With the downturn in the stock market, the ripple effect is widespread. Most grantmaking foundations were invested in the stock market. They experienced the same losses as the average investor. The amount of loss depends on the investment strategy. Some foundations lost 30% in the downturn. How does a ministry approach a foundation which has experienced this downturn in its own portfolio.
First, the selection of the foundations you seek to apply to remains the critical fact. You need to apply to foundations that are most likely to fund your cause. Christian foundations want to fund Christian organizations. That is why the Christian Foundation Grants (www.christianfoundationgrants.com) database is so essential. It helps you find those foundations more likely to give to your organization.
Second, realize that foundations fund their grants in cycles. For many, they've already budgeted some of their giving into 2009. Now is a good time to search for those foundations most likely to fund you and then to get your grant submitted. There is still more bad news to come in the markets. With the coming of more bad news, we are likely to see foundations pull back in their giving even more. So the message? Apply now.
Third, realize that foundations are going to be more selective in their grants. They'll become more mission focused. This means that you'll need to make sure that your mission is clear, your need compelling and the results measureable. Can you measure your results? Is there a clear and compelling need, and solution?
Fourth, realize that foundations are run by people. They face the same uncertainties in the market as you do. Build the relationships with the funders. You don't have to make an "ask" the first time you meet with them. Get to know them. I know one ministry that has done such a good job serving a foundation's leadership that he is now called upon to help them review grants. That's what I call earning a position of trust.
Fifth, show your resourcefulness. Look for alternative ways to fund your ministry whether its by product sales, earned income or unsual non cash donations. We've seen one ministry pursue the gifts of business inventory donations. In the coming market, we are likely to see lots of excess inventory, which would make a great gift for your ministry. See www.idonate.com for more information.
Finally, start now. Don't delay.
--William High is the President/General Counsel of the Servant Christian Community Foundation (www.servantchristian.com).