Tell us what you do, and we will tell you which grants you can expect to receive.
Are we magicians? No. Are we experts? Absolutely.
Different foundations and private donors tend to award grants for nonprofit organizations according to the type of work your organization does. In addition, they look for specific, measurable criteria.
Read on to discover the decision-making process that stands behind every grant and donation, and learn how to get grants for nonprofit organizations like yours.
This article is brought to you by IDC Giving Group.
The world is full of generous people and foundations that give grants, but how can we know who will benefit from their generosity? To be sure, every nonprofit organization has an important mission and addresses a unique need. Hence, there is no shortage of worthy causes or outstanding nonprofit organizations. But how can you persuade donors to choose to support your organization? What factors do both governmental bodies and private foundations consider when they award grants for nonprofit organizations?
Fact: certain nonprofit sectors receive the lion’s share of available funding. In other words, statistically, there is a direct correlation between the type of work a nonprofit does and the amount of funding it receives.
Many people do not realize how much financial contributions to nonprofits have risen globally in the past few years. This unprecedented rise in financial support seems to stem from the simple realization that nonprofits play such a vital role in their respective societies, that without the support these organizations provide to countless individuals, families, and communities in need, then society as a whole would crumble. As such, in 2014, foundations in the U.S. alone allocated $358 billion in grants, a 7% increase from 2013.
So, how can you persuade a donor or foundation to give to your organization?
Three main factors influence the level of support and the size of the grant:
Answering a Basic Need – Nonprofits that deal with the basic needs of individuals and essential needs of society receive more donations and grants. For example, nonprofits focusing on safety and security, nutrition, illness and disease, or the elderly, receive more and larger grants than those focusing on issues not considered critical to survival—such as supporting and promoting the arts, culture, or sports.
Effectiveness and Impact – Organizations that find ways to give back to the communities in which they operate tend to generate good publicity, build great reputations, and amass broad name-recognition. The more the public is familiar with an organization, the more foundations and donors also hear about it. Unsurprisingly, donors ae more likely to fund organizations with which they are familiar because they feel that their dollars will go farther and have a greater impact. In addition, when a nonprofit has a good reputation, it reflects well on those who fund and support the organization, to boot.
Personal Involvement – Giving a donor influence in the direction of a project or encouraging the donor’s personal participation in the project itself tends to give the donor a sense of ownership, and help him to feel personally invested in the work and the success of the organization. Nonprofits that succeed in creating this type of relationship with their donors tend to receive larger donations and more funding from foundations that give grants.
Fundraising for Nonprofits: A Few Statistics
According to Central Bureau of Statistics, while all of the factors mentioned above certainly influence the decisions of foundations and individual donors, the most important question a decision-makers at a foundation asks himself before making a decision is, which project will have the greatest impact? In other words, which project will give my foundation the most bang (not necessarily financial) for its buck? Thus, funding comes down to a simple equation: Greater Impact = Greater Chance of Support.
For analytical purposes, the Central Bureau of Statistics divides nonprofits, charities and other nonprofit organizations into eleven categories: Sports, Culture and Entertainment; Education and Research; Health; Welfare; Environment; Housing and Development; Politics and Advocacy; Philanthropy and Volunteering; International Organizations; Religious Organizations; Professional Associations.
Between 2012 and 2014, organizations in the Health category received the most funding (42.2%). Next was Education and Research (28.2%), and then Social Welfare (8.9%). The other nine categories shared the remaining 20.7% of the funding. Interestingly, for organizations in these top two categories, government funding accounted for significant percentages of their annual budgets—68% for Health, and 50% for Education and Research.
What next? How to get grants for nonprofit organizations.
There are many different sources of funding available, so it is imperative to make sure that the mission of your organization and the activities or projects you run match the interests of the specific funder or grantor. When grant writing for non-profits, if you can relate your projects or mission to one of the categories more likely to receive funding, you will have a higher chance of receiving the funding you request.
Searching for the correct funding sources and grant writing for non-profits is very demanding. This is why professional fundraisers exist. They understand the nuances in the industry, are familiar with potential obstacles and common pitfalls, and know what it takes to succeed when fundraising for nonprofits. A nonprofit organization with a clear mission and values will undoubtedly find working together with professional fundraisers to be a beneficial relationship. With the expertise and experience professional fundraisers bring to the table, nonprofits can see the fundraising process transformed from a burden to an asset—professional, efficient, and, most important, successful. With professional fundraisers, you will exponentially increase your ability to gain funding, expand the scope of your impact, and ensure that your organization can continue to fulfill its mission and realize your vision well into the future.
Debra Kagan is the CEO of IDC Giving Group. She holds a B.A. in Interdisciplinary Studies, Professional Certification in Non-Profit Management from the New York Institute of Finance and has managed hundreds of client cases and grant requests, successfully bringing millions of dollars to a wide array of nonprofits. As a member of the Association for Fundraising Professionals (AFP), Debra and the IDC Giving Group team deliver high-quality, professional resource development services and strategies that allow your nonprofit to achieve new heights: no longer compelled to concentrate exclusively on the needs of today, but able to plan for tomorrow create an impact well into the future.
The consultants, writers, researchers, analysts and financial consultants at IDC Giving Group have a range of professional and personal experience. They represent a broad spectrum of academic disciplines and offer resources accrued from relationships with a variety of organizations and foundations. With proven efficiency and a comprehensive understanding of the grant-writing process, IDC Giving Group is prepared to lead you towards success. For more information, call 1-866-744-4995 or email info@idcgivinggroup.com today!