Our Foundationsearch teams speak with over 10,000 non-profits and foundations each month.
Over the course of these conversations, we have learned that many of the tried and true strategies charities have relied on to guide their fundraising efforts in 2020 have proven inadequate.
Worst hit has been events based fundraising, which, by some estimates, has shrunk in terms of proceeds by over 70% since March, 2020.
Individual giving has also declined in 2020 as part of the fallout of double-digit unemployment and uncertain job futures. Corporate giving is flat in the financial and tech sectors, however down significantly in most other sectors, notably energy, resources, retail, travel and hospitality.
Is 2021 going to be better? Despite the late Summer optimism as Covid cases fell and lockdowns eased, many forecasters are now saying it will be a “2020 repeat” given the Fall spike in cases combined with no effective vaccine on the immediate horizon.
So, what should a non-profit do to stay alive and perhaps even thrive in 2021?
At risk of stating the obvious, the things that worked in 2020 should continue to work, even more so in 2021. So far, 2020 has been a good year to date for foundation giving by all reports we have received.
Since April, we have assisted over 2,300 charities in their efforts to locate and secure Covid emergency funding (if you are still looking assistance, contact us at support@foundationsearch.ca for our current Covid funders list – it is free for the asking for all non-profits).
Beyond pandemic relief, there are some other very compelling reasons why your organization should emphasize foundation fundraising going forward.
Those reasons are:
Stable Giving – Foundations must make charitable grants – in good times and bad – of at least 3.5% of their assets, averaged over three years. Importantly, foundations frequently increase their donations in challenging times to attempt to compensate for the financial difficulties their recipients may face. 2020 has been no exception – almost 2,000 Canadian foundations have explicitly launched Covid relief initiatives, and we believe this number will increase significantly in 2021..
Predictable giving – Foundations exist to donate to charity, unlike individuals and corporations, who have a variety of shifting interests and priorities. Foundations often publish giving guidelines relating to geographic and philanthropic areas of giving interest – furthermore, analysis of giving through time indicates that most foundations maintain a strong, consistent focus in the areas they support.
Low risk / low cost – unlike high expenditure / high risk fundraising efforts like golf tournaments and galas, foundation fundraising requires very little upfront investment, typically $5,000-$15,000, and with the average single foundation grant amount of $36,367 (2019, 2020), it provides the most cost efficient method of fundraising – all that is required to start is a funding database which identifies good funding prospects, a good letter, and a few stamps and envelopes.
Low effort – relative to almost any other form of fundraising, approaching foundations requires fewer resources to succeed. This is particularly true of the upfront work in sorting through the nearly 12,000 Canadian foundations to identify a list of “best prospects” for your project, a task that a few years ago could consume months of effort. Foundation funding information and management systems like FoundationSearch are now able to intelligently and accurately identify a short list of the best prospects for a variety of project funding needs, including Covid funding – and recommend a safe asking amount based on the funders prior giving history. The balance of the upfront effort simply involves writing and sending a letter of inquiry to your foundation prospects to determine their interest in helping you.
Growth – the most recent CCS Fundraising survey (August, 2020) indicates that foundation funding has been the fastest growing giving source since 2015, growing at a rate of 5.7%, compared to 3.2% for giving by individual donors. Foundations gave $7 billion, in the form of an estimated 164,000 grants – that is more than one grant for every two charities in Canada, so your odds of getting funded – if you apply of course – are good.
Increased credibility for you and your organization – well, once you get funded by a foundation that is. When you are successful in attracting a foundation grant you will open up many doors in the foundation and corporate world for your organization for years to come – you have proven that you are worth funding and can deliver.
Diversification of funding sources – financial advisors will strongly advise you not to put your life savings into a single stock or sector; for the same reason, having a variety of funding sources—including foundation funding—will strengthen your organization and protect it from the sharp downturns every economy periodically experiences.
We are here to help you get through this – feel free to reach out to us for our growing Covid funders list by sending us a note to;
FOUNDATIONSEARCH BLOG 