5 Biggest Foundation Fundraising Mistakes

Are you focusing on the right things when it comes to foundation fundraising? Here are some common mistakes:

Submitting a grant application without a relationship with the foundation. Did you know that only 1-2% of grant applications get funded? If the foundation can afford to fund 25 grants, 75 will not get funded. So if you were the decision maker how would you choose which organizations to fund? Well, if it was me, I would start with the organizations that I know something about or have some sort of relationship with rather than one I’ve never heard of. What it all comes down to is that you should never send a grant in without having some sort of relationship with the foundation you are applying to.

What to do: Before submitting an application, visit the foundation’s website and find out who the staff people and board members are. Ask your own staff and volunteers if anyone has a connection to any of those people. Even a call from a volunteer to the foundation asking for clarification on whether you would be a match followed by an invitation to tour your organization or other opportunity to meet with someone from the foundation is a great first step.

2. Hiring a grant writer. Most organizations begin foundation fundraising by hiring a grant writer. But that’s focusing on the wrong thing. But honestly, it’s not the writing of the grant that makes a difference, it’s the mission and effectiveness of the organization, as well as a compelling picture of what the future looks like because of the organization’s work. And how do you help a foundation experience the power of your mission? By inviting them in to hear your story, see your mission in action, having the people you serve share how your programs have changed their lives, and share your plans for the future. Relationships come first, then writing.

What to do: If you’re in the position to hire someone, don’t hire a grant writer. Hire someone who can help you identify and prioritize prospective foundations and then work with your staff and board to reach out to those people and foundations and invite them to tour your organization. The goal here is to inspire them with your story and share your future plans.

3. Not following up. If you’ve been lucky enough to have a staff person or board member from a foundation visit your organization or school, and they invite you to submit a letter of intent, then you better do that right away! Ideally, you want to be invited to apply for a grant, and when you get the opportunity, this is your chance to impress the foundation.

What to do: Once you’ve submitted the letter or application, you will want to follow up to make sure they received your documents, ask if there is anything else they need or if anyone else would be interested in a tour of your organization. Many organizations require a follow-up report to show how their grant made a difference. Every interaction is an opportunity to show your gratitude and continue to build your relationship with the foundation. Get this done on time!

4. Not learning from rejection. Many organizations get rejected because they haven’t done their homework; they may not have been a match. If they had developed a relationship with the foundation ahead of time, they would have received feedback on whether or not they were a good match for the foundation. Others may have a great application, but because the foundation cannot fund every great application, in the end they will probably fund those they have some experience with.

Either way, if you get a rejection letter, this is also an opportunity to build a relationship with the foundation, and it’s a learning opportunity too. Whether the foundation is able to fund you one time or many times, your relationship could lead to many other connections or resources. For example, while the foundation may have decided not to fund your grant application, one of the foundation officers or board members may have really been inspired and may decide to support you as an individual.

What to do: When you get a rejection letter, make a call to the person who sent the letter and tell them you would like to learn from the experience and see if you can get some feedback on how you could do a better job on your next application. Ask if it would make sense to apply in the future, and then see if it would be possible to invite someone from the foundation to tour your organization. Ask what they think your weaknesses are and even if they could connect you to resources to help you improve in those areas.

5. Not continuing to cultivate the relationship once a gift is received. Many organizations think their job is done once they receive a grant from a foundation. Really, your job has only just begun when it comes to building a long-term relationship. This foundation could lead you to many other individuals who could find your story to be very inspirational. Rejection is a message to you that you need to do something different.

What to do: First, make sure you put staff and board members of the foundation on your mailing lists to receive newsletters, event invitations and annual reports. If you have any major events, make sure one of your board members personally invites people from the foundation to attend. If you have a fantastic success story, send a quick email off to someone at the foundation sharing how their donation has made a difference in your ability to deliver on your mission. Invite them in for another tour and be sure to ask them, “Who else needs to know about us?” This is one of the most powerful questions you can ask a supporter. One supporter could lead you to one or even ten prospective supporters.

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