Foundation grants are yet another source of funding which many grassroots nonprofits can use to diversify their funding base. While the overall percentage of charitable giving coming from foundations (12%) is still small relative to that coming from individuals (84%), we recommend pursing foundations grants as one of many strategies in a well-balanced fundraising program. However, it is probably wise to try to limit the percentage of foundation funding in your budget to no more than one-third of your total income. That way, you can take advantage of this promising source of funds without subjecting your organization to the potential hazards of becoming overly dependent upon foundations grants.

When and how to use Foundation Grants

Foundations grants are useful in a number of situations. One is starting up, when a slug of cash is badly needed to hire staff, rent an office, and buy the necessary equipment to run a nonprofit. A start-up, or seed grant from a local foundation at such a time can be critical. Another instance when foundation funding can be important is in funding new projects or programs, or opening a new office. Again, a foundation grant can make such a program happen. But if the program, project, or office is an ongoing endeavor, foundation funding has its pitfalls. It is necessary, from the beginning, to plan a "take-out" strategy to eventually replace the foundation funding with monies generated by other sources, since foundations are almost never in the business of providing ongoing, year-after-year support. It is probably best to reserve foundation grants for new or "off-budget" endeavors, and seek other sources of funding for your day-to-day general operating support funding.

1. Locating Foundation Prospects

Whether you work for a small nonprofit operating on a shoestring budget or a much larger organization with ample Foundation Resources, investing time in prospect research is important. Even if you are a one-person office, you should probably be dividing your foundation fundraising time equally between research, writing and visiting potential funders.

Sending out hundreds, or even dozens, of unsolicited proposals to foundations without first reading their guidelines and looking closely at what they have funded in the past, is unlikely to result in a high return for your organization. The time devoted to generating those proposals and the money for supplies would be better spent conducting some preliminary research to target your solicitations.

Fundraisers are taught to ask for the right amount (not too high, not too low) from the right prospect in support of the right project. But how do you determine the appropriate amount to ask for and the right foundation to approach for a particular project? The answer is research.

STEP ONE: RESEARCHING A LIST

The first step in your search is to put together a list of foundation prospects. At this stage, be inclusive and list any potential funder that gives for your type of work and in your state or watershed. Here are suggestions on tools and methods you can use to begin to locate foundations that might support your organization's work.

Local Directories
The best place to begin a search for potential foundations for your river or watershed organization is in a state or local directory. Your chances of getting funding on an ongoing basis from a state or local funder are generally much greater than they would be with a national funder. There is at least one of these local directories for almost every state, and they are usually not expensive. Purchasing a statewide foundation directory is probably the best investment you can make as you begin to build your research library. These state foundation directories are usually published by libraries, universities, or grant maker associations. If you have difficulty locating a state directory, call the Foundation Center in New York City for assistance. If cost is a problem, use a copy for free at the nearest Foundation Center Cooperating Collection (see Resources), local community foundation, grant makers association (find their web site at www.rag.org), nonprofit support center, or local library.

Regional and National Directories
There are a number of good regional and national directories available (see Foundation Resources). However, buying all or even some of them can be an expensive proposition for a small group, particularly since updated editions are usually published yearly. Consider sharing the cost with a sister organization or asking a nearby larger group if you can use their copy. You can also access these directories at the same institutions mentioned above. River Network publishes a Directory of Funding Sources for Grassroots River and Watershed Organizations which is now available to River Network Partners, and can also be purchased directly from River Network.

Annual Reports of Similar Institutions
Another important source of information on potential foundation funders are the annual reports of other organizations that have programs similar to yours, such as other local watershed groups, local land trusts, or even statewide environmental groups. You might also want to look at the annual reports of national and regional river conservation groups like American Rivers, River Network, Pacific River Council, etc., to see which foundations are supporting their work. Most organizations will send you a copy of their annual report for the asking.

Word-of-Mouth
In conducting your research, talk to other fundraisers and people who are familiar with foundations in your area, and ask for their suggestions and advice. While some fundraisers are reluctant to share their best foundation names, others will give you good leads. Read local newspapers and follow up on articles about local funders. Open files on potential prospects when you find something of interest, even if the time is not yet right to approach them. Often, asking the advice of a program officer at a large local or regional foundation is a good approach, since he or she probably knows the other funders in your area well and may become an ally in your search.

And don't forget to talk with your board, staff and volunteers. By finding out whom they know in the foundation world, you may uncover foundation connections you didn't know your organization had!

Internet/Web Sites
Foundation Resources on the World Wide Web include the web sites of the prospects you have already uncovered (if they have sites) which you can locate by using a good search engine like Google or Altavista (see sidebar on Search Engines). Also, there are many sites at which you can actually locate prospects by searching on key words. Check Foundation Resources for a list of some of these.

Computerized Databases
Most of the computerized databases available for initial research on and off the Web are costly to purchase. The Foundation Center's CD-Rom, FC-Search, which contains data on 45,000 foundation and corporate funders, costs more than $1,000. However, you can use the CD-Rom free at all five Foundation Center libraries and at many of the Cooperating Collections. There is also a computerized CD-Rom for the Environmental Grantmakers Directory (see Foundation Resources).

How to use the Directories/Databases
Most large directories have several indexes, and this is where your research skills come into play. To locate the best prospects for your work, you will need to search under three main criteria: subject, geographic focus and type of funding. The most critical is the subject matter of your request (hydropower reform, watershed assessment, water pollution, etc.). Check the directory indexes carefully to see what kinds of information they allow you to search by and under which topics your project most appropriately falls. One trick is to copy the list of foundations you find under the most appropriate subject listing, and then use this as a master list in cross-referencing against the other criteria, geographic focus and type of funding (internships, conferences, pilot projects, litigation, etc.).

In conducting your research, be sure to keep a record of the information you turn up. The Foundation Center recommends filling out a prospect worksheet for each funder, and provides a sample worksheet on their web site. 

STEP TWO: NARROWING THE FIELD

Once you have a list of foundation prospects, your next step is to narrow your search down to a manageable few. Basic information you will need to determine whether or not a particular foundation is truly a viable prospect for funding includes:

1. the foundation's program interests, eligibility criteria, and guidelines for grant applications.
2. a list of past grant recipients and grant amounts.
3. Financial background on the foundation, including annual giving.
4. Staff and board list.

While most of this information is included in the directories, it is usually two to three years old. Since interests, deadlines, financial information and even addresses can, and often do, change in the space of two years, you should try to obtain the most up-to-date grant guidelines, annual report and/or informational brochures available by looking at the foundation web site or contacting the foundation directly. To locate the web site, use one of the many search-engines available.

Some small foundations do not publish reports or guidelines. They do, however, file tax returns (Form 990 PF) every year, and these forms are public information. The forms include a foundation's assets and, most importantly, the list of grants made during the year to various charitable organizations. They often contain the most up-to-date, accurate information available. You can view them at most Foundation Center libraries and Cooperating Collections. If that is not convenient, you can obtain copies by contacting your local IRS office or your Attorney General's Office, but a fee may be required, or by writing directly to the Foundation.

Focusing In
Once you have gathered information, review it carefully to determine whether a given foundation is a good prospect for your project and eliminate any that seem doubtful. While the guidelines usually provide a general idea of the foundation's interests, a grants list, usually included in the annual report or tax return, is a better indicator of exactly what types of projects the foundation actually funds. For example, a foundation may list water quality as an interest, but may only make grants for university research on water quality. The grants list will also give you an indication of the amount of funding you should request.

A foundation's assets and other financial background information, found in the annual report or tax return, are also important. You will probably not want to spend much time on a prospect that only makes four or five modest grants a year, unless you have a special "in" with a member of the board or staff. Otherwise, your chances of winning support from that foundation will be small, and you would probably do better to spend your time on foundations with larger pots of money to give away.

Foundation board and staff lists are also found in the annual report or tax return and are good to have. By showing these lists to your staff and board, you may discover that you have a personal contact with a prospective foundation. A proposal's chances for success are always enhanced if such a contact exists. If your research turns up a connection, you will need to decide when and how to make the best possible use of it.

2. Visiting with Foundations

See Guest Article:
Visiting Foundations ~ How to improve your organization's life and ruin your shoes
By Kevin J. Coyle

See Case Study:
Confessions of a Foundation Junkie
by Bess Metcalf

While not every foundation out there is open to visits, most are, and an in-person visit, or even a personal telephone conversation (much less effective) with the funder, preferably before you submit your proposal, will greatly increase your chances of getting funded. This preliminary conversation can also save you lots of time and energy by providing information on whether your organization is eligible for grants, which of your projects might be the most suitable, when would be the best time to apply, and so on. For tips and advice on visiting with foundations, see the article by Kevin Coyle mentioned above.

Suggested Format for Foundation Proposals (Always refer to the funder's guidelines for specifics) I. Proposal Elements (A cover page is optional) Summary (5%)* • Summarize entire proposal, highlight key elements • Include a sentence about the organization's credibility • Specify the total cost of the project, funds committed, and the amount requested in the proposal Introduction/Organizational History (10-15%)* • Include brief history and mission statement of applicant • Summarize current activities and recent achievements • Explain why you are the right organization to undertake this project Problem (Need) Statement (20%)* • Clearly define need or problem you are addressing and why it is urgent • Frame problem as an opportunity, be hopeful • Use statistics and numbers where appropriate Your Solution/Program Description (40-50%)* • Describe specific, measurable objectives of your program • Include strategies, methods, specific activities you will undertake • Emphasize elements in which the foundation has an interest • Include a timeline and description of key staff where appropriate Evaluation (5%)* • Describe how you will monitor and evaluate the success of your project Budget (10%)* • Provide a stand-alone financial summary of the project • Include a budget narrative, if needed Funding Request/Conclusion (5%)* • Call for action, ask foundation for specific amount • Describe other prospects and sources, future funding strategy if the project is ongoing II. Attachments (Always refer to the foundation's guidelines to see what they require) • IRS 501(c)(3) letter is a must • Recent financial statement, list of board members, with affiliations, current organizational budget (income & expenses) are standard • Include relevant credibility boosters such as news clips *Suggested percentage of proposal devoted to this particular element

3. Writing a Winning Foundation Proposal

See Sidebar:
Ten Tips from a Foundation Board Member
By Sam Stokes

Once you have done your prospect research and come up with a number of good prospects, and visited or spoken personally with as many of them as possible, it is time to start writing your proposal. But before you begin your writing, here are a few questions to consider:

Who should develop the proposal?
For volunteer organizations, or those with only one or two staff, the answer is: Whoever has the time and ability! In one organization I worked with, a talented board chair wrote most of the proposals. However, in most cases, it is the executive director who ends up with this job. Whoever is doing the writing, it is very important that the board and/or program staff who will be implementing the project are familiar with, and in agreement on, the basic premises, objectives, and strategies which form the core concept. Input from the intended beneficiaries, when feasible, is also extremely useful.

Does your project fill a real need?
As you conceptualize your project, it's important to keep asking yourself whether this particular program is the best thing you can do to solve the problem/need you are addressing. Is it possible that you are stretching a point because you know money is available? Programs that are funding-driven are often less effective than those generated by a bottom-up planning process.

Is someone else already doing it?
It is very important to do a little preliminary research on this question. Talk to other organizations in your field and test the waters. Trying to raise money for a project someone else has a claim on is risky. Foundation staff talk to each other all the time, so they usually know when two organizations are overlapping, and they usually react negatively to duplication and lack of coordination. On the other hand, if you can combine your efforts with those of another organization in a way that creates synergy, that can be a real plus.

Are you ready for the demands the grant will place upon your organization?
If the proposal involves new activities, new staffing, new equipment or facilities, try to anticipate and think through how you will manage them. If new staffing is involved, have you included enough funding in the project budget to cover recruitment costs? Are there funds to outfit a new office and buy an additional computer? What about the additional work that administering and reporting on the grant will place on your accountant? It's impossible to anticipate ALL the repercussions of receiving a grant for a new program, but it's wise to try to anticipate, and be ready for, the most obvious.

How will additional/future funding be obtained?
It is important to clarify for a prospective foundation (and for yourself!) how you intend to supplement their funding (if only a portion of the budget is being requested), and how you intend to fund the project (if it is ongoing) once their funding has been exhausted. Foundations want to build the sustainability of the organizations they support, not make them more dependent. They want to see that you are diversifying your funding base by seeking support from a number of foundations and looking at other sources of support, such as individual memberships, corporations, and fees for services. Give them a plan for what you intend to do, and they will be very impressed.

Once you have answered all these questions to your own satisfaction, you are ready to begin writing. In order to write your proposal you will need the following:

• Your file on the foundation, containing specific, up-to-date guidelines, copies of any prior grants made to your organization, memos recording phone or in-person conversations you have had with the foundation staff or board, newspaper articles about the foundation, and any other pertinent information.
• A background file with notes, statistical data, articles, history, etc. to help you write the need/problem section.
• A basic concept for the project you are trying to fund, including specific objectives and specific activities you will undertake to achieve those objectives.
• General information about your organization, its mission, goals, and recent accomplishments (a recent annual report is useful).
• Biographical sketches of key personnel who will be implementing the project.

A suggested outline for a proposal is given elsewhere in this chapter. Here are a few pointers for crafting your work:

POINTER #1
Allow sufficient time.
We all tend to procrastinate, and writing proposals is no exception. Get a good handle on the deadlines of the foundations you are interested in, make yourself a schedule, and begin work on a proposal at least two weeks before it is due. Without fail, there will be some item that will require extra time to obtain, or someone you need to talk to who is away. In general, foundations frown on the use of overnight mail, and some expressly prohibit it. Conversely, foundations are universally impressed when you get your proposal in well ahead of the deadline.
(Note: If you know you are going to use overnight mail, don't make the mistake of waiting until the night before the deadline to look at the mailing address! If the address is a P.O. box, you will have to call the funder and get a street address. You cannot use overnight mail without a street address and a telephone number.)

POINTER #2
Tailor each proposal to the particular funder.
It is SO important to try to see your project through the funder's eyes. Before you start writing, review the funder's file carefully and get a sense of its philosophy and interests. Then focus on aspects of your project that are in tune with that philosophy or those interests. Does the foundation have a specific geographic interest? Are there any other clues in the file that might help you make the proposal more appealing? Try to demonstrate that your project will provide something the foundation values.

POINTER #3
Follow the rules.
Funders have differing requirements for proposals with regard to length, format, and content. Some ask for a two or three page letter rather than a full-fledged proposal. Some provide a standard application form. Some ask that you submit multiple copies of your proposal. Read the grant guidelines carefully, follow them to the letter, and meet all deadlines. If you do not, your proposal may not even be considered.

POINTER #4
Keep the proposal short and concise.
Funders receive dozens, sometimes hundreds, of proposals. This is not the time for flowery or repetitive writing. Use short, powerful sentences, and a logical structure. Avoid the conditional tense, and instead use positive verbs like "will" and "can." Don't use flattery, overstatement, or fancy adjectives like "unique," "unprecedented," or "cutting edge." Limit yourself to the number of pages stipulated in the funder's guidelines. If no limit is stipulated, limit yourself to 10 pages or less for the body of the proposal. (Attachments are usually not included in the page count.)

POINTER #5
Make your proposal reader-friendly:

• Use plain white, good quality stationary.
• Use a simple, legible typeface throughout.
• Leave wide margins, and double space between sections.
• Use bolding or underlining to highlight key information.
• Set off each section of the proposal with logical, parallel headings.
• Where appropriate, use bulleted lists
• Don't justify right hand margins-a ragged right margin is easier to read.
• Avoid acronyms, technical terms, or jargon (TMDLs, non-point pollution).
• Number all pages except the first.
• Don't bind your proposal or add fancy covers. Foundations often make copies for trustees, and special bindings and folders just get in the way.

POINTER #6
Ask for a reasonable amount.
Be sure to do you homework here. Check to see what the foundation's average gift is, and look at past grants made to organizations similar to yours. Think big, but don't get carried away. If the guidelines allow, ask for two or three years of funding. That way you won't have to write so many proposals next year!

POINTER #7
Make the proposal flow.
Your challenge is to incorporate everything the foundation guidelines call for into a logical, cohesive whole. I usually try to use the same headings as those specified in the guidelines. If the guidelines are not specific, I follow a structure similar to the one outlined elsewhere in this chapter. However, there is nothing magic about this format. Once you are sure that you have included everything the foundation guidelines call for, feel free to rearrange the elements, combine sections, and generally use your creativity to make the whole proposal sing!

POINTER #8
Put first things first.
Remember that foundation trustees often have hundreds of proposals to read and may only have time to look at your cover letter and summary. Be sure to state clearly and concisely, right at the beginning of the cover letter, AND in the summary, how much money you are asking for and what you want to do with it.

POINTER #9
Involve the funder, when appropriate.
Remember that people give to people, and foundations are no exception! Having some in-person or telephone contact with foundation staff prior to, or during the proposal-writing stage, particularly if there has been no previous contact, will enhance your chances for success, as long as you have legitimate questions to ask. You might query the foundation about the proposal review process, or ask about a particular aspect of your proposal that is controversial. If this is your first submission, you can ask foundation staff to provide you with a previously funded proposal to use as a model. Developing a rapport with the person who will receive/review your proposal can only help your cause.

POINTER #10
Proofread the proposal carefully.
We all make mistakes, and spell-check doesn't catch all of them, so reread your proposal one final time when you are rested and able to concentrate, or better still, have another person who is unfamiliar with the proposal (and good at spelling, punctuation, and grammar) give it a read. Check for big things as well as small, like "Does the proposal really hang together?" and "Do the numbers in the budget reflect what you've said you will do in the Program Description section?"

POINTER #11
Build overhead into your project budget, whenever possible.
Because it is so difficult to get funding for general operating support, grassroots groups should always include some of their "operating costs" such as rent, accounting costs, utilities, etc. in project budgets unless the foundation specifically prohibits it. One way to calculate these administrative expenses is by figuring what percentage of the total paid staff of the organization will be devoted to a specific project. If this figure is 20%, than you can legitimately charge 20% of the organization's total rent, utilities, etc. to the project budget. Before you put a number into your budget, however, be sure to check the guidelines to see if the foundation has a ceiling for these costs.

POINTER #12
Credentials are important.
Make sure the foundation knows that your group is capable of doing what you are proposing. In the Organizational History Section, cite similar projects you have carried out. If you have well-known community or national figures on your board, be sure their names are prominently displayed on your letterhead. Attach letters of endorsement from credible community organizations. Include press clippings if these are relevant and enhance your credibility.
(Note: One thing that builds credibility with foundations is to show that other funders have supported you. If the foundation does not ask for a list of other funders, you may want to work their names into your income budget, or some other appropriate section of the proposal.)

POINTER #13
Work on your budget.
Unless you are requesting general operating support, you will be submitting two budgets, one for the proposed project and one for the entire organization. The project budget is usually incorporated into the proposal, while the organizational budget (income and expenses) is usually one of the appendices. The project budget is usually one of the first things looked at, so make it realistic, easy to understand, and convincing. Be sure to indicate what specific time period it covers (i.e. January 1, 2000-December 31, 2000). Double check to make sure that your figures add up and that the budget reflects the program elements described in the proposal. Keep a record of how you arrived at the costs in case you are asked for details. If you are applying for partial funding of the project budget, indicate how you plan to raise the remainder of the funding.

POINTER #14
Don't include too many attachments.
Restrict your attachments to those that are specifically requested by the funder, and any others that are absolutely necessary to make your case. As a general rule, foundation staff and board do not have time to look at publications, newsletters, studies, and other nonessential supporting materials.

POINTER #15
Follow up with the funder.
If your project is approved, don't forget to send an immediate "thank you" to the funder acknowledging receipt of the grant check and expressing your appreciation for this vote of confidence in your work. If you receive a "turndown," you may want to call and inquire why the foundation chose not to fund you, although if you do, make sure your tone is one of inquiry rather than blame. In any case, don't be discouraged. It often takes several tries before a foundation decides to fund an organization for the first time. If you have reason to think the funder is a good prospect, send them your newsletter and annual report, invite them to your events, and keep on applying. With foundations, persistence usually pays off.

Writing a good cover letter

Once you have completed your proposal, you will need to write a one- to two-page cover letter. (See Foundation Samples.) The purpose of the letter is to introduce the proposal that follows, and establish rapport between you and foundation staff. The cover letter should:

• Be on your letterhead.
• Include the amount, timing, and purpose of your request.
• Remind the reader of any previous communications or grants.
• Summarize the need, your solution, and the foundation's link to the project.
• Use succinct, compelling language.
• Be signed in ink by a person of authority (usually the executive director or board chair).

(Note: Before sending off your letter and proposal, verify the name, title, and address of the foundation officer to make sure you have the correct information and the appropriate person.)

Finally, don't stop here! Most experts recommend that you approach at least three funders for every grant you need. Once you have completed your proposal to one funder, adapt it, redo the cover letter, and send it out to at least two other good prospects. Don't worry about receiving too much funding-it almost never happens, and if it does, it's easy to call the funder, explain the situation, and work out an alternate arrangement!

Financial Management of Grants By Jeff Leighton Good financial accounting practices are an essential part of grant administration. If you do not have a good accounting system, you probably should not even apply for grants, because if you handle the money badly, you will create an image of careless or ineffective financial management which will be hard to erase. Here are a few tips on financial management of grant funds: 1. Begin by making sure that you understand the financial reporting requirements of your grant. Know when financial reports are due so that you are prepared to report on time. 2. Pay close attention to any restrictions or limitations on how the funds may be used. A grant may provide funds for general support, or the funds may be restricted to a specific program, project, or purpose. Some grants provide funds only for the direct costs of a project, while others allow for "overhead" costs as well. 3. Discuss the reporting requirements and any limitations on the use of the funds with your accountant. Develop a procedure or process for accumulating the required information and preparing the required reports. In some circumstances, it may be necessary to establish a project fund or a job code that relates to the grant purpose in your accounting system. If your accounting software does not have this capability, you may need to use a spreadsheet program, such as Excel, to keep track of the expenses. 4. In most cases, it is adequate to track expenses by department, program or project. It is not usually necessary to track expenses by individual grant. If you attempt to do so, you will create unnecessary work for yourself, since most funders don't want or need that level of detail. For the same reason, don't open a separate bank account for each grant unless required by the funder to do so. 5. Keep receipts for project expenses, and write on them, at the time they are incurred, what the expense was and for which project. 6. Devise a simple, effective way to track time spent on restricted projects. (A simple timesheet is often used for this.) 7. Devise a way to track how much of each grant has been spent and what is left to spend on a periodic basis. It's better to find out in July that you've only spent a fourth of a grant then in November, when it's almost too late! 8. It may be helpful for the project manager to keep copies of accounting reports, receipts, time records, and other pertinent information in the project or program file. 9. Report to your grantor on time and be sure to furnish the required financial information so that the grantor doesn't have to suffer the inconvenience of following up with you in order to meet THEIR reporting obligations. 10. Make sure that the financial information you furnish is consistent with written reports prepared/submitted at the same time. 11. Keep your report simple (see Samples, Report to the Packard Foundation). Funders don't need a lot of detail-just the basic figures. Jeff Leighton assists nonprofit organizations with financial and administrative matters. He served the David and Lucile Packard Foundation as its Director of Finance and Administration prior to starting his consulting practice. Jeff can be reached at (415)412-7170 or by email at jeffleighton@prodigy.net.

4. Tracking, Record Keeping, and Reporting

See Sidebar:
Tips from an insider on how to keep your funder happy
By Jon Jensen, Program Officer, the George Gund Foundation

In order to do an effective job of applying for foundation grants, it is important to set up a simple system, using the list of priority prospects you put together, which will allow you to keep track of which foundations you have applied to, who's writing which proposal, and so on. For this, you can use a simple status chart such as the one shown below.

The other important tracking device is your filing system. It is important to have a good file (clearly labeled, using a typewriter or computer), for each foundation containing background materials, guidelines, annual reports, and copies of all correspondence, including grant proposals, award letters, and reports. I find that keeping these foundation files (both prospects and actual grantors) in simple alphabetical order works best. Within each file, simple chronological order, with the most recent correspondence on top, is the most satisfactory system for me. When a file gets too thick to handle, I subdivide it by year. This system allows me to find files quickly and easily and to review the chronological progression of my organization's relationship with the funder by thumbing through the file. If there are memos of particular import, they can be stapled to the left side of the folder. The files themselves should be kept in a filing cabinet drawer, clearly labeled on the outside, so that they are easy to access, and anyone can locate information and research past history, quickly, and efficiently.

Administering Grants

Once a grant has been approved, a number of steps should be taken to insure accountability:

• Acknowledge the grant award (and the check if there is one) IMMEDIATELY, sign and send back any forms the foundation requires, and thank the foundation (and the donor, if you know who s/he is and have established a direct line of communication) sincerely and warmly.
• Note the grant requirements (reporting, etc.), and enter them into the reporting calendar.
• Notify all appropriate staff of receipt of the grant and any immediate follow-up that is required.
• If you haven't done so already, add the grant maker to your regular mailing list so that s/he will get newsletters, bulletins, and other mailings.
• If there are several funders being solicited for a particular project, let the other potential funders know that partial funding has been received. This may increase your chances of receiving additional funding for the project by helping to increase your creditworthiness.
• If the grant is restricted to a particular project, talk with your accounting staff about how to track time and expenses for the project.

Reporting

Most funders require their grantees to submit a final report by a specific date, and some require interim reports. Reports help funders determine if their money is well spent, and provide information they use in reporting to their funders/trustees. In addition, a good report is often the best entree to obtaining additional funding from either the same or other funders. It is very important that you comply with the foundation's reporting requirements in a timely fashion.

To track reporting requirements, I recommend that you keep a Foundation Reporting Calendar. This will allow you to review reporting obligations periodically, and make sure that you are in compliance. Your reporting calendar might look like the one below.

In order to be able to write meaty, interesting reports, you need to follow a few simple steps:

• Create a file for the project/program and save any pertinent news clippings, articles, publications, reviews, letters of appreciation, personal testimonials, etc. generated by your work. This kind of material is worth its weight in gold when you write your report and easy to forget about if you don't file it at the time.
• Don't hesitate to solicit feedback. If your project involves holding a meeting or a workshop, it's a good idea to let participants know who funded the event and that a letter about the benefits they received would be appreciated;
• Take lots of notes. Record how many people attended your conference, how many inquiries your information generated, what your press briefing accomplished, and so on;
• Where possible, ask people participating in your workshop, conference, etc. to fill out an evaluation form. Funders welcome this kind of feedback, and you can often get suggestions that will help you improve your programs;
• Take photographs. The old adage "a picture is worth a thousand words" works with funders, too. Take a camera with you when you go out into the field and take before and after shots, if your project involves physical improvements. Shots of participants at an event or meeting are also effective;
• Record small victories and key anecdotes so you can turn them into stories for funders. People relate to the particular better than the general.

With the material you have collected in hand, you should be able to write interesting reports to funders without agonizing over what to say. Keep your reports on track by referring back to the proposal and reviewing the goals, objectives, and outcomes you originally established.

Keep reports short and to the point, two to three pages of narrative plus a short financial accounting (if required) is usually plenty. You can add a few attachments if relevant, but don't overdo it. It is often useful to start the report with a summary paragraph which covers the main elements of the report in case the foundation staff person doesn't have the time to read the entire document. A good report usually includes the following information:

• What were the project or program goals and objectives?
• What did you do to meet these goals/objectives?
• What was the result/outcome?
• What was learned?
• Did it make a difference?
• How will the results or information be applied, expanded, or sustained?
• What should be the next step?

For a sample narrative report, see Foundation Samples.

Maintaining Contact

In addition to submitting timely reports, it is important to maintain ongoing contact with foundation funders, just as it is with individual donors. Here are a few suggestions:

• Send publications, copies of relevant newspaper articles, internal memos, reports, etc. with a note saying, "Thought you'd like to see this!" or "You helped make this happen!"
• If you are traveling, call foundations in the vicinity and offer to provide a quick report by phone or a brief update in person. Treat foundation staff as partners. Although foundation staffers have very limited time, they can be extremely helpful when you involve them in your project in an appropriate way;
• If you wish to make a major change in the project, be sure to contact the foundation and clear the change with them. As a general rule, foundations are flexible and open to making logical changes, but a grant proposal is a contract and you need to get approval before going forward.

Managing foundation grants is not difficult, but it does takes an organized system for tracking and recording information and strict adherence to reporting requirements, as well as a knack for keeping funders informed about important milestones, in a concise, easy-to-understand way. Doing a good job here has tremendous payoffs-it is one of the best ways to insure that your organization will receive additional funding, both from satisfied grantors and from new foundations who have been watching to see how you handle your first grants.

In summary, obtaining foundation grants is not difficult. As a grassroots activist, you already have the most important ingredients-passion, enthusiasm, and a desire to make the world a better place. With a little practice, you, too, will be winning and managing foundation grants that will help provide the funds to fuel your organization.