State of grantseeking- simple_development_systems_041713

The State of Grantseeking and Its Implications
for Fundraisers

April 17, 2013

http://www.flickr.com/photos/oxygeon/238163317

The State of the Nonprofit Sector

Nonprofit Finance Fund: 2013 State of the Nonprofit Sector

1 in 3 organizations received
less government money
in 2012 than in 2011

Nonprofit Finance Fund: 2013 State of the Nonprofit Sector

Overall giving is increasing slightly

Blackbaud, Charitable Giving Report 2012

A majority of nonprofits reported increased
donations

Nonprofit Research Collaborative Winter 2013 Nonprofit Fundraising Survey

Nonprofits are feeling optimistic

Nonprofit Research Collaborative Winter 2013 Nonprofit Fundraising Survey

But they have felt optimistic before

Nonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey

Grants are over 25% of funding for almost
half of all nonprofits

State of Grantseeking Spring 2013, GrantStation and PhilanTech

In the last 6 months of 2012, nonprofits applied for
same number or more grants


And received the same # or more grants


Grant size was the same or larger


Trending in a positive direction

Total foundation giving has stabilized, but
not returned to pre-recession levels

Foundation Center, Foundation Growth and Giving Estimates June 2012

Private foundation grants remain the most
frequent funding source


Private foundation grants were also the largest
single source of total grant funding


Private foundations were also the source of
the largest grant


Nonprofits continue to submit many
requests to grantors
# of Grants Submitted July to December 2012


…and continue to get grant awards
# of Grants Awarded July to December 2012


Number of requests has remained
consistent

…as has the number of grants awarded

Organizations rely on different people to
engage in grantseeking activities


Most organizations get grants under
$100,000

All Small Medium Large
Largest Award July – December 2011 Organizations Organizations Organizations Organizations

$1 to $10,000 24% 59% 25% 10%

$10,001 to $50,000 28% 28% 36% 19%

$50,001 to $100,000 13% 4% 18% 11%

$100,001 to $500,000 22% 9% 18% 32%

$500,001 to $1,000,000 5% 0% 1% 11%

Over $1,000,000 8% 0% 3% 16%


Grantseeking has challenges


Internal and external challenges

Smaller organizations struggle more with the
mechanics; larger organizations struggle more
with the macro issues
All Small Medium Large
Grantseeking's Greatest Challenge in 2012 Organizations Organizations Organizations Organizations
Competition 6.0% 4.0% 5.0% 8.0%
Reduced funding 12.0% 6.0% 11.0% 17.0%
Economic conditions 11.0% 5.0% 11.0% 14.0%
Funder practices and requirements 6.0% 5.0% 7.0% 6.0%
Internal organizational issues 4.0% 0.0% 3.0% 7.0%
Lack of time and/or staff 23.0% 26.0% 26.0% 19.0%
My organization needs a grantwriter 7.0% 14.0% 6.0% 3.0%
Relationship building with funders 7.0% 9.0% 7.0% 7.0%
Research, finding grants for my organization’s
mission 16.0% 21.0% 16.0% 13.0%
Writing grants 4.0% 8.0% 2.0% 2.0%
Other 4.0% 3.0% 4.0% 4.0%


In the words of grantseekers

• “Fewer personnel due to the economy doing more
work so less time for grantwriting or money for a
professional.”
• “Less Federal dollars and more agencies applying.”
• “Grant funding at all levels (government, corporate,
foundation and other sources) has become very
competitive during the economic downturn. Grant
allocations have become smaller while human
service needs have skyrocketed.”

In the words of more grantseekers

• “As we have moved increasingly into policy
advocacy we need multi-year commitments;
however, few foundations provide more than a
year's worth.”
• “As an arts organization, we are seeing a
number of long-time funders shift their giving to
social service programs.”

Foundations are giving fewer
multi-year grants

Internal Challenges

• “There is no agency-wide cohesiveness, no
coordination. All Program Directors work
independently and separately from each other,
even closely related programs.”
• “Capacity is always the biggest challenge - we
have a nice base of funders we keep going back
to year-after-year, but this doesn't leave a lot of
time to find and pursue new foundation grant
opportunities.”

It’s Not All Bad News

• “2011 was our most dismal year for Foundation
grants. Many Foundations were focusing solely
on "basic needs" of housing and hunger. In
2012, Foundations came back - tripling the 2011
total.”

New in 2013

• “Finding new grant sources in a small, rural area
with few corporations, foundations and other
funding”
• Sequestration

Implications for Fundraisers

• Economy seems to be recovering, but giving has
not returned to pre-recession levels
• Don’t assume that this year’s funder will be next
year’s funder
• Impact of government funding reductions isn’t
over – impact of sequestration is only starting to
be felt
• Diversify
• Grant trends can inform strategy and prospecting

Focus

• On net positive grants
• On developing and cultivating relationships
• On high ROI prospects – and issues that matter to
them

There is an increased need for grant
professionals
• Challenges of time, not having grantwriter on staff
– “No dedicated resource. Trained and experienced
grantwriters are in the area, but there is no budget setup
for funding that work.”
– “We are all volunteers and no one knows how to write a
grant proposal.”
• Opportunity for consultants
– Expertise + time = ROI

…but corresponding stress on ability to
pay
• New hires are not in the cards for many nonprofits
• Many don’t have the cash flow to pay consultants

Nonprofits remain optimistic about the next
six months


A bit about PhilanTrack

• Find new potential funders
• Streamlined funder management
• Complete proposal management
• Effective and thorough progress reporting
• Convenient document library

A Bit More about PhilanTrack

• Simple and clean user interface
• Stay productive and free up resources
• The speed and convenience of the cloud
without sacrificing security
• Supported by an organization dedicated to
streamlining philanthropy

Questions?

Dahna Goldstein
dahna@philantech.com

State of grantseeking- simple_development_systems_041713

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