The Essentials of Proposal Development

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The Essentials of Proposal Development

• Presented by
• Pam Grogan, Fund Development Consultant
• THE FUNDING CONSORTIUM

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How is Revenue Generated?

• Fundraising
• Earned Income
• Capital Formation

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Who Gives the Money?

• 240.92 Billion for 2002
• (Source AAFRC Giving USA)
• Individuals 183.73 76.3
• Bequests 18.10 7.5
• Foundations 26.90 11.2
• Corporations 12.19 5.1

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Getting Organized!

• Step 1 Categorize funding resources by fields
  of interest, types of support and/or types of
  grants (foundation or government)
• Step 2 Develop prospect worksheets
• Step 3 Review grant applications, guidelines to
  find a match to your organization

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The Planning Process

• Pre-proposal Stage
• Create the Case for Support
• Organize Base Documents
• Research Foundations

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The Case Statement

• Major Components of the Case Statement
• Organizational History
• Mission Statement
• Agency Goals Objectives
• Programs Services
• Program Objectives

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Case Statement (cont.)

• Target Population Geographic Region
• Board of Director names
• Key Staff, how many staff and volunteers
• Annual Operating Budget
• Program Budgets
• Funding Sources

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Researching Foundations

• FC Search Online (www.fdncenter.org)
• Foundation Directories
• Corporate Directories
• State Directories
• Federal Registrar (www.nara.gov/fedreg)
• 990-PF (Guidestar.com)
• Online Databases

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Types of Funding Sources

• Foundations community foundations,
  family/private foundations, corporate foundations
  and operating foundations
• Government local, state and federal agencies

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Elements of A Grant Proposal

• Need Statement
• Program Description
• Goals Objectives
• Strategies Activities
• Evaluation Process
• Sustainability Plan
• Organizational Background
• Appendices Scope of Work Budget

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The Scope of Work

• A project workplan that outlines the goals,
  objectives, strategies and timeline. It also
  identifies who will be responsible for each
  activity, outcomes and by what deadline.

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Program Budget

• Program line item budget must correlate to the
  activities that were specified in the proposal
  the scope of work will help to identify necessary
  expenses
• Make sure that the total cost of your program
  budget is also identified in your overall agency
  budget

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Budget Justification

• Is a narrative description of each line item in
  your program budget especially those items that
  exceed 1,000
• Personnel you need to identify how many staff
  (number of FTEs), fringe benefits (what
  percentage), consultant fees, etc.
• Non-personnel divide cost of utilities per
  program, office rent, supplies, travel,
  telephone, postage, printing, etc.

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Supporting Documentation

• Board of Directors Roster
• Letters of Support
• Financials Statements (IRS 990 tax return,
  compilation, review or audit)
• IRS 501 C (3) Letter of Determination
• Agency Budget
• Staff Resumes
• Job Descriptions

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Why Proposals Are Denied?

• Proposal doesnt meet funder priorities
• Organization is not in geographic area of funder
• Proposal doesnt follow prescribed format
• Proposal is poorly written and difficult to
  understand

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Why Proposals Are Denied?

• Proposal and budget are not within funding range
• Organization is unknown to funder
• Proposal doesnt seem urgent
• Objective and plan of action exceed budget and
  timeline
• Money has already been allocated for grant cycle
• Proposal doesnt show sustainability

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After The Submission

• Waiting times can be from two to six months for
  notification of funding decision
• Be prepared if and when the funder calls to ask
  questions or schedule a site visit
• When you receive the grant, expend monies in
  accordance to the program budget

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Planning for the Site Visit

• Topics The Funder May Want to Discuss
• Board of Directors and Management
• Do board members contribute to fundraising
• Program related issues
• Financial Statement Information (possible red
  flags)

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Applying for Federal Grants

• Planning Preparation
• - Can take 4 to 5 weeks to write the grant
• - Meet with collaborative partners and secure
  support letters, MOUs and/or references, if
  required
• - Secure DUNs within a timely manner
• - Ensure that proper licenses, certifications
  and permits are updates and in place
• - Prior experience providing services to the
  target population (generally 1 year)

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VA Grant Per Diem Program

• Eligible Entities Nonprofit organizations, state
  and local governments as well as Indian Tribal
  governments
• Use of Funds Up to 65 of the cost to acquire,
  renovate or construct facilities that will be
  used for supportive housing and/or service center
  for homeless veterans also used for vans to
  transport clients. Funds cannot be used for
  operating costs
• Target Population at least 75 of those
  receiving supportive services must be veterans
• Preference projects which demonstrate a strong
  working relationship with local VA medical center
  facilities and collaborative partnerships with
  other community-based agencies

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Documentation Checklist to Apply for Federal
Funding

• Nonprofit Organizations Federal EIN
• Federal DUNS (DUN Bradstreet)
• Copy of IRS 501C(3) Determination Letter
• Staffing Information (resumes and job
  descriptions)
• Name of Current or Proposed Insurance Carrier
• Any licenses necessary to provide services
• Agency organizational chart
• Copy of agencys most recent financial statement,
  IRS 990 Tax Return or CPA Audit
• Any letters of support
• Recent copy of the agencys Board of Directors
  Roster

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VA Per Diem Grant Key Considerations

• What they are looking for?
• - Make sure that you research the unmet needs
  for homeless veterans in your community. Include
  statistical data on shortage of beds, gaps in
  service to homeless vets, etc.
• - Develop working relationship with your local
  VA medical facility to demonstrate coordination
  of referrals, resources, etc.
• Make sure that your proposal reflects community
  collaboration with other community agencies and
  describe what the roles and assets of these other
  agencies to your program
• Make sure your outreach plan describes your
  process for provide an incentive to engage the
  homeless vets to use your services

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Key Considerations (cont.)

• - Make sure to describe your programs staffing
  pattern and provide job description for each
  staff member
• - Discuss your plans or efforts to meet with
  residents to inform them about your proposed
  project such as an advisory committee,
  neighborhood council, etc.
• - If applying for funds to purchase a van,
  describe how a van would enhance program services
  to homeless vets