STAGE THREE

Most Founders have funding a nonprofit all wrong

With over 27 years of grant writing experience, my largest grant totaling $3.2 million, and subsequent smaller grants and corporate sponsorships ranging in from $750,000 to $2.4 million, I can tell you that most Founders have funding their nonprofits all wrong. They approach it from the mindset of a Founder:

I have bills to pay, I need money to cover those bills.

To be effective, Founders should approach funding their nonprofits from the mindset of the Funder. Doing so will exponentially increase funding prospects.

Here’s why. Funding is competitive. Having a Funder’s mindset helps you to align your organization with the Funders’ mission, setting your organization apart from the competition. It’s really that simple. But let’s break it down a bit further.

Thinking like a Founder

Thinking like a Founder means you approach your ask like this, “Without your money I can’t fund my programs. I have staff that need to get paid to deliver programs, rent to pay, insurance, utilities—oh, and in order to be able to take my kids on field trips I need money for buses and the tickets for the event.”

It’s all about you!

You. You. You.

What You need.

As a Funder, I’m looking to see how your programs help me fulfill my mission, my needs. Funders have to report to the IRS and their board of directors, just like you do. They have to be able to demonstrate why the nonprofit they funded was the best choice: did the organization share similar missions? Would the things the organization asked for lead to tangible outcomes?

How does a Funder determine all of that from the Founder’s ask?

Thinking like a Founder means that your primary focus is to get your needs met, and you view the Funder as the entity responsible for getting you there. For example, many of my clients make this statement to me, “I’ve been funding this organization for the past two years. I’m broke and need some grants so I can stop taking from my household to keep this place afloat.”

While it may be true, this is not the Funder’s fault or responsibility. As a matter of fact, this is the least desirable type of organization a funder wants to fund. Why? Because this organization is essentially a sinking ship. Who wants to hitch their wagon to a sinking ship?

The Founder’s mindset believes a Funder is supposed to write a check and save them.

This mindset is also what lands most proposals in the “No” pile during review.  If your organization is struggling, then it’s not a strong business or a good investment. Funders don’t want to save organizations. It’s a desperate picture and nothing works better to make a Funder run for the hills than desperation. The Founder’s mindset never works.

Thinking like a Funder

Thinking like a Funder shifts the focus from what the nonprofit organization needs to meeting the needs of the Funder. What does that look like?

Your proposal will align its programs/projects/activities to meet the needs of the Funder. For example, the Funder says, “We envision a world that respects mother nature and invest in programs that work to support the natural process of saving the environment.” Then your proposal will align with those specific needs.

Your proposal doesn’t ask for funds to pay rent, utilities, and insurance. It doesn’t say, “Without funds from the Amber Wynn Foundation, hundreds of kids will not be able to participate in field trips to Yosemite, and eventually we will have to close our doors.”

That’s doom and gloom, and Funders are not inspired or motivated to support your program. Instead, you want to focus on your impact and outcomes: “Fifty youth from the inner city will participate in a 10-day nature immersion program, learning about the impact of climate change and how many of our everyday choices impact our ecosystem. Youth will participate in activities designed to support the natural process of restoring the ozone by reducing their carbon footprint. Activities include composting, recycling, repurposing non-recyclable materials, and leading a youth-focused community service project designed to bring awareness about what youth in the inner city can do to respect mother nature.”

The Funder’s mindset presents solutions that meet the goals of the Funder. If a Project Manager was reviewing this, they would be very responsive to this proposal because they wouldn’t have to figure out how this program aligns with their goals and objectives the organization laid out how for them. This is the most important part of thinking like a Funder: make it easy to fund your organization.

Funders review hundreds of applications a year. The proposals that have the most number of check marks for what they want to fund will advance to the final review. Funders don’t have the time to try and figure out how your proposal fits within their funding criteria. Nor do they have to. There are grant writers, like myself, who have figured out the key to funding success, and it’s to think like a Funder!

That doesn’t mean you regurgitate what they’re asking for…but you come close! More importantly, the key is to make sure you share similar missions.

Why? Well, because you want to make sure you meet the needs of your organization. If you both want to rid the world of homelessness, then you know that if you’re funded, you will be doing things that align with your mission and the mission of your Funder. If you just write to meet the needs of the Funder and you don’t share the same goals and objectives, then you’ll be straying from your mission. That’s why research is key when applying for funding. And it’s the main reason why a clear, succinct mission is imperative. It’s also why Funders look so closely at the organization’s mission, program description, goals, and objectives.

Where do you learn how a Funder thinks?

Learning to think like a Funder takes practice. Learning to write requests for support in a way that is inspiring, motivating, and powerful takes even more practice; but that’s what it takes to win awards. The beautiful thing about learning how to think like a Funder is that they tell you exactly what they want and expect! Because a Funder is governed by their board of directors and ultimately the IRS. Their funding criteria have to be clear so that they can be audited and prove that they are funding nonprofits that help them meet their funding goals and objectives. You can find the Funder’s Guidelines, Eligibility Criteria, Areas of Focus, Previously Funded Grants, and What the Organization does Not Fund on their website. If they list “Salaries” as something they do not fund, then you know not to include salaries in your request. Sounds like a no-brainer, but when you have a Founder’s mindset you tend to overlook the obvious because you’re thinking the grant-making organization is supposed to help you keep your organization afloat instead of focusing on what they list as their purpose.

Read it. All. Twice.

Further reading: 8 Simple Things You Can Do To Increase Your Nonprofit’s Chances Of Getting Funding

Founders who think like a Founder will take that information and write a proposal that focuses on their organizational needs. Founders who think like a Funder will take that information and highlight how what they are doing is exactly what the Funder is trying to accomplish. They will show how their program will make an impact and what tangible and measurable outcomes the Funder can expect to see.

This is the key to funding a nonprofit. Approach funding as means to an end and change the trajectory of your nonprofit. Don’t get upset because you’re focusing on meeting the funder’s needs. Know that by doing that, you have an edge over your competition. But that requires a shift in mindset.

Remember, the focus is on creating long-term sustainability—it’s not about short-term, immediate needs. Thinking like a Funder means there is a strategy—and that strategy is designed to make the Founder’s life easy. The Founder’s life.

The Founder is the workhorse of the organization, the backbone, and the catalyst for all things that happen in the organization. A Funder’s mindset is perfect for a Founder because the focus shifts from working hard to working smart. Crafting smart proposals, increasing funding—that makes life easier for the Founder. It all comes together.

As a former Founder and Executive Director, I can tell you, once I made the shift in thinking, life became…enjoyable. Prior to the switch, work was hard, life was exhausting and my passion was often looking back at me like, “Wait, is this what we signed up for?” No, it wasn’t. But once I started thinking like a Funder, it freed me up to do what I started the nonprofit to do.

Thinking like a Funder will bring in more money. More money means hiring more staff. More staff frees you up to do more of the things you love to do and not All the things you have to do because there’s no one else there to do it.

Think like a Funder, not like a Founder, and watch the trajectory of your organization shift.