Day: September 12, 2016

Starting to Think of Some Foundations as Individuals

Source: Giving USA 2016 (Highlights)

Published by The Giving Institute, in cooperation with Lilly Family School of Philanthropy

Total Foundation Giving

Last year, according to Giving USA, 16% of the total philanthropic support came from foundations. In dollars, that amounts to $58.46 billion of the total $373.25 billion.

Often, when people think of foundation giving, they also think of a process that involves a foundation board, a written proposal according to the foundation’s guidelines and where possible, a formal presentation.

Structure of Family Foundations

While that is true in some cases, in almost 50% of the cases that is not the process that is used. It is much less formal. That’s because an increasing amount of the foundation giving totals come from family foundations, and the vast majority of family foundations do not have an Executive Director or a formal process. In fact, while some foundations do have a board of directors, many of them are operated by just one or two people who make all of the decisions.

Likewise, the largest category of foundation giving is giving from independent foundations (75% of all foundation giving), which includes family foundations. In fact, in that category, more than 64% of all giving was from family foundations. That’s more than $28 billion.

Advice on the Ask to Family Foundations

However, there are a few points you should consider as you approach family foundations for fundraising support:

Make sure you know the person making the decisions, and then try to connect with him or her through someone who is close to that person.
Understand what their interest is and try to match your project with their specific area of interest.
In general, foundation support for operations is declining while support for specific projects is increasing. We often tell clients to carve out specific projects from their operations and seek funding for some of those.
Don’t just look to community foundations for support from donor advised funds. For the first time in 2015, donor advised funds managed by the top three commercial providers (24.1 billion) exceeds those funds held by 274 community foundations (22.2 billion).

Do Your Research

While all of this information is important, you must have a beginning place. As fundraising consultants, we advise clients to start by first gathering information about family foundations in their individual cities or states. That’s because a good portion of those family foundations will make donations right there in the area in which they live. It stands to reason that people tend to give to organizations or people that they know, and the closer to home they are the more organizations and people they will know.

Well, how do you find the names of people who have family foundations? A good place to start is by examining the 990 reports in your state. Each foundation must file a 990 annually. They list not only foundation assets, but also the principal, past grants, and where appropriate, any additional board members.

Of course, once you figure out how many family foundations are in your area and who runs them, the next step towards increasing donations is to develop strategies to inform, cultivate and eventually solicit these foundations. Sure it takes work, but a few hits will make it well worth the effort.

by Len Moisan

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church