In an application for a private foundation grant, how do I decide a specific request amount?

May 8, 2007 5:47 AM

In an application for a private foundation grant, how do I decide a specific request amount (given that I know only their TOTAL annual giving, not their AVERAGE giving per funded project)?

My group (in the U.S.) submitted an inquiry letter to a private charitable foundation (also in the U.S.). The person who evaluates inquiry letters says it definitely fits their mission, but before she can pass it on to the board she needs us to name a specific dollar request. She herself doesn't make any recommendations re. the request amounts.

From their public tax records, I found out the total amount that was awarded by the foundation last year (but not the number of awardees -- in other words, I don't know the average grant amount). I Googled to see if any groups mention specific amounts they got from this foundation -- no luck.

I wish I could provide more details but I don't know if it's appropriate. Therefore I'm looking for recommendations re. the general issue of how to strategize requests, and/or specifically how I might find out their average award amount. I will say our project right now is semi-funded, to the extent that we will just break even if all the teaching labor is volunteer -- so although the teachers are okay with volunteering, and are committed to the project regardless of funding, we are now seeking to pay them. Also, due to the timing, this is the final foundation we're applying to for this year (this will be an annual project, so we get much more planning time next year).

Thanks so much for any advice...

posted by sparrows to Work & Money (11 answers total)

Can you contact this person and ask what the normal sort of range is?

Alternatively, you can put together a budget, show what you need, and say that you are seeking multiple sources of funding and that any amount that can cover what is not currently covered would be appreciated. In other words, you can give them a range from the minimum that would be useful to the amount that would take you where you want to be, with a budget statement that backs your range up. If you do this, though, I think it would be important to decide on a minimum useful amount and make it clear that if they gave the minimum, you would be able to achieve particular goals. In that way, even if you don't get alternative funding, they are still making an appreciable difference in your project.
posted by carmen at 6:01 AM on May 8, 2007

They want to know two things: How much money do you need to make it work, and how much money can your organization handle? If they dump a billion dollars on you, would you have any clue where to even start? Unless you are the American Red Cross, you don't.

So you need to get a rough estimate of what your costs will be. If we are talking several hundred thousand or millions, you need a good accountant(there are specialists for nonprofits) see if he can give you a figure, then go for it.

I know it varies from place to place, but average grant size will be meaningless, since most places don't just write one-size-fits-all checks. Emphasis on my first point: How much money can you effectively handle?
posted by OldReliable at 6:05 AM on May 8, 2007

Response by poster: We're a tiny, part-time volunteer organization -- so far our funding for this project is mid-four-figures and is 100% dedicated to the material expenses of the project (not to paying humans, except for direct travel reimbursement).

That current funding is just enough to make it work without us actually losing money out of pocket (as we slightly have in past projects). If we had, say, $10,000 more, we would be rolling in cash and saving some for next year (... or maybe we would be giving $1000 each to the ten people most involved in teaching & administration).

The grantmaking foundation's total giving for 2004 and 2005 was low-six-figures.
posted by sparrows at 6:15 AM on May 8, 2007

You want to ask for the amount that satisfies your needs, plus enables a little growth. if 10k would have you rolling in cash and saving some for next year, you may be asking for too much. Specify an amount which enables you to meet your goals and is ballpark-likely to be funded. Then, using your success as proof in the following years, you'll be able to propose bigger budgets saying "with $x donation from $foundation, we were able to meet/exceed 2007 goals. For year 2008, we have new and expansive goals which require more funding".

It is important to realize that if your work fulfills their mission, they want you to succeed with any money that they give you. So be sure to ask for an amount that ensures success with that money, so that you can present those results in the future when asking for more.

Also, from my time as museum janitor I know that this is why grantmaking people are such networkers. The inside info is priceless.
posted by fake at 6:54 AM on May 8, 2007

Do you have contacts at any of the orgs they've funded previously who might be willing to give you a sense of the range? Other non profits are surprisingly forthcoming with this information (and expect reciprocity in the future if you've got useful news).

If not, ask for an amount about 15% or so higher than you actually need, and show support from other funders for the total project cost in the budget.
posted by hamster at 8:06 AM on May 8, 2007

Foundations like to fund projects, not operating expenses. And fake has it right, they want to fund items in alignment with their mission.

Your project's budget should determine your request amount, not how much the foundation usually gives. Though that amount should be used to determine a fit between your application and the grantmaker.

Frequently, a foundation won't fund all of a grant, but will fund part. This is good, not bad. So when you write the grant, offer a budget that shows your needs broken out. x for travel; x for materials.

If you have a high-dollar project and want to work with a foundation that tends to make smaller awards, that's okay. Ask them to fund a specific piece.

Your initial question makes it sound as if they don't have an application, but you should definitely send them a structured query for them to evaluate. Include
* An introduction to your organization
* An introduction to the project
* A discussion of why the project fulfills the mission of your organization
* A case for why the individual items in your request support the project (materials are used in this way, travel reimbursement ensures ongoing success by encouraging volunteer participation)
* A budget (doesn't have to be fancy, but shouldn't be made up)

Good luck.
posted by nita at 8:12 AM on May 8, 2007

Sparrows, if I recall correctly, the organization's 990 will list the specific grants (including recipient and amount) that they gave that year. You can download 990's from guidestar. They are a pain to go through, because they are scans of paper copies so you can't search. But the info should be there.

You could also just call up the foundation and ask what size grants they give. It's just people on the other side of the phone, even if they are people who work at a foundation.
posted by alms at 2:18 PM on May 8, 2007

I work in philanthropy in Australia; the legalities and sector are slightly different but the principles are the same. My advice would to base the request not on what other people have received from that foundation but on the budget for the project you're doing. Ask for what you genuinely need to get the work done. Don't inflate your budget, but don't skimp; you want to be realistic but also give the work every chance of succeeding. Remember that to the foundation, the positive benefits provided by the work you're doing will be the most important thing; if you ask for too little, you aren't giving the work the best chance of success (and are also giving them a false impression of how much such work costs).

I'm guessing from what you've said here that the letter of enquiry is the first step in the process and that if the board likes the project you're describing, they'll ask you to submit a full application. That's when you submit the detailed budget. If you are approaching multiple sources for funding, let them know who else you've approached for this project, and whether that funding is confirmed or not; you'll also want to let them know what budget items their funds are going towards. Foundations (here, at least) don't like to feel that their money has just been chucked into a big Bucket O'Funds; they like to be able to talk about exactly what part of the project their money was spent on and what it achieved.

And as a few others have suggested, if they've provided a phone number, you can call them and ask them what the average grant size is, or give them a dollar amount and ask if it's reasonable or not. Many people at foundations would much rather you called and asked first than spent time putting something together which is totally out of the ball park and has to be either rejected or returned to you for reworking and resubmission later.
posted by andraste at 5:53 PM on May 8, 2007

As above, ask for what you need to make the program a success. If it's way out of line from what they usually do, the program officer will call and tell you that, and give you a ball park or a maximum amount, usually, if the program fits what they fund. It sounds like you're just starting the funder two-step with them, and it can take a fair amount of back-and-forth. You start with a number that works for you, and let them come back and tell you if it needs to be lower. They might fund the whole thing -- you never know.

If they do like you, and fund you, that always makes it easier to go back to them to ask them to help you expand, or take on new projects, or hire staff, or whatever you want to do next. Think of this as the first part of building a relationship with the funder.

Good luck.
posted by gingerbeer at 8:10 PM on May 8, 2007

Response by poster: Good points here, thanks so much! As it happens I answered one of my own questions by finding a list of all of this foundation's grantees and amounts for 2005. But I also see broader points in this thread that are definitely useful. This is the first year of this project and we will know much more next year when we apply for a different level of funding.

I think the case I'm going to make for this year is that some level of teacher/administrator pay is really critical to stability & growth in a project like this. It may be founded on idealism and volunteerism, but we want to make sure it lasts with a practical rather than an idealistic structure. So, just including nominal pay rates into the budget, calculated by hours spent, is a great first step and I think will be our main point for this application.
posted by sparrows at 2:22 AM on May 9, 2007

sparrows, I was involved in a large grant application that made similar arguments. One of the positions they took was that people should not have to *lose* money or sacrifice their own security to participate in our project. Not sure if that angle would work for you, but I thought I'd throw it out there :)

Good luck!
posted by carmen at 12:32 PM on May 16, 2007