Funder/Grantee Relationships: Or, What To Do After You Get That Check

As part of the Colorado Common Grant Revision process, a wonderful piece was developed by  Oz Spies, The Denver Foundation; Amy Rosenblum, Boulder Valley Women’s Health: and Lisa Fasolo Frishman, Social Venture Partners Denver. I encourage folks to review it whenever they get the chance!  – Christiano Sosa, The Denver Foundation.

Funder/Grantee Relationships: Or, What To Do After You Get That Check
Oz Spies, Amy Rosenblum & Lisa Fasolo Frishman

Some people view a relationship between a funder and a grantee as static.  There are set times to interact with a funder – when you apply for a grant, receive a grant award or declination, and when you report on that grant – and that’s it. 

 

There’s another way to look at it: receiving a grant check is an opportunity to build a relationship with a funder.  Long before you send in a grant report, you can interact with the funder and share both good news and challenges.  You have a chance to further engage a funder in your mission.

 

A relationship between any nonprofit and any funder will be unique.  A variety of factors will influence how you interact.  Small, all volunteer nonprofits will likely have different ways of connecting with funders than larger nonprofits with dedicated development staff.  Just as foundations have different grantmaking procedures and policies, they will have different approaches to funder/grantee relationships.  A large, national funder will have a different relationship with a nonprofit than a small, local foundation.  It’s a good idea to ask a funder how best to approach them with questions or concerns – some might prefer written communications while others might welcome phone calls.

 

Here are a few tips based on what’s worked for other nonprofit/foundation relationships:

 

Think about things you already do in which you can include funders.

• Add them to your newsletter and annual report lists
• Invite them to relevant events or fundraising dinners (but don’t be offended if they’re unable to come – some foundations have policies against attending certain types of events).
• Share exciting accomplishments, such as awards you have received
• Notify them about prominent media coverage

Think about new ways to connect with funders, beyond current activities.

• Be sure to thank them for your grant.  A hand-written thank-you note to a foundation staff member is appreciated and appropriate.
• Foundations connect with multiple nonprofits across the community and can sometimes serve as a sounding board for their grantees.  They might know of other organizations you could collaborate with, or organizations in other communities that have successfully dealt with challenges you are currently facing.  If you’re looking for nonprofits that have experienced a specific challenge, consider calling a funder to ask if they could help you connect with an appropriate nonprofit. 

If you experience major changes, good or bad, notify the funder.  A good motto: no surprises. 

• If you decide to make a course correction in the middle of a funding period, it is a good idea to give your funders a heads-up.  You should call your program officer at the foundation to let them know first.  Also, consider summarizing your conversation in an email or a memo so that the foundation has a hard copy to put into their file and you have confirmation that you have shared changes with the funder.  
• Any significant transition – turnover at the executive director level, financial challenges, newly launched programs – warrants communication with major funders. 
• If you’ve received a grant for a specific purpose but would like to use it for something else, you should contact the funder for their approval before diverting funds.  It’s important to follow grant agreement protocols.  Do the same if you’d like to request a grant extension, and the funder allows extensions. 
• Especially in the case of bad news, it’s best if it comes from you directly.  You don’t want your funders to hear anything negative (for example, about a lawsuit, financial challenges, or if a staff person is in trouble with the law) from the media or through the nonprofit grapevine.  Proactively contact the funder and provide an honest assessment of the situation and what you’re doing to address it.  Funders will appreciate your forthrightness and will get more accurate information from you than they might get through gossip or a news story.   

Respect Your (and the Foundation’s) Resources

• Nonprofit staff are busy people.  You might have limited time to interact with your funders, and that is okay.  Doing the work of your mission is your priority.
• Exercise judgment with gifts and formal recognition.  Oftentimes gifts are unnecessary, and many funders have policies against accepting gifts.  Most foundations expect that you use your limited resources on programs and operations.   However, there are other times when recognition – such as a plaque on a room supported by a capital contribution – is appropriate. 
• Foundation staff, too, have limited time and resources.  They may not be able to meet with you in person as often as you would like them to, or be able to attend all of your events. 
• Conduct communications professionally and in a timely manner. 
• Respect deadlines.  Be sure to turn in thorough grant reports on time.
• Listen to funders and respond accordingly.  If, for example, a funder has said that it is only interested in program support for your organization, be sure to apply for program support, rather than general operating funds.  If a funder has expressed a concern about an area of your work, proactively respond to that concern both verbally and in written format, such as your grant report or next grant application.
• Be proactive in handling potentially awkward situations.  If you have forgotten to submit a grant report on time or have had an unusually challenging year financially, contact the funder and offer an explanation.

Remember, you know your resources, funders, and relationships with them.  Trust your instincts as you navigate new and existing relationships with foundations.  If you’re not getting an encouraging response from your efforts, reconsider your approach and its relevance to a given funder.

Hiring and Partnering with Inclusive Vendors and Consultants

The Denver Foundation’s internal Inclusiveness Committee created a list of recommendations for our staff to consider when hiring inclusive vendors and consultants.  We thought you may find the following tips helpful:

Avoid a one-size fits all organizational policy
Each of our departments has its unique culture and prioritizes.  We don’t suggest establishing an organizational-wide policy regarding this issue.  Rather, we believe departments should learn from each other and share practices and information.

Balance our value for inclusiveness with our value for reducing costs
We suggest that staff consider discussing our internal values with prospective vendors and consultants.  While the responses to the questions below are important, our hope is that engaging in the conversations will, in and of itself, inspire inclusive behaviors.

Below are some possible questions you can ask when interviewing vendors or consultants:

• We work hard to reduce waste and recycle whenever possible.  Could you please share some ways you do the same?
• We work to support local nonprofits.  Could you please share some of your charitable activities?  Do you offer discounted rates to nonprofits?
• (If the vendor is a catering company)  Do you use local farmers/produce?
• Some of our caterers post small cards indicating that they use “green” practices.  Would you like to display your inclusive practices at our events?
• We appreciate your green/inclusive practices, and you come highly recommended.  We would like to partner with you, but your quoted rate is still higher than other bids. Are you willing to reduce the cost if we are able to partner with you in the future?

Develop and maintain an organizational-wide list of past and current vendors and consultants
We believe departments could learn from each other by sharing information about current vendors and consultants.  Some of the benefits include:

• Sharing money-saving tactics
• Creating a widespread understanding of the “going” rate for goods and services
• Encouraging each other to implement item by tracking vendor responses
• Get bids from a variety of vendors and consultants.  When appropriate, ensure you are soliciting bids from women and minority owned companies.

Although these tips may be specific to our work at The Denver Foundation, we hope you found some that are useful to your organization.

Money Saving Tips

Seth Winnerman, Executive Director, cityWILD

In the following posting, Seth Winnerman of CityWILD offers some cost saving tips that have worked for his organization.  What are some things that have worked for your organizations?

These are some steps cityWILD has taken to save costs over the past year, along with the approximate associated savings per item. cityWILD is a small, grassroots organization. Some of the items are specific to the organization or are very small (there are some big ones too). What I believe this list shows is that there is an endless stream of ways to challenge even the smallest things your organization does in order to make it more efficient, save money, and show accountability to your funders:

 

•     All insurance out to bid; thousands

•     Took drivers off vehicle insurance/limited # of drivers within the organization; thousands

•     Disposed of unused vehicles being insured and registered; thousands

•     cityWILD was not charging its staff Occupational Privilege Tax (this is a Denver only tax); anywhere from $17-50 a month depending on staff numbers

*    I applied for organizational exemption from this tax but was denied

•     Charged employees a reasonable $SO/month for healthcare/dental; $lS0/month

•     cityWILD was not tax exempt on several accounts; office supplies, telephones, etc. Qwest gave us a 24 month credit; $30 month on phones – Qwest and Verizon, plus other purchases

•     Moved to online ordering for office supplies with free delivery; minimal $$ saving, huge in time and efficiency of staff

* Here, you could move to bulk ordering with other organizations to save costs

•     Reduced cell-phone minute limits, removed unnecessary charges and added modern conveniences like text messaging that was not in place; $SO/month

•     Reduced land-line charges by reducing business pack additions back to the standard 3 extras instead of 4; $10/month

* I then moved to Impact Telecom for our phone service and saved an additional $20/month.

•     Moved to electronic newsletters and thank you notes; priceless on $$ and environment

•     Started in-kind donation list in newsletter; so far about $1000 value

•     Stopped renting modem for wireless internet and used donated one; $S/month

* Searched craigslist and called people selling modems and asked if they would donate it to the organization.

•     Switched to online printing companies for brochures, etc.; hundreds in savings, but not environmentally friendly

•     Recycled old materials with some wrong info but otherwise correct by placing stickers over out-dated info; large savings in printing costs

•     Moved banks to reduce fees and get a better interest rate; $30 a month in savings on fees

•     Switched payroll company to reduce fees, get an easier system for staff; about $200 annually

•     Moving merchant service account; will reduce rate from 4+% to 2.S% on credit card charges for our earned income arm.

•     Recreation center passes for students – Denver Parks and Recreation gives free passes to youth if they go to a Title 1; $200 annually

•     Found we were over-charging ourselves on taxes and had a back credit with the State ofColorado for over $3000.

 

For more information visit www.citywild.org/303-227-6862/seth@citywild.org