Scouring the internet for funding opportunities is a cherished pastime among fundraisers and grant writers. Perusing the profiles of the array of grant-giving foundations is an especially revered exercise when hunting for their charity’s next ground-breaking institutional benefactor. Tragically the one type that is often overlooked during these hunts are community foundations.
Perhaps the clearest definition of a community foundation is provided by the Calgary Foundation that describes them as “charitable organizations dedicated to improving communities in specific geographical areas . . . by pooling the charitable gifts of donors to create endowment funds and using the investment income to make grants”. Greater than 90% of Canadian communities have access to at least one of the 191 community foundations across the nation. With more than $5.2 billion in combined assets, Canada’s community foundations have allocated hundreds of millions of dollars into the areas they serve during the past century. (Source: https://calgaryfoundation.org/about-us/what-is-a-community-foundation/)
Despite the impact that community foundations create, they are often inexplicably bypassed by charities as a primary grant-giving prospect. Among organizations that do identify them as a potential funding source, they are unaware of the additional ways that community foundations enhance the vitality of their jurisdictions. Here are four (4) reasons why community foundations can be the dark horse of any grant-seeking appeal:
1) Donor-advised funds can be obscure sources of sustainability.
It is incredible how many people are not familiar with the main role of community foundations – they serve as a convenient alternative for local philanthropists to the arduous process of establishing their own private foundations. Rather than deal with a tedious sequence of lawyers, accountants and government officials, these philanthropists reach out to their nearest community foundation. They ask them to set up and manage an endowment fund with the principal they wish to invest that are commonly known as Donor-Advised Funds (DAFs).
When the DAF matures and generates interest income, the philanthropists are notified and the funds are disbursed according to their wishes. Although they may know firmly the types of causes they wish to support, local philanthropists are not always familiar with which organizations provide those programs and services in their area.
Consequently, the staff often play the role of “matchmaker” and make recommendations to these philanthropists as to which organizations they should consider supporting based on their wishes and interests. DAF’s do not attract the same volume of requests as other conventional grant-making sources simply because they are not as well known or publicized. Should a funding proposal that generally meets their criteria be directed to the attention of a DAF’s trustees, its odds of being approved is extraordinarily high.
Thus, it truly makes sense that organizations connect with the staff of their local community foundation to determine if the priorities of any DAF align with the aspired outcomes of their projects or programs. It is not uncommon for organizations to receive unanticipated 5-digit dollar cheques because the staff from their nearest community foundation suggested to a DAF trustee that their project most closely matched the fund’s objectives. Nor is it unusual for DAF trustees to develop an affinity for a cause and commit themselves to awarding substantial long-term annual grants to that organization.
2) Community foundations can help organizations identify other local sources of funding.
Funding sources are normally acutely aware of one another’s existences. So it should not be surprising that community foundations are extremely cognisant of other institutions within a commutable distance that regularly provide varying levels of funding to charities in the area. When organizations are researching and identifying grant-giving prospects, a prudent step would be to consult with staff, board and volunteers with their local community foundation to ensure that no potential benefactor is overlooked.
3) Community foundations are excellent at critiquing funding proposals.
Since they are in the business of reviewing and evaluating grant applications, it stands to reason that community foundations can provide constructive feedback for any funding proposal in development. Organizations sometimes worry that:
· their proposals are “not on the right track”;
· that they are unfamiliar with proper “grant lingo” or phrasing;
· they are not using the appropriate metrics, or
· their budgets are not complete.
Many of these fears can be allayed by connecting with a community foundation staff member who regularly appraises grant proposals and asking them to peruse a rough draft of an application. Having an expert identify a proposal’s strengths and weaknesses, make revisions, suggest more compelling phrasing and terminology, and fine-tune the outcomes and metrics is certain to make it more competitive for future submissions.
4) Community foundations can help identify potential partnerships and collaborations.
Fewer are as knowledgeable about local services, programs, resources, amenities and supports than the staff, volunteers and board members of community foundations. Organizations can draw on this bounty of information by seeking suggestions from community foundation representatives regarding which partnerships and resource-sharing opportunities have the greatest potential to strengthen the area’s well-being. Charities collaborating to make their communities a better place for everyone is an asset in the eyes of nearly all funders since it demonstrates a commitment to ensuring that no person in need ever “slips through the cracks”.
Cultivating ties and getting to know the key people involved with local community foundations can energize several facets of an organization’s grant-seeking activities. Whether it is seeking funding, information or guidance, established relationships with community foundations position organizations to create optimal change and advance overall wellness for all citizens.
Stay well,
Mike
