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Fundraising & Grantwriting

Tips on Reaching Corporate Funders

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1. Build Corporate Partnerships.

From Mario Hernandez

  1. Shift your posture from needing help to offering opportunity. Change “We’re looking for sponsors” to “We’re building a movement around [cause], do you want to co-author the story?”
  2. Ditch the gold-silver-bronze garbage. Create partnership experiences that feel custom-built. Fund an innovation lab, co-host a thought leadership series, or launch a branded scholarship program.
  3. Play offense on LinkedIn. Don’t expect them to find you. Go to them, name them, thank them.
  4. Build a Corporate Advisory Council. Once they feel bought-in, the dollars will follow.
  5. Make it ridiculously easy to say yes. Your ask should be crystal clear: “We have a $25,000 project funding gap. Here’s what you’ll get in return. Here’s how your brand will be celebrated.”
  6. Follow up like a human, not a robot. Send them micro-wins like “Just wanted to share, we hit 100 youth served this month!” or “This story made me think of your team’s values.”

2. Pitch a Mutual Benefit for Corporate Funding.

From Kevin L. Brown.

Corporations give $21 billion annually, most want a mutually beneficial partnership. Propose a two-way street across four dimensions:

Philanthropy:

  • You get: Thoughtful, strategic, aligned grants.
  • They get: A trusted home to invest their mandated giving.

People:

  • You get: Volunteers and expertise.
  • They get: A happier staff.

Platform

  • You get: New audiences.
  • They get: Strengthened brand positioning and powerful differentiation.

Product (In-kind Giving)

  • You get: Free resources and tools.
  • They get: To leverage their core business in the service of others.

A Look at Impact Investing

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A trend among some funders at the national, regional & local level is the adoption of impact investing strategies. Foundations and large funders still provide grants, but are blending the “investment” model with traditional grants.

=>see below for a list of Impact Investors in MN

The investment portion aims to produce both financial returns and positive societal change, aligning their capital with market-driven solutions. This shift is largely driven by the desire for sustainable, long-term impact where capital can be reinvested rather than distributed as one-time grants. Some funders see private capital and market mechanisms as more efficient in driving social change compared to traditional charity models. Furthermore, impact investments often come with defined metrics, allowing for greater accountability and transparency in tracking results.

The rise of blended finance models also allows funders to use their capital as catalytic funding, leveraging private sector investments through mechanisms like loan guarantees and program-related investments (PRIs). Regulatory and tax considerations further encourage this shift, as impact investing offers foundations flexible financial options, especially with mission-related investments (MRIs). Foundations embracing this shift include the Ford Foundation, which has committed $1 billion to mission-related investments in areas like affordable housing, and the Rockefeller Foundation, which focuses on climate resilience and healthcare through impact investments. Other prominent foundations, such as the MacArthur Foundation, Kresge Foundation and Omidyar Network, have also committed significant funds to impact investing in sectors like housing, climate solutions, and economic empowerment.

It is important to clarify a funder’s approach—whether they are offering grants, investments, or a blend. Asking about the funder’s expectations for financial returns and reviewing past funding models can provide insight into their approach. Adapting your language to focus on scalability, sustainability, and return on impact can make your proposals more appealing to impact investors.

Here’s a list of Key Impact Investors & Funds in Minnesota

  1. Blandin Foundation focuses on rural impact investing in economic development, broadband expansion, and community resilience. Uses program-related investments (PRIs) to support rural businesses and social enterprises.
  2. Otto Bremer Trust uses mission-aligned investments (MAIs) and grants to support economic development, community resilience, and racial equity. Provides low-interest loans and direct equity investments. 
  3. Bush Foundation provides social impact investments, grants, and program-related investments (PRIs). Focuses on Native communities, leadership development, and community innovation.  
  4. Cogent Consulting & Wealth Advisory is a Minneapolis-based impact investing and ESG consulting firm. Works with investors looking to align their portfolios with social impact goals. 
  5. Community Reinvestment Fund, USA (CRF) is a  Minnesota-based CDFI (Community Development Financial Institution) providing impact investment opportunities. Funds small businesses, affordable housing, and community infrastructure. 
  6. Great Plains Institute (GPI) supports clean energy and sustainable infrastructure projects. Helps investors identify opportunities in renewable energy and climate solutions.  
  7. Local Angel Investor Networks (with Impact Focus) is a Twin Cities Impact Investing Network: Connects investors with mission-driven startups. Gopher Angels invests in Minnesota-based businesses, including social enterprises.
  8. McKnight Foundation is one of the largest impact investors in Minnesota, allocating $500 million of its endowment for impact-focused investments.  Funds clean energy, economic development, and racial equity initiatives. 
  9. MEDA (Metropolitan Economic Development Association) provides capital and investment support for minority-owned businesses in Minnesota. Offers loans, venture capital, and technical assistance. 
  10. Minnesota Impact Investing Initiative (MI3):  A collaboration between the Minnesota Council on Foundations (MCF) and financial institutions to invest in projects that generate both social and financial returns. Focuses on affordable housing, small businesses, and environmental sustainability.
  11. Mortenson Family Foundation invests in climate change solutions, racial equity, and local communities. Provides grants and mission-related investments (MRIs). 
  12. Northwest Area Foundation invests in Native American communities, racial equity, and economic justice. Provides grants and impact investments for economic mobility. 
  13. The Jay & Rose Phillips Family Foundation of Minnesota supports economic empowerment, racial equity, and workforce development. Uses grants and impact investments to create sustainable community change.  
  14. The Saint Paul & Minnesota Foundation engages in impact-first investments to strengthen local communities. Focuses on racial equity, affordable housing, and economic opportunity.  
  15. Social Impact Strategies Group (SISG) is a woman- and BIPOC-led impact investment firm focused on funding local businesses and social enterprises in Minnesota.

Are you interested in learning more about impact investing? Drop us a note — [email protected]. and let us know what you want to know and how it fits into your work.

10 Ways to Boost Fundraising and Attract More Big Gifts This Year

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Excerpt from The Chronicle of Philanthropy
Three seasoned fundraisers share proven tactics — and real examples — to help you adapt your big-gifts strategy to the current climate and maximize results.
By Lisa Schohl
FEBRUARY 13, 2024

1. Focus on midlevel donors.
…because oftentimes, $2,500, $5,000, $10,000 is more accessible than higher-end major gifts, and people are more inclined to maintain their giving to an institution in that regard.

2. Identify gaps in your donor pool.
… such as communities that might have a natural connection to your cause but aren’t yet giving.

3. Diversify your board.

  • Ask corporate partners to recommend company leaders who care about your organization’s mission and might be interested in serving on the board.
  • Consider donors who demonstrate passion for your work.
  • Create a “young patrons’ board.”

4. Tap into big donors’ networks.

5. Maximize your board.

… set clear expectations for their annual giving and involvement in fundraising from the get-go, including asking them to sign a board member commitment form where they could indicate their interest in helping with specific types of donor outreach, such as visits, hosting a gathering, or sponsoring an event.

6. Streamline your donor communications.
… Automate as many processes as you can to help ensure that all donors get attention throughout the year, while freeing up fundraisers to focus on building relationships with big donors and bringing in new supporters.

7. Be vulnerable.
… you don’t want to be existential, but it’s OK to be honest and open with donors about your nonprofit’s need.

8. Highlight gifts to inspire more giving.

9. Use matching gifts to boost results.

10. Prioritize donors who have DAFs or family foundations.
…start by mining the donor database to identify individuals who have given in one of these ways. Don’t wait until November or December to talk with DAF donors- that is when many are focused on adding money to their DAF, rather than distributing it.

How to have a successful introductory meeting with a funder

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Caroline Altman Smith, Deputy Director of Education for The Kresge Foundation in Detroit, writes: “I think the best introductory meetings are just that—the PO and the nonprofit getting to know each other and having a productive exploration of the fundraising Venn diagram: what the foundation is interested in funding, what the nonprofit needs funding for, and ideally, coming to a common understanding of that middle circle where you have mutual priorities.”

A few tips:

  • Have an Agenda
  • If there is something you want the PO to read in advance, attach it to this email – no longer than two pages.
  • Don’t assume they know much about you
  • Be ready to share key details. What is your North Star goal? How long has the organization existed? How many staff do you have? What’s your annual budget? What are your primary sources of funding? What is your program model and who are you trying to help?
  • Watch the clock.

Read her article

ChatGPT in Philanthropy: Useful?

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A number of recent articles have covered artificial intelligence gone awry: Microsoft’s AI’s strange declarations of love. ChatGPT’s inaccuracies. Midjourney’s odd human portraits with too many fingers and too many teeth. And worse, accusations of plagiarism from both human and AI.


But could ChatGPT in Philanthropy be a Useful Tool for Philanthropic Writing?

Here’s One Way it could: Breaking Writer’s Block

There are certainly a whole host of questions to consider and issues to address when it comes to this newest technological advance. However, there is a useful and ethical way to use the technology for writing purposes, specifically in the philanthropic sector: brainstorming.

You may be familiar with the feeling of blank-page-anxiety. That feeling you get when you have a prompt and a flood of information in your head but no way to funnel that information onto paper. ChatGPT is a powerful tool to bridge that gap.

Create ChatGPT account > Get acquainted > Give a command for a response > Ask bot to revise> Make it your own

Step 1: To use the chatbot you’ll need to first make an account on OpenAI. Using ChatGPT is currently free, although there is an option to purchase a Pro account subscription where you get priority access to the chatbot when it’s overloaded with use and unavailable to free use.

Step 2: Get acquainted with the chatbot. It can be a bit daunting at first and you might not know what to ask. The best way to start is with a question or a command. You could ask, for example, what the Bill & Melinda Gates Foundation does. Then perhaps command the chatbot to write a paragraph about the efficacy of mosquito nets. Really get into the brainstorming mindset here.

Step 3: Once you have an idea of the functionality, you can start asking the real questions.

Say for instance you’re writing a grant proposal for a program that would increase pollinator habitats in cities and you’re stuck on that first large daunting question: What is the goal of the project/program?

I asked this very question and received a moderately acceptable response.

Not the worst response, but it could use a bit of pathos and a bit more specificity. The situation might also occur where you forgot a key piece of information or the chatbot didn’t give you exactly what you’re looking for.

Step 4: Ask the chatbot to revise. A useful function of ChatGPT is its ability to learn within the current conversation. If the chatbot didn’t answer the question quite the way you wanted, you can tweak the language or ask it for something specific.

In this example, I asked the chatbot to add an example of a city that is designated as a “Bee City” in the paragraph it had generated.

Step 5: Revise. You may notice the AI also uses certain phrases much more commonly than others, making it sound a bit stiff and a bit one-voiced. These traits are generally unappealing in grant applications or website descriptions; both of which are common time-consuming writing tasks in philanthropy. At the end of the day, you can likely write a more specific and targeted response than the chatbot can, with better pathos. The response is just your starting point.

Say I decide that actually, the first response was a better fit for the direction I want to go in. I might revise it to:

Urban development and other human activities have led to a decline in pollinator populations (bees, butterflies, and the like), exacerbating issues of health and wellness. However, by increasing pollinator habitats in cities through our program, “Save the Pollinators,” we can support the health of the entirety of urban and rural ecosystems, human and nature, through the process of acquiring land and developing land into pollinator-friendly green spaces. Pollinators play a crucial role in maintaining the health and productivity of these ecosystems specifically by aiding plant reproduction. In urban ecosystems this means an abundance of flowers and lush green plants which increase the urban beauty, aid in the mental health of residents, and increase overall the temperature regulation of the area. In rural ecosystems, this means stabilized food production of croplands and an aid in the strengthening of the entire ecosystem, from insects to apex predators. In addition to these benefits, increased pollinator habitats can improve air and water quality and reduce soil erosion.

In this new paragraph, I saved those green highlighted lines but shifted everything else to include some more pathos-centric words and specificity as well as more firmly solidifying a problem-solution narrative. For example, using “urban beauty” and “acquiring land and developing that land.” Had I needed to write this paragraph wholly unaided, it may have taken me a good 30 minutes to complete, needing to go through the task of brainstorming and listing and condensing. With the ChatGPT generated response, I finished in 15 minutes flat, cutting my time in half.

Limitations to remember here: the chatbot won’t have any knowledge of something that doesn’t exist yet, or likely personal details of your organization. In fact, at present, it has limited knowledge of events that occurred after 2021 due to its training data ending in that year.

It also has the ability to make incorrect information sound factually plausible. For example, I asked the AI how many countries start with the letter “v.” The first answer, “There is only one country that starts with the letter “V,” and that is Vietnam,” obviously did not cover every country. I tried again: “There are only two countries that start with the letter “V”: 1. Vanuatu 2. Vatican City (officially known as the Holy See).” Venezuela is nowhere to be found. So that information on Bee Cities? Worth a fact-check.

Two Great Tools from the Nonprofit Finance Fund 

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The Nonprofit Finance Fund is a NYC-based national nonprofit finance organization, awarding loans, making investments, offering consulting services and workshops, and occasionally offering grant opportunities via other grantmakers. Recently, the Fund published two great grant/loan tools:

  • First, How to Craft Your Organization’s Financial Story. These days, your financial story is probably the most important document you can get a funder who’s not familiar with your work. It’s critical messaging in a way a funder can understand you.
  • Second, Cashflow Projection Template:. Cashflow projections are essential documents for determining how much working capital an organization needs to maintain or build to manage the low cash points in the year.