VOLUME 3, ISSUE 12DECEMBER 2010

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...on News
by Jim Abernathy
Women give more generously than men

Women are the more charitable gender. They give more often and in larger amounts than men do, according to a study by the Women’s Philanthropy Institute at the Indiana University Center on Philanthropy. The study examined charitable giving by 8,000 U.S. households headed by single people. At every income level, the single women heads of household gave more often to charity, and "in every income group except for one, the women gave more than the men (almost twice as much)." In "Women Give More Than Men, Study Finds," by Holly Hall (The Chronicle of Philanthropy, November 4, 2010), Debra J. Mesch, director of the Women’s Philanthropy Institute, predicts "this trend will continue as women continue to gain income, education, and wealth."


How to show funders that you’ve got legs

Grantmakers tend to favor organizations they expect will be able to continue their work into the future. But how do you demonstrate sustainability in a grant proposal? Saadia Faruqi ("Proving Sustainability: It’s Not Just in the Words," CharityChannel, November 3, 2010) says you can do this quantitatively by citing your funding from individual donations, sponsorships, and regularly recurring events. And if you also have earned income—from tuition, admission fees for performances or exhibits, or fees for services—so much the better. To give qualitative evidence of sustainability, Faruqi recommends highlighting your organization’s longevity, the value your community places on your organization, the number of your collaborations with other groups, your long-term programmatic success, and the strength of your leadership.


Nonprofits report government funding woes

Reporting requirements and other issues cause ongoing headaches for some nonprofit organizations with active government grants and contracts. That’s according to a study (conducted jointly by The Urban Institute Center on Nonprofits and Philanthropy and the National Council on Nonprofits) of direct human-service providers in all 50 states and the District of Columbia. Among the findings:
  • For 60% of nonprofit human-services providers with government grants and contracts, these funds are their largest source of revenue.
  • 76% of nonprofits had problems with the complexity of financial reporting and the time required for those reports.
  • 75% of nonprofits had problems with the complexity of the application process and the time required for it.
  • Most had problems with payments that didn’t cover all costs (76%), late payments (53%), and government-initiated changes to contracts and grants (58%).
  • While most said their 2009 experience was the same as (64%) or better than (5%) previous years, 31% said it was worse.
See "Nonprofits Find Reporting on Grants Problematic" (Local/State Funding Report, November 1, 2010) for more.


How to write a good proposal summary

Almost every grant request must include a proposal summary. But what goes into a good one? Most funders will prescribe what the summary should include. But in the absence of instructions, here’s what Adrianna Dogil and Carrie Rothburd ("The Elements of a Good Proposal Abstract," CharityChannel, October 6, 2010) say your summary should include:
  • The name of your organization and contact information
  • The need and purpose of the project for which funds are requested
  • The people or constituency who will be served
  • An overview of the project, including what will be done, how it will be done, and its goals and objectives
  • What you expect to achieve, and how you will measure success
  • How much you’re asking for
Dogil and Rothburd also provide examples. They suggest using bold headers and bulleted or numbered lists to make the summary easy to read. Finally, they advise you to write it after you’ve written the proposal itself. This can make it easier to then go back and streamline the full proposal, because it forces you to decide:
  • What are the most important elements of the project?
  • What is it absolutely critical to know about the project in order to understand it?
  • What must your reader know in order to understand why this particular project should be funded now and can’t wait?

...on Grantsmanship
by Patty Hasselbring
Giving circles a growing source of community support and grants

Successful nonprofit executives understand the importance of nurturing positive community relations. They build networking activities into their daily schedules. They welcome opportunities to connect with community groups. They seize every occasion to enthuse the community about the work they’re doing. They’re eager to let others know how the results they’ve achieved are making a difference in the community. They understand that relationships matter. They also understand that the benefits are not always immediate and can surface in unanticipated ways.

One benefit of strong community relations—being visible and demonstrating positive impact—is that a "giving circle" may become interested in your organization.

Like investment club members who pool funds, learn about investing money, and make joint decisions about purchasing stocks, giving circle members also pool funds. But instead of focusing on making money, they study philanthropy and learn about charities in their communities. Then they make informed decisions about awarding grants.

The New Ventures in Philanthropy Initiative at the Forum of Regional Associations of Grantmakers started tracking giving circles in 2004. Since that time the known number of giving circles has more than doubled—to over 500 in the United States. Since these are grassroots groups, there are likely many, many more. The Forum’s 2009 report The Impact of Giving Together: Giving Circles’ Influence on Members’ Philanthropic and Civic Behaviors, Knowledge and Attitudes cites research estimates that giving circles have donated over $100 million and engaged at least 12,000 people in the process.

Giving circles come in all shapes and sizes. Some are loose networks. Others are more formal. Some have even established their own tax-exempt status. Some are hosted by community foundations, others by private foundations or other nonprofit groups. What’s common to all: they provide a way for groups of people to learn about and practice philanthropy collectively.

Giving circles offer members the opportunity to expand their social connections, increase their civic engagement, and educate themselves about nonprofits and their community. According to the Forum of Regional Associations of Grantmakers, "donors say they give more, give more strategically, and are more knowledgeable about nonprofit organizations and problems in their communities when they participate in giving circles."

The benefits to organizations supported by giving circles may go well beyond the giving circles’ direct grants.

New Ventures in Philanthropy’s research found that 70% of giving circle members make additional contributions to the organizations that receive grants from their giving circle. Plus, more than half the giving circles included in the research say they’ve conducted organized volunteer activities for the benefit of the grantee organization. All in all, a pretty good deal for nonprofits!

So how do grantseekers attract and connect with giving circles? A study conducted for the AFP Foundation for Philanthropy in 2007 included in-depth interviews with giving circle recipient organizations and found that in nearly all cases the giving circle initiated involvement with the organization. (See Giving Circles and Fundraising in the New Philanthropy Environment, the report developed by Angela M. Eikenberry.) Sometimes members of the giving circle knew someone at the charity. But in any case, they knew something about the charity.

If you’re interested in support from giving circles, remember that relationships matter. Anything that gives you and your organization positive exposure may be an opportunity to connect with someone who knows someone...who knows someone...who knows someone....

So first and foremost, be visible. Be sure your community knows about your organization and how you help people. Grab opportunities to expose your organization’s work. Give tours. Network. Join a giving circle yourself. Start a giving circle. That’s one of my goals for 2011!

Explore the following website for more information and ideas. Then start making your connections.

The Forum of Regional Associations of Grantmakers
Giving Circles Knowledge Center
Here you’ll find research, tips on starting a giving circle, and a directory of giving circles (those known as of January 2008). http://www.givingforum.org/givingcircles

Patty Hasselbring is a consultant trainer for The Grantsmanship Center. She has worked with nonprofits for more than 30 years on both sides of the funding desk: as executive director of grantseeking nonprofit organizations and as executive director of a funding agency. She and her husband also breed and raise alpacas.


 

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