The State of Grantseeking and Its Implications for Grant Professionals
1. The State of Grantseeking and
Its Implications for Grant Professionals
Grant Professionals Association
Conference 2013
Dahna Goldstein
Founder and CEO
11/21/2013
1
18. Government grants are a relatively small
percentage of overall fundraising
Urban Institute, The Nonprofit Sector in Brief: Public Charities, Giving, and Volunteering, 2013
11/21/2013
18
24. Foundation assets are recovering
2012 Council on Foundations – Commonfund Study of Foundations
11/21/2013
24
25. But foundation giving is expected to
stay relatively flat this year
Foundation Center – Foundation Focus 2013
11/21/2013
25
26. Competition for funder dollars is intense
• “We have seen federal funding be drastically
reduced for human services. We also see a greater
competition for local grants and resources. ”
• “Our challenge is finding additional funding to
reduce dependency on state dollars. ”
• “Due to the economic conditions, fewer funds are
available and therefore the competition for funds is
greater. Our location limits the number of agencies
to apply to, other than the federal agencies.”
11/21/2013
26
50. Project Streamline, addressed to
funders, identified challenges
•
•
•
•
•
•
•
•
•
•
Enormous variability
Requirements that aren’t “right sized”
Insufficient net grants
Outsourced burdens
Trust undermined
Reports on a shelf
Fundraising gymnastics
Due diligence redundancy
Double edged swords
Time drain for grantmakers, too
11/21/2013
50
51. How does this resonate with your
experience?
11/21/2013
51
52. Implications for grant professionals
• Economic conditions are not necessarily
greatest challenges, but have a lasting
impact
• Manage relationships with existing
funders
• Don’t assume that this year’s funder will
be next year’s funder
• Address specific guidelines (goes without
saying, but…)
• Speak directly to funder’s mission
11/21/2013
52
53. Implications for grant professionals
• Impact of government funding
reductions isn’t over
• Diversify
• Focus on basics
• Grant trends can inform strategy and
prospecting
11/21/2013
53
54. Focus
• On developing and cultivating
relationships
• On grantwriting fundamentals
• On high ROI prospects – and issues
that matter to them
• On net positive grants
11/21/2013
54
56. Total Grant Cost
Time spent researching opportunity
+ Time spent preparing proposal
+ Time spent
corresponding/communicating/meeting
with funder
+ Time spent on compliance and reporting
ALL
* Cost of salary/salaries of people involved
in process
11/21/2013
56
57. Total Grant Cost Calculation Starting Points
• Average time spent on grant proposal creation = 27.45
hours (median 20 hours)
• Average time spent reporting = 20.48 hours (median 10
hours)
• Median salary for a development director = $95,631
• Hourly = $55 (assuming 35 hour work weeks, 2 weeks
vacation)
• Over $1,500 to apply for grant, over $1,100 to report
Note: these numbers are for foundation grant
applications/reports (from Center for Effective Philanthropy).
Government numbers are higher.
11/21/2013
57
58. There is an increased need for grant
professionals
• Experienced grantwriters = higher ROI
• Opportunity for consultants
11/21/2013
58
59. …but corresponding stress on
ability to pay
• New hires are not in the cards for
many organizations
• Many don’t have the cash flow to pay
consultants
11/21/2013
59
61. A bit about PhilanTech
• Research
• Relationships
• History
• Deadlines
• Reuse information
Find
Report
• Deadlines
• Reuse information
11/21/2013
Apply
Receive
• Tracking
• Requirements
61
Percentage of responding organizations reporting change in charitable receipts by NTEE code, 2012 compared with 2011Education and human services fared wellHealthInternational and public society orgs less so
In 2012, 63% of responding organizations said they met their fundraising goals, compared to 59% in 2011In 2011, 59 percent of responding organizations said they met their fundraising goal.Among respondents, 59 percent had increased their goal over the 2011 goal, 29 percenthad the same goal in the two years, and 12 percent lowered their goal for 2012 compared to 2011Of those that increased their goal, 77% met the new fundraising goal; only 33% of those that lowered their fundraising goal met that lower goalSmaller organizations are less likely to meet goalsThe number of paid staff focused on fundraising, with more paid staffassociated with a greater probability of reaching goal (the maximum for paidstaff was “5 or more”). Years of experience of the person most responsible for fundraising, with moreyears of experience associated with reaching goal, independent oforganizational size. The organization’s size (based on expenditures), which also correlates withfundraising staffing levels.compared with 2010.Similar in grantseeking