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GUIDE
TO SEEKING PRIVATE FUNDING FREQUENTLY ASKED QUESTIONS What is the difference between public and private funding? How do I know whether to seek public or private funding? What are the Steps to Obtain Private Funding? Step 1. Clarify
Your Project
What is the difference between public and private funding? Public funding sources most often include government agencies at any level, including city, state and federal. Funding from public sources is often announced through periodic Requests for Proposals (RFPs). Proposals to public funders tend to follow stringent application guidelines. This funding is available for a large range of programs and research. Private funding sources include foundations, corporations and individuals.
Some well known private funders include Ford, Pew, Rockefeller, Hitachi,
and Coors. Although some national funders are moving toward RFPs, it
is the source of the funds and not the process that defines a potential
funder as public or private. Private funds are often considered donations
or gifts to supplement existing funding. These organizations often review
proposals with a critical eye to such criteria as: wide ranging vs. local
benefits, program replication, and measurable outcomes. Most do not fund
individuals or academic research. How do I know whether to seek public or private funding? This depends on your project. Many faculty members successful in the grant seeking process have already identified a potential funder very early in the process. Many times it is because they have read a notice of available funds (usually an RFP) and think it will be a good match for a program they are involved with. A pre-identified funding source will quickly dictate whether you will be working with the Office of Sponsored Programs (public) or the Development Office (private). Sometimes a faculty member will identify a need for funding, but has no information about who might be available and interested in funding it. Many funding interests overlap between private and public sources, but there are definite distinctions between the two. Please continue to read through this guide and work through a few of the initial steps, especially to clarify your project idea. Then you will be prepared as you continue to move forward in the fund-seeking process. (Return to Top) What are the 10 Steps to Obtain Private Funding? There are several steps in the proposal process to seek private funding at Metro State. A checklist has been created to help keep you on track through the process, but here is a brief description of each step. Once you have a project idea, it is useful to gather facts, statistics and related information. This will help you clarify your idea, convince others to support your project, and ultimately provide the basis for your proposal. If you have not invested time in this initial effort, it may be difficult to answer even the most basic grant writer’s questions, including:
Start with prospects you know. Brainstorm to create a list of possible prospects that you may already know. Do you have a contact at a potential funding organization? Do you know of a similar project that received funding at another school--and who funded it? Are there funders you believe to be interested in your project? Try to come up with as many possible funding sources as you can think of. Identify additional prospects. Once you have your initial prospect list, you will probably want to expand it. Many resources are available to you to assist in prospect identification, including the following:
Once you have developed a list of 5-15 of the best potential funders for your program, it is necessary to seek funder approval from the Development Office. This step is REQUIRED. Metro State is very active in the development of new programs. Because of this, it is very important to coordinate fund seeking efforts across campus. The Development Office maintains a database to track who is working with which private funders. This is very important for many reasons. Several funders accept only one request from an organization per year, while others may be involved in long-term cultivation toward a substantial future gift. The Development Office staff can review your list at any time and you will be informed if your funder is available. Alas, many well known foundations and corporations are assigned to priority campus projects, but assignments can always be reevaluated depending on such issues as deadlines, amount of funding needed, campus priority, and availability of multiple proposal submissions. If your funder is available, you will be assigned to the funder organization for an initial six months. This allows you time to further evaluate the funder, begin to develop a relationship (with assistance from The Development Office), and submit a proposal (if appropriate). It also ensures that no one else will be competitively seeking a grant from them at the same time. An assignment to a funder can be extended, as needed.
When you are ready to begin your work with an assigned funder, it is recommended that you make an appointment with one of the development directors (see Contact List). This staff member will be able to assist you with suggestions on how to proceed. Some potential funders may require a letter of inquiry, others may be available for a face-to-face meeting, and still others may accept only a full proposal. The strategy recommendations can vary widely from one prospect to another.
This is a required form in seeking private funding. The purpose of the Proposal Transmittal Form is to gain approval signatures from administrators who have reviewed your program and budget and agree with its contents. Several concerns that may come up at this point will need to be resolved. For example, if the funder you have chosen to work with requires a matching gift, where will these funds come from? Does your program involve student recruitment? Does your grant involve the need for or the gift of computer equipment, and will it be compatible with current equipment? It is suggested that the proposal applicant gain all required signatures, especially since the signers may have questions about the concept/proposal. The form can begin routing up to TWO WEEKS prior to the deadline as long as the form includes an accurate draft of the budget and a detailed program description. Attaching a draft proposal might also be helpful. The form is absolutely due to the Development Office at least TWO DAYS before the proposal is sent out. Again, this form is required and the proposal will not be sent off campus unless all signatures are collected. All administrators who are involved in signing these forms are familiar with the process and understand the need for prompt attention. The process usually goes smoothly if the applicant has not waited until the last minute. Trying to track everyone down for signatures in one day can easily turn the process into an unfortunate crisis. Please be considerate of the other participants and begin obtaining signatures as early as possible. If a full proposal is determined to be the best approach for a private funder, many tools are available to help you, including sample proposals, how-to resources, and the periodic grant-writing seminars offered to the campus community. Once you have a draft proposal, it is recommended that you send a copy to the Development Office staff member you are working with. The staff member may be able to offer recommendations and answer questions that come up. A fundable proposal may take months to develop. Grant writing can be
a challenging and, at times, frustrating process. While there are many
resources to help you with content ideas, structure, budgets, technical
details, etc., never overlook the valuable insight and experience the
faculty and staff around you might have to offer. Numerous published
resources are available at the Auraria and Denver Public libraries. The
Colorado Foundation Directory, for example, offers a concise proposal
how-to at the back of their book. The Internet has also become an invaluable
resource. An Internet Bibliography of relevant
sites is included but, knowing how quickly web sites change, be sure
to try a few web searches
on your own for such terms as "grant writing" or "proposal
writing." Formatting guidelines cannot be overlooked either. Be sure to follow directions on font size, margins, section headings, number of pages, limitations on attachments, etc. Never assume that the funder will make an exception just for you. Many proposals fail simply because the preparer did not follow directions. Preparation of a budget can often be a trouble area for many new grant writers. Take advantage of all available resources, including budget examples from previously funded proposals. Always relate budget requests to project objectives. Create a reasonable budget and try to plan for related fees or expenses. The Development Office can review your budget drafts and help you identify potentially unanticipated costs.
For private funders, a proposal packet requires a cover letter, the proposal, and additional attachments such as a 501(c)(3), official audits, and a Foundation board list. The Development Office staff can assist in the final review of your proposal, help you develop an appropriate cover letter, and provide the necessary supporting materials. The staff can also assist you with final packet development, copying, mailing and distribution.
If you have sent a proposal to a private funder, please keep The Development Office informed of its status. Some funders will contact the applicant directly to gain additional information or clarification, or even to discuss budget considerations. The Development Office may be able to assist in addressing these funder’s concerns. Even if the proposal has been declined, it may be possible to work with The Development Office to rewrite the application for resubmission.
The handling of a private donation is very different than receiving public funding. Gifts and donations must be distributed through the MSCD Foundation, a non-profit entity. If your funding request has been successful and you receive a grant check, contact the Development Office immediately. A staff member will arrange for a separate account to be set up for your project and assist you with any necessary follow-up to the gift, including stewardship reports.
Hopefully this Guide has provided you with enough information to understand the process involved in seeking private funding. The Development Office staff is available for your questions at any time through the fund seeking process. Having a clear idea of your project will help the staff member address several issues, including: The fundability of your project, the level of funding required, timing, and the best way to move your project forward Return to Guide to Seeking Private Funding -- Contents Please direct any questions, suggestions or comments to Barbara Gregg at greggb@mscd.edu. |
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