Direct Donations
Melissa
Created on October 17, 2024
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Transcript
How to ask for donations
Direct Donations
Financial capital
Asking for direct donations is a way to capitalize on the IRS giving requirements of local philanthropies while also opening the door to develop longer term relationships that could turn into larger funding support opportunities later. Foundations based on philanthropic giving must give a percentage of their annual revenue in the form of grants or donations. Most foundations do this through formal grant programming but can often end up a with a reserve if their fundraising efforts are more fruitful in a given year leaving a cash reserve they need to liquidate. By reaching out you are solving a problem for both your organziation and the philanthropy while also developing a giving relationship between the two organziations that can be fostered.
Building a small reserve
Direct Donations
Check out our guide on prospecting for more detailed information!
Prospecting Guide
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Much like traditional prospecting, there are many avenues that can aid in searching for opportunities to ask for direct donations.
Where to look
Resources for Finding Opportunities
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Funder's current prioritiy areas
Past Grantees
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Program Officer contact information
Exclusions/Eligibility
Funding Cycles
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Determine if it is a good fit
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What to look for
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Gratitude
Call to Action
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Emphasize impact
Tell a story
Address the specific Program Officer
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How to ask for funding
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Making the Ask
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Make it personal
Keep it brief
Stick to one page!
Invite them to contact you to learn more and discuss further- use it to start building a relationship
Be genuine
Use your natural voice and be genuine in your ask and expression of gratitude
Final Considerations
Write a heartfelt, personal letter- send it in the preferred method of contact
Invite a discussion
Telling the story and sharing your impact is the easy part, but you still have to make the ask!Some things to think about when putting your ask together:
- Be clear
- Be direct
- Be specific
Ask for the funds!
Call to Action
This process is a way to start developing a relationship with the foundation- make sure you are reaching out to the most appropriate person to start building that rapport. A good PO will talk to you about your organziation/project. They will give you an honest opinion of fit, and if they like your idea will often give you insight on how to best seek funding from their foundation in the future.
And preferred method of contact
Program Officer Contact Information
Tell the funder what you will be able to do with their financial help. Even if you are seeking general operating funds- emphasize the impact your organization will have on your constituents as a result of this funding. You can also ask for donations for a specific program/project/capital need- if you go this route share the impact that those dollars will have!
What will the money be used for?!
Emphasize the impact
This is where you can tell the funder how your organization aligns with theirs, why you exist and who you are! Stories that evoke emotion are much easier to connect to and are often easier to convey in short form vs a traditional proposal with a needs assessment or narrative. Remember this isnt a formal grant!
Who are you?
Tell a Story!
Use the preferred name of the PO as well as ensure to address the foundation properly. You should also take a moment early in your letter to acknowledge the Foundation's history, priorities and impact so as to personalize the request.
Use a friendly greeting
Address the PO
Many funders have limitations on who they are able to give funding to and it largely depends on what kind of organization/funder they are. Pay close attention to the exlusions or eligibility section of the funder's website if it is available.These could be things like your tax structure, your industry, your size, your location, etc.
Do we fit the build?
Exclusions/Eligibility
Funders, particularly philanthropies, can be fickle in their interests. They may have a long history of funding projects similar to yours but if they aren't interested in that TODAY then you wont be funded. Check out their previous funding patterns but also be aware of any current or new priority areas. These should be clearly stated on a specific funding opportunity or expressed as a theme on their primary website.
What is the hot button right now?
Current Priorities
Share your gratitude, not only for the potential partnership but for the time the PO has taken to evaluate your request AND for the important and valuable work they do as an organization. Use this as an opportunity to further personalize your request.
give thanks
Gratitude
When looking at a prospective funder you want to check their funding cycle as well as their fiscal year. The leverage happens when their funding cycles are over but still have a couple months left in their fiscal year to spend down any excess. You will also want to look at where funding is typically given, if there are any geographic preferences/limitations.Also check to see if you can find small awards that seem outside their normal giving. Not all foundations list all their awardees but many will and this can give you insight on how much to ask for.
When and how much funding is available?
Funding Cycle
There are many web based resources that can help improve the process of searching for opportunities. Some are free, and others charge a fee for this service. If you are looking to add a paid service make sure that you are choosing one that searches the appropriate types of funding for your organization. Some search engines may include:
- Grantstation.com
- Foundationsearch.com
- instrumentl.com
- Grantwatch.com
- Guidestar.org
- TA provider websites
- Good old fashioned Googling
WEb resources to help find opportunities
How to search?
You may also consider revisiting any funders that have funded your orgnaization in the past, or who have attended any events you have hosted or may be connected to any of your board of directors.
Make sure to scope out the previous winners of their grant opportunities as well as any small donations. These winners clearly have done something that got the attention (and funding) of the funders and you can learn from their success. Some things to think about when looking at previous grantees:
- How much were they funded?
- What priority alignment is there?
- Where are they located?
- Is there a contact or someone you can talk to about their program and relationship with the funder?
Insight on what the funder funds
Past Grantees