The State of Grantseeking and Its Implications for Grant Professionals

The State of Grantseeking and Its
Implications for Grant Professionals

Mid-Atlantic Grants Conference
May 21, 2012
Dahna Goldstein

http://www.flickr.com/photos/oxygeon/238163317

The State of the Nonprofit Sector

Nonprofit Research Collaborative Late Fall 2011 Nonprofit Fundraising Survey

Overall giving is increasing slightly

Blackbaud Index, May 2012

A majority of nonprofits reported
increased donations

Nonprofit Research Collaborative April 2012 Nonprofit Fundraising Survey

Which is an improvement over last year

Nonprofit Research Collaborative Late Fall 2011 Nonprofit Fundraising Survey

Overall, changes in charitable receipts
are trending in the right direction


Organizations’ overall fundraising
success varied by size


…and by issue area


Nonprofits are feeling optimistic


But they have felt optimistic before


More nonprofits met their fundraising
goals in 2011


And grants were an important factor


Grants are over 25% of funding for half
of all nonprofits

State of Grantseeking Spring 2012, GrantStation and PhilanTech

Mid-sized organizations rely most
heavily on grants as funding source
Medium
Small Organizations Organizations Large Organizations
% of Budget All Organizations
<$100,000 $100,000 - >$1,000,000
$999,999

Under 10% 35% 47% 23% 42%
11 - 25% 22% 18% 24% 23%
26 - 50% 16% 10% 20% 15%
51 - 75% 12% 7% 16% 10%
over 75% 15% 18% 17% 11%


State of Grantseeking for Nonprofits
• 81% of respondents applied for more (46%)
or the same number (35%) of grants
▫ Previous survey: more (45%), same (33%)
• 69% of respondents received the same
number (38%) or more (31%) grants
▫ Previous survey: same (37%), more (26%)
• 64% of respondents received the same size
(41%) or larger (23%) grants
▫ Previous survey: same (38%), larger (25%)

Government funding has decreased

Nonprofit Collaborative Late Fall 2011 Nonprofit Fundraising Survey

Total foundation giving is stabilizing

Foundation Center, Foundation Growth and Giving Estimates 2011

But funding priorities have changed
• “With government pulling out of ‘safety net’
funding, we are finding that foundations are
moving away from support for the arts to fill the
gap in needed social services.”
• “It seems that grant funding is becoming much
harder to get, more specific to apply for and fewer
and farther between. It also seems as if the things
that we need most are things that are least likely to
have a grant available to supply.”

While foundations may be giving more
grants, multi-year support is decreasing

Private foundation grants remain the
most frequent funding source


Organizations of all sizes rely heavily on
private foundation grants
All Small Medium Large
Source Organizations Organizations Organizations Organizations
Private Foundation Grants 72.0% 49.0% 77.0% 81.0%
Community Foundation Grants 58.0% 39.0% 58.0% 68.0%
Corporate Grants 54.0% 32.0% 53.0% 68.0%
Corporate Gifts 35.0% 18.0% 32.0% 47.0%
Federal Grants 43.0% 13.0% 36.0% 67.0%
State Grants 48.0% 26.0% 43.0% 66.0%
Local Government Grants 38.0% 22.0% 37.0% 48.0%
Other Grant Sources 13.0% 22.0% 13.0% 9.0%


Private foundation grants were also the
largest single source of total grant
funding


The largest source of total grant funding
varies by organization size
Largest Funding Source Organizations Organizations Organizations Organizations

Private Foundation Grants 27.0% 25.0% 34.0% 21.0%

Community Foundation Grants 9.0% 14.0% 10.0% 5.0%

Corporate Grants 9.0% 15.0% 10.0% 3.0%

Federal Grants 24.0% 5.0% 16.0% 42.0%

State Grants 15.0% 14.0% 13.0% 19.0%

Local Government Grants 7.0% 7.0% 9.0% 5.0%

Other Grant Sources 10.0% 20.0% 9.0% 4.0%


Private foundations were also the source
of the largest grant


Nonprofits continue to submit many
requests to grantors


…and continue to get grant awards


Organizations rely on different people
to engage in grantseeking activities


…to varying degrees of success
# of # of Grants Awarded
Proposals
Submitted 0 1 2 3-5 6-10 11-20 21-30 31+ Some
0 74 8 1 1 0 0 0 0 2
1 24 19 2 0 0 0 0 0 0
2 18 35 25 2 1 0 0 0 3
3-5 34 43 78 77 5 0 0 0 7
6-10 6 13 19 63 21 1 0 0 6
11-20 1 1 2 28 44 19 0 0 5
21 - 30 0 0 0 4 6 23 5 1 1
31 + 0 1 0 1 5 13 7 9 3


Most organizations get grants under
$100,000
Largest Award July – December 2011 Organizations Organizations Organizations Organizations

$1 to $10,000 24% 59% 25% 10%

$10,001 to $50,000 28% 28% 36% 19%

$50,001 to $100,000 13% 4% 18% 11%

$100,001 to $500,000 22% 9% 18% 32%

$500,001 to $1,000,000 5% 0% 1% 11%

Over $1,000,000 8% 0% 3% 16%


Grant award sizes stayed the same or
increased


…but that hasn’t been consistent
Largest Grants
Amount Fall 2011 Spring 2011 Fall 2010 Spring 2010
Highest $ $30,000,000 $26,000,000 $100,000,000 $57,000,000
Median $ $45,000 $39,000 $65,000 $50,000
Average $ $462,539 $312,000 $775,600 $611,500

Smallest Grants
Amount Fall 2011 Spring 2011 Fall 2010 Spring 2010
Lowest $ $25 $1 $100 $10
Highest $ $525,000 $500,000 $600,000 $500,000
Median $ $1,000 $1,500 $1,500 $2,000
Average $ $6,966 $8,200 $10,468 $7,310


Nonprofits submitted the same number
or more grant requests


Which resulted in increased numbers of
grants for 31%


Changes in numbers of grants varied by
issue area
Same
More grants Fewer grants number of
grants

ARTS, CULTURE, HUMANITIES 33.33% 25.81% 40.86%
EDUCATION 31.93% 26.89% 41.18%
ENVIRONMENT 36.00% 36.00% 28.00%
HEALTH CARE 34.92% 25.40% 39.68%
HUMAN SERVICES 32.14% 26.79% 41.07%
INTERNATIONAL 25.00% 25.00% 50.00%
PUBLIC, SOCIETAL BENEFIT 28.57% 21.43% 50.00%
RELIGION-RELATED 0.00% 33.33% 66.67%


Nonprofits face both internal and
external grantseeking challenges


Smaller organizations struggle more
with the mechanics; larger organizations
struggle more with the macro issues
Grantseeking's Greatest Challenge in 2012 Organizations Organizations Organizations Organizations
Competition 6.0% 4.0% 5.0% 8.0%
Reduced funding 12.0% 6.0% 11.0% 17.0%
Economic conditions 11.0% 5.0% 11.0% 14.0%
Funder practices and requirements 6.0% 5.0% 7.0% 6.0%
Internal organizational issues 4.0% 0.0% 3.0% 7.0%
Lack of time and/or staff 23.0% 26.0% 26.0% 19.0%
My organization needs a grantwriter 7.0% 14.0% 6.0% 3.0%
Relationship building with funders 7.0% 9.0% 7.0% 7.0%
Research, finding grants for my organization’s
mission 16.0% 21.0% 16.0% 13.0%
Writing grants 4.0% 8.0% 2.0% 2.0%
Other 4.0% 3.0% 4.0% 4.0%


Project Streamline, addressed to
funders, identified challenges
• Enormous variability
• Requirements that aren’t “right sized”
• Insufficient net grants
• Outsourced burdens
• Trust undermined
• Reports on a shelf
• Fundraising gymnastics
• Due diligence redundancy
• Double edged swords
• Time drain for grantmakers, too

In the words of grantseekers…
• We have lost key staff, whose positions have been
unfilled for months. We have never been able to
devote a staff position to grant writing. We apply
mainly for the same local grant opportunities on a
regular basis instead of broadening our
opportunities.
• With the funding reductions we have experienced a
reduction in staffing. This means fewer hours to
spend on grant writing, research, etc.

In the words of more grantseekers…
• Federal and state funds cut by amounts that would
mean doubling all other sources just to remain
even.
• We just don't have the staff that has the experience
in writing grants nor the time to conduct the
needed research.

In the words of yet more grantseekers…
• It seems that grant funding is becoming much
harder to get, more specific to apply for and fewer
and farther between. It also seems as if the things
that we need most are things that are least likely to
have a grant available to supply.
• Due to the downfall of the economy, my
organization reduced staff positions by merging
staff responsibilities into multiple tasks. We lost
our development director/grant writer that is one
of the most critical positions for a nonprofit.

Implications for grant professionals
• Recovery is still on the horizon, not yet
present
• Don’t assume that this year’s funder will be
next year’s funder
• Impact of government funding reductions
isn’t over
• Diversify
• Grant trends can inform strategy and
prospecting

Focus
• On net positive grants
• On developing and cultivating relationships
• On high ROI prospects – and issues that
matter to them

There is an increased need for grant
professionals
• Challenges of time, not having grantwriter on staff
▫ “We just don't have the staff that has the experience in
writing grants nor the time to conduct the needed
research.”
▫ “The organization does not have a professional grant-
writing professional. Each individual program director
must research and write their own grant proposals, taking
valuable time away from direct program administration and
development.”
• Opportunity for consultants
▫ Expertise + time = ROI

…but corresponding stress on ability to
pay
• New hires are not in the cards for many
nonprofits
• Many don’t have the cash flow to pay
consultants

Nonprofits remain optimistic about the
next six months


Questions?
Dahna Goldstein
dahna@philantech.com

The State of Grantseeking and Its Implications for Grant Professionals

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