The Vital Role of Funder Research
You’re a nonprofit with limited resources; you need money. However, before diving headfirst into the application process, there's a critical step that should never be overlooked: researching potential funders.
Applying for grants requires time, effort, and resources that you may not have. Researching funders before submitting an application allows you to focus your energies on those whose values and interests closely match your own, in turn increasing the likeliness of success.
Understanding who the funders are, what they prioritize, and how they operate can significantly enhance your chances of getting on their radar and ultimately securing funding. Like nonprofits, funders have specific missions, goals, and areas of interest that guide their decisions. By spending some time understanding the history and areas of interests a foundation has, you can have a leg up on the competition by presenting a project that aligns with their priorities.
Tips on researching funders:
Click around: Visit the funders website to determine areas of interests and giving patterns
Pick up the phone: Call them to see if they are accepting applications - sometimes the website only tells part of the story (some funders still have not resumed regularly grant-making post-pandemic). If you get someone on the line, ask them the success rate of applications (anything less than 25% is very competitive!)
990s are your friend: Do a quick review of the funder’s 990 form (available via Guidestar or the IRS website) which can often give insights into average award amounts, number of organizations funded annually, geographic locations of past recipients, and repeat recipients
Know the application requirements: Each funder has different application procedures, requirements, and criteria for evaluating proposals. Spending time learning about this can give you insights into the funders interests, process, and expectations.
Ask around: See if your organization has contacts in common, (staff, board, recipients). Don’t be afraid to ask for a meeting to talk to foundation board members or other organizations about their experience working with XYZ funder.
Don’t waste your time: You may want to move on if your project: does not align with their priorities, you do not have demonstrated success, or you need to make something up to fit.
Manage your time: Try to estimate how much time the grant application will take you. A good rule of thumb is one hour per application page (document or portal) and adding an hour for each supplemental: budget, letters of support, board list, etc.
Avoid Misalignment and Rejection: Submitting a generic proposal to multiple funders without considering their individual preferences is a common mistake that can lead to rejection. All proposals must be tailored to the funder, even if you are recycling content from the same or similar program.
Put your work in context: Post-pandemic some funders have introduced new funding priorities that support social justice movements and climate initiatives. Take note of how your work contributes to larger societal solutions.
Build Relationships: Grant funding is not a transactional process and often involves building relationships with funders. Establishing rapport and demonstrating genuine interest in a foundation’s work can strengthen your application and pave the way for future collaborations. Try inviting them for a tour of your facility or invite them to an event - do so without an ask attached.
Contact us today to learn more about services we offer to research funders and improve application competitiveness!