"No Unsolicited Proposals" - What happens when there are no doors for smaller nonprofits to open

An October 2015 opinion piece in the Chronicle of Philanthropy noted that 72% of US charitable foundations do not accept unsolicited grant proposals, a significant increase from just four years ago, when that number was 60% (“Let’s Require All Big Foundations to Let More Nonprofits Apply for Grants,” by Pablo Eisenberg, Chronicle of Philanthropy, October 20, 2015). The author goes on to say that:

“Organizations that are small to medium size as well as those that represent poor, minority, and other grass-roots constituencies, pursue controversial causes and activities, or lack influential connections or friends struggle to get foundation support. This invitation-only system allows foundations to perpetuate inequality in American society, and that’s why Congress, regulators, and nonprofits must come together to force change... Foundations and their wealthy benefactors receive enormous tax benefits that subsidize their operations. Donors receive upfront deductions of 40 to 50 percent for their gifts, while foundations are exempt from local and state taxes as well as from taxes on their investment income. In exchange for these benefits, foundations and donors have an obligation to the public to ensure that their philanthropy is accessible to all nonprofits that want to apply for grants.”

As someone who has helped nonprofits pursue foundation grants for two decades, let me share with you how this looks from the nonprofit’s side:

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The nonprofit researches foundations that might be interested in its work.

The nonprofit sees that the foundation does not accept unsolicited proposals and gives up on the idea of reaching out to the foundation.

Unfortunately, every foundation the nonprofit identifies says that it does not accept unsolicited proposals. Lacking a robust major gifts program (attaining five-figure, six-figure, or higher donations from individuals) or other substantial funding streams, the nonprofit plods along with an annual fundraising campaign, wondering how it will ever expand its services to meet growing needs.

OR

The nonprofit’s in-house fundraiser or fundraising consultant says “Don’t worry about that ‘no unsolicited proposals’ thing – it just means that you have to reach out to the foundation, tell them about our organization, and get it to invite you to submit a proposal.”

A debate ensues about whether or not they should reach out to a foundation officer or the foundation’s board.

Because nobody wants to make a “cold call,” some passing-the-buck takes place around who should make the call.

The fundraising consultant says that she can no longer make these outreach calls on behalf of the nonprofit because she is not registered as a solicitor with attorney general of the state in which the foundation is located, and the foundation would rather hear directly from the nonprofit’s staff, anyway.

The Executive Director of the foundation reviews the prospect research and makes a call to the foundation’s executive director or a program officer.

The Executive Director does not hear back.

The Executive Director calls again a week later.

The Executive Director does not hear back.

The Executive Director sends a follow-up email a week later.

The Executive Director receives a polite email from the foundation, saying the foundation is not accepting unsolicited proposals, has spent out everything it can spend for this year, is no longer funding XYZ....

OR

The Executive Director does get a call back from the foundation. The conversation goes fairly well, and the nonprofit is invited to submit a proposal. The nonprofit spends 15-20 hours deciding what to apply for, compiling the proposal and all of the required ancillary materials (budgets, audited financial statements, board lists, and more) submitting the proposal, and following up – all while other projects and priorities fall by the wayside. The proposal (a) is rejected, (b) is moved to the next docket, which is happening in six months, or (c) gets an “entry level” gift of 10% - 20% of the original ask.

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Certainly, there are scenarios that play out more happily than this, scenarios in which the nonprofit and the foundation’s staff work collaboratively to present a proposal to the foundation’s board that will be accepted at a level close or equal to what was requested. This first gift will lead to a longer-term collaboration between the nonprofit and the foundation, one in which both entities pursue their visions and achieve their missions.

My experience says that this dream scenario is becoming a less frequent reality. As more and more nonprofits are established in the US (there now are more than a million of them, according to the National Center for Charitable Statistics), there is increasing competition for funds. I believe that there may simply be too many nonprofits in the US, and some of these organizations that cannot sustain themselves should probably close or merge. But I also have observed that many substantial foundation gifts are made because somebody knew somebody who opened a door. For those on the fringes, for those without connections, it does not seem to be a level playing field.

Meanwhile, smaller nonprofits are spinning their wheels, spending hours and hours preparing for and pursuing grants that they are very unlikely to secure. Those are hours that could be spent on more mission-driven activities.

I imagine that the situation at foundations can be equally frustrating. When they accept unsolicited proposals (and even when they do not), foundations can be inundated with phone calls, letters, emails and more from nonprofits that do not meet their giving guidelines, do not offer programs or services in which the foundation’s board is interested, or simply do not have a chance of receiving a grant. Distracted and overwhelmed by this, foundation officers cannot adequately turn their attention to the business at hand – helping the board make grant making decisions that advance the foundation’s mission. Furthermore, many foundation grant officers also spend their time helping their current grantees make other funding connections, run effective programs, and more. They do not have the time or resources to address every unsolicited inquiry that comes in.

And, of course, there’s the Golden Rule: He who has the gold, rules. If a foundation knows that they only want to support certain hand-picked projects, that is their prerogative.

So what is a foundation to do? What is a nonprofit to do?

Perhaps there is a way to reach a middle ground. For example, mid-size to large foundations could be required to accept unsolicited proposals, but they also could set parameters, such as “you may only submit one unsolicited proposal over a three year period.” That would force nonprofits to think carefully about those submissions, lest they squander a good opportunity. But even if they accepted those unsolicited proposals, I do not think they could be forced to fund them.

I don’t know what the answer is, but from where I sit, after 20+ years of working with nonprofits and foundations of all sizes and scopes, the philanthropic field and the public interest are not well served by the current hamster wheel of a system.  

Foundation giving hits an all-time high

A new report from the Foundation Center, among other things, foundation giving in the US has reached a record high of $54.7 billion. The report estimates that foundation giving will continue to grow at a few points above inflation in 2014, with independent and family foundations showing an even higher rate of growth. According to the report, in 2012 the US was home to more than 86,000 foundations.

The link above will take you to a one-page infographic/summary. From there you can download the 8-page report, which is also very graphic-heavy and easy to digest.

I put less stock in the numbers related to how/where foundations are giving (e.g. to education, health... or to economically disadvantaged, women and girls...), mainly because the sample size was relatively small - 1,000 larger foundations. However, I do think that the scope of the foundation world, the total amount of foundation assets, the rates of growth, and other statistics are interesting, revealing, and even surprising.

In my own work with foundations, I haven't necessarily seen that foundations are giving more, or are giving more easily. Securing foundation gifts still requires a skillful approach to cultivation and solicitation, ideally a partnership between foundation and grantee. While foundations may be giving more, my sense is that they are giving in a more focused, specific way, and there are more organizations out there doing the asking, which makes for a highly competitive field.

 

Your Grant Proposal is Boring. What Can You Do About It?

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After nearly 20 years of writing, editing, reviewing, and evaluating grant proposals, I’ve seen my share – the good, the bad, and the ugly.

Some grant proposals leap off the page, painting a vivid picture of the problem at hand and the proposed solution, while also providing an elegant, accurate (and not overwhelming) description of how, when, and why the solution will be carried out.

Some grant proposals get the job done, but don’t do much more than that. They answer the who, what, where, when, and why, but they never draw the reader in. They are the workhorses of the grant writing world: efficient, but forgettable.

Some grant proposals are real clunkers. There’s just no better way to say it. Not only do they not give the required information, explain the problem or the solution, or draw you in, but they are just... limp.

If you don’t activate the reader’s interest with your grant proposal, someone else will. Most individuals who are reviewing grant proposals and deciding what to fund, or deciding what to pass along to their boards or grant review committees, are reviewing myriad grant proposals. You must be memorable in order to not be forgotten.

In the preceding paragraph, I’ve broken one of my own rules about how to write a better, more effective, more engaging proposal. Read on:

1.            Tell a Story About One Person, One Program, One River, One Bird...

Storytelling is having a moment. Most grant writing books, blogs, and articles advise telling a story in your proposals, in order to help the reader envision your program. Research has shown that people remember stories more than statistics. Fundraising letters and appeals that tell the story of one person are more effective in raising funds than letters that assault the reader with a barrage of statistics, even when those statistics are compelling. Storytelling humanizes a proposal.

To make your proposal more interesting, creative, and lively, tell the story of ONE. One child who will be fed by your soup kitchen. One immigrant whose job training helped her transform her family’s life. One block in one neighborhood. One bird species. One river in a watershed. Drill down; get small in order to have the big impact.

2.            Throw Away Your Thesaurus.

Enough with the S.A.T. words, OK? Please stop saying “myriad,” as I did, above (and while you’re at it, if you MUST use that word, please learn how to use it properly). Proposal writing is like poetry; every word counts. But big words are not necessarily good words. In fact, throwing a big word into a sentence in order to sound smart can be like a tranquilizer dart to the head. Isn’t the preceding sentence more interesting than: “Use of advanced vocabulary to create the impression of intellectual prowess can have deleterious effects.”

Choose good words, not big words.

See more of my tips on what never to write in a grant proposal HERE.

3. Make It Shorter. Yes, Even Shorter Than That.

Writing long is easy. Writing short is hard.

Every grant writer knows that staying within an RFP’s page limit can be difficult, even maddening. When you do not have a formal page limit, it can be like driving on the highway with a full tank of gas. Freedom! You can keep going and going and going!

Except you can’t.

In my experience, at least quarter of most grant proposals can be cut out. Often, the longer your proposal gets, the more you are repeating yourself. Keep it short, focused, and powerful. Long can be boring. Short can be intense and vivid.

This rule of thumb also applies to your paragraphs and sentences. Watch out for run-on sentences, which seem to be the plague of the grant writing world. Mix it up. Throw in a short, impactful sentence every once in a while, just like I’m doing in this essay. When your reader has to read compound sentence after compound sentence, with no breaks, their mind tends to drift. If you mix it up with shorter sentences now and again, it’s a little burst of energy that makes you take notice.

In the spirit of following my own advice, I’ll close here and encourage you to give some of these tips a shot, even if it seems scary to get out of your usual grant writing groove.

Find more of my tips, including my audiofile, Grant Writing for Creative Souls, and my e-book, Grant Writing Quick Tips, HERE.