# Presentation: 048383

## THE ART AND  SCIENCE OF  GRANT WRITING

- STRENGTHENING YOUR ORGANIZATIONS FINANCIAL CAPACITY:  A STRATEGY FOR RESOURCE DEVELOPMENT

## WHAT LEADERS SAY ABOUT ORGANIZATION DEVELOPMENT

- Bob Proctor..‘What do you really want?’
- Steven Covey..‘Begin with the end in mind’
- Robert Kiyosaki..‘The process is always the same.  You need to know what you are looking for and then go look for it.’

## BUILD A SOLID FOUNDATIONBEFORE YOU ASK FOR THE $$$

-      ***Don’t ask for dollars that do not fit your organization’s mission and competency!***
- Complete organizational development process
- Complete strategic planning process
- Complete internal planning process
- Understand and be able to articulate who you are
- Understand the target area and targeted client base
- Assess and be able to articulate need for organization’s work
- Complete program design

## FROM DREAM TO REALITY:Through basic organizational development

- Imagine and Inspire
- Found and Frame
- Ground and Grow
- Produce and Sustain
- Evaluate and Renew

## THE FOUNDATION OF ORGANIZATIONAL CREDIBILITY

-  **Mission **
**Vision**
**Values **
**Core Competency**

## The Mission Statement

- The driving force behind a non-profit organization
- Statement of organizational purpose
- Answers the quesion, ***“WHY DO WE EXIST?”***
- Define the distinctiveness of your organization
- Sets the stage for program development

## The Vision

- The inspiration and framework for all your strategic planning
- The “COMPASS” of your organization
- Sets our where the organization sees itself in the future
- Makes it easier to define “ACTIONS” AND “_[GOALS](http://www.best-of-time-management.com/goal-setting.htm)__”_
- Acts as a yardstick against which you can measure your current reality progress

**Notes:**
sometimes called a picture of your company in the future but it’s so much more than that

## VALUES

- Values represent the core priorities in the organization’s culture, including what drives members’ priorities and how they truly act in the organization, etc.
- Values are increasingly important in strategic planning. They often drive the intent and direction for “organic” planners.Values form the foundation for everything that happens in your workplace
- Character of the organization
- Values are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces

## CORE COMPETENCY

- The term ***core competency*** was originally introduced in 1990 by the *Harvard Business Review* to describe the management concept of corporations possessing specialized expertise in a specific area.
- Skill base of organization with focus on progran identification
- Stated terms of what you are not willing to compromise

## Organizational Development

- The process of developing the internal capacity for a board and staff to manage a non-profit organization most effectively and efficiently while pursuing its mission
- The process should involve all aspects of the organziation and include all staff members, with a focus on improving effectiveness and enhancing the organization’s sustainability

## ELEMENTS OF ORGANIZATIONAL DEVELOPMENT INCLUDE:

-  A sound organization is critical to the fund development process.  Includes, but is not limited to:
-  Strategic Planning
-  Market and Community Analysis
-  Leadership and Governance
-  Program Development
-  Non-profit Business Plan
-  Performance Evaluation
-  Fund Development Plan

## Key Considerations in Organizational Structure

- Board Development
- Staff
- Fiscal Systems
- Marketing Plan
- Program Development
- Fund Development
- Program Management
- Program Evaluation

## PURPOSE OF STRATEGIC PLANNING

- A set of  actions to enable success of an organization
- Establishes where your organization is going over a period of time
- Describes how you will know if the organization  got there or not
- Establish goals and objectives
- Establish timeframes
- Establish staffing plans
- Establish strategies for accomplishing goals and objectives

## Strategic Plan vs. Business Plan

**A strategic plan is where we decide *****what***** we’re going to do and *****why***
**Where does our organization want to be in three years, or five**
**Identifies strengths and weaknesses, and key external opportunities and threats **
**Assesses compatibility of programs to mission mission statement Of all the worthwhile things we could do, how will we prioritize the very short list to tackle first**
**Business plan comes after the strategic plan**
**Considers shorter term issue**
**Establishes specific financial targets and describes how they can be met; identifies financing needs and solutions; identifies cash-flow needs along the way; may identify key marketing challenges and strategies**
**Should be designed to appeal to funders**
**Serves as an effective day to day management tool**

## Market and Community Assessment

- The need for your service and the demand for it; how is it unique?
- Collect and analyze data about the constituents to be served.
- Who will be your collaborators or partnering organizations?
- Can you document a gap in service?
- Discuss research, conditions and trends in  the program area
- Helps answer the question, “if you build it will they come”
- Are other organizations in the community working in the same program area?
- What are the community assets that will contribute to your success?
- What are the issues/variables that have the potential to impede your success?

## Uses for the Market and Community Assessment

- Assess your core competency to facilitate change in the community
- Identifies your niche
- Strengthen and build partnerships
- Identify service gaps in services
- Advocate for activities/programs/services
- Obtain funding (prepare grant proposals and conduct presentations)
- Identify and utilize community and neighborhood assets and strengths
- Build public will and public awareness

## Program Development

- Programs should be mission driven
- Derived through the strategic planning process
- Designed to meet a documented need
- Designed with measureable objective
- The clients are satisfied with the quality of services and programs provided
- Effective program methods are in place that can be sustained, even with changes in organization leadership
- Program designs aimed at expansion or replication in other localities have clear systems in place (or in development) to support the process while sustaining the core program.
- When warranted, the organization seeks opportunities to collaborate with other organizations to ensure that client needs are met in ways that are sustainable for the organizations involved.

## Budget Purpose

**Road map for**
- Best use of resources
- Anticipation of funding needs
- Effective management
- Indicator of long-range organizational health
- Accurate detail of basic income and expenses of organization and its programs
- Financial expression of the operation plan

## Steps for Budget Preparation

**Determine expected income**
- Include only income for which there are commitments
- For fundraising & donation income use historical data to estimate (document!)
- Make realistic as possible using best information available
- No “wishful thinking”

## Budget Hints

- Helpful to develop “contingency” budget(s)
- Donation & fundraising revenue should be projected based on best information available – this is not a “gap” number
- If expenses need to be reduced, determine program costs at different service levels
- General ledger accounts should correspond to budget line items
- Budget goals are important – but not as important as service goals

## Steps for Budget Preparation

**Review Mission, Goals & Objectives**
**Evaluate existing programs**
- Objectives projected & actual / variances
**Determine budget period**
- Budget projected & actual / variances
- Use what makes sense for operating cycle
- Decide on whole year or monthly/quarterly budget plans
**Identify programs, projects & services**
- Each program should have its own budget
**Review Mission, Goals & Objectives**
**Evaluate existing programs**
- Objectives projected & actual / variances
- Budget projected & actual / variances
**Determine budget period**
- Use what makes sense for operating cycle
- Decide on whole year or monthly/quarterly budget plans
**Identify programs, projects & services**
- Each program should have its own budget

## Fund Development Plan

- Limit crisis fundraising
- Diversify funding stream
- Frame plan according to organizations needs, priorities, strategies and goals
- Timeframe..think short and long term
- Board involvement
- Identify potential resources
- Know what you are asking money for and how much(budget)
- Costs of fundraising
- Identify the fundraising mechanisms

## Fund Development Plan

- Fundraising trends and approaches—the big picture for fund development work
- Employ sound strategy and tactics for effective fundraising
- Monitoring Fundraising Effectiveness—what to measure to understand donor behavior and fundraising results
- Study the potential philanthropic entity...know them
- Timing
- Diversify funding stream

## 6 Steps to Successful Fundraising

- Growth
- Involvement
- Visibility (Branding)
- Efficiency (Resourcefulness, Ethical, Timely)
- Stability
- Conduct Effective Research

## What Funders Are Looking For:

- To make **investment** in organizations that want a hand up not a hand out
- ROI
- Organizational Capacity (Board, Staff, Volunteers, Partners)
- Program strengths and predicted **impact**
- Diversity in funding stream
- Compatible mission
- What is the investment of your organization

## IS THE IDEA WORTH FUNDING?

- WHAT NEED EXISTS FOR YOUR CAUSE?
- WHAT DO YOU HOPE TO ACHIEVE?
- WHAT IS THE POTENTIAL IMPACT OF YOUR PROJECT?
- HOW WILL YOU EVALUATE THE PROJECT?
- WHY SHOULD A DONOR SUPPORT YOUR PROJECT?
- WHAT IS THE TOTAL COST OF THE PROJECT?
- WHAT ARE YOU ASKING OF THE DONOR?

## Tapping Into the Philanthropic Well

-  Tell your story in all the places you can
-  Create a web site
-  Register your Web site with search engines
-  Email newsletters
-  Print advertising
-  Marketing brochures
-  Network
-  Press releases

## WHY DONORS DO NOT GIVE

- They are not asked
- Not impressed by the organization/project
- Incompatible missions
- Unfavorable perception of organization
- Application/request/proposal is flawed

## Factors for Award

**General concepts required for most fund development activity:**
- Capacity of the Applicant and Relevant organizational Staff
- Need/Extent of the Problem
- Soundness of Approach
- Leveraging of non-HUD Resources
- Achieving Results & Program Evaluation

## Rating Factor #1-Capacity

- Rating Factor #1:  _Capacity of the applicant and related organizational Experiences_
- Address the extent to which you have the organizational resources necessary to successfully in your proposed activities in a timely manner.

## Rating Factor #1

**Organizational Capacity (continued)**
_**Identification of Non-Profit:**_
- Board Structure
- Members of the Board
- Partnerships
- Planning Strategy
- Mission Statement
- Goals/Objectives

## Rating Factor #2- Need/Problem

- Rating Factor # 2 - _Need/Distress/Extent of the Problem_
- 	Refers to whether or not your community has a _Significant Problem_ to be addressed and an _URGENT Need_ for HUD funding to address the problem. To determine need, HUD relies on you to document the extent of the problem only in the geographic area that you will target with your program.

## Rating Factor #2

**Framing The Problem**
**WHO is affected?**
**WHAT is happening?**
**WHERE does the situation take place?**
**WHY is it a problem?**
**WHAT else can you tell us about the situation?**
**Who else thinks it is a problem?**
**What are the underlying causes?**
**What are the effects of this problem?**

## RATING FACTOR # 3- Soundness of Approach

**    ****Rating Factor #3 - **_**Soundness Of Approach**_
- Addresses the _quality and appropriateness_ of your proposed program. This is the heart of your proposal.  Criteria examples include:
- Activities in your work plan and proposed budget detail the specific activities to be performed.
- Activities in your work plan give priority to the needs identified in factor 2.
- Activities in your work plan that further the funders goals & priorities.

## Rating Factors 3 and  5 Link Together

- HUD has incorporated Results-Oriented Management and Accountability ROMA into many NOFAs.  ROMA is a sound management practice that incorporates the use of outcomes or results into the administration, management and operation human services.
- Design you work plan incorporating ROMA principles into the program planning process
- Factor 5 will require you to fill out a LOGIC Model Form which distills your program to measureable outcomes and outputs.

## Rating Factor #4-Leveraging of Resources

-     This factor addresses your ability to secure resources beyond those provided by the specific program from which you are seeking funds.  This factor is designed to encourage you to obtain resources in combination with HUD funding to increase your chances of achieving the purposes of the activities you propose to undertake.  Leveraging includes financial and in-kind resources and they must be reflected in your budget and must be well documented.

## Leverage Funding Resources

**Resources May Include:**
- Foundations (Family/Community/Corporate)
- State/Local Government Grants
- Financial Institutions
- Educational Institutions
- Public Charities
- Service Organizations
- In-kind Donations *(Dollar Value)*

## Rating Factor #5-Achieving Results and Program Evaluation

- Rating Factor #5 – Achieving Results and Program Evaluation (The e-Logic Model
- Achieving results means that your application has clearly defined the specific interim or final products (called outputs) that will be achieved during the award period.

## Achieving Results and Program Evaluation

- Identify the impact that your activity will have on the community
- Identify benchmarks for measuring your progress
- Identify methodology to be utilized to measure success
- Identify specific reporting tools that you have in place
- Identify benefits to be achieved

## THE E-LOGIC MODEL

**1.How many clients are you serving?**
**2. How many units were provided?**
**3. Who are they? (Demographics)**
**4. What services do you give them?**
**5. What does it cost?**
**6. What does it cost per service delivered?**
**7. What happens to the “subjects” as a result of the service?**
**8. What does it cost per outcome?**
**9. What is the value of an outcome?**
**10. What is the return on the investment?**

## Logic Model

**A logic model illustrates a program’s theory of change, showing how day-to-day activities connect to the results or outcomes the program is trying to achieve. **
**There are several types of logic models and no one model fits all needs. Your funder may provide a specific format of Logic Model to use in the application (as HUD does).  **
**The thing to remember is that it will enable you to show outcomes, how they are measured and how they relate to your stated objectives. **

## Slide 42