Cultivating The Grantor (Part 1)

Sections of this topic

    My previous posts provided a lot of introductory information on foundation and corporate grants, organizational readiness, grant management, and … on Step One of the four-step grantsmanship process: Prospecting For Foundation Funding.

    I begin, now, to addresses the second step in the process: Grant Cultivation.

    For those familiar with non-profit fundraising, grant cultivation is very similar to that for individual donors. According to majorgivingnow.org, “cultivation consists of all the relationship-building steps that lead to donorship – and cultivation continues as part of a stewardship program once gifts are made. Through cultivation, you learn more about donors, and they learn more about you.”

    That same thinking can be applied to cultivating foundation and corporate grants.

    The following are some of the most effective methods I have found to cultivate grants from foundations and corporations:


    1. Involve your Board Members. As I wrote in my May 17, 2012 post, What Is Your Grant Win Rate? What Should It Be?, “the connections that your board members have in the community are vitally important.”

    After identifying new prospects for foundation and corporate grants, you should always share the names of their leadership (the foundation manager and trustees and the officers and directors of the corporation) with your NPO’s Executive Director and Board Members. Ask if anyone has a personal or professional relationship with any of those “leaders,” and if they would be comfortable signing a letter of inquiry and/or making a phone call.

    These relationships help get your letter read and your phone call answered … and they help you win the grant. Some statistics from a recent client will help illustrate this point: over the course of one year, proposals to new prospects with a board connection were funded at a 75% rate and those without a board connection were funded at 35%. That’s quite a difference !!

    2. Start with a Letter of Inquiry/Intent. When seeking grants from new prospects, I recommend that you, first, send a two-page letter of inquiry (sometimes called a letter of intent) to the appropriate foundation or corporate “leader.”

    LOIs are a very important cultivation tool, and they should be written by you, the Grants Manager, in first person.

    One of your Board Members could sign them, if that person has a connection to the “leadership” that you are cultivating for new grant funding. Alternatively, your Executive Director could sign them, and should reference the “connection” your Board Member has with their leadership. These letters should be specific to your NPO AND to the foundation from which you are seeking funding.

    The basic components include:
      •  Introduction. If your Board Member is signing the letter, include information on how long he/she has served on the Board, and why he/she believes in your NPO. If your Executive Director is signing the letter, indicate that your connected Board Member suggested that your NPO apply to this foundation for grant funding.
      •  Background. Include the mission and history of your organization, a description of who you serve, and a brief summary of your major programs/services.
      •  Pitch 2 – 3 Ideas. Include a short paragraph for each of two or three programs or projects that you think might be a good fit for funding from this foundation. Briefly describe why you think these programs/projects are a good fit with the foundation’s mission, and the impact their funding will have on the people you serve.
      •  Conclusion. Indicate that you will follow-up by phone to discuss your NPO’s fit for funding within the current priorities of their foundation.
      •  Include a Photo. I usually include a photo with a caption on page one. This helps to personalize the letter, and to connect the foundation manager/trustee to your service population or your mission.

    Be aware that some foundations require that you submit an LOI as part of their application process. In these cases, follow their specific LOI guidelines.

    You might also want to refer to the Foundation Center’s website (http://foundationcenter.org/getstarted/faqs/html/loi.html) where they provide “resources with actual letters of inquiry or templates.”

    Part 2 of Cultivating The Grantor (on November 1st) will outline three additional methods that I have found to be effective in cultivating grants from foundations and corporations.
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    Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.
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