Foundation Fundraising

Kavita Munjal Director of Foundation Relations, Keck School of Medicine of USC November 10, 2008

1 What is a Foundation? (Source: Foundation Center, 2008)

The philanthropic world consists of two principal types of foundations, private and public. Private foundations are the primary source for USC support. A private foundation can be defined by:

„ Non-profit and non-governmental „ Have its own funds or endowment provided by a family, individual or a for-profit company „ Managed by its own trustees or directors „ Established to aid educational, social, religious, or other charitable activities serving common welfare „ Makes grants, primarily to other nonprofit organizations; and „ Required to file a 990-PF form with the IRS annually

2 Types of Foundations (Source: Foundation Center, 2008)

There are three different types of private foundations:

„ Independent or Family Foundations receive endowments from individuals or families (and, in the case of family foundations, they continue to show measurable donor or donor-family involvement) „ Company-Sponsored or Corporate Foundations receive funds from their parent companies, although they are legally separate entities „ Operating Foundations run their own programs and services and typically do not provide much grant support to outside organizations

3 Who Gives the Gifts? (Source: Annual Report on Philanthropy, 2008)

4 Independent Foundations

„ A fund or endowment designated by IRS as a private foundation whose primary purpose is to make grants

„ Assets from gifts of an individual or a family

„ Governance and management varies

„ May be either “general” or “specific” purpose

5 Company-Sponsored/Corporate

„ Private foundations set up under tax law to make grants which derive funding from a profit-making business

„ Independent entity from the corporation

„ Governance and management may include individuals not affiliated with company

„ May have other giving programs (e.g., sponsorship)

6 Operating Foundations

„ A fund or endowment established by charter to fund specific research or other programs

„ Operating foundations may make grants to other organizations

„ Main aim is to fund programs which they themselves conduct

7 Community Foundations

„ Assets of these foundations are derived from many donors and may include funds restricted for a specific use by donor

„ Specific characteristics are:

‰ Generally serve a defined geographic area

‰ Assets are managed by trustee banks

‰ Members of governing boards and grant making leadership are representative of community leadership

8 Foundation Trends

„ More professional staff but fewer staff to handle MORE requests

„ Narrowly defined policies and procedures

„ Focus on outcomes and collaboration

„ More post-grant evaluation

9 Where Do Gifts Go? (Source: Annual report on Philanthropy, 2008)

10 The State of Healthcare in the U.S.

„ Enormous financial pressures

„ Increased competition

„ Insatiable appetite for new medical technologies and modern patient facilities

„ Specialization of healthcare providers

„ Societal problem and political concern

11 Philanthropic Trends in Healthcare

„ An emerging dependency on philanthropic support to meet operational and capital needs

„ Most gifts in support of major capital projects are motivated by the clinical care or research that will take place within and made possible by – rather than improvement to certain facilities per se * (Source: Grenzebach, Glier & Associates)

12 Collaborative Efforts with the Office of Research Advancement

„ The Office of Research Advancement coordinates research activities across the school, integrating with Office of Research university-level management offices. Advancement

‰ Serves as a leading source of communication between faculty and foundation funding opportunities via the RFP process. Office of Foundation Contracts & Grants „ The Office of Foundation Relations Relations (OFR) works closely with Research Advancement as a means of building productive relationships with foundations.

13 Development of a Foundation Strategic Plan

„ Determine priority projects or programs for foundation support „ Who are the right Schools, Universities & External Partners for your projects? „ Who are the right foundation prospects for your projects? „ Determine internal and broader institutional linkages „ Work with OFR in developing foundation contacts and relationships „ Review the plan with appropriate colleagues

14 Foundation Cultivation and Selection

Fine tune your cultivation and solicitation strategy to recognize:

„ Foundation Focus – Interest in strategic philanthropy „ Fluctuations in giving amounts „ Regional versus national versus international „ Size matters – small, medium and large asset base „ Top down versus grassroots „ Trend towards partnerships versus traditional donor/donee relationships „ Shifting Foundation Culture

These differences impact how proposals are prepared & presented

15 Preparation for the ASK

„ Determine priority projects or programs for foundation support „ Connect with key decision makers „ Establish common ground „ Reciprocal exchange „ Demonstrate linkages „ Confirm giving preferences, guidelines, and enquire about future trends at the foundation „ Explore partnership potential „ Describe institutional priorities and projects „ Secure advice on strategy and next steps „ Obtain agreement to review draft before submission

16 Your Winning Proposal

„ Complies with foundation giving criteria „ Clearly customized to the individual funder „ Submitted in a timely fashion to meet required deadlines „ Follows foundation proposal guidelines „ Compelling and attractive project „ Appropriate workplan and management structure „ A correct ask amount/costing rationale „ The correct faculty member(s) „ Correct Internal or External Partners „ Proposal is succinct, clear and reader friendly „ Includes all necessary USC attachment documents „ Cover letter from appropriate person „ Strategic leveraging of USC relationships

A COLD PROPOSAL WITHOUT PRIOR CONTACT WITH A FOUNDATION STAFF MEMBER IS RARELY SUCCESSFUL

17 Proposal Preparation Checklist

„ RFP/Documents „ Internal or External Partners? „ Technical Strategy „ Personnel „ Budget „ Technical Proposal „ USC Documents, Support Letters, Cover Letter, Etc. „ Production „ Finishing Touches „ Packaging „ Proposal Delivery/Logistics „ Follow-up With Funder

18 Making the Ask: Multiple Entries for Foundation Proposals Avenue A • Draft proposal that has been reviewed by foundation officer • They become the champion and shepherd it through the process Avenue B • Final proposal prepared • Formal request made to CEO and/or their Board Avenue C • Final proposal prepared • Submitted by President to President Avenue D • Final proposal prepared • Submitted by volunteer/Board member to President

19 Keys to Successful Foundation Fundraising

„ Foundation Background Research – Project submissions need to match the needs and interests of the funder & attentive to foundation strategic developments „ Proposal protocol – Submissions need to absolutely follow foundation proposal format guidelines and timelines „ Strategic Cultivation – Leveraging personal support through school and institutional linkages „ Building and sustaining meaningful relationships and partnerships with foundations „ Continual meaningful stewardship of success and unsuccessful project proposals

20 Always Be Thinking About

„ Right Timing

„ Right Project

„ Right ask amount

„ Right Solicitor

21 Presidential Foundations at USC

The foundations requiring special Presidential approval are:

„ Carrie Estelle Doheny Foundation „ Hedco Foundation „ John Stauffer Charitable Trusts „ The Ahmanson Foundation „ The Annenberg Foundation „ The Fletcher Jones Foundation „ The H. Leslie and Elaine S. Hoffman Foundation „ The James Irvine Foundation „ The Kenneth T. and Eileen L. Norris Foundation „ The Kresge Foundation „ The Ralph M. Parsons Foundation „ The Rose Hills Foundation „ The Thomas & Dorothy Leavey Foundation „ W.M. Keck Foundation „ Weingart Foundation (University Advancement website, May 15, 2008)

22 Tips on Proposal Writing

„ Get to the point! „ Don’t be flowery „ Tie it to foundation/corporate principles „ Add caveats later „ Use confident language „ Emphasize your strengths „ “package” complex projects by giving research project a simple name/title – great marketing technique

23 Funders Fund Strength

„ Philanthropists/donors MUST give a % of assets so they are LOOKING for great investments

„ FRAME the project as the glass “half full” – e.g., you are already strong – need funding for a GAP

„ Act from a position of strength versus focusing on a need

24 Budgeting for a Foundation Proposal

„ Budget tells the same story

„ Tool to show funder you have a well thought-out plan

„ Organize budget so it is parallel to the narrative – eg, emphasis should be in the same areas (where you are asking for more, WRITE MORE)

„ Budget should be parallel in narrative

25 Think Like a Reviewer!

„ 12-12-12 Rule

‰ Its midnight

‰ Worked a 12-hour day th ‰ 12 proposal

„ Proposals aren’t novels!

„ Use headers to inform reader of the upcoming story

26 After you get the gift…

„ Mention noteworthy events ( e.g., leadership transition)

„ Don’t fear change – inform the grant-maker/program officer

„ Inform the foundation when something good happens ( e.g., catalytic event)

27 Office of Foundation Relations Contact Information

„ Kavita Munjal – Director of Foundation Relations (323) 442-2355 [email protected]

„ Kerry Franco – Assistant Director, Foundation Relations (323) 442-2340 [email protected]

„ Frances Zepeda – Coordinator, Foundation Relations (323) 442-2356 [email protected]

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