Each week in April Step by Step Fundraising published new articles on the topic of Fundraising Myths. These fundraising and non profit management experts brought their unique perspectives to this topic. There are many years of experience and wisdom to be found on these pages!

Here’s a list of each of the articles in this series:

1. Fundraising Myth: If You Build It They Will Come by Sandra Sims
2. The Myth of the “Selfless Volunteer” by Tom Welsh
3. Fundraising Myth: It’s Great to Be Cheap by Marc Pitman
4. Advertising and Marketing Are Too Expensive by Jim Berigan
5. The Myth of the Dried Up Well by Sandy Rees
6. Myths About Foundation Funding by Aaron Atwood

Here are several other great articles along a similar theme published on other sites:
The Myths and Realities of Board Members and Fundraising from Guidestar
What is the average fundraising cost per dollar raised? from Gayle Roberts
Non-Profit Fund-Raising Demystified from Tony Poderis
The Myths and Realities of Philanthrocapitalism a book review from The Non Profit Quarterly
Five Charity Myths Dispelled from Charity Navigator

When non-profit directors or development staff comes to me looking for help in the world of foundations, the first thing I usually have to do is dispel the most common myths surrounding foundation funding.

Myth #1: Foundation funding is easy.
Myth #2: Foundations are anxious to give money to organizations like mine.
Myth #3: Foundations just require a good grant proposal.

While each of these myths has some basis in reality, none are the whole story.

Myth 1: Foundation Funding is easy.

“Competition is a sin,” said John D. Rockefeller.
“Competition is good and has served us well,” Judge Harold Greene said.

Whichever way you look at it, finding foundation funding is competitive. According to the National Center for Charitable Statistics, there are nearly 1.5 million non-profits in the U.S. Like it or not, many of those organizations are seeking the same funding you are. Setting your organization apart in this pool of worthy causes is critical.

Ask yourself, “Why us, why now,” when considering how to make your non-profit stand out from the crowd. Do you have a track record of success? Perhaps you’ve accomplished amazing results in a very short time. Ask your clients and donors why they choose you to find answers if you are really stumped.

Myth 2: Foundations are anxious to give money to organizations like mine.

That may be true, but don’t make assumptions. Most foundations were started with a specific purpose in mind. They give to causes across the spectrum like human services, arts, community development and hundreds of other areas of interest. With the volume of requests growing rapidly, foundations may be more particular than you think.

Nearly every foundation I know gets approximately 10 times more requests than they can actually fund in a year. Many of those requests are form letters or template proposals. The writers have never bothered to research more than the foundation’s address.
Think about building relationship with funders – not just foundations but all your donors and potential donors. Then you’ll know which foundations are likely to fund your mission. Knowing is much better than sending blind proposals.

Myth 3: Foundations just require a good grant proposal.

Writing is only a part of finding foundation funding, a minor part at that. Behind the scenes of a successful foundation funding effort is strategic planning, outcomes measurement and many other components that ensure success. Finding a good writer is great for your organization, but a writer won’t bring dollars with them.

Research, reporting and relationship are essential to having a holistic approach to foundation funding. When you consider the entire approach, you give yourself a chance to stand out from the crowd and find good fits for your mission.

Before you begin…

When you start out to find foundation funding, you must be ready to take on some big issues. Have you asked yourself, “How are we measuring success?” Are you ready to be transparent with a donor?

Many foundations will value your forethought and candor when you approach them for the first time. Foundation staff is charged with giving away money in ways that get the best results. When you can say to a donor, “I believe what we do is the best approach,” then you are ready. Substantiate your claim with measurable outcomes, a prudent budget and realistic timeline. These tools allow you to plant seeds of fruitful funding for years to come.

This article is part of the Mythbusters series.

Here’s a list of each of the articles in this series:

1. Fundraising Myth: If You Build It They Will Come by Sandra Sims
2. The Myth of the “Selfless Volunteer” by Tom Welsh
3. Fundraising Myth: It’s Great to Be Cheap by Marc Pitman
4. Advertising and Marketing Are Too Expensive by Jim Berigan
5. The Myth of the Dried Up Well by Sandy Rees
6. Myths About Foundation Funding by Aaron Atwood

When a dear friend of our family moved into senior housing, we had to get everything out of her house. But her new apartment was full long before the house was empty. With all the additional stuff on the lawn, it felt like we were starring on an episode of the TV show Clean Sweep.

In order to save time, I rented a dumpster. Rather than the cute little green one I envisioned, a huge construction-sized monster dumpster showed up in her yard. And it was a good thing, too! This woman was a bargain hunter and a pack rat. We threw out enough “seen on TV” gizmos and gadgets to fill up about half of the dumpster.

Only once did she get really upset—when I threw out a kitty litter bucket that actually contained an expensive compost starter. The thought struck me, if she hadn’t spent so much money on “good deals” that she never used, she would have been able to buy bucket loads of compost starter.

I call this “poverty thinking.” Nonprofits get stuck in this poverty thinking all the time. They become so focused on stretching their money that they lose site of quality. They will put in the cheapest cabinets in a multimillion-dollar building. Or they will bring their major donor to McDonald’s to show her how frugal they are.

Most donors, especially major donors, are wise enough to know that paying a little more up front will save significant amounts of money down the road. Cheap cabinets may have saved a few bucks this year. But, due to less frequent repairs and replacements, buying a higher quality, more expensive cabinet will actually save money over time.

The same idea applies when it comes to cultivating donors. Paying a little more up front can save lots of money over time. Taking a donor out to a nice restaurant is a way of showing her that we value her, that her relationship means more to us than just the money she is giving. She needs to know that we care about her and share her interests.

Here’s a tip: If a donor means enough to your organization to take her out to dinner, go to a place with real silverware. By all means, show her how well you stewarded the money she gave, but don’t be a cheapskate.

To discover more fundraising myths, download a free chapter of Marc’s new book, Ask Without Fear.

This article is part of the Mythbusters series.

Here’s a list of each of the articles in this series:

1. Fundraising Myth: If You Build It They Will Come by Sandra Sims
2. The Myth of the “Selfless Volunteer” by Tom Welsh
3. Fundraising Myth: It’s Great to Be Cheap by Marc Pitman
4. Advertising and Marketing Are Too Expensive by Jim Berigan
5. The Myth of the Dried Up Well by Sandy Rees
6. Myths About Foundation Funding by Aaron Atwood