Raising funds through grant-making bodies such as charitable trusts, foundations or increasingly, Public and Private Ancillary Funds (PuAFs / PAFs) is a critical strategy for not-for-profits (NFPs) to secure funding. These organisations are primed to support charitable causes.
According to the Strategic Grants Benchmarking Report, an effective grant strategy can deliver a 430% median return on investment.
Funding opportunities via trusts and foundations might come through open grant rounds or invite-only opportunities. In any case, a well-crafted written proposal is usually central to the process. However, securing funding is not as simple as submitting a compelling application –there are a few key elements that appear to make all the difference.
The written application is essential – but no the whole story
Whether it’s a grant application, proposal or case for support, the written application is your chance to demonstrate why your organisation and cause deserve funding more than another.
You don’t need a PhD to write a compelling application (though having experience with writing a 100,000-word thesis certainly helps), but there are a few rules to follow:
- Know your audience: Understand the funder’s priorities and the broader funding landscape. Research is crucial.
- Be clear and concise: Funders don’t have time for “fluff.” Get to the point quickly.
- Tell a compelling story: Balance conciseness with depth. Funders need to know why your work matters and how it will achieve the intended impact.
- Attention to detail: Ensure your proposal aligns with the funder’s guidelines. Don’t overlook the fine print.
- Be honest, be accurate… this goes without saying.
- Ask questions: If you’ve done your homework but still have questions, ask. It’s better to be proactive and clear before wasting time – and the funder’s time.
That said, while a strong written application is important, it’s not the be-all and end-all. Building relationships with your funders is arguably just as important – if not more so.
The power of relationships
Nurturing relationships with funders is crucial for success. As the saying goes, “people give to people”, and this holds true in philanthropy.
Here’s something to keep in mind: According to the PAF Guide, only about 10% of PAFs – one of Australia’s most significant philanthropic vehicles – have a formal written application process. This means that your strategy must include the other essential elements of a trusts and foundations strategy, especially relationship building.
A great place to start is with your existing relationships. Neela Jane Stansfield, author of Grant Fundraising and a fundraising expert with over 15 years of experience, calls this “funder care.”
She emphasises the importance of nurturing existing relationships, not just focusing on securing new donors. Research shows that existing donors have a 60 – 70 per cent likelihood of repeat donations. By focusing on stewardship, organisations can build long-term, sustainable relationships.
To grow, however, new opportunities also need attention. Here are key strategies that experts agree on for establishing new and maintaining existing relationships:
- Bespoke stewardship: Treat each relationship as unique. No two funders are the same.
- Thanks, acknowledgement and reporting: These steps are basic and fundamental. Once a grant is awarded, acknowledge support and report on its impact. Meet the expectations of the funder that were agreed upon when the partnership began – this is essential to building trust.
- Creative engagement: Don’t just rely on paperwork. Invite funders to special events, functions or tours. Creative stewardship doesn’t have to be extravagant.
- It’s a partnership: We simply couldn’t do what we do without the generosity of our funders. Likewise, we offer our funders an opportunity to contribute to a cause that is truly meaningful – so, in this way, we work together in partnership to make the world a better place.
By employing these strategies, we’ve seen a significant uptick in trust and foundation funding over the last few years.
Start with “why?”
While building relationships is crucial, clearly articulating your organisation’s funding priorities is equally important. What are you asking for, and more importantly, why?
Simon Sinek famously says, “start with why.” A deep understanding of why your organisation exists and what it aims to achieve is essential when engaging with potential funders – this is what really resonates with supporters.
Trust and foundation fundraising success is dependent on clarifying and clearly communicating your funding priorities. A clear “wish list,” informed by your strategic priorities, is key. Avoid vague asks and ensure that each request is tied to the why.
Don’t underestimate the power of storytelling – people want to feel connected to your mission. When funders understand the heart of your cause, they are more likely to support it.
In conclusion
Successful trust and foundation fundraising is not just about writing a great application (though that’s vital). It’s about building meaningful relationships and understanding the deeper purpose behind your work.
To stand out – be clear, be connected and know why you do what you do. This blend of strategy, storytelling and relationship-building will set your organisation apart and increase your chances of securing the funding you need to drive meaningful change
Article written by Ish Lockwood, Senior Trusts & Foundations Manager at Children’s Hospital Foundation.
References
Stansfield, N. J. (2022). Grant Fundraising: The Essential Guide for Not-for-Profit Organisations. Directory of Social Change. https://doi.org/10.1784820644
Strategic Grants. (2024). Strategic Grants Benchmarking Report 2023: Final Public Summary. Strategic Grants. https://www.strategicgrants.com.au/wp-content/uploads/2024/02/Strategic-Grants-Benchmarking-Report_2023_final_public-summary.pdf
Private Ancillary Funds (PAF) Guide. (n.d.). How to Access Ancillary Funds (Part 1). Private Ancillary Funds Guide. https://pafguide.com.au/how-to-access-ancillary-funds-part-1/
Private Ancillary Funds (PAF) Guide. (n.d.). Simple Steps to Achieving Success with PAFs. Private Ancillary Funds Guide. https://pafguide.com.au/simple-steps-to-achieving-success-with-pafs/
Bright Spot Fundraising. (2023, August 28). Episode 111: Stewardship that Inspires Trust – Fundraising Part 2 with Neela Jane Stansfield. Bright Spot Fundraising. https://brightspotfundraising.co.uk/podcast/episode-111-stewardship-that-inspires-trust-fundraising-part-2-with-neela-jane-stansfield/
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