Confessions of a Foundation Executive

 

Some of you may know that I had two careers before my current career as a small business owner and a consultant.  My first career was working in a nonprofit organization as a program director where I learned how to develop programs and write grant proposals.

My second career was in philanthropy. I worked for two healthcare foundations in California.  I learned so much during my time in philanthropy.  I hope to share a little bit of that with you here today.

So here goes... here are my confessions of a foundation executive.

1. Foundations have to give money away.  That's right!  Every foundation must meet a payout amount each year (could be calendar year or fiscal year).  The thing is the money has to go out the door.  There are IRS penalties for not making payout and foundations avoid that at all costs.  The important thing here is to know that foundations have requirements to meet each year.

2. You can't compare one foundation to another. It’s apples and oranges.  There are family foundations that are started by family members.  These family foundations can be small or large.  Some of these foundations have paid staff.  Some do not have professional staff but rely on volunteers or family members to manage the foundation's business.  Then there are private foundations... again they come in all sizes.

Some foundations are quite transparent and provide a lot of information about their giving on their websites and foundation materials.  Both foundations that I worked for conducted quite a bit of outreach to the community in hopes of generating interest among nonprofit organizations in their giving.  Other foundations like operating "under the radar," and only accept proposals by invitation.

3.  Making a grant is more complicated than it might seem.  The process that goes on behind the scenes to make a grant is a bit complicated.  First of all, someone needs to scan your proposal packet to make sure all the materials requested were submitted and that your request falls within the foundation's giving areas.  Second, someone, or a group of foundation staff, have to read and consider your proposal.  There are many questions that have be asked.  "Does the proposal meet our objectives?"  "Will this program help meet our philanthropic goals?"

If the foundation decides to further consider your proposal there might be some informal presentations that need to take place with the staff of the foundation.  Larger foundations have review panels made up of peer foundation program officers who review and consider grant recommendations.  At this point, someone at the foundation needs to verify that your organization is a viable one.  The foundation wants to make sure that your financials are in order.  How often does the board meet? Does the board give to the organization? When was the last audit? etc., etc.,

Then and only then can the foundation board make a decision about your proposal. Some foundations are informal about this process others are more formal.  It just depends on the nature, size and sophistication of the foundation's processes.

Told you... it kind of complicated!

3.  Some foundation executives are content experts... some are not.  In my case, when I entered the philanthropy world I knew a lot about adolescent health, youth development and a thing or two about nonprofit organizations.  Through my grant making role I learned more about effective organizations, board governance and capacity building as a whole.  I also learned  a lot more about immigrants and refugee health, culture and fund development.  I guess you can say I became more of a generalist as I spent more time in philanthropy. 

4.  The reason for your denied application.  There are many reasons why your application from a foundation is denied.  Here is a short list:

-Your proposal falls outside of their scope (read and re-read the instructions!)

-The foundation has no more funds to expend during the fiscal year, quarter, in your geographic area, or for the program area you are applying for

     

     - The foundation is looking to fund broader programs such as community level programs.

     - Your organization is not well known to the foundation.      

         - Your organization is too new/ too small for the foundation to fund.

5.  Be Nice.  If your organization does not win a grant from the foundation, please be a good sport!  I know how much time and energy goes into putting together a perfect grant application.  If you get a denial letter, you should call to find out how you can improve your proposal next time.  But PLEASE don’t call to complain or raise hell.   You don’t want to be labeled a trouble maker or a potential difficult grantee.  Foundation executives talk to one another and news about a difficult organization spreads.  So be nice and remember that a foundation executive wants to help you.  Ask for help and direction for your proposal next time around.

Next time, I'll be talking the Art and Science of Grant Writing.  See you then.