Beyond pandemic relief, there are some very compelling other reasons why your organization should emphasize foundation Fundraising Strategies in 2021 and beyond.
Those reasons are:
Stable Giving
– Foundations must make charitable grants – in good times and bad – of at least 5% of their assets, averaged over five years. Importantly, foundations frequently increase their donations in challenging times to compensate for the financial difficulties charities face. 2020 has been no exception – over 7,500 US foundations have explicitly launched Covid relief initiatives, and we believe this number will increase significantly in 2021.
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 $59,300 (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.
Growth
– the most recent CCS Fundraising survey (August, 2020) indicates that foundation funding was the fastest growing giving source since 2015-19, growing at a rate of 5.7%, compared to 3.2% for giving by individual donors. Foundations gave $72 billion, in the form of an estimated 1,164,000 grants – that is more than one grant for every two charities in the US 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.
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