Latest / We Are For Good Podcast - The Podcast for Nonprofits / 150. Back to Basics: Foundations & Grants - Jonathan McCoy, CFRE and Becky Endicott, CFRE

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150. Back to Basics: Foundations & Grants - Jonathan McCoy, CFRE and Becky Endicott, CFRE · We Are For Good Podcast - The Podcast for Nonprofits

• 0:01
  Jonathan McCoy: Hey, I'm john. And I'm Becky. And this is the we are for good podcast.
• 0:06
  Becky Endicott: nonprofits are faced with more challenges to accomplish their missions and the growing pressure to do more, raise more and be more for the causes that improve our world.
• 0:15
  Jonathan McCoy: We're here to learn with you from some of the best in the industry, bringing the most innovative ideas, inspirational stories, all to create an impact uprising.
• 0:23
  Becky Endicott: So welcome to the good community. We're nonprofit professionals, philanthropist, world changers and rabid fans who are striving to bring a little more goodness into the world.
• 0:34
  Jonathan McCoy: So let's get started. Happy Friday, Becky,
• 0:37
  Becky Endicott: Happy Friday, everybody. So glad you're here.
• 0:39
  Jonathan McCoy: We're coming back to the basics, back
• 0:41
  Becky Endicott: to basics. Thanks for sticking around.
• 0:44
  Jonathan McCoy: So this conversation this week, we really wanted to dive into foundations and grants. And you know, if you've been tracking, we've been walking through different aspects of how you can really make your development shop best in class. And so we're talking through some core dynamics, but also putting a little we're forgetting flavor on it, too.
• 1:00
  Becky Endicott: Yeah, we are. And I love foundations, because it's just a really interesting way to foster an authentic relationship with your mission. And I think it's a very intimidating thing for most people, especially when you're in a cold call, with a foundation you've never worked before. It's what do you say? How do you show up? What are the right channels to be utilizing. And I think we want to break all that down and kind of take some of the friction out of it today.
• 1:25
  Jonathan McCoy: So throw the imposter syndrome out the window. You've got this, we're here for you. And so we've had one of our favorite guests talk about this topic in our first season, her name was dulari Gandhi, she is at the Michael and Susan Dell foundation in Austin and she really centered us are centered mmediately. Oh, my God, she came on. so relatable, so kind, but reframe the way we really think about these type of relationships. And I want to read a quote that she shared on the air that day, she said, when you're making an application to you know, a foundation, you're really making an application for someone to come join your organization from the outside as an advisor, a trusted friend, and somebody you can ask advice from. And this idea of just partnering to me completely changed the script on how we think of it as kind of this unknown process and don't really know how to pursue these relationships. But viewing it as a friend, or a partner, like that changes the whole dynamic, and you realize you're both on the same side of the table. And that is an eye opening thing, or at least in the best cases. That's the situation
• 2:26
  Becky Endicott: dulari changed everything about the way that I think about working with foundations in that 30 minute episode, whatever that was. And she is so right, because I think I have viewed it mostly from a scarcity mindset, like in the past of it just seems like this big golden mountain of something that I need to climb up to. And I need to somehow get close enough to that level. And it's like, when you think about it as No, you're actually meeting up with a friend, you're meeting up with a champion of your mission. And that person wants to get to know your mission, they want to fight for it. They want to go to bat and get you all the funding that you possibly can get because it's so well aligned with what their mission is with their own specific foundation. That is a mindset shift. And that's what we're going to try to get you today.
• 3:18
  Jonathan McCoy: Yeah, it's gonna be a fun conversation. So the giving us a report just recently came out. And there was a lot of mind blowing statistics. I mean, trying to document what happened in 2020, from a global level or us level, specifically in the report, I think was just fascinating. Yep. But one of the areas that saw the most growth was in foundation giving, that grew 17% year every year. I mean, what ever grows 17% year after you see this industry, but I think it really speaks to this moment in time, there's not a change in what the values are at these foundations. But there was definitely a change in the urgency of we need to step into this space. If we you know, really deeply care about this population. Now is the time this is the rainy day, it's here. And so much was needed in such a short period of time. So I think that's one thing that drove it for sure.
• 4:02
  Becky Endicott: I just want to give anyone who works at a private foundation or even a public Foundation, the biggest elbow bump, I am so proud of you, I am so proud of the way you leaned into change that you divest it more than ever before our foundations gave away so much more above and beyond what they normally do, because the moment called for it and that is what our sector is all about is rising up in these moments, finding a vision that we can connect with and aligning our missions and that funding to take that mission to a new level. So way to go Foundation's really proud of you. So we want to break down the definition of what a foundation is and how it relates to a grant because we know we have a lot of individuals who are new to our sector. And we think that if you're going to go back to basics, you might as well start with defining what we're actually talking about. So a foundation is off. grant making entity. So they're typically organized as a nonprofit that's exist to give out their earnings, and usually in the form of grants to other nonprofits. And they're doing that because they want to create and bring about positive change that aligns with that mission. So there's two different types of foundations, we've kind of referenced these already. One is a private foundation, which means that that money comes from either a family and maybe an individual or a corporation. So something like the Ford Foundation, or Bill and Melinda Gates Foundation, and those private foundations have to meet a payout requirement, meaning that they're going to have to give away a certain threshold of giving within their assets every single year. So they are required by law, to give away their earnings. And that is why it's so important for you to do your research and be one of those that aligns most succinctly with that mission. The second kind of the public Foundation, these, these foundations raise money through different sources, like individuals, foundations, government agencies, you probably see this a lot with your community foundations, and they're also just like grant making public charities. So kind of keep those at the top of your mind as we start to dive through the rest of this conversation.
• 6:19
  Jonathan McCoy: Most of these foundations have their own board of directors, they have a staff and depending on if it's private or public, you're going to see different makeups of this, but there's typically some type of program officer or some person that you can actually connect to the hands and feet of the mission that they're trying to carry out, that really becomes that ally that we talked about. That's the person that wants to connect with you and wants to get on the same side of the table, because they're trying to advance at a global or a bigger level, the very things that your nonprofit mission is probably attacking. And so realizing that alignment and leaning into the staff team is going to be really critical here. But let's just remember, grant is just a fancy word for a donation.
• 6:57
  Becky Endicott: Yep. That's it. It's just a fancy word for another type of donation to your organization. Yes, there's going to be a little bit more strings attached in terms of how you're going to be reporting out on impact, and the things that you'll have to deliver if you actually secure that grant. But at the end of the day, it's just a donation steward it and steward it well. Okay, let's
• 7:17
  Jonathan McCoy: set the tone for this conversation, though. Because I do think, in worst case scenario, I see nonprofit professionals, you know, think that they're being really proactive if they just say, I'm going to file for a bunch of grants this year,
• 7:29
  Becky Endicott: I'm so proud of you for going here with this conversation. Right now. It's just the truth. And
• 7:33
  Jonathan McCoy: there could be a comfort level of if I fill out these 20 boxes, and I meet this deadline, that I'm going to get such and such funding. And the reality is that you're not always going to get that funding. Sure, there's some governmental agencies that are issuing based on meeting set criteria. But a lot of this is based on you being selected, or you being the best to come at that particular time based on whatever criteria. And so I just want to put an emphasis, not that we don't love foundations, and we think that they're obviously a huge driver of philanthropy in our country. But we want to put the emphasis on can act on values. Because everything we've been teaching to this back to basics series, this can help you develop a stronger case and be more comfortable in talking about it and exploring unique ways to solve, know and accomplish your mission. But don't let this be the end all be all way that you're relying on revenue generation for your nonprofit, it puts you in a real vulnerable place, whenever that's your only way that you can
• 8:33
  Becky Endicott: Yeah, I think that's the most solid point because foundation grants can be something that just lift you beyond what you ever thought about before, you could you could even secure. And we have seen colleagues who are at very tiny nonprofits who would get a $250,000 grant, and it would just take them and skyrocket their operations and their dreams. But what happens when you don't get that grant the next year, it is not the most steady and reliable source of funding for your budget for your organization. So use it as a tool, not the only tool, I think is the biggest takeaway here. So we're going to get into basics now. And we're going to get into the we're for good arc of this conversation. And so there's a couple things we want you to think about and and we're challenging you to think a little differently as you're operating through this abundance mindset. While you're thinking about how to engage foundations, the first thing that you need to do is do your homework before you reach out to a foundation. You need to audit their website, you need to look at all their social media channels, you need to look at their 990 to see where they were gifting last year to look at their board and you need to review their granting guidelines. That's probably the first thing to ensure you even meet all of their funding criteria. So start with your basics, do your homework and do some research before you do anything.
• 10:30
  Jonathan McCoy: Okay, and then the next piece of advice we'd have is pick up the phone, you know dulari really emphasize this, she actually said, you can send a really strong cold email or to remember sticking out. But it's about making the connection because before you step through the entire process, the point of this is to figure out if there's alignment, does it make sense to go through these steps and understanding that you are talking to a potential partner, there's this understanding of this symbiotic relationship that you want to get on the same page to make sure that it's a fit before either one of you goes through a long journey together. So sorry, not sorry,
• 11:03
  Becky Endicott: sorry, not sorry, because Becky does not like talking on the phone. But sometimes you have to do it. And sending an email is not the surest way every single time to connect with a human being. So pick up the phone. The next one is don't just submit a grant, don't put together your grant and just submitted, build an equitably balanced partnership with this foundation staff member, this is what dulari is talking about. Because once you've done that, you can unite your efforts together to present the best possible joint case for support for the board to consider and doesn't just feel better, even when you're on a solicitation. When you bring a volunteer with you, when you bring a board member with you, there is something about being able to just ping off someone else and get a different lens on your topic. Use this partnership with your program officer, or whoever the assigned person is at this foundation, go in together, build that case together. And it'll be so much stronger when it goes to the board.
• 12:00
  Jonathan McCoy: So good. And the case that you're building should tell a comprehensive story from beginning to end. And that's not just in the case for support. It's in the stories that you lift, it's in the financials, there should be this commonality this thread of what are you really trying to accomplish? And how does all of that point back. And I know we're gonna keep dropping deliveries episode, but this will disrupt the way you think about how you structure your ask. And your grant request. If you put it in this lens,
• 12:26
  Becky Endicott: we love you to Laurie, you're just so wise. Okay, the next one is Get to know your foundations, trustees and board of directors, check out the Foundation's website, sometimes they're listed there, they're always listed on the 990, you need to take that list, float it to your board, float it to your volunteers, float it to your influencers, your door openers, and say, who knows anybody here who's playing tennis with somebody who's in the same Sunday school class or in the same synagogue, we need to make those connection points before we go in. Because there will be a time when you will activate that volunteer to make a connection to your grant. And that is going to lift it out of the bottom of the pile and put it up toward the top. And that's not just
• 13:09
  Jonathan McCoy: a strategy we're talking about just with grants, I mean, using the power of peer to peer for all your cultivation efforts are going to totally change your ability to either get in the front door or like you just said to the top of the stack of paperwork, but identify the people that are passionate about your mission that have these connections, and then activate them with a really specific request, make this call send this email, touch base, and they're going to want to reciprocate. We talked about this the volunteers that are closest to you, the believers of your mission are asking for specific ways to get involved in this can be one of those things to do.
• 13:43
  Becky Endicott: Hey friends, we wanted to take a moment to thank our amazing sponsor give butter, the world's fastest growing online giving platform powering more than 35,000 causes. One of these is family reach a national nonprofit dedicated to eradicating the financial barriers that accompany a cancer diagnosis. Like many of us, they were unsure how they were going to replace their critical in person fundraising events during COVID. Family reach put give butters virtual fundraising tools to use by hosting a super fun and engaging celebrity chef cooking challenge where they raised more than $350,000. And if you think this was a one off success, think again. They just did it again and raised more than $600,000 family reach raves about give butters ability to livestream video alongside their real time supporter feed, and saw how the threaded comments engage their audience beyond what was possible on other platforms. It's buttery goodness at its finest. Don't miss the full success story in our show notes, ready to explore how gift butter can help your organization take your online fundraising to the next level, check them out at gift buttered calm. We thought it'd be really helpful to walk through the lifecycle of a grant. And this would be through the lens of the foundation. That is the granting organization, not you and your mission. So we want to understand you to understand their process, how they're going to arrive at their solutions and who's going to be winning these awards for their grant application. So the first one is the foundation is going to start to evaluate their annual earnings. And from that they're going to establish a granting budget that's going to outline all of their annual priorities. Once they have that sort of magical number in their head. It's going to allow them some ability to be flexible and start looking for projects that value align. The second thing that they're going to do is they're going to start publishing their guidelines detailing all the specific areas of focus. That is six cessful applicants should align their request to. So they're going to post their grant application online with some deadlines and some timelines. And that's something that you need to put into a grants calendar. We're going to dive into that later on. But I cannot overemphasize how important having a full scale grant calendar is for your organization in terms of when letters of inquiry are due when the actual application is due. Because this is very much a journey. And if you are employing that partnership with your program officer, you're leveraging these peer to peer contacts, there's a lot of steps that go into getting the grant actually in the hands of the board to consider. Once applications are submitted, foundation staff are going to review them, they may actually come back to you and say we're going to need a little bit more information, we're going to need you to clarify something, that's totally fine. That doesn't mean that there's anything wrong with your application. And if you've done a great job building rapport with your program officer, that that conversation is naturally going to come because I would encourage you to send that person your application before you hit the submit button, then the program officers and staff members will evaluate whether each application meets a minimum criteria. And then they start to rank and prioritize dum dum dum. And those
• 16:50
  Jonathan McCoy: strongest, most aligned applications, those are the ones that go on to the working committee. So really, we talked about this partnership, if you have somebody working on the inside for you, as your partner, think about how transformational that can be. So really getting to that space with your program officer is a really critical thing to do. So with guidance and feedback from the program officer, the executive director or other staff members are going to review all the options. And this is when they make the funding decision. So this is the dreaded boardroom sitting around right that you don't get to be in when they're calling the shots of where that funding is gonna go. So harking back to earlier in the conversation, we talked about building the storyline is your story, does it comprehend? Does it make sense that this investments really going to move the needle about the thing that they care about? Just picture them in that room with that document? How can you make sure that that document is telling exactly what you want it to say?
• 17:42
  Becky Endicott: I'm gonna have to interrupt here and just say, here's a little hack for you. What face Do you want them picturing when they're going through your craftcation? Have you told them a story of a human being that they could see visually in their mind's eye? Do they want to help them? Do they want to be a part of serving that individual? If you are telling your story incredibly well, in your grant application, not simply answering the questions, but really telling your story? Well, then that is going to crystallize your ability to secure this gift so much more strongly than someone who does not.
• 18:19
  Jonathan McCoy: So this is when you find out the magical news that you got the grant, right, so letters go out, or calls are made. What's the first thing that you do Becky, I'm putting you on the spot. When you get this notification,
• 18:29
  Becky Endicott: I'm immediately going to call say thank you. And then I'm going to have my president called their president or the chairman of their board, and thank
• 18:36
  Jonathan McCoy: them as well. And don't forget the handwritten note, I mean, seriously, you go into stewardship activation, don't forget that gift receipt, either.
• 18:43
  Becky Endicott: I have to tell you just stepping back from this conversation is I'm going down memory lane, and I am thinking of those really big gifts that came in through foundations. And I, for anyone that's ever been in a fundraising shop that has had foundation gifts that have come in, I can think of one really significant seven figure gift we got for our last campaign that we were working on that came in from a foundation, and we got confetti cannons out like we literally were screaming, and we announced it to our staff. And we videotaped it. And I want to say we sent it to the foundation like so they could see our joy. And they absolutely loved it because it is very much a Publishers Clearing House kind of moment. And so be respectful, be a great steward, say thank you. And then once you get those grant funds, and those grant recipients are starting to benefit from this funding, we need to file away all of the impact and be tracking, we got to have a solid plan for how we're going to track those numbers, because we're going to have to report back in the end. And then at the very end, your last little step there is going back to that foundation and outlining whatever the criteria was that they defined that they needed to see as an output from their grant. And you need to be incredibly clear with what was the impact and I would say I can have people fight me on this. Maybe dulari would arm wrestle me and tell me this is not right. But give them everything they've asked for. But if you have intangibles, if you have stories include those as well, because those are going to be the things that they will remember. Absolutely.
• 20:15
  Jonathan McCoy: So if you're sitting here thinking man, this should really be part of our mix. Then we want to share a few steps to get you started. And this is what I would call the make a dang plan section that we've been including in the basics. But just to be ready for this first think about which program and why Are you going to seek funding for that particular program? What's a program that would play well to this, maybe it plugs into some greater narrative that championed by a lot of causes, maybe it's eradicating something that a lot of foundations have focused on in your community, that would be a great fit for this. And then secondly, you want to build a master grant calendar start to look at when are the deadlines because they're probably going to be different. And the different steps and sequences for each is going to be different. So getting organized is key, because missing one of those deadlines could completely preclude you for a quarter at best and a year or longer at worst. And then you want to start putting together your prospect list. So a great place to start is foundation direct. Three, it's not all that expensive, but it is this online directory that you can truly dive in and understand what are the funding priorities? What are the assets available? What are the timelines, and you can see it all in one place. So definitely make that investment in Foundation Directory, and then just do the research. You know, we started here, and I think this is a great place. People want to know that you have done your due diligence, if the world of zoom in the last year has taught me anything, you feel so much more seen when you get onto a call with somebody that you don't know, if they've taken the two minutes to try to figure out something about you. So you're just not blindly learning everything on the moment. Right? Amen.
• 21:46
  Becky Endicott: I mean, even makes you feel seen and appreciated, and that you connect on something, that's a great point. And
• 21:52
  Jonathan McCoy: so if you can do that, at a deeper level, understanding what have they funded and how that was transformational, you're gonna have so much better of a connection point to start these conversations. But when you're doing that, obviously, look into the 990s. That's going to give you a lot of hard data. But also note who are their board members, look for those connections, maybe even float the board member list in front of your board. We talked about this a lot of just trying to understand the constellation of connections in your world
• 22:16
  Becky Endicott: constellation of connections, I'm going to quote you on that that was a great thing.
• 22:19
  Jonathan McCoy: That's a Susan MacPherson
• 22:20
  Becky Endicott: really was we couldn't go like five episodes without mentioning season. Everyone's rolling their eyes. Okay, so here's a couple of questions we want you to ask yourself before pursuing a grant. And this is courtesy of the fundraising authority. Number one who will head up your grant program who's going to lead the charge on this grant process? Number two, how are we going to find the foundations that we need to approach? Certainly you have incredible mission, you probably have great programs or even equipment, something that you're trying to fund, you need to make that the foundation and align with that thing that you are trying to get funded. You need to determine who's going to write the grants, how much time and effort Are we going to spare and approaching foundations, which could be a lot of time. And to John's earlier point, if you're spending all your wheels trying to get a grant, then that means you're not spending time out there. Also engaging all the other people in your portfolio. So just manage that and manage it well. And then the last question to ask yourself is, if you get an offer to apply, we have to ask ourselves, who's going to track that impact for follow up reporting, and who's going to make a presentation potentially, if this is in person, these are all things that help with your grant readiness and preparedness. And it's also going to make you feel more confident walking in that you know exactly what's coming at you, you know, your program and your project that you're pitching. And you feel like you have an equal partner on your side of the table with your program
• 23:47
  Jonathan McCoy: officer. Okay, so we had a conversation in the last couple of weeks with one of our friends here in the community who listened to the Laurie's episodes if you've listened to dulari. If you haven't yet, we're putting it in the show notes. This conversation will help you completely reframe your approach to grant making. And I want to just run through some of her tips because she is a program officer at one of the most prominent foundations in the United States that had a huge year this past year. And so what she shares is so good. It's so good.
• 24:17
  Becky Endicott: And it is exactly the framework that you should be following. If you want to embrace this mindset of I need to partner with my foundation rather than solicit my foundation.
• 24:27
  Jonathan McCoy: So where do we start with the Laurie's tips?
• 24:29
  Becky Endicott: Number one, tell a good story. Of course, people love your data. And we I think we tend to think that foundations want to see our data as the primary directive and some of them do. But it's not the only directive, we need to again, be able to create a visual of who the person that this program is going to be serving. We want them to see that person in their community and felt compelled to want to help them. Okay, the
• 24:56
  Jonathan McCoy: next is providing that consistent, concise and clear information. So when you pair really clear data with a really great story, you start to become completely irresistible, and funders, you know, the program officer can't be an ambassador for you if they don't understand it. But if you equip them with the data and the story to understand it, they're going to be your ally and advocate on the inside and help you walk through the process to the
• 25:21
  Becky Endicott: third one is first impressions matter. I think anyone who has ever been in business that's ever been a gift officer, you understand that the first time you meet someone, something happens There's an assessment that happens there. So be real, be authentic. Go in professional, but not completely buttoned up that you sound like a robot, you know, we want them to come to know and love our mission and to feel the messiness and the humaneness of it. We can't be completely buttoned up that we don't allow someone to come in and see how they could be a bridge to our dreams and to making that possible. So, you know, make that phone call, send out a really solid email, if you're making that connection, feel like you've done your homework, and it will help move your grant along further.
• 26:13
  Jonathan McCoy: And the other thing I would say is that there's so much work that needs to be done before you actually apply. So coming out with the right strategy, it's going to lead you to have the right conversations that's going to tee you up to the actual paperwork, which is kind of the final step. So much needs to happen. So many conversations need to happen before you actually even apply and think through. I feel
• 26:33
  Becky Endicott: like this is the is the the most shocking thing about this conversation that most people when they think about grants, is they think about going and finding the application and submitting it. And what we're saying is there's about 25 steps that need to happen, maybe not 25, everyone's like tuning, they don't want to do it, there are a series of steps that need to happen before that to give your grant the greatest chance of success. The next one is my favorite one, which is the Laurie says, I am a big fan of no surprises. When I'm looking at your grant application, I shouldn't be surprised by anything that is in there. And if you have been speaking with one voice with your program officer, or if you are completely locked in on that strategy, there shouldn't be any surprises in your application.
• 27:22
  Jonathan McCoy: Okay, I can't close this conversation without sharing one of the values of the Dell foundation that really boiled up in talking to dulari several months ago, and it's one that stuck with us.
• 27:32
  Becky Endicott: This is John's favorite quote, probably in 135 episodes on the podcast, maybe 141 it on a coffee mug.
• 27:39
  Jonathan McCoy: So maybe this is coming, trademarked first. But she said one of the values of the Dell foundation and this is exhibited and how they responded to COVID to specifically take the risk you're challenged deserves. So why I want to leave this kind of at the tail end of this conversation is because we need our nonprofits to lean into these big visions, these foundations have assets, they especially like a private foundation has put their legacy into eradicating some kind of problem that may be plugged their family or that for some reason tugged on their heart, they want to see the most impact made possible. They're looking for visionaries, they're looking for people that will think and dream way beyond just the status quo. So this is a play, take those risk find these, you know, impact investors that want to invest in a program that could really change your community in a huge way. And so come at it with that kind of posture. And this is where I really love this space is where I don't feel like you just checking a box of we need a grants program. This is what's visionary, and that can really transform the world that we live in.
• 28:48
  Becky Endicott: And that's what I love so much about this podcast is we can just create space to hold court and have these conversations, and to have a program officer at a major foundation. look you in the eye and say, this is actually what we want. We want to be your partners, we want to be your ambassadors and your champions, and we kind of want you to bring your champions along. And if you can just think about this as being this wonderful, homogenous, harmonious group where volunteers are talking to each other program officers and staff are talking to each other. And so if you can put in a little bit more work, if you can do a little bit of growth mindset in the way that you approach. I really think you're going to have more success in the way that you approach grants and build long term relationships with these foundations. Okay, friends, you
• 29:35
  Jonathan McCoy: got this.
• 29:36
  Becky Endicott: We're rooting for you.
• 29:38
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