Grants account for less than 20% of revenue for the majority of nonprofits.  While grants should definitely be part of an organization’s development strategy, small and major-gifts from individuals and business should also be pursued.

Some facts about what grantmakers look for (I know because I have been on the board of one for 14 years). They:

• Very rarely give more than 10-20% of an organization’s previous year’s 990 income
• Want to see a plan for financial stability
• Look for a track record of past results as a predictor of future success
• Often take 3-6 months to make  a decision
• Involve 5-10 people in the decision-making process
• Use strict criteria to judge applications
• Value data, research and evidence-based planning

Consider some attributes of the individual donor:

• Often give based on emotion/ personal connection to mission/ issue
• Are compelled by personal stories & testimonials
• Decision tree is usually short and quick, with 1-2 decision makers
• Will give based on personal connection to organization/ staff
• Most will give small donations ($25-$250)
• Those with means may give major gifts ($1000-$10,000) if moved

How is the approach different for different donor audiences?

FOUNDATION APPEAL

• Identify funders which align with organization’s program
• Cultivate relationship with program officer if possible
• Complete required application (10-20 hours/ work)

* Statement of Need
* Goals & Objectives
* Detailed Budget
* Collect Financials
* Evidence-Based Research

• Wait 1-6 months for Response

INDIVIDUAL APPEAL

• Compile donor prospect list (50-1,000+)
• Write letter of appeal ( 1-2 pages)
• Mail letter with return envelope/ credit card acceptance
• Follow-up calls/ meetings with best prospects

Whether going for foundation or individual donor funding (hopefully you will do both!) it is important to carefully identify your target audience and craft the right strategy. Leverage your resources, knowledge and relationships to achieve maximum results.