Finding the Funds You Need: 
A Guide for Grant Seekers

Table of Contents

KNOWING THE RESEARCH TOOLS AND METHODS

Locating Basic References

Foundations
By methodically researching foundations or other organizations that may be able to fund your project, you can find the sources most closely related to your proposed project’s goals and objectives.  The proposal then becomes a marketing tool to promote those ideas.  While this method can seem tedious, it can also greatly increase the probability of funding.  It is estimated that organizations who submit proposals specifically tailored to the funder’s mission improve their chances of funding from 1 to 25 to 1 in 10 or even higher (Booth, 1987).

A serious grantseeker looking for foundation support should become familiar with The Foundation Center--a national service organization founded and supported by foundations to provide a single authoritative source of information on foundation giving.  The center’s references help grantseekers as they begin to select from some 38,000 active U.S. foundations those few which may be most interested in their project.  The center disseminates information on foundations through two national libraries in New York and Washington, D.C., three regional libraries in Cleveland, Atlanta and San Francisco, and over 170 cooperating library collections across the United States (see addresses page 32).  The audiences that call on the Center's resources include grantseekers, grantmakers, researchers, policymakers, the media, and the general public.

Each Center-operated library offers free weekly orientations on the funding research process. These orientations are designed to give representatives of non-profit organizations an overview of the foundation and corporate giving universe, and to introduce them to the effective use of the Center's publications, resources, and  services. Center staff can also tailor orientations to the specific needs and interests of various groups. To learn more about the Center's orientations or to schedule a library tour, call the Center-operated library nearest you.

A listing of some of the reference materials, services, and publications of the Foundation Center can be found on page 29 of this booklet.

The Foundation Center’s Cooperating Libraries in Pennsylvania are located in:  

Finding Public Resources
If you are seeking funds from other than a foundation or corporation, you should carefully investigate as many resources as possible.  While some of these are provided in this section, you should not overlook many of the resources now available on the Internet (see Internet Resources, page 28).

Several resources are helpful when seeking public assistance. While this list is not exhaustive, the most common sources include:

• Catalog of Federal Domestic Assistance.  This publication is the government’s most complete listing of Federal programs and activities. Extensive descriptions of each program include eligibility requirements and applications procedures.  This publication is available through Penn State Cooperative Extension from the National Rural Information Center.

• Federal and Pennsylvania Registers.  These publications are the official news publications for the Federal government and the Commonwealth of Pennsylvania. They include announcements on grant programs, regulations  and deadlines.

• Commerce Business Daily.  Published on weekdays by the U.S. Government Printing Office, this newspaper announces government contracts for which bids are being accepted.

• Federal Funding Sources For Rural Areas.  Published by the Rural Information Center, (a joint project of Cooperative Extension and the National Agricultural Library) this compilation is an extensive resource of federal funds available for a wide range of community projects.

• Rural Access Guide.  Published by the Center for Rural Pennsylvania, the Rural Access Guide features many of the state-administered programs and services available in Pennsylvania.

Other sources worth investigating include contacting the federal, state and/or local government agencies most closely associated with the project you are seeking to fund, your Local Development District, or the Pennsylvania Department of Community and Economic Development.

Doing Preliminary Research

Before researching sources of funds, it is necessary to carefully define your proposed project.  Without this preliminary work, a trip to the library, or contacting a public agency is likely to be in vain. For example, some foundations will not fund educational projects or do not support advocacy programs.  Others may not award grants for capital support or operating costs or may limit their grants to $10,000.  By thinking through these issues before you begin your research, you can avoid needless work and the frustration of applying to inappropriate sources. Complete the Preliminary Research Worksheet provided below before going on a field trip to the Foundation Center or contacting an agency about funding your project.  

Applying a Research Method

Once the project has been clearly defined, you are ready to begin your actual research.  While this discussion focuses on seeking funds from foundations, many of the same principles apply to those seeking funds from other sources.  Three research approaches may be used:  1) geographic; 2) type of support; and 3) subject related.  Consult “Foundation Fundamentals: A Guide for Grantseekers” (Third Edition, The Foundation Center, 1986) for a detailed discussion of all three methods.  The subject approach usually is best suited to the practitioner’s needs. The following outline presents the steps in this approach:

Step 1.  Brainstorm on Related Topics
Using the completed worksheet, you can begin to generate a list of related subjects.  Since these subjects will form the basis of the research, it is important to have a complete listing. For example, a nutrition education program may involve volunteers and the elderly.  A list of related topics should include health, nutrition, volunteers, elderly, education, and perhaps, curriculum development. If you limited the list to nutrition only, you would likely miss many potential sources of funds.

Step 2.  Set up a Recordkeeping System
From the start, it is useful to keep records on all sources who may be apt to fund your organization now or in the future.  Compile the following information for each foundation or corporation:  

Many organizations also record the names of officers or trustees. This information is useful to circulate among staff, board members, and supporters to see if they know anyone on the list.  Having someone personally put in a good word for your project or organization can be very helpful when seeking funds.  In other cases, however, this can also work against you. In many organizations, a board member too closely associated with, or having a perceived vested interest in the awarding of a grant is frequently prohibited from voting on that particular grant. 

Choose a recordkeeping system that is easy for all staff to use and is readily available.  Some fundraisers set up an index card system; others prefer to use folders or a binder with dividers or set up a computer data file.  

Step 3.  Identify Appropriate References
The Foundation Directory and the Source Book Profiles are the best places to look for information on large foundations.  If a foundation has less than $1 million in assets, or awards less than $100,000 annually, it will not be listed in the directory.  Many states like Pennsylvania have also compiled their own directories, which are the best references for small foundations. If no directory is available, the next source is the foundation’s IRS 990 form.  The IRS 990 form, which is available on microfiche at The Foundation Center, gives the name and address of the foundation, a listing of contributions received, and a list of grants awarded (see page 29 for more information). 

Another important resource is the Foundation Center’s “Foundation Grant Index” if you are interested in grants of $10,000 or more.  Grants descriptions are divided into 28 broad subject areas such as health, higher education, and arts and culture. Within each of these broad fields, grants are listed geographically by state, and alphabetically by name. 

In addition to the sources already discussed, one of the most effective ways you can identify the references you desire is to consult the Foundation Center’s DIALOG Information Services.  This data base allows you to retrieve on-line information on a wide variety of foundation giving, application deadlines, and the financial status of foundations.  Access to DIALOG is available at all Center-cooperating libraries.

Step 4.  Choose The Appropriate Foundations
By this time, many grantseekers have already identified a list of potential funding sources. The next task is to find out more about each foundation.  In particular, applicants need to know:  

1.      Is the subject related to the funder’s mission and goals?

2.      Does the foundation fund or place a high priority on your geographic area?

3.      Does the foundation fund the type of project proposed?

4.      Are the budget items and total costs within the constraints of the foundation?

Once you have effectively completed the steps above and answered these questions, you are ready to begin to establishing a relationship with your prospective donors.  As outlined on page 2, you are now ready to start writing your proposal. 

For CEDEV information, email CEDEVInfo@psu.edu

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