THE PHILANTHROPIC LANDSCAPE: A REVIEW New York Foundation •Established in 1909, one of the countries oldest •Heinscheimer brothers, $1 million gift •Always had a particular concern for New York City •Give out approximately $3.5 million a year •Average grant size – $40,000 •Approximately 77 grantees •Interest in start-up grants to untested programs that have few sources of support (helped fund the Health Insurance Plan of NY, Visiting Nurses Services, NAACP) Number of foundations in the US • 75, 187 Today • 35, 765 1992 • 21,877 1975 • 23 between 1900-1909 Assets and giving • Foundation assets 2007 $682 billion • Foundation giving 2008 $45 billion (up 2.8% between 2007-8) • Estimated decrease in assets from 2007 to 2008: 21.9 percent • Gates Foundation $ 29B assets/$2.8B giving • Ford Foundation $ 10B assets/$474M giving • NY Community Trust $ 1.5B assets/$167M giving Most of the philanthropic assets are held by a few foundations • Less than 2/5 of all foundations held 98 percent of assets. • Only 551 foundations awarded grants totally at least $ 10 million. • Funders that give grants nationally or internationally are few in number (2,803), but seem so important, why? They account for 33 percent of all assets held and were responsible for 30 percent of giving. The vast majority of the 75,000 foundations are very small • 60 percent of all foundations have assets under $1 million • 70,266 of 75,187 gave grants totaling $1 million or less Local landscape • In 2007, NY and California were almost tied for most grant money received – Grants received NYC 13.5 percent of total – Grants received CA 13.6 percent of total • Though NYC had more than 8000 foundations, 2/3 of grant funds leave city • Biggest Givers to NYC-groups 2008 – Starr Foundation $169 million – New York Community Trust $167 million – Robin Hood Foundation $124 million – Bloomberg Family Foundation $ 41 million – Clark Foundation $24 million – Altman Foundation $14 million – Tiger Foundation $11 million – Fox Samuels $9 million Trends • Growth in Family Foundations • Increased number of intermediaries • Expected transfer of wealth to next generation; more philanthropy in future • Will priorities change given downturn? – Have not changed in other downturns – Most indicate focus on core work, not abandonment of core work – Consistency is strength How Non-Profits are faring in this climate What we learned • 65 percent had budgets under $500,000 • 64 percent had been in operation less than 10 years • Together, groups employ about 500 people – 32 staff members were laid off • More than 60 percent lost foundation grants • More than 20 percent lost government grants • A little less than half experienced a decrease in donations from individuals • 87 percent reported that demands for their programs had increased How are grantees managing their work differently in this environment? • Most have NOT eliminated programs • Many have frozen salaries and reduced benefits • Most have increased collaborations with other organizations • 85 percent have increased reliance on volunteers • 80 percent had created modified or contingency budgets More than 60 percent have seen board members more engaged in fundraising • Half of the groups have increased the extent to which constituents and members are involved directly in fundraising Other Studies • Guidestar, June 2009 – 58 percent report increase demand for services – 52 percent report decrease in contributions – 37 percent reported smaller foundation grants • Johns Hopkins University, June 2009 – 63 percent of smaller nonprofits (defined as under $500,000) reported loss of revenue (compared to 47 percent for larger organizations) • Bridgespan, June 2009 – Smaller nonprofits (defined in this report as less than $1 million in revenue) reported that finances worsened in the last six months. 41 percent reported cuts exceeding 20 percent of overall funding • Nonprofit Finance Fund, April 2009 – Most respondents non-profits less than $ 2 million operating expenses – 93 percent saw increased demand for services – 62 percent expect decrease of foundation funding Proposal Writing Tips • The “how” is more important than the “why” • The scope of the problem has to match the solution proposed • Tell a compelling story • Establish your credibility – Who gives you sanction to do this work? – In community, with constituency – In field – With stakeholders • What makes your program unique? • Keep it simple / Be concise • Avoid jargon and comments you cannot substantiate (ie: “Immigrant children need to learn English.” Or “Its important for people to learn to use computers if they want to function in today’s workforce.”) • Give the reader hope! Other Tips • Show your proposal to an outsider – your auto mechanic or thirteen- year-old. Remember your proposal has to appeal to a broad range of people with different areas of expertise. Not everyone will know what you’re talking about. • You are not the only group being considered. Your proposal is being read by program officers who: – have worked in the field – fund other groups that do similar work and – care about the issues you care about. You’re not functioning in a vacuum. • Don’t use the proposal to win an argument. Its more important to be clear and illustrative than to be persuasive. Program officers’ job is to assess how the proposal fits the foundation’s guidelines and not whether or not the proposal addresses the most important problem. • Good and clear program planning is more important than proposal writing. What funders are saying about proposal writing • Do your research – Check website – Read guidelines carefully. • Look closely at grants list – Kind of grant – Size of grant – Geographic area • Contact them – 85% of funder would prefer a phone call first – 65% require a letter of inquiry What funders are saying about proposal writing • After rejection – Send thank you – Ask why turned down – Don’t argue • After grant – Send thank you – Send required information – Send reports on time – Review the proposal and know what you are obligated to do What funders are saying about proposal writing • Proposal document - Include the basics • History and purpose of organization • Problem to be addressed • Program description • Evaluation • Budget What funders are saying about proposal writing • Who else is funding the organization is important • Avoid extra attachments • What funders read first – Cover letter – Executive summary – Budget • What gets attention – Project – Who else funds it – Sustainability What funders are saying about proposal writing • What to avoid – No binders – Error free – Not sloppy • To be competitive – Understand grantmakers not homogeneous – Build a relationship with grantmaker – Think beyond the moment.