It is important to note that grant applications differ depending on the funder. It is not important that you have all of this information compiled before applying for grants, rather that you have the ability to compile this information if needed.
Amount and type of grant
As a general rule, you can expect to see more robust reporting requirements for larger grants, though this isn’t always the case. Sometimes the reporting requirements for a $5,000 grant will be just as time-consuming as a $50,000 grant or even a $500,000 one. This is why evaluating ROI is so important before deciding to apply for or accept a grant award. Reporting requirements also tend to be greater for program and capacity-building grants, while general operating/unrestricted grants will require less information.
Annual Giving Society
A nonprofit Giving Society is like a club for specific donors to an organization. This might include special recognition, such as on the website or a donor wall, an invitation to a specific event, or a gift sent only to members. An Annual Giving Society might recognize donors within a certain donation amount or donors who give for a specific number of consecutive years.
Business Plan Components include:
I know how this idea will make money
I have cash flow projections
I know who my customer is
I understand the market for my product/service
I know my competitors
I know my value proposition
I know how this product/service aligns with our mission
I have a sales platform
I have a distinct brand for this program
I know how customers will find out about and purchase my product/service
I know the cost to produce my product/service
C
Capacity
Refers to a donor’s ability to make a donation. “Higher capacity” prospects have the ability to give more money than those with “lower capacity.”
Consultant
There are more resources available at the end of this module.
Cultivation
Remember from the Donor Engagement Cycle, cultivation is the relationship-building phase where you get to know your donors and they get to know you and your work.
Cultivation Plan
A cultivation plan typically includes a series of engagement strategies you can implement to build the donor relationship.
D
Donor Advised Fund
A donor-advised fund, or DAF, is like a charitable investment account for the sole purpose of supporting charitable organizations you care about.
They can be set up with an investment company or within a Community Foundation like Community Foundation for Southeast Michigan.
Donor Engagement Cycle
The Donor Engagement Cycle reflects the typical path an individual takes to become a supporter of an organization.
Donor engagement cycle and the donor pyramid
Both explained later in this module.
Donor Pyramid
The donor pyramid is a visualization tool to better understand your current donor base and potential for growth. Criteria for assigning donors to each level of the pyramid are different for every organization.
E
Engaging & Soliciting Prospects for a Capital Campaign is very similar to engaging and soliciting prospects for major gifts
Refer back to the module on Engaging Individual Donors
F
Family Foundation
A private family foundation is a type of private foundation set up by a family, funded with the family’s assets and often run by family members who can also participate in its charitable grantmaking.
You can learn more about Family Foundations here.
Fiduciary
As a reminder, a fiduciary is an organization that agrees to receive and administratively manage funds on behalf of another organization.
Fiduciary or fiscal sponsor
In this instance, an organization that agrees to receive and administratively manage funds on behalf of another organization.
Be aware that organizations acting as a fiduciary or fiscal sponsor frequently charge a small administrative fee for the services, sometimes up to 5% of the grant.
Funder and their internal processes
Small family foundations and corporations tend to have the most minimal reporting requirements, while larger private foundations and community foundations will look for a broader and deeper scope of information. Government grants tend to have the most prescribed and time-intensive reporting requirements.
G
Giving Capacity
Learning a prospect’s giving capacity is an inexact science and can take some digging. Wealth engine software can be a helpful tool, as well as researching the other organizations they support and the levels of past gifts (if publicly available). Note: wealth engine software, while helpful, is not a free resource. However, much of the information they provide can be found conducting manual research on the internet. The resources page of this module includes both a link to several wealth engine platforms as well as a template if you choose to conduct the research yourself.
Grant reports
More detail in later slides
H
How Likely
Other than whether they have given to you before, the most important factors that determine likelihood of giving are how close the relationship is with your organization, whether the prospect or a loved one has been personally affected by the issue your organization works to solve, and whether they have a passion for your mission.
I
Identify Key Prospects
Reminder to jump back to the Module of “Engaging Individual Donors” if you need to build this list out more!
In-kind Donations
In-kind donations are any that are not cash, such as goods, services, or time (such as volunteers).
L
Lapsed Donors
Individuals who used to give to you but have stopped giving.
Largest Donations
For many small and midsize organizations, major donors could include those who give $1k or more each year. For larger organizations, the amount might be much higher, perhaps even six figures.
M
Major Donor Giving Society
Remember, a nonprofit Giving Society is like a club for specific donors to an organization. This might include special recognition, such as on the website or a donor wall, an invitation to a specific event, or a gift sent only to members. A Major Donor Giving Society might recognize donors above a certain donation amount.
N
Network Mapping
This is an exercise you can do with staff, your board, and other volunteers. You may be surprised how many potential donors exist within your organization’s broader network! You will find a template for completing this exercise in the resources section at the end of this module.
P
Prospect
A prospect is an individual with the ability to give to your organization.
Prospective Donors
Simply called “prospects”
R
Raised
Why do organizations wait so long? Remember from earlier in the module that capital campaigns are fundraising efforts above and beyond annual fundraising goals, often for a special project. Raising a majority of your goal before going public increases the likelihood that you will be successful. Perceived failure can have long term detrimental effects on the organization, such as decreased giving by donors in the future. In the short term, donors who gave restricted gifts may request their money back.
Relationship building & donor cultivation
Refer to Module on Engaging Individual Donors
S
Select appropriate tools/work plan
Reminder to see Double the Donation’s resources on Feasibility Studies here or Capital Campaign Toolkit.
Note: this is not an endorsement of this product.
Stewardship
Stewardship is the relationship-building process that happens after a donor has made a gift to your organization. It includes thanking them, providing recognition, and hopefully inspiring them to give again in the future.
Strategies
Templates, examples, how-to guides, and other resources for these stewardship strategies are provided in the resources section of this module
Engage
Learn
Connect