Good data can make your proposals more competitive by demonstrating the need in your organization’s service area for the services you provide. And the data collected by the U.S. Census Bureau is not only good—it’s free. To get the most benefit from census stats, see “How to Use Census Data in Your Grant Applications” (Local/State Funding Report, January 19, 2009). Some highlights:

• Although the census is taken every ten years, the Census Bureau’s American Community Survey produces new data every year; this can help you document the changes taking place in your geographic area.
• Educate yourself on the various ways census data is presented. For example, if income data can strengthen your case, should you use household income, family income, or nonfamily household income stats? Be sure you understand the differences before you decide which to use.
• Compare data for your community with data from comparable nearby communities. This can help you illustrate the level of need in your service area.
• Many federal agencies regard Census Bureau data as the most up-to-date information available, and some require its use in grant applications.

---

Proposals are more likely to get funded when the grantmaker finds them compelling. Waddy Thompson gives guidelines on how to hold the funder’s attention in “Writing Grant Proposals Funders Want to Read” (The Nonprofit Times, February 9, 2009). Thompson’s tips:

1. Keep it simple, using short paragraphs and strong topic sentences. Use bullet points to list important facts.
2. Skip the jargon. Buzzwords—even if they’re the funder’s own—weaken your message.
3. Write for a wider audience than your program officer alone. Chances are that the ultimate decision-makers are going to read at least some of your proposal.
4. Use a conversational tone. Then have someone from outside your organization read your proposal to make sure it holds the reader’s interest and that your message is clear.

---

The John F. Kennedy Center for the Performing Arts now offers free advice and consultation to struggling 501(c)(3) performing arts organizations throughout the U.S. For the next 18 months, Kennedy Center department heads will provide guidance—not only online but also through site visits—on fundraising, board development, budgeting and marketing, through their new Arts in Crisis initiative. The team also includes Kennedy Center president, Michael Kaiser, author of The Art of the Turnaround: Creating and Maintaining Healthy Arts Organizations (Brandeis University Press, 2008). Here’s where to go for help.

---

You’re not alone. The Washington Post (“Grants.gov Strains Under New Demand,” March 12, 2009) reports that an increase in user volume is already slowing down the U.S. government’s online portal for grantseekers. Meanwhile, the grant opportunities created by the stimulus package are sure to step up demands on the site. The Department of Health and Human Services does plan to upgrade Grants.gov, but, as of March 16, according to a report by Jason Miller, at Federal News Radio, this may take from three to six months. The good news is that other alternatives for submitting federal grant applications are being considered.

---

In a brutal economy, with funders announcing huge cutbacks and still more expected, many nonprofits are being forced to drop important programs. Others wonder whether they’ll survive at all. Is this the time to explore social enterprise as a strategy for achieving greater sustainability?

The Social Enterprise Alliance defines social enterprise as “market-based strategies to advance a social mission.” For nonprofit organizations, this means offering some products or services for a fee. Other names for social enterprise include earned income ventures, fee for service, sliding fee schedules, and program service fees. But whatever you call it, earned income accounts for a whopping 70% ($770 billion) of nonprofit revenue in the U.S., according to The Urban Institute. So the odds are that your organization already operates a social enterprise, whether you call it that or not. If you’re exploring social enterprise as a strategy, the first question isn’t whether to start a new program; it’s how to build on the programs you’re already operating.

In good times or bad, successful social enterprise strategies offer three important benefits.

1. They can strengthen your mission impact. If you provide valuable services, and if charging for some of those services would make you better able to meet the needs of your primary constituents, why not charge for some services? If you’re already charging for some services, now may be the time to reevaluate your program. Could changes, such as higher prices, lower costs, or new marketing strategies, allow you to serve more people? In our experience, most social enterprise ventures can increase revenues by stepping up low-cost/no-cost marketing efforts and raising prices, thus maintaining or improving their ability to serve.
2. They can make you more attractive to funders. Most grantmakers look for proposals that demonstrate how you will measure outcomes and achieve sustainability. Since these are also essential elements of a successful social enterprise program, your venture can help you document your strengths in these areas.
3. They can generate a surplus of unrestricted funds. My colleague, Michael Whitehead-Bust, calls this the Holy Grail of dollars—you can use these dollars not only to pay for “soft” costs that are hard to fund (such as rent, staff training, and overhead) but also to build sustainability.

You don’t have to look far for examples of successful social enterprise ventures. The most obvious one at this time of the year: Girl Scout cookies, which not only raise money for the organization but also help it fulfill its mission. Another example: Goodwill stores. They’ve been around for decades, and they’re seeing sales go up as the economy sinks.

The npEnterprise Forum, a social-enterprise-focused listserv, recently surveyed members on how they’re faring in the current economy. Lake City Employment Services, a Salt Lake City training and employment program that manufactures and sells furniture, reports that sales rose 7% in 2008. While Chrysalis Enterprises, in Los Angeles, notes that the downturn has hurt its temporary staffing agency, its street maintenance and cleaning business remains relatively stable.

The essential ingredients of social enterprise success are good planning and a long-term perspective. If the economy continues to sour, more nonprofits will look to social enterprise as a way to replace lost funds. The smart approach: After sound research and analysis, make a careful, well-targeted investment in social enterprise. Yes, some nonprofits may be capable of quick venture start-ups. But if you want to maximize your impact and minimize your risk, always begin with thorough research and thoughtful planning. Financial pressures may be what led you to consider launching an earned income program, but remember that successful social enterprise strategies often take years to bear fruit. Don’t expect quick returns that will solve your financial crisis. Instead, view social enterprise as a long-term strategy for increasing your organization’s sustainability and impact.

Rolfe Larson, formerly an executive at Minnesota Public Radio, is an affiliate professor at Regis University in Denver. He earned his MBA in marketing and finance from the Yale School of Management. He is the author of Venture Forth!, which is widely recognized as the best layman's manual on the subject of nonprofit enterprise and was endorsed by the late Paul Newman of Newman's Own. Rolfe has also served on the board of the Social Enterprise Alliance.

---