Growing Your Foundation

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Introduction

One of your main goals, as a board member, is to grow your foundation’s funds, both endowments and, if you have them, the expendable project funds.  Following is information about growing endowments.  Scroll down for information about applying for external grants for project funds.

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Growing Your Endowment Funds

As your endowments grow, so does your capacity for grantmaking. Endowments are most often grown by having 1-1 conversations with donors or prospective donors. Some key tips are

• Always thank a donor for their support of the foundation
• Share about your experience in the foundation—maybe you’re new and still learning, let them know that but then be ready to talk about one place where your foundation is making a difference in the community. Do not strive for an elevator speech.
• Listen carefully to what the donor/prospective donor is saying about their interests or vision for the community. If you know how the foundation can help with these, let them know. If you don’t know, make a note to find out more and then, next time you’re in a conversation with this person, you’ll be able to report back.

Best practice for growing your foundation’s funds is to get stories out in the community about what grants/scholarships you’re awarding. Be enthusiastic about impacts you are making and the potential of what the foundation could do. People often think talking to donors means asking for money, and while “making the ask” is important, building the relationship comes first.

Another option, if you have permission from the donor, is to tell the story of a Donor Advised Fund or a designated endowment that is supporting a local charity or project.

About Fund Raising Events…

Foundation board members sometimes try to plan fund raisers which usually take significant board energy and time with minimal return. That said, hosting a “meet and greet” event where you share stories of impact and a brief overview of the foundation can effectively get the word out about your foundation. Previous and potential donors, charity leadership and community leaders from various sectors are all appropriate guests and notes can be taken for later personal follow-up.

In addition to the resources linked below, here are some ideas for approaching potential donors within your circle of influence:

• Be ready to talk about grants your Impact Fund has recently given. This can be as simple as planning to answer the casual “what’s new” question with, “Well our community foundation just funded….”
• Share the story of a donor in your community in a way that highlights the satisfaction of leaving a legacy for generations to come. Better yet, share your own story!
• Remember to let the potential donor guide the conversation. You’ll want to be prepared to answer their questions. Here’s a helpful resource: How to talk to (potential) donors If a question comes up that you cannot answer, let the donor know you will look into it and get back to them. Remember, your goal is to build a relationship and this is a great opportunity to schedule a second visit!
• If you’re discussing endowments, you may want to share the history of your Impact endowment, when it was formed, how much has been granted from it, etc. You may also share the “Power of Endowment.”
• Schedule a short talk at the local Senior Center, visit with a friend over coffee, or introduce your community foundation to a social club or church group. Again, plan to simply share a few stories of donors and/or grants and introduce philanthropic options available through the foundation.
• Utilize CKCF Staff to support donor relationships and provide resources for potential gifts. We have a shared role in building relationships.
• Provide written materials to potential donors, direct them online for more information. Be sure your affiliate webpage is up to date.

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External Grants for Community Projects

If your foundation has a focus area and/or an expendable project fund, another way to grow your foundation is to apply for External Grants. Affiliate foundations submit grant applications under CKCF’s 501(c)3 and because of this, CKCF staff need to be involved whenever external grants are considered. There is a two-step process for pursuing outside grant money. Please remember that if ever CKCF’s 501(c)3 were compromised due to incorrect information in a grant application or grant report, our charitable work across the region would be jeopardized. Be sure to submit the Pre-Application Form linked below four weeks prior to the application due date. Once it is approved, complete the Application Checklist. Fourteen days before the grant application is due, it must be packaged in its entirety and submitted for CKCF staff review. Here is a helpful video: External Grant Processes (Watch Recording)

External Grant Pre-Application

External Grant Checklist

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Resources

• New Fund Questionnaire
• Donor Information Packet
• How to Identify Prospective Donors
• 10 Reasons People Give to their Local Community Foundation
• Ways to Give
• Fund Development and Marketing Communication
• Sample Language in Estate Planning

Gifts of Grain

Agricultural producers may be interested in donating commodities which allows them to avoid including the sale of the commodity with farm income and to deduct the cost of its production. More details here: Gifts of Grain Brochure