How to Set Meaningful Goals for Your Grant Program

December 9, 2019

When you think of grant writing, activities like drafting, editing, compiling attachments, and submitting proposals probably come to mind. But there’s a big difference between grant writing, and building a grant program.

Building a grant program is a bigger, broader, and more ambitious endeavor – one that requires the ongoing effort to find prospects, build relationships with funders, write and submit grants, and report on your impact to funders.

Sure, this approach takes more time effort than simply writing and submitting proposals and hoping for checks to arrive in the mail year after year. But it also offers much larger returns, when done well. Compared to grant writing, a grant program can help your organization achieve greater efficiency, build expertise among staff (including program staff), and decrease uncertainty when planning for the year.

As we approach the end of this calendar year, now is a great time to think about the state of your grant program, and what you’d like it to achieve over the next 12 months. Below we’ll walk you through some tips and exercises to help you set meaningful goals for your grant program in the coming year.

What Should a Grant Program Aim to Achieve, Anyway?

Just like your other programs, your grant program needs to advance your organizational mission. Tempting as it might be to throw proverbial spaghetti at the wall and pursue any grant you think might win you money, staying focused on the opportunities that support and align with your nonprofit’s existing programs, impact goals, and/or other organizational objectives is key.

As you’re outlining your goals, it’s also important to walk the line between aspiration and pragmatism. Your goals should be based on an understanding of what is feasible, and accurately reflect the resources (i.e., time, effort, and focus) it will take to deliver results. Once you establish what these specific goals are, it’s important to review your progress regularly and make adjustments as needed.

The Nuts and Bolts of Meaningful Goal Setting

We recommend zeroing in on 3-5 measurable, feasible, and sustainable goals for your grant program each year. Remember, these goals should focus on more than just dollars; instead, aim to set goals that help your organization secure the resources it needs in order to sustain (or grow) its work.

Some good examples include:

• Secure our first grant award this year.
• Win $75,000 in new funding, from at least 3 different funders.
• Close the funding gap for our Senior Services program.
• Cultivate 10 new relationships with funders.
• Leverage our new Board Chair’s relationships to grow our prospect list by 10.
• Improve our program evaluation by securing a capacity building grant.

Tips for Setting the Right Goals for Your Grant Program

1. Start with what you need.

A great place to start is to review your budget gaps: What programs need funding? Are you losing any key funders this year or in the next 2-3 years? What do those numbers look like? Also take time to review expense budgets for each program, as well as any dedicated and allocated revenue for each program, and factor those into this process as well. Keep in mind that this will likely take time, and your leadership must be involved

2. Next, add in what you’d like.

Once you’ve assessed and accounted for your immediate needs, consider your larger vision for the future of your organization and programs. What additional resources might you need to realize that vision and/or achieve those goals?

3. Be Realistic!

At Elevate, we use two primary tools to ensure are goals are rooted in reality: a landscape analysis, and a forecasting document.

We recommend conducting an analysis of your peers, to give you a fuller picture of the landscape and help you set reasonable goals and expectations. Start by assessing who your peers and competitors are – aim to identify 4-10 peer organizations, and look at how they similar or different to your organization or programs. Once you have your list or peer organizations, do some research to see how much funding they receive from grants or foundations, including which funders support them and the average award size. Doing this type of analysis will also help you determine whether it’s feasible for your organization to reach your revenue goals through grants alone.

A forecasting chart helps you understand and anticipate how much funding your grant program might secure in the coming year based on probability. It helps you plan for the uncertainty of losing grants you did not expect to lose – and win grants you did not expect to win!

The basic steps for putting together a forecasting chart are to:

• Estimate the likelihood you will win a grant; and then
• Multiply that by the amount of money requested.

Here’s the math:
$ ask amount x % probability of winning = $ expected revenue 

For example:
$100,000 request x 50% probability = $50,000 expected revenue

You’ll then add each anticipated proposal’s expected revenue together to create a forecast and get the total expected revenue from grant funding for your organization. Remember: your goal is not to get everything about every funder right! Instead: it is to play the averages and get your total projections as close as possible to reality.

For more on how to create a forecasting chart, plus a free downloadable template, check out this blog post.

4. Consider your organization’s unique story.

The more aware you are of your organization’s history, strengths, vision, and challenges, the better equipped you’ll be to set goals for your grant program that strengthen and deepen the impact of your work. Below are a few examples of how you might map your understanding of your organization onto your goals for the year:

Organizational Strength: Our adult workforce development programming serves more people, with greater need, than many of our peers.

• Grants Program Goal: To secure public funding for our adult workforce development programming from the city for the first time, and explore at least 2 state grants. To focus on renewing existing workforce development grants and pursue at least 2 new large ($50,000+) grants for this program.

Organizational Challenge: Our youth mentoring program does not stand out among our peers.

• Grants Program Goal: To secure a capacity building grant to improve the program design and evaluation.

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We wish you all the best in setting and reaching meaningful goals with your grant program in 2020! And stay tuned for a follow-up blog post on how to measure if your grant program is working over the course of the year.

Written by Alayna Buckner and Michelle LaCroix

November 21, 2019

November is National Gratitude Month. But, what does gratitude mean exactly? And specifically, what does it mean for us as fundraisers?

As professionals in the nonprofit sector, practicing meaningful gratitude with our donors may seem more complicated than how we practice it in our personal lives. Unlike showing and returning kindness with friends and family, which tends to feel more like second nature, practicing gratitude with institutional funders might seem more forced or complicated. This may have to do with the formal structures around foundation’s giving programs, or even the perceived distance between us and our funders.

I’d like to argue that practicing gratitude with your institutional funders can be easy, meaningful, and even fun.

To support you in growing your foundation gratitude initiatives, I’ve compiled my top five suggestions of ways to show gratitude to foundation funders. In taking these steps, your organization will open opportunities to steward partnerships with your institutional funders to new depths and perhaps in turn drive further impact (and kindness) together.

1. See you later, boring thank you letter

Believe me, I have sent a foundation that stale, mail-merged acknowledgement letter. It makes sense when you’re running a batch of thank you letters to partially customize the general thank you letter for a foundation (all you really have to do is remember to remove the tax-deductible language, right?) and get it out the door. But to truly show gratitude through this communication, I recommend that you take the extra 30 minutes to write a highly-customized thank you letter to each foundation funder. Add details that link back to what the grant will support, your proposed impact, and appreciation for the process, insight, and investment the foundation has provided your organization. Emily Post would be happy to have me recommend and additional handwritten thank you note to send following the formal organizational thank you letter. If it feels right to you, I think it can be a nice touch.

2. Hello, public acknowledgements

Publicly acknowledging your funders is an easy way to demonstrate gratitude. Some funders have strict guidelines for using their name/logo publicly, so be sure to check your award documentation before giving them a shout out. Additionally, reaching out to the foundation to ask them about your public acknowledgement ideas (listing on your website? plaque on the wall? logo in a program book?) is another natural way to continue your demonstration of gratitude. Many organizations miss this easy type of opportunity to demonstrate gratitude for their foundation funders because there is often a preconceived (and possibly incorrect!) notion that foundations don’t want to be recognized in this way.

Another creative publicity avenue you might consider: including a feature in your organization’s newsletter or annual report that highlights a specific foundation, and how their investment advanced your program or initiative.

3. Not your average grant report

Grant reports can feel very formulaic. But what if we used them as both an opportunity to demonstrate our organization’s efficiency and impact, but also infuse them with gratitude? I am not suggesting that your formal grant reports to your foundation funders turn sappy or over the top, but rather asking you to recognize that the grant reporting process as an appropriate point to remember and practice gratitude. Beyond the formal report, perhaps this could be a point, at the end of a grant period, to send the Emily Post style handwritten note (or email, I suppose) that reflects on the impact of the grant and why you are thankful for that investment in your organization.

4. Won’t you be our guest?

Does your organization have an annual fundraising event? Gala? Breakfast? Have you invited your foundation funders as your guests? Yes, foundation funders, board members, and program officers are invited to many more events than they can (or want to) attend. However, extending the invitation is a great opportunity to demonstrate gratitude. Let your funders know why you are inviting them (will there be a presentation on the program they are funding? will they have an opportunity to hear from program participants directly? are you launching a new program that would be of interest to them?) and in most cases, make sure they know that you want them to attend without purchasing a ticket or sponsorship. If your funder RSVPs “yes”, make sure you have a plan to appropriately welcome them and have opportunities to engage with them during the event.

5. Come by for coffee

Finally, beyond an invitation for your event, is there an opportunity to thank your foundation funders in person? I think there can be! Even in cases where a funder came out for a site visit within the last year (or more, depending on the length of the grant period), a year might be a bit too long to go without an update or demonstrated gratitude from your organization.

Look for original/exciting opportunities to invite your foundation funders to your organization. Sometimes because of the formal processes around applying for and winning grant funds, we forget that there are actual people sitting down to write those checks – and that maybe they would enjoy sitting down for a cup of coffee and hearing what that means to your participants and your organization.

Don’t get me wrong, there comes a point when you will feel that you are over-thanking your donors and its ok to stop the thank you train. What I am not proposing is that you do everything on this list at all times for all funders; what I am proposing is that as an organization or fundraising department, you think on a deeper level about how you thank your foundation funders.

I hope that you found a helpful tidbit in here to strengthen your organization’s practice of gratitude, now in November, and throughout the year. Keep that gratitude going!

November 6, 2019

Elevate is proud to share that several of our team members were selected to present three different breakout sessions at the Grant Professionals Association Annual Conference, which was held November 6-9, 2019 in Washington, DC!

Leading up to the conference, we’re sharing previews of these sessions, and some of what our presenters will be teaching. In this post, we’re looking at what it takes to put together a smart, strategic prospect research strategy for your organization.

Developing a clear prospecting strategy and organizing your prospect research to identify the best-aligned foundation and corporate leads for your organization is critical to the success of any prospecting effort.

No matter how robust your organization’s grants program may be, nonprofit leaders are often in a position where they need to identify and pursue new sources of funding. And since no organization can (or should!) pursue every possible funding opportunity that comes along, having a thoughtful strategy in place to help guide prospect research is essential so that we spend our time researching, identifying, and pursuing high-quality prospects.

So how does one build a prospecting strategy? Below we’ve outlined a few steps to help you create or refine your plans.

1. Create an ideal prospect profile

The first step is to get crystal clear on what a good prospect looks like for your needs. We find that our clients often want to pursue new prospects, but don’t yet have a clear vision within their organization of what a well-aligned prospect actually looks like for the work they do. In our experience, an “ideal prospect” should share an interest in the audience you serve, the geographic reach of your organization, the needs of the community, and the type of support you need, to name just a few.

In building your list of these points of alignment, you’ll want to ask yourself both, “What do we have to offer a funder?” as well as, “What do we want/need most from a funder?”

While creating your “ideal prospect” profile, you’ll also want to consider what are the deal breakers for your organization. For example, many organizations have policies that ensure that any partners they engage with align on key values. Small organizations may not have the capacity for very robust data tracking that some funders require. What are those factors that might lead your organization to decline funding? You’ll want to do your due diligence in the prospecting phase in order to avoid a lot of wasted effort later in the process!

2. identify and prioritize your search criteria

Using the “ideal prospect” profile you put together in step 1, you should then start to identify the criteria you’ll use to search for potential funders, and organize your internal research process based on your priorities. The greater the number of points of alignment you have with a funding prospect, the higher the probability that this prospect will be interested in supporting the organization’s work.

3. Assess the competitive landscape

Once you’ve gotten clearer about what you’re looking for in a funding prospect, this is a great time to do a little research into your peers and competitors to better understand the field in which you are competing for resources. Who is funding your peers? For what projects? At what grant amount? Some of these organizations are going to be your best prospects, as well. (And remember, it is rare for a foundation to only award one or two grants per cycle, so if you are successful in going after a peer organization’s funder, you are not necessarily taking resources that would have otherwise been designated for the other organization!)

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Once you’ve tackled these three steps, we recommend you also consider focusing on getting information and buy-in from your internal stakeholders – such as the organization’s leaders and program staff – to develop your strategy. Include them in this process! This could start with something as simple as developing a clear and concise summary of your prospecting strategy and sharing it internally for feedback.

Ultimately you will want to develop a process for identifying and qualifying prospects to ensure that you are pursuing the most strategic, actionable opportunities possible. Think quality over quantity! If you are successful in developing and executing an effective prospect research strategy, you’ll be well-positioned to spend your limited time going after those prospects that are the most likely to be interested in funding your work.

Written by Caroline O’Shea and Jennifer O’Brien

Photo courtesy of wocintechchat.com

October 28, 2019

As fundraisers who craft customized language each and every day, we are deeply aware of how words can be used to inspire, persuade, and inform others. However, we may not always be aware of the impact our language can have.

Research shows us that linguistic patterns can perpetuate real-life power disparities. Even small differences in language can reveal personal bias, beliefs, and perception of a situation or group of people.

While it may seem counterintuitive to mainly focus on the power of people when discussing their needs, here are a few key reasons to adopt empowering, strengths-based language in your fundraising strategy:

Empowering language reflects the full reality of those you serve.

Because language shapes perception, we have a responsibility to represent our constituent’s and their experiences wholly and truthfully – the way anyone would like to be represented when being introduced to a new party. The communities your organization serves are resilient, fully capable, and will persist with or without philanthropy. Every individual has their own agency, goals, and desires, and communities will always have existing networks in place to support their needs, therefore the stories we share should reflect that reality.

This doesn’t mean that there isn’t a need facing the community, but instead emphasizes that the need is not insurmountable. The need is not only multifaceted, but contextual. Reflecting on the real power of people through your choice of language is an essential part of building an empowering and authentic relationship between your community and your supporters.

Empowering language aligns with shifts in foundation priorities in the nonprofit sector.

With the understanding that language matters, many funders are choosing to lead the charge in adopting and modeling empowering language. Top institutional givers, such as Ford and the California Endowment, as well as young foundations like Echoing Green are shifting their priorities to focus on addressing issues of power and equity.

As fundraisers, using empowering language positions us to cultivate relationships with funders that positions us as advocates and educators for our communities, while also giving us the opportunity to respond to the shifting funding landscape. Choosing to use empowering language is one step towards building power and equity for your community – and can be a key method for demonstrating your alignment with funders’ interests.

Empowering language amplifies your mission.

Whatever your specific mission, your vision is built around serving a need in your community. Empowering language is a way of representing your organization and community. It is a method that can be applied across issue areas, interventions, and program structures.

Empowering language can amplify your mission because it serves to change the understanding of your work at a fundamental level – motivating others to see solutions rather than barriers. By focusing on the power, strength, and resources in your community, you are demonstrating how you are part of the solution, rather than part of the problem.

Want to continue the conversation about developing and using empowering language to advance equity?

Join Alison, LaTissia, and Sierra at the GPA National Conference on November 7^th for a panel discussion for nonprofit professionals on how to use language strategically to build power for your constituents at every level of the fundraising process! To learn more about the topics that other Elevate staff will be presenting at the conference this year, stay tuned for upcoming blog posts.

Additional resources:

• Elevate Blog Post: Introduction to Inclusive Writing
• Language and Power
• The Power of Language: How words shape people, culture
• Language that Reinforces Inequality
• Generic language helps fuel stereotypes

Written by Sierra Francis Perez and Alison Hight

This article was developed in conjunction with a presentation at the 2019 Grant Professionals Association Annual Conference created and led by Elevate staff.

October 28, 2019

Elevate is proud to share that several of our team members were selected to present three different breakout sessions at the upcoming Grant Professionals Association Annual Conference, which was held November 6-9, 2019 in Washington, DC!

Leading up to the conference, we’re sharing previews of these sessions, and some of what our presenters will be teaching. In this post, we’re looking at some of the complexities of fundraising for advocacy activities, particularly as they complement direct services, and how to craft compelling grant proposals that win funding for this type of work.

Many nonprofit organizations that aim to achieve social change by providing services to their communities have begun incorporating advocacy activities alongside their direct services.

But because the results of advocacy work are often long-term, and the context can get complicated very quickly, it can be difficult to write a compelling request for funding.

In this post, we’ll be taking a closer look at what advocacy work is and how it can complement direct service work, some of the challenges involved in fundraising for advocacy, and best practices for preparing compelling requests – all of which will help you find, pursue, and win more grants for your advocacy activities. 

What is Advocacy? And how is it different from direct services?

The Alliance for Justice defines advocacy as any action that speaks in favor of, recommends, argues for a cause, supports or defends, or pleads on behalf of others. Advocacy is a powerful catalyst for change that can improve the laws, policies, and systems that impact entire communities. For the purpose of this article, we think of advocacy as systems change – in particular, policy change.

On the other hand, we define direct service as the provision of resources, programs, and benefits that work to address the symptoms of social problems and meet the immediate needs of your target population. Some common examples of direct services organizations include health clinics, food pantries, soup kitchens, and organizations that provide services like individual skills training or education, mentoring, or case management.

For direct services agencies, the most common types of advocacy are:

• Organizing – for example, building power at the base;
• Research – for example, gathering and presenting on-the-ground data;
• Educating decision makers – for example, meeting with policymakers to educate them about the issues affecting their communities;
• Educating the public about the legislative process – for example, amplifying the voices of people who benefit directly from an organization’s programs; and
• Lobbying.

Understanding the Funding Landscape, and the Challenges

There are many funders who recognize the synergies between direct service and advocacy, but there are many more (particularly at the local level) who are not well versed in the relationship between advocacy, direct service, and their own philanthropic goals. For this reason, fundraising for advocacy has several built-in challenges that are helpful to be aware of from the start.

For instance, local funders and foundations that are used to funding direct services may not always have the staff or the bandwidth to discuss specific proposals and advocacy strategies, to learn more about how an organization’s advocacy work aligns with their impact goals. Relatedly, these funders often shy away from funding advocacy because they conflate advocacy work with lobbying.

On the other hand, while there may be fewer funders willing to fund advocacy activities compared to direct services, the good news is that the funders who do fund advocacy often offer larger and/or multi-year grant awards, more general operating support, and a different (and often less-intense) focus on outcomes during the grant period – because they understand the nature of this type of work.

Of course, to win grant awards to support your organization’s advocacy work, you’ll have to prepare a persuasive proposal that makes a strong case for funding.

Best Practices for Crafting a Compelling Request for advocacy

When it comes to drafting a strong proposal, knowing how to frame your outcomes, goals, and objectives in the context of advocacy is often a major stumbling block. It may help to think of them as follows:

• Outcomes are the overarching changes you are hoping to bring about;
• Goals are the tangible steps that occur to make this change possible; and
• Objectives are the measurable activities you will implement to achieve the goal.

If we zoom out one step further, here is an example of how to approach some other key sections of your grant proposal when you’re requesting support for advocacy activities:

• Needs Statement – Demonstrate the need for advocacy
• Organizational Summary – Build your organization’s advocacy credibility
• Program Description – Spell out your key advocacy activities; do they tie in with your direct service?
• Goals, Objectives, and Outcomes – illustrate the systems change that will occur because of your work

In short, your objective in your grant application should be to clearly illustrate the change you’re hoping to achieve, how you expect that change will play out over time, and the role your organization will play in producing that change.

Written by Noura Hemady and Eric Spioch 

October 21, 2019

At Elevate, we’re always looking for talented, motivated and collaborative people to join our team. We hire most of our positions on a rolling basis, which means we’re looking at cover letters, resumes, and work products on a weekly, if not daily basis.

Whether you’re applying for a position at Elevate, or another mission-driven organization, it’s important to put your best foot forward — which starts with your application materials.

From typos and poor formatting, to boilerplate resumes and cover letters that mention the wrong company name, there are plenty of chances to make a silly mistake and potentially cost yourself an interview!

To help, we’re sharing our best advice — compiled after reviewing hundreds of applications over the years. The five tips below will help you emphasize your strengths, avoid common pitfalls, and submit an application that increases your chances of standing out for the right reasons.

Tailor your materials to the organization and the position

As a grant writing firm,  tailoring standard grant language to each specific funder is key to a strong grant. Similarly, a cover letter that’s tailored to Elevate and the specific position to which you are applying is key to any applicant’s success. 

Your job as an applicant is to make the strongest possible case for why YOU are the ideal candidate for this specific position. As such, tailoring your materials to the specific role you are applying for is a must. Some hiring teams may place more emphasis on reading cover letters, while others focus more on resumes; you likely won’t know up front which type of company you are applying to, so it’s best to spend time customizing both.

The best candidates will highlight the direct experience that relates to the position, no matter how small. Make sure the reader knows that you understand the role and have experience that will translate into your new job.  For Elevate, we look for candidates at all levels with a strong writing background, as well as those with nonprofit experience – even volunteer or classwork can demonstrate the kind of relevant experience we like to see. Make sure you include it!

Make every word count

Words matter! That is particularly true if you’re applying for a job at Elevate, where we’re a team of professional writers. Keep these guidelines in mind, to ensure your materials are top-notch:

• A job description is full of helpful hints to create a strong application. Look for the skills, duties, and requirements listed in the job posting, and make sure you align your skills and experiences to match.
• Just like a grant proposal, your cover letter should tell a compelling story. Remember to be concise, and avoid getting too far into the weeds.
• Focus on results, impact and outcomes. Don’t just list your job descriptions, activities, or extracurriculars; demonstrate how those experiences translate to this specific job, and why they make you uniquely qualified for the position.
• Be selective about which software, platforms, and technical skills you include. For example, Elevate uses Salesforce heavily, so we’re always interested in knowing when candidates have Salesforce experience. On the other hand, unless it’s relevant to the position, you likely don’t need to include your social media handles, experience with Microsoft Office or Gmail, etc.
• Enumerate! Use numbers and metrics to demonstrate the depth and breadth of your experience:
  • How many people did you manage?
  • How often did you deliver a report?
  • What were you the first to accomplish?
  • How large was the budget you managed?
  • How much have you won in grants?
• Make sure your resume length is appropriate, given your tenure in the workforce. For example, a recent college graduate should not submit a multi-page resume.
• Space is at a premium, so aim for maximum impact. Avoid repetition, passive voice, and long lists; instead, use action words and persuasive argumentation to demonstrate your value and accomplishments. There are plenty of online resources available to help with this!

Highlight what’s important

Use the hierarchy of a resume to your advantage to highlight the most pertinent information. For example, unless you’re still in school, your Professional Experience section should be listed above your Educational Experience. Also, unless your GPA is outstanding, or the company has asked for it, don’t bother including it. And if you’ve been out of school for a year or more, don’t list your GPA at all. 

If you don’t have the exact type of experience listed in the position description, draw attention to the relevant experience you DO have, and make a strong case for how it would serve you in this role. Don’t make the hiring team connect those dots – paint the picture for them. For example, what skills did you develop as a writer or editor at a college publication that would make you a strong grant writer?

Think like a hiring manager

A recent study from TheLadders shows that recruiters spend an average of six seconds reviewing each resume. That’s a very small window in which to make a strong impression! At Elevate, we review all cover letters and resumes in house – but there are a few things that jump out right away to demonstrate your interest in Elevate, not just any job. Things like:

• Did the applicant read the directions? For example, we specifically ask applicants to tell us why they want to work at Elevate. If a candidate’s cover letter doesn’t even mention Elevate, it notes a lack of attention to detail.
• Does the applicant understand and demonstrate the skills that tie to position we are hiring? The original job post will provide that roadmap!
• Did they complete the application?  We ask for both a resume and a cover letter – make sure you provide exactly what has been requested.

Don’t skimp on the finishing touches

Make sure your cover letter and resume are saved in PDF form, and give everything a final review before you hit submit. (You would be amazed how many documents we receive with comments or edits in the margins.) Similarly, demonstrate your attention to detail by double-checking things like the date on your cover letter, and making sure you don’t have one stray bullet point on its own page. These seem like small things, but they could be a deal breaker for some reviewers. 

Once you submit an application be ready for the next steps. For example, make sure you have a professional sounding outgoing voicemail for calls from hiring managers. Be prepared to interview in person on short notice. Watch you email (including your spam inbox) for follow-up – which may include tests or skill assessments.

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We hope these tips and tricks serve you well in your job search, no matter what jobs you apply for. And, if you’re the kind of person who loves working hard for social change, and you have experience in fundraising, grant writing, consulting, project management and/or other nonprofit work, we’d love to hear from you!

Keep an eye out for part two of this series, for tips on how to prepare for an interview and make the strongest possible impression during the next step of the hiring process.

Photo courtesy of wocintechchat.com

September 24, 2019

Dozens of Elevate clients experience executive transitions every year. To help our clients better understand how to engage funders throughout the process, we’ve partnered with Carlyn Madden, a search consultant and former grantmaker based in the Washington, DC region, on a three-part series to highlight the challenges and opportunities of executive transitions.

In this post, we’ll hear advice from funders in the DC region about how nonprofits can engage before, during and after an executive transition.

Thanks for following along over the last few weeks to learn how you can successfully manage (and even strengthen) funding relationships during an executive transition. For previous posts, check in with Part 1 and Part 2 of the series.

PART 3:

Prompt, consistent, and transparent communication is critical to engage funders throughout an executive transition process.

This summer, search consultant Carlyn Madden connected with three funders in the DC region. In discussing what makes for successful executive transitions, common pitfalls for nonprofits to avoid, and strengthening funder relationships throughout the transition period, this blog post draws upon experiences of professionals working in a variety of capacities with private and family foundations.

Special thanks to Julian Haynes, the Maryland Program Director at the Meyer Foundation; Mary Mulcahy and Tobi Printz Platnick, Associate Directors at The Morris and Gwendolyn Cafritz Foundation; and Julia Baer Cooper, Philanthropic Advisor at SARC Consulting for sharing their perspectives on this topic.

On successful traits, common pitfalls, and internal candidates:

“The most successful transitions don’t come as a surprise to funders. If an executive director announces their transition alongside a request for funding to support that transition, I’m not often able to be as helpful as I could if we had been in an ongoing dialogue. I often check in with grant partners about their transition and succession plans during periodic meetings or site visits. Because we have established trust and candor, we’re able to have open and transparent conversations about the process. We had a recent example of a founder-led nonprofit that we’ve supported over the years. The founder and I discussed her need to get staffing structured in a way that would allow her to step back from the day-today, and ultimately transition. We provided funding toward a sabbatical, which gave the E.D. a needed break and allowed them to begin making a plan with their board and small staff. For me, this is a great example of when there is a trusting partnership between the funder and the nonprofit, it is easier for the transition to go smoothly.”
Julia Baer Cooper, Philanthropic Advisor, SARC Consulting

“There has been more than one instance of us finding out about an executive transition by someone forwarding me the job posting. It is not every day that an E.D. leaves, willingly or otherwise. So while often not a shock, I do expect to hear the news from the board. A mass email or something personalized – it doesn’t make a difference. The most important thing is that we are made aware of the situation. Very often, an E.D. or senior staff member who has left an organization will reach out to us directly, so it’s in the board’s best interest to frame the narrative quickly to stay ahead of any rumors.”
Tobi Printz Platnick, Associate Director, The Morris and Gwendolyn Cafritz Foundation

“It’s best when grantees are upfront and transparent with funders as early as possible. We like to see board leadership and a robust search committee engaged in the process. A thoughtful, thorough approach will identify new leadership to take the nonprofit where they want to go. That said, boards are often compelled to look for bright and shiny external candidates, missing an opportunity to consider inside talent. An internal candidate who knows what works and what doesn’t can do a lot for an organization’s culture and stability.”
Julian Haynes, Program Director for Maryland, Meyer Foundation

“One example of a well-planned leadership transition would be an Executive Director reaching out to me to say, ‘I just announced to the board that I’m leaving in six months. There is a succession plan already in place. I’ve made myself available to advise the board, but I won’t be a part of the process.’ On some occasions, however, an E.D. calls to share news of their departure, followed by an announcement that they plan to join the board. We’ve seen this set up their successor for failure and cause rapid leadership turnover, ultimately damaging the organization. Another challenging situation can occur when, in response to an unplanned departure, the board gives the job to a current staff member without enough due diligence. Often, the incoming Executive Director is not prepared for the role and lacks a clear understanding of what it takes to be an effective leader.”
Mary Mulcahy, Associate Director, The Morris and Gwendolyn Cafritz Foundation

On the role of the outgoing executive director during a transition:

“When an Executive Director confides in me that they’re planning their departure, I recommend they spend a week keeping track of their “billable hours.” Recording everything they do in 10- or 15-minute increments will help inform their job description. For example, a board might guess that an E.D. spends a third of their time on fundraising, but in reality, the E.D. manages a large federal contract and the time spent is closer to 60 percent. Only the current E.D. will really know this.”
Tobi Printz Platnick, Associate Director, The Morris and Gwendolyn Cafritz Foundation

“A period of overlap with the next executive director can be useful. I think it works best when the departing Executive Director is contracted as an advisor, rather than remaining on the payroll. Nonprofits that won’t be engaging the outgoing E.D. should consider hiring an interim director. Having stable leadership at the helm gives the board time to figure out what type of leader the organization will need moving forward.”
Mary Mulcahy, Associate Director, The Morris and Gwendolyn Cafritz Foundation

“I have seen successful transitions where the outgoing executive director has a limited connection in an advisory capacity. This allows an outgoing E.D. to remain accessible and available when the new E.D. reaches out for institutional knowledge, but do not insert themselves into the day-to-day affairs of the organization.”
Julian Haynes, Program Director for Maryland, Meyer Foundation

“The outgoing executive director’s role totally depends on the nonprofit – there is no ‘one size fits all’ approach. An overlap can help with the hand off, but sometimes this isn’t possible. It is important that the board identify the E.D.’s ongoing relationship as the transition begins and communicate this during the recruitment process. For some nonprofits, having the outgoing E.D. join the board or serve in an advisory capacity makes sense, with deference to the new executive – but in other cases, and depending on personalities and many other dynamics – it’s best if the outgoing E.D. steps away completely so new leadership can flourish.
Julia Baer Cooper, Philanthropic Advisor, SARC Consulting

On getting acquainted with program officers:

“New executive directors should reach out early in their tenure. It’s best for them to introduce themselves by email or phone, and inquire when I’d like to meet. For me, it often depends on where their organization is in our grant cycle, but their other funders might prefer meeting face-to-face early in the relationship.”
Mary Mulcahy, Associate Director, The Morris and Gwendolyn Cafritz Foundation

“I appreciate the opportunity to grab coffee and discuss how I could be helpful beyond grant support to new executive directors. Timing can depend on the grant cycle, but I definitely would like to meet the new leader before I make a recommendation. If it’s off cycle, I leave it up to them – either now or wait a few months for when they feel they have a better grasp of things.
Julia Baer Cooper, Philanthropic Advisor, SARC Consulting

“Outgoing executive directors should ensure that their staff is prepared to brief the incoming E.D. on the details of our relationship, such as deadlines, reporting, and the basics of our last conversation. Many incoming E.D.s come in with strong fundraising backgrounds and know how to use our first conversation to maintain momentum. On the other hand, sometimes things get lost in the shuffle and we see grantees miss reporting and application deadlines because the staff was not given enough guidance to manage the moving parts during the transition.”
Julian Haynes, Program Director for Maryland, Meyer Foundation

On supporting organizations during transitions

“The Meyer Foundation supports grantees experiencing executive transitions, though obviously there are exceptions. Ultimately, pulling funding from an organization when its most vulnerable is completely counter to the way that we think about building grantee capacity. In fact, we have used capacity building grants to support the organization during transition.”
Julian Haynes, Program Director for Maryland, Meyer Foundation

“We typically fund our existing grantees during an executive transition. We are confident in organizations that can outline a process and timeline for a hiring process, but if things seem to be too in flux, we’ll hold the proposal to consider during the next grant cycle when leadership is stabilized. For Cafritz, an executive transition is not the right time for prospective grantees to apply. It is often better to wait until a new leader is in place, and they have been able to put ‘their own mark’ on a funding request.”
– Tobi Printz Platnick, Associate Director, The Morris and Gwendolyn Cafritz Foundation

“In general, I’m not opposed to supporting a nonprofit during a transition, but it depends on their approach. For a larger, well-staffed organization, I expect that it is probably business as usual – programming stays the same, administration and financial management remain constant.  For a small nonprofit, whose executive director wears many hats, the organization may be less stable.  A well-thought out succession plan supports how the board leads through the transition, and assists my case for sustained funding.”
Julia Baer Cooper, Philanthropic Advisor, SARC Consulting

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The Meyer Foundation, established in 1944 by Eugene Meyer, an owner and publisher of The Washington Post, and his wife, the author and social activist Agnes E. Meyer, is one of the Washington area’s oldest and largest locally-focused philanthropies. The Foundation’s mission is to pursue and invest in solutions that build an equitable Greater Washington community in which economically disadvantaged people thrive.

The Morris and Gwendolyn Cafritz Foundation is the largest private, independent, local foundation focused exclusively on the Washington, DC metropolitan area. The Foundation is committed to improving the quality of life for residents of the Washington, DC area.

SARC Consulting, founded in 2000, advises foundations on philanthropic investment by assisting clients with long-term planning, grantmaking and program research. SARC provides short-term and project-based assistance for some clients while also serving as quasi-staff in an ongoing long-term relationship with others. SARC helps clients launch new philanthropic ventures and provides continuing support for long-established foundations

Preparing for your nonprofit’s next executive transition? Carlyn is offering Elevate clients a free phone consultation to help plan your next steps – from succession planning to promising recruitment practices. Learn more about her work at www.carlynmaddenconsulting.com.

September 17, 2019

Dozens of Elevate clients experience executive transitions every year. To help our clients better understand how to engage funders throughout the process, we’ve partnered with Carlyn Madden, a search consultant and former grantmaker based in the Washington, DC region, on a three-part series to highlight the challenges and opportunities of executive transitions.

In this post, Carlyn will share tips and tricks for strengthening funder relationships throughout an executive transition. Coming up, we’ll get insights directly from a few funders from the Washington, DC region. To start from the beginning, read Part 1.

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PART 2:

A good executive transition is a well-planned executive transition.

Executive transitions are common in the nonprofit sector, with research suggesting that 60%-70% of nonprofit executives planned to leave their jobs within five years. Most nonprofits report feeling unprepared to undertake an executive transition. BoardSource’s 2017 Leading with Intent: A National Index of Nonprofit Board Practices indicates that just roughly one in four nonprofits have a succession plan in place. Unsurprisingly, a lack of preparedness can cause funder relationships to become unstable.

Before consulting, I spent close to a decade managing grant portfolios and programs. These experiences have provided me with a birds-eye perspective of all types of transitions – from transformational leaders that accelerated their impact to poor placements that drove them out of business; from honoring an incredible founder’s legacy to emergencies following a tragic death.

A well-planned, well-executed executive transition offers nonprofits the opportunity to reflect on the future: the vision, skills, and resources necessary for their next chapter. Funders like to support great leaders – and a thoughtfully planned process is a cornerstone of great leadership.

Below are five pieces of advice I’ve gleaned over the years for how best to sustain your relationships with funders during executive transitions.

1. Don’t let them be the last to know

As a major investor in your nonprofit, they deserve to hear the news from you, not the Washington Post.

After notifying the board about their imminent departure, an outgoing CEO should reach out to their funders. The board chair should lead outreach in cases of sudden departures. Be prepared to introduce a new point of contact for the transition; discuss the process (i.e., if an acting or interim director will be named and/or if a search firm will be hired); any necessary (and truthful) assurances that the programs they have funded will be maintained in the outgoing director’s absence; and the role, if any, the outgoing CEO will play for the organization following their departure.

2. Inquire about capacity building grants

With enough advance notice, some funders can support a grantee’s transition costs.

As a funder, I could recommend discretionary grants to support one-off projects or increase an award during the regular grant cycle. Could one of your funders help with transition costs, such as search consultant fees? It never hurts to ask, as it indicates that your nonprofit is serious about managing the transition. It is important to request the right amount at the right time, so speak to a few consultants in advance to understand project fees and speak to your program officer about the process before preparing a formal inquiry.

3. Consider an interim director

An experienced interim executive director gives funders assurance about your nonprofit’s stability.

Interims are typically seasoned nonprofit executives who oversee key management and programmatic functions during the transition, while also helping the board assess the skills necessary for its next leader. Their costs are in the same range of an executive director’s salary with an engagement ranging from 6 to 18 months. Consider inquiring with funders to connect you to grantees who could make a referral. In the DC region, the Interim Directors Network is a great resource.

4. Tap into knowledge and networks

Funders work with dozens—if not hundreds—of nonprofit executives. They might let you tap into their network of qualified candidates.

Many, but not all, funders have warm, open grantee relationships. Inquire if your search consultant could include your program officer in their stakeholder interviews. Pass along the job posting, along with a request to distribute it within their network. Funders are well connected, and many are happy to circulate information about your search. However, this should be the extent of the collaboration–your funder should not influence the board’s hire.

5. Introduce new leadership early

Your funders are excited for your next chapter and will look forward to meeting your new hire.

Make sure your outgoing CEO has left great notes about the status of the relationship in your donor database and have development staff brief the incoming CEO on any pertinent talking points. It will be helpful for the new CEO to read through past proposals and reports. When the board chair shares the official announcement and a personal introduction, it reinforces the board’s commitment to the process. Take the lead from the funder on next steps – setting up an in-person meeting to begin building the relationship if they make themselves available.

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But what if they won’t fund us during a transition?

Some funders pause grantmaking during executive transitions.

Some funders use what Vu Le, author of Nonprofit AF, calls a “wait and see” approach, withholding grants until new leadership is in place. While a frustrating practice, it becomes that much more important to steward funder relationships during the transition. Inquire about what updates they would appreciate, make sure they receive your newsletters, and make a personal introduction to a new, if just temporary, point of contact. Involving other staff decentralizes the cultivation process and reassures funders that your competent staff is operating as usual with little negative impact on your nonprofit’s performance.

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Stay tuned for the final post in this series, where we’ll get advice directly from funders about their views on managing relationships during executive transitions.

Preparing for your nonprofit’s next executive transition? Carlyn is offering Elevate clients a free phone consultation to help plan your next steps – from succession planning to promising recruitment practices. Learn more about her work at www.carlynmaddenconsulting.com.

September 10, 2019

Dozens of Elevate clients experience executive transitions every year. To help our clients better understand how to engage funders throughout the process, we’ve partnered with Carlyn Madden, a search consultant and former grantmaker based in the Washington, DC region, on a three-part series to highlight the challenges and opportunities of executive transitions.

In this post, Carlyn will help us examine different types of transitions. In future posts, she will share tips and tricks of how to strengthen funder relationships before, during and after executive transitions and we’ll gain insights directly from funders in the Washington, DC region.

Follow along over the next few weeks to learn how you can successfully manage (and even strengthen) funding relationships during an executive transition.

PART I:

Each nonprofit is unique. Each executive transition will be different.

The grantmaking community has a saying, “Once you’ve met one foundation, you’ve met… one foundation.” I think you’ll agree that no two foundations are alike.

I would argue that the same can be said about nonprofits. For example, one education nonprofit is usually vastly different than its peers – different curriculum and different approaches; different client focus and communities served; different business model and financial resources.

Each nonprofit also has different executives with different tenures, leadership styles, and ideas about how their transition will play out.

According to BoardSource, the U.S. leader in nonprofit governance tools and resources,  “the type of transition influences the challenges involved and the strategy the board will adopt to manage the process…” Identifying the specific type of transition an organization is experiencing can help staff more effectively understand its nuances, manage the transition’s challenges, and capitalize on its unique opportunities.

BoardSource uses an extensive range of tools, resources, and research data to increase board effectiveness and strengthen organizational impact. The graphic below outlines BoardSource’s five classic examples of leadership transitions. Click through to read more about considerations for each type of transition.

Once you understand the type of transition you’re experiencing and start to plan your executive transition, we invite you to consider these questions in context with your unique situation.

• Has your board approved a succession policy and a plan to handle sudden and planned transitions? Is your nonprofit covered in case of an emergency?
• Has the board recently reviewed executive’s job description and compensation? What additional financial resources may be necessary to attract a new CEO?
• How well organized is your nonprofit’s donor database? Is information about the status of different grants and funder relationships easily accessible to the new CEO?
• Who will manage the organization’s existing funder relationships during the transition? What steps will be taken to maintain communication following the CEO’s departure?
• Is a stakeholder communications plan in place to reassure funders that the transition will have minimal disruption to the organization’s programs?

Stay tuned for our next post where Carlyn will share some tips to manage funder relationships during executive transitions.

Preparing for your nonprofit’s next executive transition? Carlyn is offering Elevate clients a free phone consultation to help plan your next steps – from succession planning to promising recruitment practices. Learn more about her work at www.carlynmaddenconsulting.com.

August 9, 2019

THIS POST IS PART OF A SERIES ABOUT GRANT WRITING
DO’S AND DON’TS, STRAIGHT FROM FUNDERS!
READ PART 1 HERE

When it comes to winning grants, getting down to the numbers and making the ask is where the rubber truly meets the road.

But there are plenty of mistakes that even the most experienced executive directors, development directors, and grant writers can make when it comes to asks and budgets—mistakes that can cost their organizations significant grant funds.

Below are four strategies for getting the numbers right and making a winning ask. These strategies are based on survey responses from dozens of funders around the country who were willing to share their insights and experiences as grantmakers.

1. Do Your Research

• Avoid asking for an amount outside a funder’s giving range.
  To determine an appropriate ask amount, learn as much as you can about the funder’s previous giving. Use all available resources: websites, nonprofit/professional networks, foundation staff presentations/panels, Google News Search, IRS Form 990s, etc.
• Never ask for budget items that are not eligible.
  Foundation’s typically include funding parameters on their website or application guidelines. Typically, direct program expenses are safe bets (exceptions for staff, rent, equipment). If considering requests for indirect costs, check if there are restrictions. For example, some funders explicitly state that they will only fund 10 to 15 percent of a project’s indirect expenses When in doubt (and if you’ve made every effort to find out for yourself) ask the funder directly.If your program requires a cost that is explicitly restricted (like scholarships for a college access program, or computers for a robotics team), consider briefly mentioning in the funding request or budget narrative that your budgeted expenses include this item and how your org funds it (e.g. “Because tuition costs prevent so many students from pursuing a degree, we raise 100% of scholarship funds through our annual luncheon and dedicated individual donors”). This demonstrates your commitment to this specific intervention/expense while simultaneously assuring the reviewer that their dollars won’t be spent here. (Make sure this aligns with your program budget/request column as well.)
• Do not present an ask for 100% of project costs.
  Funders are not monolithic, so this point will vary on a case-by-case basis. But generally, you should demonstrate the sustainability of your program to reassure funders that your program isn’t wholly dependent on their gift. Similarly, funders also want to see community buy-in (everyone wants to be on the winning team), and multiple funding commitments demonstrate a broad base of support.
  As a general rule, requesting funders to support 10% of a project’s overall costs is a safe bet. If you plan to exceed 30-50%, proceed with caution. You might even consider reaching out to funder for guidance. Avoid asking for 100% unless you are confident that the funder is open to it—whether you heard that information directly from funder staff, through the “grapevine”, or by looking at recent grantees. (e.g. a $60K gift to purchase 3 vans seems like a possible 100% gift.)

2. Be Transparent & Consistent

Reviewers look at dozens or hundreds of proposals/budgets every application period, so it’s unlikely you will successfully pull a fast one.

• Don’t disguise an operating ask as a project ask (i.e. staff member salary). Or, relatedly, stay away from trying to include something like computers in a “Supply” line item, just because the funder explicitly prohibits requests for “Equipment.”
• Don’t include things in the budget that are not referenced in the narrative. At best, a reviewer may assume incompetence—at worst, deceitfulness. Neither will set your proposal up for success.

3. Be Realistic

Again, funders review tons of proposals. Even if they have never led a particular program (and many of them will have), they have a broad perspective of the resources required to successfully run a similar program.

Cost-per-participant is not the only tool a reviewer may use, but it is a basic way to compare proposed programs that may appear apples-to-oranges. Depending on their org values, some funders may wish to stretch their charitable dollars to support the greatest number of people, period. Others will understand that deeper/longer interventions require more intensive resources. Either approach has pros & cons.

Regardless of which route your program takes, take time to explain WHY your afterschool program costs $2,000/student vs. a peer program that costs $1,000/student (year-round vs. school-year only; meal vs. snacks; transportation provided vs. using school/metro bus system; highly-qualified staff/MSW/clinical staff/Special Education accreditation vs. volunteers;  etc.)

With this in mind:

• Don’t ask for a large amount if you serve a small number of people without providing context.
• Relatedly, use caution when asking for the maximum of a foundation’s funding range. If you have explained your program well, reviewers will have a pretty good idea of what it costs. While it might be tempting, never inflate your budgets to get to the maximum amount.

4. Check Your Math

This might seem like an obvious tip, but details can get lost in a complicated proposal with a lot of authors or sources of input. Double-check your work using a calculator or spreadsheet—and don’t forget to update/confirm Excel formulas if you’re using them.

Your budget and budget narrative present another opportunity to justify the appropriate costs of your intervention.

• Never submit a budget that doesn’t match the proposal (a reviewer may think it was a mistake or will have questions about cost allocations).
• Similarly, don’t submit a budget that doesn’t balance for a program. Don’t leave room for assumptions—if your program operates at a loss that’s made up with General Operating dollars, show those General Operating funds in the revenue portion of the budget.