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Through the funder's eyes: What funders want nonprofits to know about the funding process
By Louise Chatterton Luchuk
March 27, 2006

This week's cover story is the first in a five-part series that offers nonprofit organizations a glimpse into their world from another perspective. In future installments, we will focus on the perspective of the media, volunteers, consultants, and donors and what they would like the nonprofit sector to know.
Nonprofit organizations are all too familiar with the time and effort that goes into researching funders and writing funding proposals. What they may not be as familiar with is the funder's perspective of the same funding process. This month, four different foundation representatives provide that perspective and share their tips for building relationships with funders and writing stronger funding proposals.
It's unanimous!
All funders look forward to concise, well-written proposals. Considering the number of proposals that cross their desks, this is pretty understandable. Sheila Simpson is the program manager for the Thames Valley region of the Ontario Trillium Foundation. She says, "We're not making decisions based on the weight of your proposal. Be to the point. If you can't describe it in the space provided, then I would challenge that you might not be completely clear about what it is you want to do."
Not only do funders have to read all the proposals, but as executive director David Peever explains, he has to prepare a one-page summary of each application for the board of the Nickle Family Foundation to review. "We really, really have to boil down the applications because the board may be reviewing 50 applications at a time. I can't stress it enough; present your case as succinctly as possible because it makes it easier for me to make a compelling case, on your behalf, to the board."
Peever also notes that lots of organizations use jargon or "insider code", as he calls it. He recalls reading proposals that didn't mean anything to him at all and those proposals take a disproportionate amount of time to figure out. "Organizations need to put themselves in our shoes," explains Peever. "They often come to us as if we know them well." Simpson suggests giving the proposal to someone who doesn't know the organization or field and have them read through it to catch the jargon.
From too much information to not enough
Sometimes the problem is the exact opposite of too much information. "We try to keep our application as straightforward as possible, but it slows down the whole proposal review process if they don't have all the required paperwork," says Jessica Steinberg, manager of the Altamira Foundation. This can cause a delay for the organization. They may no longer be eligible for funding in the current funding cycle and will have to wait until the next one.
Simpson agrees. While she realizes that it can seem like a lot of information, and it may not be immediately obvious why it was requested, if a grantmaker has asked for it, then it's really important to make sure you provide it. A significant number of the applications she sees are missing some information. While missing information can be inserted after the fact, it's prone to being overlooked. "It's a challenge to keep everything together," cautions Jane Barry, executive director of the Greater Saint John Community Foundation. "You are diminishing your chances, so please try for completeness on the first try."
The importance of following instructions
Scrupulously following the proposal instructions is important for other reasons. For instance, Barry's organization asks applicants to photocopy on both sides of three-hole punched paper. "We try to make it really clear what we need. If we are receiving 60 hard copy applications and I assemble them in a binder and they don't photocopy on both sides of the paper, we end up with a binder twice as big. And if we have to hole punch that many applications, it slows down our prompt turnaround time." Barry stresses she is not trying to be picky or fussy; there are practical reasons behind her request.
It's also important to follow instructions about the order of information requested. That's particularly important for foundations, such as the Greater Saint John Community Foundation, that don't use a fill-in-the-blank application form. Following the prescribed order means that when the board goes through a pile of funding applications, there is consistency. If information is out of order, it's more difficult to navigate and assess.
"We're just people doing our job."
It's not just about concise writing and following instructions. Funders also share how important relationship building is to the process. Simpson says, "I've had people call and be downright nasty to me. We're just people doing our job. It's a lot of work to give out money and people don't realize that. People think it's so great to be Santa Claus. I know it's a lot of work to ask for money, but it's a lot of work to do a good and thorough job of reviewing, monitoring, following up, etc." Peever has also had difficult conversations with unsuccessful applicants, but he points out that once the board has made its decision he has no power to negotiate with an organization.
Relationship-building isn't just limited to the proposal stage, though. "Develop the relationship early and foster it," encourages Simpson. "It's important that there aren't a lot of surprises along the way. We know things happen, but remember to foster the relationship. If your executive director leaves, let us know. I read the paper and it's better to hear it from you than to see a want ad for the position that the grant was so dependent upon."
The time and place for acknowledgement
Relationship-building also extends to the acknowledgements made by the organization of their funders. That's an important consideration for Barry's foundation because they don't have a budget for advertising. Their publicity comes from funded organizations recognizing them publicly. "I must confess some organizations are not diligent about letting the public know how we have helped," admits Barry. "But it's a common courtesy and that goes a long way."
For Peever, public acknowledgement is not as vital. As he explains, "The advantage of being a family foundation is that we have a bit more flexibility. We don't have shareholders to whom we have to demonstrate what we are doing as a corporate foundation. We don't have community donors to report to or politicians that need to point out the good work being funded. We are a family foundation endowed by two oil pioneers in Alberta who wanted to give back. Now we're into the third and fourth generation. It's a quiet, reflective activity. Publicity is not a biggie for us. We're already four or five times over-subscribed, so the last thing we want to do is attract more publicity."
Peever's foundation is only able to fund about 20% of the proposals it receives. Simpson notes that the number of applications she receives is increasing, but the amount of money isn't. Most recently, they received 60 applications and about half will be successful, she says. Barry receives a similar number of applications and is able to fund about 75% of them - though not necessarily at the amount requested. When you consider the increased competition for funding these days, it is all the more reason to take the information shared by these four funders to heart...and to your next proposal.

Louise Chatterton Luchuk is a freelance writer and consultant who combines her love of writing with experience at the local, provincial and national levels of volunteer-involving organizations. For more information, visit www.luchuk.com.