE)

COMMENTS: NOTE ANYTHING OF INTEREST — ”HOT SPOTS,” POSSIBLE CONTACTS, PREFERENCESTHAT MAY BE IMPORTANT FOR PREPARING A PROPOSAL OR SETTING UP A MEETING.

PREPARED BY: ____________________________

DATE: ____________________________________

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The following are helpful reference materialswhen researching corporate, foundation andindividual prospects.

The Foundation Center

The Foundation Center is a national organiza-tion that serves as an authoritative source ofinformation on foundation and corporate giv-ing. Its publications include The FoundationDirectory; Securing Your Organization’s Future:A Complete Guide to Fundraising Strategies,byMichael Seltzer; and individual guides on spe-cific grant topics and regional grant makers.The Foundation Center’s reference collections(in New York, San Francisco, Washington,D.C., Atlanta and Cleveland) offer a varietyof services and comprehensive collections ofinformation. In addition, many public librariesthroughout the country participate in TheFoundation Center’s Cooperating Collectionsnetwork. For further information on services,publications and locations of cooperating collec-tions, call 800.424.9836 or visit the Center’sWeb site at www.fdncenter.org.

The Taft Group

The Taft Group publishes the Corporate GivingDirectory.This directory provides comprehen-sive profiles on the United States’ major corpo-rate foundations and corporate charitable givingprograms. Indexes allow researchers to quicklyfind information on donors by company name,location, recipient type, or officers’ and direc-tors’ names. The Taft Group also publishes theGuide to Private Fortunes,descriptions and pro-files of the wealthiest and most philanthropicindividuals and families. Finally, Who KnowsWhoa helpful resource with several indexes fornetworking through corporate boards. Contactthe Taft Group at 800.877.TAFT.

State and Regional Foundation Directories

State and regional foundation directories arepublished by a variety of sources, includingp r i vate publishers, associations of area grantmakers, community foundations, vo l u n t e e rcenters, junior leagues and offices of the (state)Attorney Ge n e r a l .

Government Directories

Catalog of Federal Domestic Assistance.GeneralServices Administration, Washington, D.C.:U.S. Government Printing Office. Cost: $53.For more information, call 202.512.0000.

Federal Register.Washington, D.C.: U.S. Government Printing Office. Published daily and available online atwww.access.gpo.gov/su_docs/aces/aces140html.

Leadership Directories (Yellow Books)

The Leadership Directories are a series known asthe “Yellow Books,” published quarterly byLeadership Directories, Inc. They include timelyand accurate listings of key executives, officersand board members of major organizationswithin the sectors covered by the series. Forexample, the Corporate Yellow Bookincludesleading U.S. manufacturers, service businessesand utilities. Other recommended directoriesinclude Financial Yellow Book and Law FirmsYellow Book.Leadership Directories, Inc., hasoffices in New York and Washington, D.C.To order, call 212.627.4140.

Appendix CResearch References

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Public Library

Most public libraries have online services as wellas reference collections on private industry. TheBusiness Dateline is one online service that cata-logs abstracts of corporate press releases. Thesepress releases contain valuable financial informa-tion as well as names of officers and currentbusiness trends. Periodicals is another onlineservice providing abstracts from newspapers andmagazines. Searching for specific informationon individuals and corporations through theseservices can provide excellent and timely infor-mation on prospects.

The Standard & Poor’s Stock Exchange Reportsare an up-to-date source of financial informa-tion on publicly traded companies. Dunn &Bradstreet publishes reference books that con-tain parent company and subsidiary informationon private companies. These reference booksalso list officers and board members. The Ward’sBusiness Directory of U.S. Private and PublicCompaniesprovides financial information forhard-to-research privately-held companies.Hoover’s Guide to Private Companies and NotableCorporate Chronologies,published by GaleResearch, are two additional reference booksavailable at public libraries. Martindale &Hubbell publishes directories profiling promi-nent lawyers and Who’s Who in Americagivesdescriptions of individuals and their families.

Periodicals and Other Publications

In addition to local newspapers and magazines,periodicals such as Forbes, Fortune, Wall StreetJournal, New York Times, Chronicle ofPhilanthropy, Corporate Giving Watch, andFoundation & Corporate Grants Al e rt a re examplesof the many publications containing valuableinformation for grant seekers. Specific informa-tion about several of these is listed below.

An inexpensive ($10), comprehensive biblio-graphy listing resources for prospect research,which includes a section on online prospectresearch resources, is Bibliography: Resourcesfor Prospect Development 1996–97publishedby Bentz Whaley Flessner & Associates, Inc.612.921.0111

Children & Youth Funding Report.CDPublications, Silver Spring, Md. AnnualSubscription: $259. Published twicemonthly. 301.588.6380

The Chronicle of Philanthropy.The Chronicle ofHigher Education, Washington, D.C. AnnualSubscription: $67.50. Published biweekly.800.728.2819

Federal Assistance Monitor.CD Publications,Silver Spring, Md. Annual Subscription: $259.Published twice monthly. 301.588.6380

Federal Grants & Contracts Weekly.CapitolPublications, Inc., Alexandria, Va. AnnualSubscription: $379. 800.638.8437

Foundation & Corporate Grants Alert.CapitolPublications, Inc., Alexandria, Va. AnnualSubscription: $269. Published monthly.800.638.8437

The Grantsmanship Center Magazine.TheGrantsmanship Center, Los Angeles, Calif.Free to nonprofit and government agencies.213.482.9860

The NonProfit Times.Davis Information Group,Inc., Cedar Knolls, N.J. Annual Subscription:$59. Published monthly. 973.734.1700

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Internal Revenue Service (IRS) Forms

All private foundations must file a tax re t u r nwith the IRS. This becomes public information.Form 990 provides valuable information suchas: assets, grants paid, officers, applicationinformation and grants approved for futurepayment. Complete or regional sets of IRSforms are available at The Foundation Center’scollection locations, through district IRSoffices, and, in some states, through the stateattorney general’s office or secretary of state.Also, visit www.guidestar.org. The Web pagehas 990s available online.

Annual Reports

Once you have targeted a corporation or foun-dation as a prospect, call for an annual re p o rt .These are mailed free of charge and containmission statements, business trends, financialinformation, and listings of officers, dire c t o r sand trustees. Larger corporations typicallyp roduce a for-profit annual re p o rt as well as ap h i l a n t h ropic annual re p o rt. Each prov i d e st h e kinds of information that can be used tomatch donors to recipients. Annual re p o rt sg i ve details on who is being funded, whatp rograms are receiving money and where thedonor is concentrating philanthropic effort s .

Phone Calls

The public relations or investor re l a t i o n sd e p a rtments of many companies will fax yo uc u r rent press releases on mergers and acquisi-tions, biographies, and current business tre n d s .Pr i vately-held companies are not as fort h c o m-ing with information, but in some cases theywill provide basic information. Phone numbersand addresses can be found in the pre v i o u s l yrecommended Ye l l ow Book listed underLeadership Di re c t o r i e s .

Electronic Prospecting Tools

Catalog of Federal Domestic Assistance. OrcaKnowledge Systems, San Anselmo, Calif. Cost:$149. 800.868.ORCA

Chronicle of Philanthropy Guide to Grants.Washington, D.C. Cost: $295.

FC Search. The Foundation Center’s Databaseon CD-ROM. Cost: $1,195.

The Grants Database. Oryx. Cost: $1,000.

GrantSearch CFDA. Capitol Publications, Inc.,Alexandria, Va. Cost: $375. 800.638.8437

Prospector’s Choice. The Taft Group,Washington, D.C. Cost: $895.

Sources of U.S. Foundations. Orca KnowledgeSystems, San Anselmo, Calif. State version,$129; regional version, $179; national version:$359. 800.868.ORCA

Online Resources

Please consult the Web Resources section ofEnterprise MoneyNet™ for links to useful onlineresources (www.enterprisefoundation.org).

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If you sent an advance letter…

Hello, (prospect’s name),this is (your name)from (name of your organization or affiliation).I’m calling to follow up on the letter I sent you. (Or, if applicable, refer to letter sent byyour contact, the person who knows your nonprofit and the prospect.)Do you recall receivingthat letter?

If the potential donor recalls receiving the l e t t e r …

Good. Since you have an idea of the type of work our nonprofit does, I was hoping wecould get together briefly to discuss your potential involvement in our efforts. If you’reinterested, I’d like to set up a time to meet with you.

If the potential donor agrees to meet with y o u …

(Confirm a date and location.)We look forward to seeing you then. Thank you.

If the answer is no ...

Have I called too late to be included in your fiscal year budget? If the answer is yes:When will you begin developing your budget for next year? If the answer is no:Thank you for talking with me now. I appreciate your time.

If the potential donor does not recall receiving the letter…

(If applicable,[name of your contact] suggested that I call you.) If you have a moment,I can tell you what the letter said. (If they say they do not have time, ask what is the besttime to call back and then follow through, starting the conversation where you left off.)

To date, we have (fill in with a brief summary of successful projects). We are committed to building on these accomplishments to improve the quality of life in (name of city).

I ( we ) would appreciate the opportunity to talk about involving (their organization’s name)i nour e f f o rts. One of the cornerstones of our success has been the ability to build part n e r s h i p s .Your insight into how we might do this would be invaluable. Do you have time to meetw i t h me and some other re p re s e n t a t i ves from my organization?

If they agree to meet with you…

(Confirm a date and location.)We look forward to seeing you then. Thank you.

(Continued on next page)

Appendix DSample Telephone Script

© 1999, The Enterprise Foundation, Inc.

3 6

If they say no to meeting with you…

Have I called too late to be included in your fiscal year budget? If the answer is yes:Whenwill you begin developing your budget for next year? If the answer is no:Thank you fortalking with me now. I appreciate your time.

If no advance letter was sent…

Hello, (prospect’s name),this is (your name)from (name of your organization or affiliation).

(If applicable,[name of your contact] suggested I call. [He or she]believes you might havean interest in the work we do.)

If this is a good time for you, I would like to give you a quick overview of the type ofwork our nonprofit does. I think you may find it interesting. (If the potential donor doesnot have time, ask what is the best time to call back and then follow through, starting the con-versation where you left off.)

To date, we have (fill in with a brief summary of successful projects).We are committed tobuilding on these accomplishments to improve the quality of life in the greater (nameof city)area.

I (we) would appreciate the opportunity to talk about involving (name of their organiza-tion) in our efforts. One of the cornerstones of our success has been the ability to buildpartnerships. Your insight into how we might best do this would be invaluable. Do youhave time to meet with me and some other representatives from my organization?

If they agree to a meeting with you…

(Confirm a date and location.)We look forward to seeing you then. Thank you.

If they say no to meeting with you…

Have I called too late to be included in your fiscal year budget? If the answer is yes:When will you begin developing your budget for next year? If the answer is no:Thank you for talking with me now. I appreciate your time.

If you arrange a meeting, immediately send the prospect a letter restating when and where the meet-ing is scheduled, who will be coming with you and your purpose.

After each phone call, make good notes about whom you spoke with, the date and time, the level ofinterest and when you will meet with them. If the prospect did not agree to meet with you, note thereason. File this information in your records on prospects or put a copy in the file started for thispotential donor.

© 1999, The Enterprise Foundation, Inc.

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Dear (name of pro s p e c t ) ,

I am writing you at the suggestion of (name, title and affiliation of your re f e r r i n gc o n t a c tp e r s o n ) .

For the past ( n u m b e r )years, ( your nonpro f i t’s name)has been working ( o r, if appro p r i a t e ,w o rking in part n e r s h i p )with (names of key local part n e r s ) to assist local community deve l-opment organizations re v i t a l i ze (name of city)’s neighborhoods. Our primary objective isto ( p a ra p h rase your organization’s mission).

To date, we have (fill in with a brief summary of successful pro j e c t s ) .We are committedt o building on these accomplishments to improve the quality of life in the gre a t e r( n a m e of city)a re a .

One of the cornerstones of our success has been our ability to build partnerships. As aleader in the ( c o r p o rate or foundation, etc.)c o m m u n i t y, your insight into how we mightbest share our story with others in the ( c o r p o rate or foundation)sector and invo l ve themin our efforts would be invaluable. I ( we ) would appreciate the opportunity to talk withyou about ( your nonpro f i t’s name).

I will call you (specify a time fra m e ) to arrange a meeting at your convenience. In themeantime, I am sending you some information about ( your nonpro f i t’s name).

Si n c e re l y,

© 1999, The Enterprise Foundation, Inc.

Appendix ESample Door-Opener Letter

It is often best to get a board member to send this letter on your behalf on their corporate letterhead.

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Dear (prospect’s name),

Thank you for taking the time to meet with me and (names of other participants on yourteam) to discuss the work of (name of your nonprofit).We appreciate your interest.

As you requested, I am sending additional information about (our work and the specificproject),including (itemize what you are sending).If you have questions about any of thismaterial, please give me a call.

I will follow up with you in (specify a time — maybe in a few weeks to give them time toread what you sent)to further discuss (your [if the prospect is an individual] or the nameof their organization)joining us as a partner in (our work or the specific project).

Again, thank you for your time and consideration.

Sincerely,

Sample 1THANK YOU LETTER FOLLOWING A MEETING — PROSPECT ASKED FOR MORE INFORMATION

Appendix FSample Thank You Letters

© 1999, The Enterprise Foundation, Inc.

The following sample letters can be used as templates that you modify for your needs.

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Dear (prospect’s name),

Thank you for taking the time to meet with me and (names of other participants on your team)to discuss the work of (name of your nonpro f i t ) .We appreciate your willingness to consider an investment in the future of our city through the work of (name of your nonpro f i t ) .

As you requested, we are preparing a formal proposal for your review and consider-ation, which you will receive no later than (date). In the interim, if you have any further questions or requests, please do not hesitate to contact me.

Again, many thanks for your time and interest in furthering the mission of (nameof your nonprofit).

Sincerely,

Sample 2THANK YOU LETTER FOLLOWING A MEETING —PROSPECT ASKED FOR A PROPOSAL

Although it will take you at least a week, if not two, to put together a good proposal, do not wait tothank them for the meeting and opportunity. Send the thank you letter, restating what they asked forand telling them when to expect the proposal. Speed is important, but give yourself time to prepare athoughtful submission. If you set a date and miss it, your chances for funding are dim.

© 1999, The Enterprise Foundation, Inc.

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Dear (name of prospect),

Thank you for meeting with (names of participants)and for (your [if the prospect is an individual] or the name of funding organization)’s pledge of $______ to further the mission of (name of your nonprofit).

As the ( your title)of (name of your nonpro f i t ) , I welcome your partnership in our effort st o make a difference in (name of neighborhood or target are a ) . By ( p a ra p h rase your mission),our work benefits the entire community. To g e t h e r, we can and will make a differe n c e .

If you have any questions regarding fulfillment of your pledge or about our work,do not hesitate to call me.

Again, please accept my sincere appreciation for your commitment to the goals andmission of (name of your nonprofit).

Sincerely,

Sample 3THANK YOU LETTER FOLLOWING A MEETING —PROSPECT MADE A COMMITMENT

If you receive an immediate commitment, send a letter of thanks for the meeting and the pledge. Taxlanguage is not included because you are thanking them for the pledge or commitment, not theactual receipt of the check.

© 1999, The Enterprise Foundation, Inc.

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Sample 4THANK YOU LETTER AFTER YOU RECEIVE THE GIFT

Dear (name of prospect):

We gratefully acknowledge receipt of your check in the amount of $_____ to support the work of (name of your nonprofit).

Your generosity will help (name of your nonprofit) (summarize mission). [If they have funded a specific program, make a brief reference to it here.]We look forward to reporting to you on our progress.

Again, thank you for your commitment to bringing this spirit of change to our neighborhood.

Sincerely,

(Name of your nonprofit)is a 501(c)(3) nonprofit organization and acknowledges that no goods or services were provided to you in return for your contribution. This letter is your receipt and should be kept with your tax credit records. The charitable deductionmay be disallowed if you are unable to provide this acknowledgment to the InternalRevenue Service upon request.

Note: This acknowledgment is only appropriate if no goods or services were received. Youshould verify appropriate language with your tax consultant.

All information in this Appendix also can be found at The Enterprise Foundation Web site (www.enterprisefoundation.org) under the heading of Enterprise MoneyNet.

© 1999, The Enterprise Foundation, Inc.

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Notes

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Notes

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Notes

THE ENTERPRISE FOUNDATIONThe Foundation’s mission is to see that all low-income people in the United States have accessto fit and affordable housing and an opport u n i t yto move out of poverty and into the mainstreamof American life. To achieve that mission, westrive to:

■ Build a national community revitalization movement.

■ Demonstrate what is possible in low-income communities.

■ Communicate and advocate what works in community development.

As the nation’s leader in community d e ve l o p m e n t ,Enterprise cultivates, collects and disseminatesexpertise and re s o u rces to help communitiesa c ross America successfully improve the qualityof life for low-income people.

A C K N O W L E D G M E N T SAuthor: Page Ward Seville, The EnterpriseFoundationContributors: Bill Batko, Carter Cosgrove +Company, Susan Hailman, Ben Hecht,Catherine Hyde, Sheree Norton, Abbie vonSchlegell, Carol Spangler, Jane Usero, BenjaminWarnke, Chris Whitney

Special ThanksResearch and development of this manual wasmade possible by the National CommunityDevelopment Initiative, which is a consortiumof 15 major national corporations and founda-tions and the U.S. De p a rtment of Housing andUrban De velopment, and score s of public andprivate organizations. NCDI was created tosupport and sustain the efforts of communitydevelopment organizations.

FOR MORE INFORMATIONThe Enterprise Foundation10227 Wincopin Circle, Suite 500Columbia, Maryland 21044-3400

tel: 410.964.1230fax: 410.964.1918email: mail@enterprisefoundation.org

For more information about The EnterpriseFoundation or the Community DevelopmentL i b r a r y™, visit us at w w w . e n t e r p r i s e f o u n d a t i o n . o r g .To review our online community magazine, checkout w w w . h o r i z o n m a g . c o m .