We occasionally hear that "foundation funding is not part of our focus" when we speak with nearly 20,000 non-profits each month about their nonprofit fundraising needs and objectives. We feel there are several compelling reasons to consider foundations as a potential source of funding for your organisation. Those reasons are:
Growth
According to Indiana University's most recent GIVING USA report, foundation funding was the fastest growing giving source in 2015, expanding at a rate of 6.5%, compared to 3.8% for individual donor giving. Foundations donated $58.46 billion in the form of an estimated 832,000 grants - that is one grant for every two charities in the United States, so your chances of getting financed are good if you apply.
Stable Giving
Foundations must make philanthropic gifts of at least 5% of their assets over a five-year period, in good times and bad. Importantly, during difficult times, foundations frequently INCREASE their donations in an attempt to compensate for the financial difficulties their recipients may face.
Predictable giving
Foundations exist to donate to charity (unlike individuals and corporations) and frequently publish giving guidelines relating to geographic and philanthropic areas of giving interest; additionally, analysis of giving over time shows that most foundations maintain a strong, consistent focus in the areas they support.
Low risk / low cost
Unlike high-cost fundraising campaigns such as golf tournaments and galas, foundation fundraising requires very little upfront investment, typically $5,000-$10,000, and with an average foundation grant amount of $66,300, it provides a cost-effective method of fundraising - all that is required to get started is a foundation online database that identifies good funding prospects, a good letter, and stamps and envelopes.
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