Tips for attending grant round tables

There are a number of grant maker round tables coming in the next few weeks. And grant seekers will be eager to ask grant makers how things look for the remainder of 2009 and on into 2010.

With that in mind, here are a few figures relevant to the discussions.

In 1995 Johns Hopkins University's Comparative Nonprofit Project completed a study of the nonprofit sector in dozens of countries around the world. One important piece of data was a look at the nonprofit sector in the United States. The nonprofit sector is supported by three main sources of revenue: Fees (51%), Government (27%) and Philanthropy (21%).

Remember, this is the nonprofit sector as a whole. These numbers vary when you apply them to specific areas of service. Although, the variations are not as great as you might think.

Another complication is that the line between government and fees is blurry at best. For example, Medicare payments for hospital or hospice services are fees, yet they are paid by government.

What's most important is that there is a clear consensus that philanthropy is about 21% to 22% of all nonprofit revenues. When you apply the latest figures from the Giving USA survey to that 22% you find that Individuals give 17.3% of all nonprofit revenues—15.7% through current giving and 1.6% from bequests.

Foundations provide 2.6% of all nonprofit revenues and corporate giving is 1.1%.

What does that mean for your nonprofit? Again, these figures vary by organization. Your annual budget may be more or less dependent upon any particular category.

What is clear is that this is a difficult time to try to switch funding streams. For example, private funders such as foundations are hearing from many groups that have lost revenues from one or more of these other sources. Unfortunately, foundation revenues have declined also.

Further, foundations already have a portfolio of present and past grantees. To the extent that a foundation can cushion the blow of this difficult economy, those partners are often the priority. This means there is not a lot of help available for new grantees, either new organizations or organizations that are new to foundation grant seeking.

So how will these revenue sources change? According to a variety of sources, it appears that 62% of foundations are planning to give less in 2009 than they gave in 2008. A recent Council on Foundations survey reported that "Three out of four foundation saw their assets decline by 25% or more, with a higher percentage of independent and larger foundations experiencing such a drop."

Those figures are important in forecasting foundation giving in 2010.

Since last year's drop in the stock market was so late in the year and so fast, this year's drop in giving is rather small. A foundation that lost 30% to 35% in asset value during 2008 could find that its 2009 minimum distribution requirement is only 10% less than its 2008 level.

But distributions in 2010 will be figured on the asset values of 2009. And for the vast majority of foundations that asset value is far below what it was a year earlier. So 2010 distributions will reflect more fully last fall's big drop the economy.

Is there any good news? First, remember that now, as is always true, much of the time and effort that grant makers and grant seekers invest in attending round table gatherings is about the future.

Even in a good year I would caution attendees at the Spring PSGA event that we were already looking at projects in the next calendar year because the remainder of this year was mostly committed.

Second, take time to learn more about the other groups sitting around that round table with you. Is there a way for you to help them or them to help you? And can your two groups work together in a way that truly provides needed services and also reduces costs?

Third, listen to the grant maker and try to understand the role her or his organization wants to play in helping local nonprofits. Only an inexperienced newbie really expects that an organization can be supported long-term by writing grants to foundations and corporations. What most grant makers want to know about organizations that are new to them is: What does this organization bring to the table? And how could a one-time grant complement their other activities and support?

Finally, let's take some time to enjoy each other's company. Yes, we've got to take what we do seriously. But let's not take ourselves so seriously that we fail to recognize each other's good efforts.