VOLUME 1, ISSUE 3SEPTEMBER 2008

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...on News
by Jim Abernathy
Corporate funders offer tips for hard times

If your organization counts on corporate donations, how do you adapt to an economy so weak that most of the largest U.S. corporations expect to flatten or reduce their giving this year? Caroline Preston shares suggestions from corporate giving officers and other experts in her article, "Advice for Approaching Corporate Grant Makers During Tough Times," (The Chronicle of Philanthropy, August 21, 2008):
  • Focus on businesses that are thriving (yes, there are some), not faltering.
  • Prepare for better times by maintaining the good relationships you've already established.
  • Ask for pro bono help rather than cash.
  • Show the results you've produced from previous assistance.
  • Don't use the weak economy as your rationale for requesting support.
  • Have some empathy for the corporate staff--they're going through hard times too.



Federal funders favor team players

More and more federal grant programs are calling for collaboration among organizations and agencies, according to an article in the August 4, 2008, issue of Local/State Funding Report. "Federal Grant Programs Urge Collaboration" uses examples from the Departments of Health and Human Services, Agriculture, and Education and the National Science Foundation to show how joint efforts by nonprofit groups, state and local government agencies, schools, universities, and private businesses are being encouraged--and sometimes even required--for grant eligibility. The article cites the following advice from consultant Michael Paddock:
  • Get buy-in from the executives of each potential partner organization before investing much time in project planning.
  • Then form a core planning team.
  • Create a clear vision for the project and a joint understanding of the needs the project will address.
  • Determine the methods for addressing those needs and develop a timeline.
  • Carefully draft the budget, specifying which costs will be shared by all partners and which will be assumed by individual members.



Bring your proposal's stats to life

With PolicyMap, a service from The Reinvestment Fund in Philadelphia, you can collect demographic data about virtually any community in the U.S., create customized maps and tables, and save these as PDF or JPEG files to include in proposals and reports to funders. The new on-line geographic information system provides over 4,000 indicators. Most of the information--including crime statistics, education levels, health, employment, and housing conditions--is publicly available and free. [Editor's Note: Watch PolicyMap's director, Maggie McCullough, explain who's using it and how.]


A downside to revenue diversity?

In the Summer 2008 issue of The Nonprofit Quarterly, Clara Miller challenges conventional wisdom about revenue diversity, as well as about owning a building. Her article, "Truth or Consequences: The Implications of Financial Decisions," is based on a study of 1,085 youth-serving organizations in five states. She found that those with two sources of revenue were more financially secure than those with only one source, but that those with three sources were worse off than those with one! Even more important was which revenue source dominated. Organizations funded mostly through private dollars were in better shape--especially with regard to cash availability--than those that depended chiefly on government funds. She also found that, in most cases, groups were better off renting space rather than owning it.
...on Grantsmanship
by Patty Hasselbring
7 steps to warding off the (mission) creep

The term "mission creep" was originally coined to describe the tendency of military operations in foreign countries to gradually expand in scope, requiring commitment of more and more resources, until the original mission is overshadowed and neglected. Mission creep occurs in nonprofit organizations as well.

It can begin innocently enough.

The scenario may go like this: A funding source issues an announcement soliciting grant proposals. The focus of the funding source may be only marginally related to the organization's mission. Despite this, the lure of money becomes irresistible.

Whether because of projected budget deficits, pressure from above, or economic influences, the grant proposal developer is driven to create a proposal that "fits" what the funder wants. The result: a proposed program that will shift the organization away from its original mission.

The organization has begun to "chase the money." And mission creep has begun.

This reactive approach to grantseeking can have both short- and long-term negative consequences. In the short term, staff may resist implementing the new program. Board and staff members begin to feel confused or unclear about the mission. Supporters may begin to question what the organization is really all about. Longer-range consequences may include a gradual loss of mission-focus and ultimately of organizational integrity.

How do we prevent this? Here are seven steps to help your organization avoid mission creep and become proactive in grantseeking.

  1. Be clear about mission. Review your organization's mission regularly. Keep the mission on the table at all times. Remember that everything your organization undertakes should relate directly back to the mission.
  2. Develop a long-range organizational plan. If you already have a long-range plan, be sure that it includes specific program focus areas for development based on current and projected community needs. Use input from the community, demographic and economic projections, and experts in your field.
  3. Prioritize services and programs. Identify the developments, expansions, or services that should be the focus for this year, next year, and years following.
  4. Plan priority programs in detail. Develop all aspects of the programs--the need for the programs, the target population, and the plans to address the need, the evaluation, and resources needed to implement the programs. Involve appropriate staff members, collaborators, and community representatives in the planning. Know your target population, the best practices in your field, and what experts recommend.
  5. Develop a funding plan for priority programs. The funding plan may include an array of resources, including grants. Remember that grants are not the only source of funding and that grants generally are terminal. When they end, an organization must have other funding in place to carry on, assuming the programs should continue.
  6. Find the right funders. Using your well-thought-out plan, identify potential funders who share interest in both the issues and the population group that you are addressing. Develop relationships with them whenever possible. Share your program ideas and take their guidance for submitting a proposal.
  7. View the long-range plan as a blueprint only. It is not carved in stone. Funding opportunities may arise that are unrelated to your priority program areas but still relate to your mission and your plan. Consider them carefully, and if your organization decides to pursue them, move one of the existing priorities to a later date. But always keep the mission in mind.

A proactive organization--and proactive grantseeking--looks first to the needs of the community. A proactive organization recognizes that money is a tool to make a difference for those the organization serves. It is the means to the ends--not the ultimate goal.

Patty Hasselbring is a consultant trainer for The Grantsmanship Center. She has worked with nonprofits for over 25 years on both sides of the funding desk: as executive director of grantseeking nonprofit organizations and as executive director of a funding agency.


 

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