The Economic Impact on Foundations

I have been reading articles for months discussing the impact the faltering economy is having on foundation giving. Some articles predict that giving will remain stable, others predict a decline and a few state foundations will give more to shore up the weakening budgets of not-for-profit organizations. This past week I saw evidence of the second scenario - grant seekers will face a decline in opportunities.

On a daily basis I visit numerous foundation websites seeking grant opportunities for clients. The focus this past week was on health care. Of the approximately thirty websites I visited, four stated that due to the economy the foundations were accepting grant applications from only those organizations that had received grants from them in the past. While this message appeared on less than 15% of the sites visited and other opportunities were found for clients, we must take note and understand that our “grant world” is changing.

The following suggestions are important to follow in strong economic times but are even more important today.

Look to your current funders first
Take an inventory of grants you have received in the last three years – noting the funder, date awarded, program supported, grant amount and the outcomes of the program/project funded.

Consider each funder and evaluate the viability of your returning to them for support. Are they actively awarding grants? Does their focus still match your mission? Etc.

For those funders who are unable to support you at this time, stay in contact with them. Express your appreciation for past support – now is the time for stewardship and cultivation.

Identifying new funders
Once you identify the foundations you would like to investigate through a foundation search engine or other methods. Thoroughly review their website and/or IRS form 990.

Approach only those foundations whose mission, purpose, and focus align with your organization. Look at past grant recipients – have they funded organizations/projects similar to yours? Do you meet the minimum guidelines?

If the option to contact the foundation in advance of submitting is an option, do so – discuss your idea with the foundation staff.

Ten years ago, it seemed that for every two applications I submitted – one grant would be awarded; today, it is a four to one ratio. Funds are still available; you just have to search a bit harder.