Foundations are one of the best sources of funds for your community projects.
Foundations provide funds and technical assistance to non-profit organizations
for a range of activities including education, public health, science, the arts,
the environment, and social services.
One of the best sources of information for those beginning the grant-seeking
process is the Foundation Center's Virtual Classroom, in which you'll find useful information on various foundations
and other grantmakers, as well as invaluable technical assistance. With more than 65,000 independent, corporate, and community foundations, there's probably one that's a match for your project. See a list of Appalachian-based foundations. Explore Foundation Funding
This section provides you with a guide to foundation funding.
Most foundations prefer to provide grants to organizations certified by the IRS
as non-profit, charitable organizations, a 501 (c) (3) organization. In fact,
we know of no listing of foundations or organizations that fund organizations
without 501(c)(3) status. Non-profit organizations can be established to address
numerous issues, including (but not limited to) education, science, infrastructure,
and business development. Most foundations will ask for proof of grantees' non-profit
status before considering a grant application and will require grantees to fulfill
the IRS charitable purpose requirements.
Starting a non-profit organization
There are several Internet resources that include information on how to start a nonprofit organization. The most complete source is the Foundation
Center's Establishing
a Nonprofit Organization online tutorial, available in the Virtual
Classroom. This tutorial describes 12 tasks that need to be accomplished
during the process of establishing a nonprofit organization. Issues include
board development, creating bylaws, filing for federal tax exemption, recruiting
staff, and developing an overall fundraising plan. Information on starting a non-profit can also be found through the Internet Nonprofit Center's FAQ for start-ups.
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Foundations are nonprofit organizations that provide funds and technical assistance
to community-based nonprofit organizations in support of the public good.
Foundations are classified by type:
- Private independent foundation
- Corporate foundation
- Community foundation
Private independent foundations are the most common type. If the person or family that established the foundation manages it, the foundation is known as a Family Foundation. A board of directors may also manage independent foundations. Corporate foundations are created and funded by business corporations, but are operated as a separate entity. Corporate foundations may be regional foundations, established to promote the general welfare of the residents of the city, state or region where the corporation exist. Or, their scope may be national. Corporate Foundations are funded through an endowment and/or from business profits.Corporate foundations should not be confused with in-house giving programs.
In house-giving programs are not separate entities and are controlled by the
company.
Corporations may donate to charity by means of a company-sponsored foundation,
through a separate corporate giving program, or both. For information on corporations
please refer to the Foundation
Center FAQs and look under the section entitled "Corporate Philanthropy."
To search for corporations and their Web sites go to the Foundation
Center's section on corporations.
Community foundations are supported by and operated for the benefit
of a specific community or geographic region. A board of directors composed
of community representative usually governs community foundations. Foundations
in your community are often approachable and receptive to local projects. View a list of community foundations serving Appalachia.
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Once you have identified your own needs, you can begin researching foundations. The primary goal of your research is to identify foundations you can approach for grant funds. To research foundations try the Foundation Finder, a free lookup tool from the Foundation Center that provides brief facts on private independent foundations, corporate foundations, and community foundations. Start by identifying foundations that
- Fund projects in your subject area. If your project is a childhood immunization project, compile a list of foundations that fund healthcare projects.
- Fund projects in your geographic area. Most foundations give to local organizations. Identify foundations that fund programs in your city, state or region.
- Provide the type of support you need. If you are starting an immunization program, identify foundations that provide start-up grants.
Most foundations were created to address an unfilled need; therefore, most foundations have special interest areas to which they dedicate most of their grants. No matter what you are interested in—education, health, or construction—you can usually find a foundation with an interest in line with your own. However, unanticipated events can reshape our thinking and our lives. When these events occur, new foundations sometimes emerge to address the challenge, and/or established foundations create a new priority area. To find out what new and emerging areas foundations are funding visit the Foundation Center's Philanthropy News Digest (PND) site. There, along with general news and information about philanthropy, you will find a list of the most recent Request for Proposals (RFPs) foundations are seeking. While the normal grant process is for grantseekers to solicit grantmakers, RFPs are the preferred method foundations use to solicit new grantees. More information on funding can be found in the ARC research report, Foundation Funding in the Appalachian region in the 1990s. Back to top
You've put together list of foundations to approach for funding. Your next step is writing a funding proposal. Proposals vary, but most successful grant proposals contain the following components:
- A Cover letter
- Table of Contents
- Executive Summary
- Statement of Need
- Goals and Objectives
- Specific and Measurable Outcomes
- Evaluation
- Budget
- Sustainability
While each foundation has different proposal requirements, you won't have to
write each proposal from scratch. Your goal is to create a general proposal
and adapt it to each foundation. Additional resources:
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Funding
Funding Sources by Project Type
Federal Funding
A Guide to Foundation Funding
Preparing a Grant Proposal
Other Sources of Funding Information
Articles on Grant Writing and Fundraising
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