INSTITUTIONAL AND CORPORATE TOOLKIT
Institutional fundraising refers to receiving funding from large sources such as foundations, corporations, government agencies, and other organizations rather than individual donors. This form of fundraising requires more formal, detailed applications that outline your work rather than individualized appeals for funding. Institutional gifts are often larger ranging from thousands to hundreds of thousands of dollars or more, but can come with more restrictions and nuance around the gift. These contributions are crucial for supporting large-scale projects, research, capital campaigns, and ongoing operations of nonprofits.
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Institutional Funding: Research & Proposal Writing
Institutional funding is an important option to consider for any nonprofit. Because of their size, institutional gifts provide a vital source of funding that can significantly grow your organization, allowing for more substantial, long-term planning and implementation of projects.. Gifts from reputable institutions can enhance your credibility, attract additional donors, and open doors to new opportunities, including networking, collaboration, and access to resources beyond funding. This relationship lends itself to long-term relationships with foundations, program officers, and other important people in philanthropic spaces.
There are also some considerations to look out for when it comes to institutional fundraising. Receiving grants from institutions can be a longer process, with it common to take between 6-18 months to receive funding after the first point of contact. The likelihood of receiving a grant can often depend on the relationship and connection built with a foundation or program officer. Finally, alignment can be difficult to find because the institutions have their own frameworks and desires. Nonprofits often suffer from mission drift to ensure that their work fits into an institutional funder framework to make them more attractive to funding – diluting their work and removing them from their original mission.
Where To Look
There are several online grant databases, government agencies, foundations, and corporate giving programs that offer institutional fund opportunities. Carefully review the guidelines and eligibility criteria of each grant opportunity. Understand the specific focus areas, funding priorities, deadlines, and any restrictions or requirements.
If you have questions or need clarification about a grant, don't hesitate to contact the grantmakers or program officers. They can provide valuable insights and guidance. Establishing relationships with grantmakers and program officers through these calls is also good to get them excited about your organization and project. You can also build relationships by attending conferences, workshops, and networking events. Building connections can help you better understand their priorities and increase your chances of success.
Online databases include:
- Foundation Directory Online (FDO): A comprehensive database provided by Candid (formerly Foundation Center) that offers access to grantmaker profiles, funding trends, and grant opportunities.
- Website: https://fdo.foundationcenter.org/
- Grants.gov: The official website for finding and applying for federal grants in the United States. It provides a centralized database of grant opportunities from various government agencies.
- Website: https://www.grants.gov/
- GrantStation: A subscription-based online database that provides access to thousands of grant opportunities, as well as resources and tools to assist in the grant-seeking process.
- Website: https://www.grantstation.com/
- GrantWatch: A subscription-based database that offers a wide range of grants, including federal, state, foundation, and corporate grants. It covers various sectors and geographic locations.
- Website: https://www.grantwatch.com/
- Philanthropy News Digest (PND): A service of Candid, PND features a searchable grants database that provides information on foundation and corporate grants, news, and resources.
- Website: https://philanthropynewsdigest.org/
- Grantsmanship Center: Offers an online database called GrantDomain, which provides access to a curated list of grant opportunities from foundations, corporations, and government agencies.
- Website: https://www.tgci.com/
- GuideStar: A platform that provides information on nonprofits, including financials, impact, and transparency. While it is primarily used for research, it also lists some grant opportunities.
- Website: https://www.guidestar.org/
- Corporate Giving Directory: A database specifically focused on corporate grant opportunities. It provides information on corporate giving programs, including eligibility and application guidelines.
Building a Prospect List
Finding institutional funders is not merely about finding the funder with the largest pool of funds but rather about identifying opportunities that align perfectly with your mission, goals, and capabilities. It's a balanced process, requiring a blend of research, networking, and staying informed about the latest developments in the funding landscape as prospects change yearly. You must balance size of gift, bandwidth for application, probability of gift, funding alignment, and cash flow considerations, among other things, to determine which potential funders to pursue.
Criteria Selection:
Before even beginning to look at funding opportunities, it's crucial for nonprofits to set clear parameters that will guide their search. This involves establishing a set of criteria based on specific funding needs, goals, and the nature of the project or program in need of funding (new program, sustaining current program, scaling current program). Other things to consider include focus area; the amount of funding required; and any eligibility requirements that must be met, such as geographic location, organizational size, or type of nonprofit. This step ensures that time and resources aren’t wasted by pursuing opportunities that are not just available but are also the right fit for the organization's objectives and capacities – preventing mission drift. You can highlight and track different grant opportunities with a tool such as this tracker:
database searches:
With your frameworks solidified, the next step is to use the databases and resources listed above to find funding opportunities. These platforms offer detailed information on various potential funders, including foundations, government agencies, and corporate giving programs. This process is both an art and a science, requiring a keen eye for detail and an understanding of how to effectively use these tools to uncover opportunities that might otherwise go unnoticed. Make sure that you double-check the information on each funding source’s website, as the databases may be slightly out of date.
NETWORKING:
The value of networking in the fundraising process cannot be overstated. As stated earlier, this work is incredibly relationship-based. Without developing connections, it will be very difficult to stand out and get your desired funding. Attending industry conferences, workshops, and other events offers a unique opportunity to connect with peers, funders, and thought leaders in the field. For nonprofits, these connections can be a rich source of information and support, facilitating introductions to potential funders and opening doors to new funding streams.
SUBSCRIPTION TO NEWSLETTERS:
In the fast-paced world of institutional fundraising, staying current is essential. Many organizations, databases, and funding platforms offer newsletters highlighting new and upcoming funding opportunities, providing updates on funding strategy changes, and offering tips on proposal writing and project management. Subscribing to a carefully selected range of these newsletters ensures that you are continually informed of the funding landscape, enabling you to pursue new opportunities and trends. This proactive approach can give organizations a competitive edge, ensuring they're always in the loop and ready to seize opportunities as they arise.
Setting & Tracking Goals
When it comes to setting yourself up for success in finding funding for your projects, it's crucial to start with crystal-clear goals. Think of these goals as your roadmap, guiding you through the journey of securing the funds you need. Make sure your goals are SMART: specific, measurable, achievable, relevant, and time-bound. This means you should know exactly what you're aiming for, how you'll know when you've achieved it, that it's something you can realistically accomplish, it matters to your project, and you've set a deadline for reaching it. This approach ensures you're not just shooting in the dark but are on a focused quest to get the support your project deserves.
Creating a timeline breaks down the big goal—getting your proposal submitted—into smaller tasks and setting deadlines for each, like when you'll finish your first draft or when you'll have others review it. This timeline acts as a checklist that keeps you on track, making sure you're not rushing at the last minute or missing important steps. By planning out each phase, from brainstorming to final submission, you're setting up a clear path to follow, which can help reduce stress and increase your proposal's chance of success.
Tracking your progress is key to staying on top of your goals and timeline. Using project management tools or a simple spreadsheet, you can keep a record of every task you complete and every milestone you reach. This not only helps you stay organized but also lets you see where you might be falling behind or what areas need more attention. By keeping a close eye on your progress, you can adjust your plan as needed, ensuring you're always moving forward and improving your chances of hitting your funding targets. You can use a spreadsheet, project management tools, or a client relationship management (CRM) tool to streamline the process. If you don't already have one, you can start with this sample:
Proposal Writing Tips
Understand the Funder's Goals: Tailor your proposal to align with the funder's goals and objectives. Clearly demonstrate how your project or program aligns with their mission and priorities. Hone and focus your proposal to the desired focus areas of the foundation you’re applying to.
Tell a Compelling Story: Use a narrative approach to engage the reader and convey the impact of your work. Highlight the problem you are addressing, explain why it is important, and demonstrate how your project will make a difference.
Clearly State Objectives and Outcomes: Clearly define your project's objectives, outcomes, and measurable indicators. Ensure that they are specific, achievable, relevant, and time-bound (SMART).
Demonstrate Capacity: Showcase your organization's capabilities, expertise, and track record in delivering similar projects or programs. Provide evidence of successful outcomes, partnerships, and the capacity to manage the grant effectively.
Budget Wisely: Develop a detailed and realistic budget that aligns with the project's goals and activities. Ensure that all expenses are accounted for, and clearly explain how the grant funds will be utilized.
Review and Edit: Proofread your proposal thoroughly to ensure it is free of errors, typos, and inconsistencies. Seek feedback from program staff to improve the quality of your proposal.
Corporate Funding: Developing Your Sponsorship Offerings
Corporate sponsorship may seem like a difficult fit for power building organizations, but there are definitely opportunities to pursue if you are grounded in your needs and do a great job of prospecting. When you can find corporations with both subject (alignment in target demographic) and vision (alignment in values and morality) alignment to your work, there is great opportunity for synergy and investment.
Types of Corporate Support
Corporate sponsorship has a number of different options for businesses to support your organization. Think of it as a menu with various options to choose from. First, there's financial support, where businesses donate money directly to your project. Then, we have in-kind support, which is when companies provide services or goods instead of cash. This could be anything from a local bakery providing food for your event to a printing company making banners for free. Another exciting option is cause-related marketing. This is a win-win situation where companies sell a product and donate a portion of the proceeds to your cause. Lastly, there's employee volunteer support, where businesses encourage their staff to volunteer time to help out with your activities. Each type of support has its unique benefits and can make a significant impact on your project.
Understanding the different types of corporate support allows you to tailor your approach when seeking partnerships. It's important to identify what your project needs most—be it funds, services, goods, or people power—and match these needs with the right kind of support. This involves recognizing potential sponsors' business models and values to find a fit that's beneficial for both sides. By conducting thorough research and understanding what motivates companies to engage in sponsorships, you can craft compelling proposals that highlight mutual benefits, making it easier to attract the right kind of support for your cause.
Engaging with potential sponsors is akin to building a new relationship. It requires clear communication, explaining your organization’s vision and work, highlighting its significance, and how it aligns with the prospective sponsor's goals or values. Crafting personalized messages that connect with your potential donor’s work, highlighting the potential impact of their support, and being transparent about your needs and what they stand to gain are crucial steps. Offering various levels of sponsorship with corresponding benefits allows companies of all sizes to participate, ensuring they feel valued and see the tangible results of their contribution. This strategic approach not only helps in securing corporate support but also in fostering lasting partnerships that can grow and evolve over time.
Narrowing Down Your Choices and Making the Connection
Choosing the right type of corporate support starts by looking closely at what your project needs the most. Do you need more money to cover costs? financial support might be your go-to. Or, maybe you need goods and services that in-kind support could cover. After identifying your needs, consider what companies would be most interested in helping you. When you're trying to figure out which companies might want to support your project, it is important to look at what your project really needs and then find companies that care about those same things. Businesses often want to support causes that align with their values or can enhance their image.
Reaching out to potential sponsors is similar to reaching out to institutional funders. It's important to introduce yourself properly and share your story in a way that resonates with them. Start by crafting a personalized message that highlights your project, why it matters, and how it aligns with the company's values or interests. This is your chance to shine and show the potential sponsor the positive impact their support could have. Don't forget to be clear about what you're asking for and what they'll get in return.
Building a real connection with potential sponsors means more than just sending emails back and forth. If you can, try to set up a meeting or a zoom meeting/phone call. During this conversation,it's time to get those companies excited about your project. Tell them all about your project, why it's important, and how it's a good fit for them. You're showing them that by helping your project, they're not just doing something good; they're also getting their name out there in a positive way.
Finally, you want to make sure both you and the company know what the benefits for partnership are for the business beyond just brand recognition. This is where you talk about what the company will get for their support. It is imperative that the company knows exactly how their help will be recognized, what they will get in return, and how the relationship can grow.
Sponsorship Levels & Benefits
Offering different levels of sponsorship is like creating an array of items that are tailored to various budgets and appetites for involvement. Some companies might want to make a big splash with a large donation, while others might prefer a smaller, more affordable option. By creating different sponsorship levels, you're giving companies the flexibility to choose how they want to support you. Each level should come with its own set of benefits, making it clear what the sponsor will receive in return for their support. The key is to make each level appealing and to show appreciation for all levels of support, ensuring sponsors feel valued and motivated to contribute to your success. Here’s a step-by-step guide to making a sponsorship package that attracts businesses to your event or project, ensuring they feel excited and valued for their contribution. Use these suggestions along with this template to create a sponsorship deck:
Understand Your Project and Audience:
Be able to define your project, your resourcing needs, how each prospect will help reach those goals, and what you are willing to provide to corporate sponsors in exchange.
Identify Potential Sponsors:
Now, consider which businesses would be a good fit for your project. Look for companies that share similar values or might be interested in reaching your audience.
Create Sponsorship Levels:
Here’s where you design the menu. Start with three to five sponsorship levels, from small contributions to large ones. As the investment increases, each level should offer more benefits.
Outline the Benefits:
For each level, list what the sponsors will get. Benefits can range from their logo on your event materials for lower levels to a speaking opportunity at your event for the highest level. Make sure the benefits align with your organization and project and are enticing to businesses for promotional and social reasons.
Make It Look Good:
Presentation matters. Design your sponsorship package to look professional and inviting. Use clear headings for each level and bullet points for the benefits. Add some pictures or graphics to make it visually appealing. Our template in this toolkit is a great place to start building your deck.
Personalize Your Approach:
When you contact potential sponsors, customize your message. Explain why you think they'd be a perfect match for your project.
Follow Up and Be Flexible:
Don't wait for a response after you send out your sponsorship packages. Follow up with a phone call or email. It shows you’re genuinely interested in partnering with them. Don’t be afraid to follow up with additional information or tweaks based on their needs. Be ready to adjust your package to better fit a sponsor’s needs. Maybe they’re interested but want different benefits.
Show Appreciation:
Once you secure a sponsor, thank them properly. Whether it's a public thank-you on social media or a personal note, ensure they know how much you appreciate their support.
By following these steps, you can create a sponsorship package that appeals to potential sponsors and provides them with valuable benefits, ensuring a successful partnership for your project or event.