Working with Foundations

1. Working with Foundations

2. Foundation Statistics: National - 75,000+ foundations in the United States awarded $46.8 billion in 2008; their assets, however, fell 17.2 percent to $565 billion – the largest decline tracked. - Grant awards fell by an estimated 8.4 percent to $42.9 billion in 2009, but estimates indicate a 3.3 percent increase in assets to $583.4 billion. Giving remained flat in 2010 with projected potential for modest growth in 2011. - Top ten U.S. foundations by assets: - Bill and Melinda Gates Foundation $29.9 billion - J. Paul Getty Trust $10.9 billion - The Ford Foundation $10.2 billion - Robert Wood Johnson Foundation $7.5 billion - W. K. Kellogg Foundation $6.8 billion - The William and Flora Hewlett Foundation $6.2 billion - Lilly Endowment $5.7 billion - John D. and Catherine T. MacArthur Foundation $5.0 billion - The California Endowment $4.7 billion - The David and Lucile Packard Foundation $4.7 billion Source: Foundation Center, 2008 Statistics

3. Foundation Statistics: Michigan - 2,251 grant-making foundations in Michigan awarded $1.4 billion - Independent Foundations 1,889 - Operating Foundations 180 - Community Foundations 96 - Corporate Foundations 86 - Top ten Michigan foundations by assets: - W. K. Kellogg Foundation $6.8 billion - The Kresge Foundation $3.1 billion - Charles Stewart Mott Foundation $1.9 billion - Community Foundation for Southeast Michigan $533 million - The Herbert H. and Grace A. Dow Foundation $517 million - The Skillman Foundation $435 million - John E. Fetzer Institute $355 million - Kalamazoo Community Foundation $288 million - Grand Rapids Community Foundation $236 million - Max M. and Marjorie S. Fisher Foundation $201 million Source: Foundation Center, 2008 Statistics

4. Foundations: Where & What are they Funding? - Led by the Gates Foundation, foundations in the Western United States provided the largest share of grant dollars in 2008 ($9.1 billion) followed by foundations in the Northeast ($6.4 billion), the South ($4.8 billion), and the Midwest ($4.7 billion). - Western foundations awarded the largest share of their grant dollars for health. - Northeastern, Midwestern, and Southern foundations favored education. - International giving surpassed $6 billion in 2008, and as a share of overall giving, international grant dollars reached a record 24.4 percent. Source: Foundation Center, 2008 Statistics

5. Foundation Trends: Current and Future • Many of the large private foundations are choosing to invest their dollars in pressing national (e.g., college readiness, postsecondary success, alternative energy) and global (e.g., climate change, food safety and security, global health) issues; are developing aggressive, targeted goals; and are providing large grants to and partnering with organizations (and often consortia of organizations) that are addressing these issues. • Gates Foundation: Double the number of young people who earn a postsecondary degree or certificate with value in the marketplace by the time they reach age 26. • Lumina Foundation: Increase the percentage of Americans with high-quality postsecondary degrees and credentials to 60 percent by the year 2025. • Moore Foundation: The Andes-Amazon Initiative’s goal is to conserve the Amazonian forests, which provide habitat for biodiversity and regulate the regional climate cycle. To achieve this goal, through the Foundation’s funds and the work of its Grantees, the Initiative must effectively manage 370 million hectares of forested landscapes.

6. Foundation Trends: Current and Future • Many foundations are increasingly joining forces to address major issues . . . • Example: Carnegie Corporation of NY, Gates, Hewlett, and Lumina are partnering with the Carnegie Foundation for the Advancement of Teaching on a two-year, $14 million initiative to improve success in mathematics among community college students at nineteen community colleges in five states (California, Washington, Florida, Connecticut, and Texas). • Example: Alliance for a Green Revolution in Africa, partnership between Rockefeller and Gates to sustainably increase the productivity and profitability of small-scale farms throughout Africa. • Example: Climate and Land Use Alliance, collaborative initiative among ClimateWorks, Ford, Packard, and Moore Foundations to catalyze the potential of forested and agricultural landscapes to mitigate climate change and deliver economic, social, and ecological benefits. • - . . . and are expecting their grantees to do the same, favoring colleges and universities that not only propose multi-disciplinary projects/initiatives but also team up with other schools, nonprofits, businesses, and/or community groups.

7. Foundation Trends: Current and Future • - More foundations seem to be requiring matching dollars on grants they award. • They are focusing more and more on accountability, both of themselves and of their grantees. • Example: Reporting requirements are more demanding, frequency and detail. • - Most foundations (particularly the large nationals) are putting a much greater emphasis on sustainability and scalability. • - Sustainability: Funders want to know what will happen to the project after the grant dollars are exhausted. A Lumina Foundation executive sums this up: “We are not here to issue ‘wonder’ grants for projects where you get the funds and then have to wonder where the next money is coming from.” • - Scalability: For foundations this means the project must have great impact, either directly on a large number of people or indirectly by being able to be replicated in other places. • - They are more open to phone conversations with potential grantees to discuss programs and projects before proposals are submitted.

8. Foundation Trends: Current and Future • - Many foundations are moving to an online submission process for both letters of inquiry and proposals. • For international projects, many foundations like to see an in-country partner as the lead rather than a U.S.-based institution. • Many foundations are members of affinity groups, which provide opportunities for program staff to meet and discuss current trends in specific funding areas such as education, the environment, health, etc. Many of these affinity groups have websites that provide valuable information to those seeking funding. • Africa Grantmakers Affinity Group • Environmental Grantmakers Association • Funders for Lesbian and Gay Issues • Grantmakers Concerned with Immigrants and Refugees • Grantmakers for Children, Youth, and Families • Grantmakers for Education • Grantmakers in Aging • Grantmakers in Health • Disbility Funders Network

9. Working with Foundations: A Few Basics - Foundations, particularly large, national foundations, tend to focus on new, cutting edge initiatives, projects, and research that will advance the overall strategic goals of the applicant institution and support the mission of the foundation. - Foundations are not just looking to support “good work”; for the most part, they seek to help institutions break new ground and accomplish articulated goals. - Foundations typically provide start-up funding for projects that have the capacity to become institutionalized or self-supporting at some point. - Foundations normally will not provide support for endowment, capital projects, or general operating expenses: support is generally project-, program-, or research- based.

10. Types of Foundations - Community Foundation - Corporate Foundation - Family Foundation - Operating Foundation - Independent (Private) Foundation

11. Community Foundation - Serves a specific geographic community or region - Usually focuses mainly, if not exclusively, on local needs - Tends to fund community-based projects within a specific community or region - Comprised of a large number of individual funds managed by a single administrative body with all of the funds pooled for greater return on investment - Income from the endowment is used to make grants - Trustees are normally chosen from the community for a specific term

12. Corporate Foundation - Assets are derived primarily from contributions by the corporation - Contributions may be made from an initial endowment, annual funding from the corporation, or both - May maintain ties to the parent company but functions as an independent entity - Abides by the same rules and regulations governing private foundations - The board normally consists of top corporate management, local corporate officers, employee committees, and sometimes outside community members - Geographic range is often limited to areas where there is a corporate presence

13. Family Foundation - Technically not a legal term; refers to any independent, private foundation whose funds are managed or strongly influenced by members of the donor’s family - Family members typically serve as officers or board members - Family members typically have a significant role in grant-making decisions - Most are small, informal organizations - Most tend to focus their grant making in a specific geographic region - Usually have few or no program staff - Opportunity for cultivation and relationship is often greater than with a large private foundation - Often, however, there is no one to cultivate, especially if a bank is acting as the trustee

14. Operating Foundation - Primary purpose is to conduct research, social welfare, or other programs determined by its governing body or established charter - May make grants, but the number and dollar amounts of the grants awarded are small relative to the funds used for the foundation’s own programs - An operating foundation may partner with a college or university to further its own programs

15. Independent (Private) Foundation - Large, complex, multifaceted, professionally managed - Usually has well-defined focus areas and specific/detailed application requirements - Program staff are most likely experts in their fields - Know who the top academics are and often use them as consultants on program development - Typically support projects that are national or international in scope, impact large numbers of people, can serve as a model for others, and have the capacity to become self-sustaining after a period of years - Proposals are normally invited, and RFPs are issued periodically

16. What do foundations look for in proposals? - What is the problem or need being addressed? - What is the proposed solution? - How does the project fit into the overall strategic mission/goals of the department, college, and/or university as a whole? - What are the objectives and how do you propose to meet them? Measurable goals. - What is the timeframe for the project? - How will the project be sustained after the grant funds are exhausted? - Why are you the best person to do the work? - How are you going to evaluate the project? Both formative and summative evaluation. - How do you intend to disseminate the results of the project? - What is your budget? - What is the department, college, or university commitment to the project?

17. Developing the Proposal A well-developed, clearly defined, focused proposal should— - Show how the project relates to the mission of the funder - Show how the project relates to the strategic goals of the unit, college, and/or university - Focus on what is unique about the project or how you are building on an existing project - Include realistic, achievable, and measurable goals and objectives (provide baseline data) - Provide a detailed implementation strategy and timetable for achieving the project goals and objectives - Highlight your qualifications and experience - Present a detailed evaluation plan (formative and summative) - Include a realistic budget for the project (overview budget, detailed budget, and budget narrative) - Discuss how the project will be continued after the grant funds end

18. “Foundations function but as incubators, not oxygen tanks.” ~ Vartan Gregorian, President, Carnegie Corporation of New York