Propose to Me, and See What Happens
So when should you send a grant proposal instead of a simple letter to an individual donor? This applies in three situations:
• When you’re asking for the big bucks
• When your prospect is a corporate big shot
• When your prospect is a family foundation trustee
Asking for the Big Bucks
If you plan to ask an individual for a major gift—and by that, I mean a gift the donor would consider major and is significant for your charity—a proposal that lays out all the aspects of your program might be necessary to help the donor decide to make a large gift.
You’ll want to make proposals to individuals more succinct than those to institutions. A four- to six-page letter works best in most cases. If you need to give additional background or testimonials, use attachments. Most importantly, keep the tone personal, using I and you and avoiding we and one.
A very large individual gift can affect a donor’s family by reducing current spendable income or decreasing what heirs will inherit. The donor will want to discuss the gift with her family and financial advisers. The proposal should give the donor details so she’ll be able to easily answer any questions from family members.
Proposals to an individual should also include a project budget. The donor will want to understand how the amount you’ve asked for fits into the project’s total budget and how her gift will relate to those from others. A well-prepared budget should inspire confidence that the gift will be well spent.
Because the donor’s family will probably be involved in the decision, include any long-term benefits (a parking place near the auditorium entrance) or long-term recognition (the family name over the door) in the proposal. Take a look at the following example from a proposal for a major individual gift:
To acknowledge your gift of $500,000 to the County Library, we would like to name the reference section “The Smith Family Reference Room.” In this way, we can acknowledge you and your family’s commitment to the library for generations to come. You spent so much time in the reference section working on your last novel, we already think of it as your room. Of course, if you would prefer to remain anonymous, we will honor that request, but we hope to be able to honor you in this way, both to express our thanks and to inspire others to become major supporters.
WORDS TO THE WISE
Don’t give away the store! A few donors will want to get as much recognition of their contribution as they can get. Be clear and specific about what you will offer and stick to it. Especially in a capital campaign, you don’t want to undersell a prominent naming opportunity early in the campaign.
Note that I wrote “we would like to name the reference section,” and not “we will name the reference section.” Although you want to acknowledge the gift as publicly as the donor will allow, he might prefer anonymity, and you should allow for that preference from the beginning. Public acknowledgment of major gifts does inspire additional giving. (Just ask anyone at a charity that has a wall of honor or similar recognition method.) Also note that I’ve given a reason why the reference section was chosen. Tying the gift to donor interests is key in any proposal.
Here’s another example, from another proposal:
We would like to provide you with a reserved parking space near the entrance to the theater to recognize the importance of your $10,000 gift to the Hometown Theatre Company. We reserve these few spaces for those who have made the most significant gifts to the HTC. (Because the parking garage charges $10 for evening parking, IRS regulations require that we tell you that $1,000 of your gift will not be tax-deductible, based on your attending an average of ten performances a year for ten years.)
In this example, the wording is trickier because the entire gift is not deductible (see the discussion later in this chapter on tax-deductibility). Telling the donor about it certainly makes the whole paragraph sound less gracious, but you have to include this somewhere. I’ve also indicated that the free parking in this case will not last forever.
Now let’s look at a full proposal seeking a major gift from a philanthropic couple for a new animal shelter. I’ve noted in the margins the important points.
Jane and Henry Bucks
456 Walnut Street
Anywhere, CA 90000
456 Walnut Street
Anywhere, CA 90000
Dear Jane and Henry:
Your many contributions over the years have made a significant difference in how many orphaned dogs and cats the Community Animal Society has helped. Not only have we been able to place more pets in homes with loving families, but the neuter and spay program has been much more successful because of the advertisements we placed in neighborhood newspapers.
I refer to their continued commitment.
I appreciated your speaking with Nancy Thomas and me last week about the Society and its future needs. It was great to learn that you have shared in our dream for a new home for some time, and I hope you will now help us make it a reality.
Community Animal Society is at a critical turning point. The number of homeless animals brought to us far exceeds the capacity of our aging building to house and care for them. In examining the options open to us, the board of directors has given the go ahead to begin a capital campaign for a new building on the vacant lot adjacent to our current home.
Never ask for a major gift in a letter without first meeting with the donor. Reminding them of their friend who came to the meeting with you reinforces the personal connections they have to the organization.
The new building is necessary for a number of reasons:
• The present building dates to 1938, and its mechanical systems continually fail, making costly repairs necessary. In the last six months alone, $9,000 have been spent on various repairs, and $100,000 will be needed to replace the ailing heating and air conditioning system.
• The animal residence area is totally inadequate for today’s needs. Our cages are almost all too small, as well as too few. As we have become better known, more animals have been brought to us.
• The medical facility does not meet the standards for modern animal surgery. The old materials are nearly impossible to clean. We collectively hold our breaths every time the health department makes an inspection.
Clearly express the need for the gift with a sense of urgency. This could have been the place for some tragic or dramatic pet stories to work the emotions. I judged that was not necessary with these donors.
• The adoption area is small and uninviting. When people come in to adopt a pet, they have limited room to get to know the dog or cat before making their decision.
I mention their friend’s gift first so they can judge their own gift accordingly and let them know the entire board backs the project.
We estimate the cost for such a new facility at $2.5 million. At last night’s board meeting, Nancy pledged $100,000 toward the new shelter, which provoked pledges from other board members of an additional $400,000. I hope you will consider matching the board’s pledges with a $500,000 leadership gift.
I know a major gift from you will inspire others in the community to become part of the campaign for a new Community Animal Society building. If you can help us with such a generous gift, we would like to name the new building the Bucks Family Animal Center not only in honor of your gift to this campaign, but also in honor of the dedication you and your family have shown over the years. If, of course, you prefer to make your gift anonymously, we will honor that request, but we know that your name connected with the facility would bring increased support from many people in the community, now and in the future.
Illustrate that a new building will provide solutions to all the problems in the present facility.
The new animal center will provide …
• A modern facility with state-of-the-art mechanical systems. Our engineer tells us we’ll save $20,000 to $25,000 a year in utility bills as a result of more efficient mechanical systems in a better-insulated building.
• Five separate suites for housing our animals. Large and small dogs would have separate sections, and the cats and rabbits would be given their own room acoustically isolated from the noise made by the dogs. There would even be a small suite for the exotic pets (such as snakes and ferrets), whose numbers increase yearly. Additionally, animals with medical problems could be isolated from the healthy pets and from each other in a special ICU—the first of its kind in this part of the state.
• New surgery and examination rooms that will make it easier for our vets to treat the animals with the respect and care they deserve. It will also make it easier for us to attract young vets to work at the center by offering high-quality medical facilities.
• Six rooms of varying sizes adjacent to the waiting room in which prospective families could interact with the animal they are considering adopting. By having different size rooms, a family considering a German Shepherd could be given enough room for the dog to move around, but the family looking at a kitten could be in a more intimate space. Studies have shown that having better adoption rooms leads to more adoptions.
The prospect of having this new facility has energized the board and staff. You are the first ones outside the board we are asking to take part in the campaign. And by “take part,” I do mean more than making an important donation. I know how committed you are to the care of our community’s unwanted pets—and to making them wanted pets. Your active participation in inspiring others in the business community with your example (and possibly through your solicitations) surely will ensure the campaign’s success.
Emphasize how important their active participation is—you need them, not just their money.
If you have any questions about the plans for the new facility, please give me a call. Dr. Shepards will lead the committee that will work with the architects, and I know she would value your input.
Thank you for your kind consideration of this request. Together, I know we can create an animal shelter of which the entire community will be proud.
Sincerely yours,
Betty Lapsa
Betty Lapsa
President
Betty Lapsa
Betty Lapsa
President
It can be dangerous to invite major donors to take part in the execution of the project. They might feel too much ownership and want to dictate the design. In this case, knowing these donors, there was minimal risk of that.
Your Prospect Is a Corporate Big Shot
When I have a meeting with a corporate funder—especially if he is on the corporate rather than the foundation side of the company—I put on my gray suit with a white shirt and power tie. By dressing in (what feels to me like) a disguise, I blend in and the corporate funder feels more comfortable with me than if I arrived in my typically casual nonprofit attire.
When you want to get a major gift from someone who is a corporate big shot, you want your written request to look as much as possible like something he or she sees on a daily basis. Familiarity breeds comfort. You want to craft your proposal to look something like a business plan, which is not so unlike a grant proposal when you see how the jargon translates, as I’ve shown in the following table.
Translation of a Business Plan into a Grant Proposal
DEFINITION
Metrics is a term common in the corporate world that means the measurable outcomes of a project. Will the kids in your after-school program spend more time with their mentor? Will more seniors be able to attend free concerts? How many new books will you purchase for the library? How much will attendance increase if you print a new subscription brochure?
The Small Business Administration gives a sample business plan on its website (sba.gov/starting/indexbusplans.html) that you might find useful.
Now let’s look at a proposal for that same animal shelter, this time addressed to a CEO. Note that the letter was sent the day after the meeting (and probably hand-delivered). CEOs will expect a quick follow-up. This letter would have been written before Betty and Nancy went to meet with Mrs. Banks and then quickly edited the next day to incorporate notes they took in the meeting.
I’ve made comments in the margins here only when they differ from those to the philanthropic couple. Please note: I would not offer naming of the facility to two people at the same time. Solicitations at this level must be done one by one.
Mrs. Marjorie Banks
President and CEO
Community Trust Company
123 Main Street
Anywhere, CA 90000
President and CEO
Community Trust Company
123 Main Street
Anywhere, CA 90000
Dear Mrs. Banks:
Thank you for meeting with Nancy Thomas and me yesterday to discuss the need for a new facility for the Community Animal Society. We’re writing to ask you to make a major financial commitment to this project.
This letter comes to the point in the first paragraph, but the personal friend involved in the solicitation remains very important.
Your many contributions over the years have made a significant difference in how many orphaned dogs and cats we have helped. We have been able to place more pets in homes with loving families as a result of the new marketing campaign—200 in the last year. Two years ago, the neuter and spay program performed only 150 operations; thanks to the new marketing initiative funded by Community Trust Company, 477 operations were performed in the last twelve months.
Note that results are quantified and “outreach” has become “marketing.”
Due in part to the success of the recent marketing campaigns, Community Animal Society finds itself at a critical turning point: the number of homeless animals brought to us far exceeds the capacity of our aging building to house and care for them. In examining the options presented to us by architectural and fundraising consultants, the board of directors has given the go ahead to begin a capital campaign for a new building on the vacant lot adjacent to our current home.
The new building is necessary for a number of reasons:
• The present building dates to 1938, and its mechanical systems continually fail. In the last six months alone, $9,000 have been spent on various repairs, and $100,000 will be needed to replace the ailing heating and air conditioning system. We cannot afford to continue throwing good money at bad systems.
• The animal residence area is totally inadequate for today’s needs. We operate at 110 percent capacity now and need at minimum 50 additional cages, which means at least an additional 1,750 square feet.
A just-the-facts approach usually works best. Depending on the CEO, an emotional pitch might work, but I’ve avoided it here.
• The medical facility does not meet modern standards. So far, health department inspections have brought only warnings, but it is only a matter of time before we are fined due to the impossibility of maintaining antiquated facilities to present-day codes.
• The adoption area is small and uninviting. When people come in to adopt a pet, there is limited room for them to get to know the dog or cat before making their decision. As much as 5,000 square feet are needed for this area.
Reassure the CEO by sharing the marketing and fundraising plans.
We estimate the cost for a new facility at $2.5 million. At last night’s board meeting, Nancy pledged $100,000 toward the new shelter, which provoked pledges from other board members of an additional $400,000. I hope you will consider matching the board’s pledges with a $500,000 leadership gift. I’ve enclosed our preliminary plan for raising the remaining $1.5 million, prepared with the help of David Smarts, a respected capital campaign consultant.
A major gift from you will inspire others in the community to become part of the campaign for a new Community Animal Society building. If you can help us with such a generous gift, we would like to name the new building the Banks Animal Center in honor not only of your gift to this campaign, but also for the dedication you have shown over the years. If, of course, you prefer to make your gift anonymously, we will honor that request, but we know that your name connected with the facility would bring increased support from many people in the business community, both now and in the future.
The same solutions are listed, but descriptions are more focused on results of the new facility in terms of efficiency.
The new animal center would provide …
• A modern facility with state-of-the-art mechanical systems. Our engineer tells us we’ll save $20,000 to $25,000 a year in utility bills as a result of more efficient mechanical systems in a better-insulated building.
• Improved living conditions for our animals. Separate housing suites will accommodate the different needs of dogs, cats, exotic animals, and those with medical problems (isolated in a special ICU—the first of its kind in this part of the state). Calmer animals are more likely to be adopted, thus decreasing our boarding costs in the long term.
• New surgery and examination rooms that will make it easier for our vets to treat the animals with the respect and care they deserve. It will also make it easier for us to attract young vets to work at the center by offering high-quality medical facilities.
• Six adoption rooms of varying sizes adjacent to the waiting room, in which prospective families could interact with the animal they are considering adopting. Studies have shown that having better adoption rooms leads to more adoptions.
The prospect of having this new facility has energized the board and staff. You are the first person outside the board we have asked to take part in the campaign for a new shelter. And by “take part,”
I do mean more than making an important donation. I know how committed you are to the care of our community’s unwanted pets—and to making them wanted pets. Your active participation in inspiring others in the business community with your example, and possibly through your solicitations, will ensure the campaign’s success.
If you have any questions about the plans for the new facility, please give me a call. Dr. Shepards is leading the committee and works with the architects, and I know she would value your input.
Thank you for your kind consideration of this request. Together, I know we can create an animal shelter of which the entire community will be proud.
Sincerely yours,
Betty Lapsa
Betty Lapsa
President
Betty Lapsa
Betty Lapsa
President
Note that I provide metrics throughout this proposal, as well as references to consultants involved with the project. I would attach a fundraising plan, as well as a budget.
Your Prospect Is a Family Foundation Trustee
As I discussed in Chapter 3, when your individual donor serves as a trustee of a family foundation, she might have the power to get your grant approved. Chances are, she will still ask you for a proposal. No matter how committed she is to your charity, she might have to get her siblings or other relatives to agree to do it.
These proposals should be big on bullet points that give your advocate good talking points. A strong executive summary might be all you need to prep your advocate, but give her a full proposal so she has additional information if needed.
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