Beginner’s Guide to Private Philanthropy Grant Research

The first step in pursuing grant funding is to conduct research to identify opportunities your organization may be eligible to apply for, often called “prospect research.”  

For nonprofits, nongovernmental organizations (NGOs), and public service organizations, it’s valuable to devote prospecting efforts to developing a pipeline of private philanthropy opportunities and relationships in the form of grants from private foundations. When launching a new grants department or exploring grant funding for the first time, prospect research can be a full-time job. It takes dedicated effort and time to not only find open funding opportunities, but to then assess your organization’s eligibility, determine the project’s fit for the funding criteria, and develop relationships.

Understanding how to find relevant funding programs and maintaining a systemized approach around successful methods will save precious time throughout the process. This insight explores strategies to take your prospect research to the next level, enhancing your rates of success. These prospecting strategies will help you establish a robust portfolio of promising opportunities, tailored to your program design. 

 

Types of Research:

Utilize multiple research streams to find grant programs. Using multiple sources to identify opportunities will help to build a comprehensive and diverse list of funding opportunites to pursue. 

1. Use databases. 

While a database should not be the only tool at your disposal, databases are always a helpful starting point, especially when starting from scratch.

There are many databases designed to not only help identify opportunities, but also provide contact and outreach information to take the next step. iWave, Instrumentl, and WealthEngine are just a few examples.

2. Research organizations with like-minded missions.

Find other nonprofits or NGOs doing similar work and look at their funder list. You can often find a list of funders through an annual report, or a dedicated “partners” website page.

This is one of my favorite strategies because it carries multiple benefits. This could open a large list of new potential funders for you to research. Since your research starts with like-minded organizations, this is also likely to reap a positive response. You can proceed with confidence that these funders are already a good fit for your program, interested in funding your organization’s type of work and mission. 

If you are having a hard time thinking of new like-minded nonprofits, use a tool like Candid and peruse their directory.  

3. Use foundation 990s.  

Once you’ve acquired a list of potential private foundation funders, look at a foundation’s 990 to see what other organizations the foundation is already funding. This will provide a whole new list of like-minded nonprofits and organizations to look up and start the research cycle all over again.  

 

Outreach: 

After identifying a potential grant opportunity, take the next step and initiate contact with the foundation. Many private grant funders do not have an open grant process. Rather, they operate on an invitation-only process. This isn’t a closed door. You can still attempt to get in contact with the foundation and introduce your cause. You never know what you might learn. 

Even if the foundation has an open application process, it’s a good idea to reach out and begin establishing a relationship prior to submitting. This way, the foundation will be expecting your proposal or letter of inquiry. Engaging with the funder will lead to winning proposals more often than submitting cold proposals out-of-the-blue. It gives you the chance to learn about the foundation, their process, and their priorities. If the foundation tells you they are uninterested, or not accepting new applicants, it saves you time. 

If you already know the foundation prioritizes your type of mission in their awarded grants, it’s likely they will appreciate learning about your work.  

1. Send an email or submit an inquiry form on the website.

Check to see if the foundation provides a general inquiry email, or even better, a specific email to a contact that manages their grant applications. Otherwise, check for a webform to submit general inquiries.  

Reach out with a brief note to introduce yourself and your organization’s mission. Make sure to ask about next steps. Ask whether they would consider inviting your organization to apply for a grant or scheduling a meeting to learn more.   

2. Phone call.

A good old-fashioned phone call is sometimes the best approach. If the foundation doesn’t provide a phone number, or doesn't have a website, check the 990 again. Occasionally, the phone number on the 990 will be exactly what you need.

There are perks to engaging foundations that are difficult to contact, or that don’t have websites. Those foundations likely don’t receive as many inquiries. Few people will go through the effort to contact the foundation and learn about their process. 

3. Follow up.

If you never get in touch with someone, don’t forget to follow up 1-2 weeks later. Try alternate contact methods if the first one doesn’t work.  

 

Patience and persistence are key. Pairing these qualities with the strategies discussed above will lead to developing an auspicious pipeline of private grant funding opportunities and successful grant awards.  

 

Want to dive deeper?

Check out this insight for tips and strategies on researching federal funding opportunities.