The economy and the stock markets may be in turmoil, but "there’s still plenty of money out there," says fundraising sage Laura Fredericks in The Chronicle of Higher Education (October 17, 2008). However, you’d be wise to reassess the way you approach your donors. Kathryn Masterson, who cites Fredericks and other experts in her article, "Fund Raisers Share Their Secrets for Raising Money in Tough Times," recommends the following steps:

1. Focus on your most loyal donors and thank them for their long-time support.
2. Call and visit your donors to let them know what a difference they have made in your work.
3. Give your donors more for their money: institute challenge grants.
4. Continue to encourage planned giving for the long-term health of your organization.
5. If a long-term donor is having a serious problem, such as loss of a job, look for ways your organization may be able help them (for instance, with networking).
6. Show some sensitivity. Think twice, for example, about throwing big-ticket events.

[Editor’s Note: Link to full article will expire December 10, 2008.]

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Many foundations say they won’t make grants to religious organizations, but faith-based charities should think twice before writing these funders off. First, examine the restrictions carefully, advises Celia Blanford, in "No funding provided to religious organizations…" (CharityChannel, October 18, 2008). Based on her experience with Lutheran Social Services of the South, Blanford shows how initial barriers can sometimes be overcome:

• Grantmakers who fund only groups that provide direct benefit to the entire community may consider you for funding if you serve people who are not members of your religious group.
• Grantmakers who fund only organizations that are not religious in nature may be open to a proposal if you can show that you do not require recipients of your services to participate in spiritual activities.
• Grantmakers may be more receptive to organizations that also receive government contracts. This may reassure funders, because it establishes that you do not limit your services to people of a particular religion.

(Full article can be accessed only by CharityChannel subscribers.)

[Editor's Note: If you do require recipients of your services to participate in spiritual activities or to become members of your religious denomination, or if you want to use funding to promote your religious beliefs, find a funder who supports your religious persuasion.]

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Small businesses provide strong support—in the form of grants, volunteer time, services and product donations—to charities, and more of this support goes to social services than to any other type of charity. For the most part, personal and community relationships determine which organizations benefit. These are among the findings of an August 2008 survey of 1,033 small-business owners in Madison, Wisconsin. The Chronicle of Philanthropy (October 16, 2008) reviews the survey results in "Making a Big Difference," by Caroline Preston, and also profiles several donor/donee relationships. For some charities, forming a good relationship with entrepreneurs during a start-up paid big dividends when the company grew. While economic upheavals may curb giving by some small businesses, the total annual value of their contributions is expected to remain at around $40 billion. If you’re prospecting for support from small businesses, start with those in your neighborhood and those with which you have a commercial relationship.

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Looking for ways to give your grant proposals or fundraising letters a winning edge? Untold numbers of people in the past have created remarkable—and effective—appeals, and examples of these are now available, free, on the web site of the UK-based Showcase of Fundraising Innovation and Inspiration (SOFII). Most are contemporary, but some go back more than 800 years. The site also contains book reviews, articles, tips, and videos. To access, register at http://www.sofii.org.

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A written proposal is usually just the first step in the grantmaking process. The proposal is not the only information the grantmaker will use to learn about your organization and to make funding decisions. Grantmakers may refer to a variety of sources when investigating your organization. Keep the following in mind when you submit a proposal.

1. Attachments and appendices should answer questions, not raise them. Many grantmakers read attachments carefully, and most will not consider your proposal unless all required attachments are included. Attachments are usually related to the administrative or governance functions of your organization; they should reflect professionalism and attention to detail.


• Are financial statements current and easy to read?
• Did you include any audit findings along with the audit?
• Have resumes been updated to reflect staff qualifications specific to this project?
• Are important documents, such as your tax-exemption letter, current?
• If you attached brochures or an annual report, do they say something important about your organization?


2. If your organization is a nonprofit, grantmakers will probably look up your 990 tax return (some may require it as an attachment). Although the main purpose of the 990 is financial reporting, the form provides other information as well. Be sure the mission statement in your 990 is consistent with the mission statement in your proposal. When you submit your 990, it should look professional and be easy to read. Nonprofits should also be aware that changes are coming for the 2009 990 tax return. In addition to the detailed financial reporting, you’ll be required to provide more detailed information about your organization’s governance, including policies related to conflict of interest and board composition. Be prepared for the changes so your future 990s will be complete. (For an in-depth discussion of the new 990 requirements, go to http://lmpdg.net/ttt/docs/tr1108.pdf.)
3. Grantmakers may talk informally with peers or with staff or board members of other organizations as part of their investigation process. You cannot anticipate who these contacts will be, but—good or bad—your reputation in the community may follow you around. Some grantmakers ask for references—people who know about your organization or project but who are not involved as partners or collaborators. Expect the grantmaker to contact your references, and be sure your references are well-prepared and knowledgeable about the proposal and your project.
4. In any organization, it is a good idea to give a proposal summary (including a budget summary) to executive staff and governing officials. If your organization is a nonprofit, prepare your board members for follow-up telephone calls. Your board list, with contact information, is a commonly requested attachment. The grantmaker may call any one of your board members to see what s/he knows about the project. Your board members should be aware of the proposal, know the need or problem it addresses, have general knowledge of the method or program design, and know the budget. The board member should also have the name and contact information for the staff person most familiar with the project, in case more detailed program questions come up.
5. Be prepared for phone calls to your partners. Be sure descriptions of the partner roles, responsibilities, and contributions are in writing, and that these have been signed by the highest appropriate level of staff or governing official. Don’t embarrass your organization by having a grantmaker call a "partner" to discuss the project, only to find out that the executive director of the partner organization is unaware of any agreement.
6. If you are submitting a proposal to a grantmaker that has prior history with your organization, be sure all your reports on previous projects were filed on time and included the appropriate information. Outcomes—measurable benefits to your constituency—should be clear. As a rule, reports should always be filed on time. This tells the grantmaker that your organization is professional, organized, and respectful of the grantmaker’s processes.
7. Site visits are often a part of the investigation process. Try to plan ahead by finding out who should be present, what additional questions the grantmaker may have, or what additional documents the grantmaker may want to review. Be over-prepared and respectful of the grantmaker’s time.

To sum up: The grant review process may involve discussions with many others besides those who are the program experts. When you are planning programs, be sure leaders in your organization and leaders of partner organizations know the level of professionalism that is expected and are prepared to be contacted by a grantmaker to discuss the proposed program. Keep others who work in the same field of interest in the loop.

Keeping others informed is part of good relationship-building, and it’s likely to benefit you when grantmakers investigate your proposal.

Susan Chandler is a consultant trainer for The Grantsmanship Center. She has had more than 20 years of experience in program development and proposal writing and 18 years of management experience in public and nonprofit organizations.

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