Strategy Archives - Page 3 of 4

May 18, 2020

In many ways, coming up with a plan to reopen your organization and return to ‘business as usual’ after a crisis can be more complex than responding to that crisis in the first place.

Nonprofits across the sector have learned in recent weeks how important it is to have a plan in place to keep the organization running smoothly and protect the well-being of staff, in case of unexpected disruptions. We recently shared our framework for forming and running a Continuity of Operations Planning (COOP) Team in light of the impacts of the COVID-19 pandemic.

But now that we’re starting to see early signs of a light at the end of this COVID-19 tunnel, our attention has shifted to when and how we will eventually reopen — and how to do so safely.

Drawing on the experience of Elevate’s executive team, we’ve created a framework for how to plan for a safe and thoughtful reopening.

At Elevate, even as we’re waiting to see what an exact timeline will look like, our COOP team is beginning the process of planning for our eventual reopening. We’re starting to think about questions like how best to welcome staff and stakeholders back into our physical office, what a responsible timeline will look like, and how to roll out these changes in a way that prioritizes our staff’s health and safety. We also plan to survey our staff throughout the process and take their feedback into account as we map out the various phases of our reopening process.

We’ve mapped the basics of our framework below, as well as our recommendations for implementing it — we hope you find it useful as you begin this process within your organization!

As we explained in our last blog post, we highly recommend you start by having a COOP team in place with at least one representative from each of your organization’s core functions or departments. Having this team in place will help ensure your reopening plan is a thorough one that accounts for every aspect of the work your organization does, and prevents core business functions from being interrupted during the transition. (If you haven’t done this step yet, we recommend you start here!)

With your team assembled, you’ll want to think through how to move from your current office phase into a reopening phase — specifically in terms of any prompts, considerations, and preparations that will be involved.

If you haven’t already, you’ll need to establish a list of your organization’s core departments or business functions — then use that list to flesh out all the relevant prompts, considerations, and preparations to plan for as you prepare to reopen. For Elevate, our core functions include our clients, internal client teams, office status, operations, finances, human resources, and communication.

PROMPTS

We use the term prompt to mean any information that would possibly prompt us to move into this phase. Make sure your team agrees on the reliable sources of information that you will all use to make informed, fact-based decisions.

When coming up with your list of prompts for shifting into a Reopening phase, there are two main categories to consider:

External prompts: we certainly recommend taking into account any rules and recommendations from the government and/or your locality. You’ll also likely find that it’s important for your organization to consider less obvious prompts as well — including changes in public health data, updates from your local public transportation authorities, the availability of testing and screenings, and school or childcare closures — and how they impact your staff.
Internal prompts: for this section, you’ll need to consider whether your organization has the necessary equipment, supplies, and resources to reopen safely. This may require auditing available cleaning supplies and/or services, your ability to rearrange your furniture so staff can maintain a safe physical distance, and any other prompts that relate to your organization’s core functions.

CONSIDERATIONS

We use the term consideration to mean any valuable information that needs to be considered when moving to this phase — which often includes things that are not immediately obvious.

Considerations for shifting into a Reopening phase will look different for every organization, and will depend on both the nature of your work and your size and structure. At Elevate, our list of considerations includes things like ongoing health and safety concerns, company culture and morale, in-person events or meetings that will need to change, and compliance with both federal and state guidelines.

PREPARATIONS

We use the term preparation to mean any steps that should be taken before or during the communication and implementation of this new phase.

Preparations for shifting into a Reopening phase might include developing any new protocols or policies in writing, developing a thorough reentry plan for your team, reinstating any vendors or services that you’ll need once you reopen again, and communicating the changes to staff and/or stakeholders.

Keep in mind, it’s very possible that you may need to reopen in stages. If that’s the case, your reopening plan should spell out what each of those stages entails, and include specific prompts, considerations, and preparations for each stage.

other things to keep in mind, as you work through this process with your team:

Communicating with your full team clearly, thoughtfully, and often is extremely important, particularly as you roll out significant changes that may pose new challenges and/or induce worry. Depending on the nature of your work, you may also need to put together a separate external communication plan for your stakeholders. Consider including relevant details like any changes in your hours, new or ongoing safety procedures they need to be aware of, and/or updates to your services.
Make sure you’re also engaging with staff on a personal level as you put your plans together, asking them about their specific needs, concerns, and level of comfort. Depending on the size and structure of your organization, you may choose to do this more informally in meetings or one-off emails; alternatively, you might also send out a survey as a means of collecting information. You can then factor in their collective feedback as you move forward with planning to reopen, while balancing it with any recommendations from government and other official sources.

Written by Katy Kale and Michelle LaCroix

May 5, 2020

At Elevate, we generally recommend thinking long-term when it comes to investing a grant program for your organization.

We know from working with hundreds of nonprofits over the years that in most cases — and under normal circumstances — that the most successful partnerships between organizations and their grant writers are built over time.

But things change. With the many ripple effects of the COVID-19 pandemic, we know nonprofits are suddenly facing an uncertain future with more questions than answers. And for many organizations, it may be less feasible than ever to invest in hiring a full-time grant writer — even at a time when they may need it most.

So what can nonprofits do?

We recommend adding experienced capacity for a short period of time. For many organizations that can afford it, hiring a full-time in-house grant writer is the default choice. But this is a decision with a long-term impact, and for many organizations, it is off the table right now while there is so much still unknown about how the pandemic and recession will play out. Elevate has talked to nonprofits that have agency-wide hiring freezes, that are concerned about how to best hire remotely, that do not have the systems in place to onboard a new team-member virtually, or who have background check requirements that they are not able to fulfill right now.

This is why, in times when uncertainty is high, like now, adding short-term capacity may be the most strategic option. And, because the timeline is condensed, it is important that the people you bring on know what they are doing from Day 1.

When short-term capacity makes sense.

In periods of high uncertainty, like what the sector is facing right now, focusing on short-term needs makes sense — as long as it leaves all future options on the table. This is because uncertainty decreases over time: within the next few months, we expect to know much more than we do now about things like:

The full extent of increased demand for our programs, and the cost;
When our paused programs can re-start;
What institutional philanthropy’s collective response will be to the pandemic and a potential recession;
The full governmental response at federal, state, and local levels; and
How individual donors are responding.

One of the few upsides to so much uncertainty right now is that we are almost guaranteed to have more information in the future. And more information means better decisions. This is why postponing certain decisions that have a long-term impact on your organization makes sense at the current moment.

But this obviously does not mean you can stop your fundraising — now is the time to be ramping up your fundraising! Doing so will enable you to both capture rapid response dollars, and be in dialogue with your funders and prepare for changes brought on by shifts in the sector and the economy.

Adding short term support to your grant program could allow your organization to act quickly in response to the challenges you’re facing. But you need to focus on adding high-level capacity, meaning people who come in on Day 1 with significant expertise.

The timeline is short, so invest in expertise.

Typically, an outside grant writer will have more expertise than an in-house hire and therefore, will often require less training than a full-time staff member. Firms like Elevate also likely have systems in place to make onboarding and getting started even quicker and easier. (We’ve had processes and systems in place for years to onboard and work with clients remotely, and we continue to refine them.)

Moreover, experienced grant writing consultants know what questions to ask. We know what funders are looking for. We know how programs throughout the sector are designed and are adapting to these confusing times. And, most critically, we have a wealth of experience to draw on with a variety of issue areas, regions, and specific funders.

We know that many nonprofits aren’t necessarily looking for freelancers or have had bad experiences with consultants in the past. This is where research and vetting are critical! Finding a reliable consultant you trust, with the experience and case studies that illustrate a breadth of experience, will help you address your immediate needs — while leaving your options open for the long-term without the pressure to decide on those plans right now.

For example, at Elevate, our Writing Capacity Projects have been effective in supporting organizations to maintain their grant calendar or pursue large opportunities during hiring freezes, staffing searches, or temporary staff leave. These projects assign an experienced writer to efficiently gather the information needed to develop compelling proposals or reports and provide project management to coordinate all the necessary pieces. After completing these projects, some organizations choose to engage long-term with Elevate through our Comprehensive Grant Writing Services, while others have taken the opportunity to restructure internally or otherwise be more deliberate in their hiring process.

Above all, the key benefit of a short-term engagement is flexibility. When we have a good picture into the long-term future, flexibility does not always rank as a top priority — but in times like now, it is the top priority.

>> Learn more about Writing Capacity Projects

March 18, 2020

As your partners in fundraising, Elevate staff know all too well the importance of the work you do as nonprofit professionals.

We also know the need for your work does not pause — and in fact, may increase — in times of crisis or global concern.

Securing funding for your work is arguably more urgent and important than ever during periods of uncertainty, though we realize the way forward may feel unclear. As such, we’ve put together our best advice for continuing to fundraise effectively, even when ‘normalcy’ has been disrupted:

Assume grantmakers are continuing to operate unless you hear otherwise.

So far, we’ve seen a few deadlines shift, but not many. We recommend monitoring funders, updates, and deadlines closely, with a presumption that they’re still accepting and awarding grants.

Monitor emerging “rapid response” opportunities that FALL OUTSIDE standard grantmaking timelines or processes.

For example, the Greater Washington Community Foundation is working alongside the DC region’s largest philanthropists to establish an emergency fund and distribute rapid response funding to the organizations meeting the needs of communities most impacted by this virus — families who have lost needed childcare, low-wage, hourly workers, people experiencing homelessness, direct service workers, and senior citizens or people with underlying health conditions.

Get a clear picture of your finances.

Our colleagues at Your Part-Time Controller and 20 Degrees both highlight the importance of understanding the short- and long-term impact of COVID-19 on your “financial runway.” Ask your finance staff or consultants for more frequent financial reports, updated modeling for various contingencies, and even advice revising your annual organizational and program budgets. If you’re using our guidance on predicting grant revenue, consider adjusting your grant projections to reflect reduced likelihood of funding from prospective grantmakers to better understand how this will impact your grant revenue.

Tell your nonprofit’s COVID-19 story to your most loyal supporters.

The experts at Chronicle for Philanthropy note that global crises that affect all members of society can motivate significant philanthropic giving. However, the people motivated to give often don’t know where their giving will have the most impact. Clarify for your staunchest donors how COVID-19 is impacting your organization, staff, and stakeholders so that they know the value of their past and future contributions.

Take stock of your community’s needs and your response and align your outreach to funders accordingly.

While all organizations should remain in contact with your key philanthropic stakeholders, your approach should be tailored to the larger community context:

If you are expanding your services to address the community needs due to COVID-19, you can reach out to your long-term funders about these emerging and how they can help. First, review whether they have launched any specific funds so you can request support through those channels. If they have not created any designated funds, consider reaching out to your primary point of contact directly about the increased need you anticipate, how you are responding, and how a one-time gift might help.
If your services are not expanding, avoid soliciting new funding. As our society comes together around this issue, it’s important to acknowledge that new giving will be directed toward the causes that are most in need of support right now. However, you can request other types of support during an uncertain time from current funders, even if your services remain unchanged. Many grantmakers may be open to requests to extend report or proposal deadlines, adjust how or when a grant is paid out, transition restricted funding to unrestricted funding, or even convert an event sponsorship or ticket purchase to a simple donation that can help ensure sustainability for your organization.

Find creative alternatives to building and sustaining donor relationships.

We’ve seen remarkable ingenuity around the country regarding donor engagement that has historically happened face-to-face. Organizations are converting in-person fundraising events to virtual celebrations, holding performances via Facebook Live, or even phone banking to thank organizational supporters for their past gifts. Remember that the important part of any fundraising event is to connect with your donors and you do not necessarily need a venue or catering to do that.

Finally, times of uncertainty like this remind us that a diversified fundraising strategy is a pillar of organizational sustainability. Elevate has consistently found grant programs to be more stable than other forms of revenue in times of sudden change or economic downturn. We’re seeing foundations step up to fill some of the voids that appear from canceled events or individual donors who may be less able to give in an unstable market.

We’re Here to Help!

Elevate is committed to being a resource for nonprofits at this time.

Click here to register for one of three free grantwriting webinars we offer on a rotating basis!

Check back for future blog posts in the coming weeks and months, on planning for the longer-term economic ramifications of COVID-19 so your organization is prepared for the “new normal”.
If your organization needs extra grants capacity for any reason, reach out to us via our Hire Us form, for our comprehensive grant writing support or our short-term writing capacity support.
If you are a current client, please reach out to your team Director for support revising your annual grant projections, developing messaging for current funders, rearranging soft or rolling deadlines on your grant calendar, or strategizing emergency funding requests.

Additional Resources for nonprofits:

January 27, 2020

As fundraisers, we’ve all been there…

You have a big grant proposal to write to a long-time funder, but you can’t get a straight answer from your program team or your Executive Director about the goals for next year. Or, you just got an email from your Executive Director saying she had a great meeting with an important donor, but that they didn’t really discuss a specific project or initiative that needs funding. What do you do now?

These situations are more than just frustrating. They could be a key reason why the study “Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising” noted high rates of turnover and extended vacancies in Development Director positions. And it makes sense! Talented fundraisers don’t want to work somewhere that lacks the tools and resources they need to be successful.

But all nonprofit leaders and staff know how important fundraising is. They know funding pays their salaries and creates opportunities to do the work they care about. How can you ensure everyone is pitching in?

Elevate and our partners at The Collective Good believe the secret lies in creating intentional alignment between fundraising goals and activities, and organizational goals and activities. Too often, nonprofit staff, including Executive Directors, aren’t on the same page with organizational strategy and priorities, which makes it difficult or impossible to articulate them externally.

In a follow up report to the study referenced above, nonprofit and philanthropic leaders advocate for viewing fundraising as central to achieving an organization’s goals and mission rather than a necessary evil. This means fewer silos and more collaboration between development and programs, communications, boards, and executive staff.

But how do you shift the entire culture of your organization? How do you move from “I’m responsible for raising 50% more from foundations this year” to “we’re all in this together?”

To answer those questions, Elevate and The Collective Good teamed up with the Center for Nonprofit Advancement in March 2020 for a workshop.

Here are the recommendations we explored:

Step 1:

As Executive Directors, ensure development staff/directors are part of the leadership team and equal partners with other senior staff; they participate in all planning, strategy, financial and organizational meetings.

Tip: This is important on an ongoing basis, but even more important during strategic planning! If you develop programmatic and fundraising goals together, it is much less likely you’ll set an organizational strategy without resources or let your fundraising strategy pull your programs in the wrong direction.

Step 2:

As Development Directors, lead your organization through this shift in thinking and structure by developing tools, systems, and messages that everyone can use to cultivate greater community and donor engagement.

Tip: get comfortable with managing up and across so that your colleagues and bosses have the information they need to engage donors at least as well as you can. Check out our blog post on Clear, Collaborative Communication for more tips here!

Step 3:

Be patient and set realistic goals for adjusting how your organization integrates organizational strategy with fundraising strategy. Culture change does not happen overnight and everyone will need time to change how they think about fundraising in the context of more programmatic and operational goals.

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.

May 23, 2019

In our previous post, Where Do I Start with Corporate Partnerships?, we spoke with longtime consultant Derry Deringer on why and how your nonprofit should go about forming strong partnerships with corporate entities.

In this second part of our interview with Derry, we dig deeper into what corporations want out of a partnership and how you can go about finding out these answers.

Elevate: Thank you again for sharing your insights from the decades of experience you have. I want to spend a little bit of time going over how to engage a corporation and what they are thinking of. In your experience dealing with corporations, what are the key considerations or factors that corporations care about when they partner with a nonprofit?

Derry: Here are questions businesses are asking when considering partnership:
• How well does it align with our business needs?
• How well does it align with our culture?
• How much do our employees care about this cause or nonprofit?
• What does the CEO or if a local decision the region head think about the opportunity?
• What is our budget this year and over the partner period and is partnership a priority with our community giving/affairs policy?
• What issues in the community are most important to us as a business and why?

Elevate: Two key metrics that are often measured in corporate partnerships are the marketing value and programmatic impact. In your experience, do you think corporations care more about impact or marketing value?

Derry: This varies from business to business. These are very good questions to ask business directly when you are in the very early stages of courting business partners.

Elevate: I see. Every corporation wants some form of marketing usually. Do you find that corporations prefer certain types of recognition or marketing when they engage in corporate partnerships?

Derry: Generally, interest in recognition on event programs and signage has decreased, while interest in recognition on digital platforms has increased. Recognition preference can vary. Survey or talk to your current business donors. If you don’t have business donors, identify areas, industries, or links to businesses that make a good match for potential donors (ex. the employers of loyal individual donors). Ask for their preferences (without asking for money). The questions will be appreciated and would count as a relationship cultivation touch point.

Elevate: Speaking of relationship cultivation, the question I think many nonprofits always struggle with is who is the best person to talk to or get in touch with when establishing a corporate partnership?

Derry: Good question. This varies. Imagine a half dozen possible contacts and a half dozen to a dozen giving possibilities from a large business. Understanding how to navigate the contacts and giving opportunities is the art of corporate giving. Here are some possible contacts. There are others depending on the industry and size of the business.

Assistant to or the CEO
Head or officer in Community Affairs
Head or officer in Community Relations
Head or officer in Corporate Foundation
Head or officer in Government Relationship
Head or officer in CSR (Corporate Social Responsibility)
Head or officer in Marketing

One just has to research, talk to employees and develop the skills to get to the right person. So talking to the right person is one important factor and another very important one is the decision -maker and decision making process. Asking these questions can save you time and frustration. This is where hiring a consultant/coach can help you build these skills and work with you to advance your relationships with your actual business donors.

Elevate: And just to clarify, what do you mean by the ‘right’ person to cultivate? How do you know when you’ve found the right person?

Derry: So, the “right” person or group is ultimately always the decision maker, right? Your goal is to have a direct relationship with that person or someone who is close to that person. Sometimes a group makes the decision. The art of corporate engagement is asking good questions and engaging with company staff in a productive way to learn about the inner workings of the program and decision making. For example: tell me more about how the corporate giving program works. Who heads that program? What’s the process for vetting nonprofits?

You might have different decisions makers for different giving programs in the organization. For example, HR might decide on workplace giving, whereas the CEO and executive team might decide on partnerships and the marketing head may decide on event sponsorship. A lot of knowing when you’ve found the right person comes with practice and experience. Be bold and keep pursuing it and asking questions.

Elevate: I’ve seen many cases where a nonprofit’s board consists of a number of their corporate partners. Is it a good thing for corporate partner’s representatives to be a part of a nonprofit’s board of directors or advisory board?

Derry: Yes, it helps. Good partnerships have shared culture, values and community interests so it makes sense for a partner to have someone on the board or advisory group somewhere. Also, the more ways that a nonprofit engages a business in giving cash, in-kind or services (time, expertise, network etc.) the higher the chance the business and its employees will continue to give.

Elevate: Can you give us some examples of innovative ways you have seen nonprofits engage corporations in their work?

Derry: I saw a regional technology company partner with a homeless shelter. They had a few executives on the board who provided management expertise and played a leadership role in successfully recruiting a new development director. In another case, a Fortune-500 food company gave cash and technical support to help a humanitarian NGO promote and grow entrepreneurship (food trucks and stands) and self-reliance in Bangladesh. I’ve also seen a small business donate computers and cash while the staff volunteer as teachers to low-income adults learning computer skills to secure higher paying jobs.

Elevate: Interesting. Sounds like there’s a quite a variety of partnerships out there. My final question for you today is whether you think it is a good idea to approach a corporation that does not have any sort of corporate giving or social responsibility program in place. Do you think this is an opportunity or a concern?

Derry: Good question. If the company doesn’t have any corporate giving program in place, you’ll want to see a lot of interest and motivation from the leadership. If you don’t have that from the start, likely not to be worth the effort investment. If they do have a program, make the case for your nonprofit being the better choice when they review renewing their partnerships or adding a new one.

Elevate: That’s a good principle to go by. Thank you so much for sharing your insights with us. This has been an extremely enlightening discussion that I’m sure many of our readers will find helpful as well.

Derry Deringer is principal of Deringer Consulting which was launched in 2011. Previously, Derry was Director of Corporate Relations at WFP USA. He brings twenty-five years of experience with nonprofit, business and international organizations. Deringer Consulting helps executives and teams grow faster with better fundraising and better strategic planning. His favorite work is helping clients accelerate growth through a unique blend of coaching, consulting and facilitation methods. And the best place to start with every new client? … right where they are. Schedule a call with Derry today! 202.494.9170 | derry@deringerconsulting.com

May 22, 2019

Corporate partnerships have become a subject of increasing interest to both nonprofits and corporations alike, with many economic and business arguments being made for why a business should incorporate social elements into their business strategy.

Nowadays, most large nonprofits have their own corporate affairs department dedicated to the sole purpose of establishing such partnerships.

Today, we are happy to have with us long-time corporate partnerships consultant, Derry Deringer, to share more about how you can set up such corporate partnerships and what goes into making a successful partnership.

Elevate: Hi Derry, thanks for joining us today.

Derry: My pleasure.

Elevate: Perhaps to start off, could you tell us why corporate-nonprofit partnerships have become so popular. What sets these arrangements apart from other avenues for giving to a nonprofit?

Derry: Today more than ever, nonprofits are seeking to diversify revenue streams to assure long-term sustainability. Corporate partnerships provide that additional source of support since many nonprofits start off or have traditionally grown through foundation grants and individual donations. What sets these partnerships apart from other avenues is that a nonprofit can benefit from many sources of support from a single entity, for example: employee giving, executive level board placement and straight cash gifts.

Elevate: That makes sense – there’s definitely a lot more diversity with how to engage corporate donors as opposed to private foundations and individual donors. And how should a nonprofit prioritize or decide what it wants or should be getting out of nonprofit partnerships?

Derry: Prioritizing or deciding what you want from a corporate partnership is identified by a mixture of what the nonprofit needs in terms of cash, in-kind and service resources, what your corporate donor audience wants to give and what is realistic for the nonprofit staff to implement over the partnership period. I would gather information in that order and refine the list as you go. A better question to ask during this exercise is – what the nonprofit wants to get out of the partnership and what the partner wants to get out of the partnership as well.

A common mistake of a nonprofit is to look to the business to define the partnership. You take the lead with very large dose of curiosity and empathy for what the business wants and needs.

Elevate: So what you’re saying is that it is better to be clear on the partnership parameters or conditions that your nonprofit will offer before engaging in talks with a corporate partner. How narrowly would you define your partnership parameters?

Derry: I’m a big fan of first being clear on partnership parameters before officially pursuing partnerships. But you can certainly engage your corporate donors and community as you are identifying and creating your parameters. Just be clear about the purpose of the meeting or call. Also important to have beforehand is your gift acceptance policy.

For partnership parameters, I recommend a timeline, minimum cash support requirement and the large building block activities and benefits. How broad and narrow to get with the activity and benefit parameters has a lot to do with what staff can realistically implement and what partners see as the most valuable.

Elevate: In your experience as a corporate partnerships consultant, what are the top 3 ways that corporations like to give or partner with nonprofits?

Derry: Businesses want to give in ways that are aligned as closely as possible to their business needs and that provide benefits that they are not able to get by other means. So, I’ll share a top three in that context and in no particular order:

Giving cash, in-kind or combination that allows product exposure with a new audience;
Employee engagement that increases fulfillment, loyalty and meaning to their day job. Types can be a volunteer day, executive on the board or technical advisory role; and
Long term (say 2-3 years) partnerships that blend a mixture of giving and benefits around a single nonprofit or cause that allows the company to get a deep and broad understanding and give a more meaningful contribution and impact over time.

One business may care a great deal for getting their employees involved in a cause. Another may only care about getting their product in front of a new audience. I start with my full inventory list of ways to give, then work on developing a good relationship with the right contact in order to ask open-ended and context questions until I get a clear view of what is most important to the business.

If you have a corporate partner program, you may only have a handful of partners. So we aren’t talking about dozens of business partners.

Elevate: That is very enlightening. Do you have any useful tools or resources for helping nonprofits to decide on these parameters?

Derry: I suggest the development director and Executive Director collaborate to do a brainstorming excise to develop a list of the most compelling and actionable partnership benefits the organization could provide within their gift acceptance policy. Consider having a facilitator lead a meeting to bring out the best from the group. Bring together select key staff and other stakeholders like donors and board members. Get 10 – 15 people together and have productive hour meeting to get down a solid list then refine it. I do have my own personal resources that I have developed that I am happy to share with nonprofits who approach me.

Make sure to read part 2 of this interview, where we’ll ask Derry for more on what corporations want out of a partnership, and how you can go about finding out these answers.

March 21, 2019

In part one of this series, we talked about why building a successful grants program means playing the long game – one that requires patience, perseverance, and resilience.

This post breaks down exactly what it means to build resilience in your grants program and the specific steps you can take to start moving in the right direction.

Step 1: Build resilience and put yourself in the right conditions

(Last wine analogy, I promise!) The pinot noir grape has a very thin skin, giving it a beautiful ruby color. Its transparency famously allows it to tell the truest story of the conditions it faced that year (i.e., the soil and the climate). It can survive in high heat and deep cooling (but only to an extent) and doesn’t do well in overcrowded plots.

The pinot noir grape can be resilient—but only if a winemaker understands its strengths and weaknesses and uses that information to put it in the best possible conditions.

And then it just sings.

As grant writers, we too have to learn how to put ourselves in the best possible conditions for building funder relationships and developing strong proposals. The trick I have learned, after surviving tons of declinations, is to learn from them and even lean into it.

First: request and honestly consider funder feedback. Funder feedback is one of the most valuable resources in a developing grants program. Thinking that, “Funders/foundations just don’t get it”, or, “We have zero chance of winning this,” will never result in improved cultivation or relationships—and certainly won’t help you win more grants. But seeking feedback and reflecting on what can be legitimately improved upon is key to your success.

Sometimes, asking once is not enough. After the initial declination, funders may say that they can’t or won’t provide feedback. But don’t give up. Wait a month or so and ask again. Respectfully request a conversation so that you can better understand how their funding priorities align with your work.

The worst that can happen is that they say “no.” I know this is not comforting, but hopefully it does give you a little bit of confidence that there are only so many outcomes. And you can’t control their decision-making—only your own preparation. For many funders, it can take more than one application to break through, and plenty of foundations do not have the human resources to speak with all potential applicants.

Step 2: Lift up your genuine strengths and recognize your organizational challenges

Know what your strengths are and stick with them. To connect authentically with funders, maintain an awareness of trends, but do not bend to them. There is nothing more obvious to a funder than a proposal that includes a program or work-plan that was clearly designed specifically to match the available funding but does not actually portray the applicant’s authentic strengths or mission-aligned endeavors.

Be honest with yourself about your organizational challenges and liabilities. Is your grants program understaffed? Under-resourced? Do you have high-quality, evidence-based programs and evaluation measures in place to prove your effectiveness? Is your program sustainable? Answering these questions with honesty and clarity is critical to writing an application that speaks to funders.

Step 3: Focus on strategies that align with your priorities

Develop your internal capacity for strategies that work. First, plan and staff-up for the long-term. Understand that you should budget with the assumption that it will take 12-18 months to realize serious returns, in either funding or significant learning about what does or doesn’t work. Then, make sure you’re properly staffed to dedicate the time needed to conduct in-depth research and draft quality proposals. This could also mean outsourcing some of the work.

In your prospect research, choose quality over quantity. Learn to say “no” to external trends (what seems “hot” in funding, if it is not already what you do authentically) and internal pressures (boards, CEOs, etc.) Saying “no” is an art and can be incredibly difficult but is key to your success.

Seek opportunities to have conversations with internal stakeholders and decision-makers, and be prepared to justify the strategy you’ve developed. Explain that quality over quantity is going to result in fewer, but better and more sustainable outcomes.

Develop a strategy for your prospect research (i.e., coming up with keywords for your work, key fields you work in, peers in your field, etc.) and stay disciplined until you find your diamonds. Don’t waste your time with barely-aligned funders. There’s a fine balance between knowing when you have no shot and not leaving money on the table when there is a real chance. Learning to recognize this takes time and experience. Even then, you won’t always be right.

Once you have extensively researched well-aligned funders, invest in good cultivation to learn if you are well-aligned with their priorities. Write to them asking for clarification of funding priorities, expressing genuine interest in making the best of their time and your own. In these conversations, it is important to learn from what they have to say, as opposed to seeking validation for your programs.

If cultivation seems difficult, read up on how others get over their personal hurdles, and how organizations can best distribute fundraising responsibilities based on personalities. Keep a cultivation chart (an Excel sheet works great!) to track your progress with each funder, the stage you’re in with them, and historical notes so you can go back and remember what you spoke with them about.

How Will I Know if I’m on the Right Track?

Like the pinot noir grape, grants programs require cultivation and commitment. You will know that you’re on the right track when you start to have meaningful conversations and develop relationships with funders, knowing that this may take months or even a year. Most funders really want to help you—the reality is that they are just as busy as you are. So, you need to remain humble. Be grateful for their time and continue improving your conditions to put yourself in the best light for funding.

Follow these steps, and you can be very successful at fundraising through grants.

March 15, 2019

A few years ago, I was asking a winemaker about the process of winemaking. He was working at a relatively young winery in a developing wine region. He told me that it would take seven years before he would come to understand the outcome of his strategy and his gut feeling about what he had planted.

I keep this story in mind every time my clients and I begin feeling anxious about the results of a grant submission.

Having been on the other side of grantmaking, I know that it takes a significant amount of human resources to make funding decisions. It’s not uncommon to have to wait 6-8 months (or even up to a year) before hearing back about a funding decision. And, whether or not they ultimately fund your proposal, you want funders spending the time they need to make sure those precious dollars are going where they are needed most. Just like good winemaking, good grant writing takes time, patience, and perseverance.

Why Grant Writing Feels Personal

I feel on a daily basis the justifiable stress and anxiety of all my nonprofit clients as they try to meet their revenue goals and get “in” with funders. It’s not uncommon to email funders and receive no response. Or, worse, to be emailing back and forth with funders and to suddenly be ghosted and never hear back from them again.

Not earning a response to a well-crafted and genuine note to a funder can feel like a personal rejection, or a rejection of the work you believe in. We all know what it feels like to put a ton of work into a complicated application, only to be declined with a very short and (often sweet) note that somehow, the awardees were more compelling or meritorious — but they regret that they can’t tell you why. (Always respectfully request feedback, anyway; read on to find out how.)

The more you apply, the more you lose. Sometimes it can feel like one (gleeful) step forward, just to then take 3-4 steps back.

It feels personal because the stakes are so high. You believe in your mission, and very likely, many people depend on you and your organization’s work; it’s hard to understand why someone else might not believe in it with the same enthusiasm that you have.

The (Semi-) Good News: You’re Not Alone

Grant writing is notoriously difficult. The national win rate (rate of success winning a grant applied for) is 17% A win rate of 30-40% on new funding (funders not familiar with your organization) and 50-60% on combined (existing programs and funders and new programs and funders) is considered extraordinary.

Still, we understand the challenge. In addition to the odds seemingly being stacked against nonprofits when it comes to winning grants, one of the reasons so many nonprofit organizations struggle with their grant programs is because they lack the necessary resources. Research, cultivation (communicating with funders before applying), and writing proposals are all time-intensive and expensive processes. I’ve seen large organizations with multi-million-dollar budgets struggle to properly staff and efficiently manage the amount of time and coordination it takes among the development, program, and administrative staff to get a successful proposal out the door—even when the Elevate team adds writing and research capacity.

Just like wine-making, grant writing is experimental. You’re not going to be able to predict the success of your grants program until you have enough experience—and enough funder feedback to learn what will work for your organization. There’s a lot to fine tune – from your grant language, your programmatic strengths and weaknesses, what funders respond to, and beyond.

Just like some grapes grow and thrive best in certain climates or soil, your proposals and your programs will resonate with certain funders more than others. Further, just like in winemaking, your work is susceptible to external factors and trends beyond your control. Grapes are susceptible to the climate and wine production is usually responsive to market trends, just as grantmaking is susceptible to the economy and philanthropic trends.

Great. It’s Tough. What Now?

What exactly does all this mean for your organization?

Stay tuned for part 2 of this series, where we’ll break down exactly what it means to build up resilience in your grants program!

February 13, 2019

Program budgets are one of the most common attachment requests from funders, yet they are often one of the most confounding requests for even well-established nonprofit organizations.

However, having strong, fiscally-sound program budgets can not only improve your chances of winning a grant, but also support organizational budget planning and program management.

Below are our answers to four frequently asked questions, to help you begin to craft your own program budget:

1. Why are program budgets important to funders?

In short, funders want to know where their money is going. Organizational budgets often have lots of information rolled up into a handful of line items. And for multi-service organizations, in particular, it can be difficult to determine how much time and money any one program requires. A well-crafted program budget will complement your grant narrative, providing a more detailed picture of the inputs required to operate each program effectively and the need for the exact funding requested.

2. How do we create a program budget?

Creating program budgets should ideally be a collaborative process between your program, development, and finance teams, as each holds specific information needed to complete this task.

The program team should identify the inputs to the program: what staff members work on that particular program, what other contractors or vendors provide supports for this program, and what other direct costs are needed to execute the program (listed below).

The development team should identify the relevant revenue sources for the program: what current and prospective funding streams and/or particular funders support that program and determine what other financial resources are needed to match the program’s expenses.

The finance team should then take these inputs and calculate the exact revenue and expense for each program aligned to their internal accounting controls.

3. What do we include in a program budget?

Program budgets not only can but SHOULD include the salary and fringe benefits costs associated with the staff time relevant to this project. Other common direct expense line items that should be included in a program budget may include:

Supplies
Equipment
Evaluation
Client transportation
Program staff transportation
Recruitment and/or marketing
Printing
Curriculum
Staff training and professional development
Database fees
Facilities costs or space rental fees
Telecommunication costs

Note: if you are unsure of how to differentiate between Supplies and Equipment, the University of Arizona defines equipment as, “tangible personal property (including information technology systems) having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.”

Don’t forget – you can and SHOULD include a 5-10% administrative cost to your program expenses! Administrative expenses help to cover the very necessary costs of running your organization—management and administrative salaries, annual audits, central office costs, etc. Once you have determined the direct costs to your program, add an additional 5-10% administrative expense to the budget total. However, be sure to check each funder’s guidelines to see if they have any specific restrictions on administrative costs.

4. How do we calculate how much to allocate to the program budget?

This will vary by organization and your exact accounting methods. However, two helpful rules of thumb are:

To calculate salary costs: you must determine which staff members support that program and what percent of each staff person’s time is dedicated to that program, then calculate this cost based on their full-time salary.

Use the following formula to calculate staff costs:
(% of staff time spent on program) x (staff salary + benefits)

For example:
(0.4) X ($52,500+ $7,500) = $24,000 allocated to the program budget.

You can use a similar formula when calculating direct costs shared across multiple programs.

To determine direct costs that are shared by multiple programs across the organization: try your best to determine what share of the costs goes to each program and allocate accordingly. If, for example, you use a database to store information for all three of your programs, the total annual cost of your database fees should be divided by three across each program budget.

Proactively creating budgets for each of your programs not only avoids stress during the grant submission process, but can actually support organizational budgeting, strategy, and growth.

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