By Sydney Stapleton, Grants Development Consultant
No matter what type of public sector or nonprofit entity you are, foundation grants are a unique opportunity for you to receive funding support. According to Cause IQ there are over 132,000 private foundations within the United States. As that number continues to grow, nonprofits have an opportunity to diversify their funding and create new partnerships between themselves and foundation funders.
What Are Foundations?
When it comes to foundations, there are two main types. First is a public foundation. A public foundation is just another way to say a public charity, think Make-A-Wish Foundation or The Susan G. Komen Foundation. These nonprofit organizations get donations from individuals, the government, corporations, and private foundations to pay for their operations and programs.
A private foundation, like a public foundation, has a charitable mission that it supports. However, private foundations are not the same as a public charity because they are funded and controlled by an individual, family, or corporation. Examples of private foundations include The Bill and Melinda Gates Foundation, the Walton Family Foundation, and the Coca-Cola Foundation. While some public foundations make grant awards, most grant funding comes from private foundations.
How Are Foundation Grants Different from Government Grants?
Governmental grants offer some of the highest funding amounts of all grant makers. Often with that high award comes having matching funds, a large pool competing of organizations applying for funding, and long applications that require detailed planning and statistical data to back up need and proposed solutions. By contrast foundation grants often require much simpler application processes. Application structure will vary by foundation but do not have the same complexity or burden of proof as with a government-sourced grant. They typically do not require matching funds and have smaller pools of applicants. The tradeoff is that foundation grants typically award smaller amounts of funding than those you may receive from a government grant maker.
What Makes a Foundation a Good Fit?
Foundations, just like other nonprofits, have their own missions that they are looking to support. In order to successfully write a foundation proposal, you’ll need to find foundations whose missions align with your organization and your project goals. It is also important to make sure the foundation offers an amount of funding that matches your project needs. You don’t want to complete an entire application looking to get $50,000 in funding only to later realize the foundation only awards $500 grants. Some foundations have specific populations that they are looking to support, this can be groups like the elderly, minority students, individuals with disabilities, or even stray animals. When reviewing a foundation grant application make certain the population you serve aligns with the demographic group the foundation would like to see their funding benefit.
Where Do I Start?
Start local. Many communities have local community foundations that support their regional nonprofit organizations. While they often provide smaller grants, there is less competition compared to larger foundation funders. Local foundations are also more likely to continue supporting organizations they have relationships with year after year compared to national grant makers. Connect with similar organizations in your area about where they receive their foundations funding from. Nonprofits often announce award funding through press releases, so keep an eye out to see where local foundation funding is coming from. Once you know your local foundation landscape start branching out to regional and national funders. Continue to search for foundations that align with your organization’s mission and vision. Keep in mind your project goals, award amount, and populations served in your search for national funding. There are a variety of online databases that provide information on national foundation grant makers. As your search expands your competition will likely be steeper with more applicants from all over the country being able to apply. Don’t be discouraged! If you have a thorough and well written project proposal and your mission aligns with the foundation, then you’re well on your way to getting funded.