In the world of nonprofit fundraising, finding the right grants is a game-changer. However, the process of grant research can be overwhelming and time-consuming. One highly effective yet often overlooked strategy is to research nonprofits doing work similar to yours and identify their funding sources. Here’s how you can leverage this powerful hack to streamline your grant research process and secure more funding for your organization.
1. Identify Peer Nonprofits: The first step in this strategy is to identify peer organizations—nonprofits that have a similar mission, size, target audience, and programs as yours. Here’s how you can get started:
Use Databases: Utilize nonprofit databases like Candid (formerly GuideStar) and Charity Navigator to find organizations similar to yours. You can even dig into their 990s, which sometimes list their funders.
Google Search: A simple Google search with keywords related to your mission and location can yield a list of similar nonprofits. For example, if you’re a nonprofit focused on youth education in Chicago, try searching “youth education nonprofits in Chicago.”
Social Media: Social media platforms, especially LinkedIn and Facebook, can also be useful in identifying peer organizations. Look for groups and pages that align with your mission.
2. Analyze Their Funders: Once you have a list of peer organizations, the next step is to dive into their donor lists. Many nonprofits publicly acknowledge their supporters through annual reports, newsletters, or on their websites. Here’s where to look for this information:
Annual Reports and Websites: Visit the websites of your peer organizations and look for sections like “Our Supporters,” “Donors,” “Impact,” or “Annual Reports.” These sections often list foundations, corporations, and individuals who have funded them.
Databases and Tools: Consider using funding databases like Instrumentl or Impala. These tools analyze the 990s of funders and nonprofit organizations, saving you the time and effort of digging through them yourself.
IRS Form 990s: If you don’t want to sign up for a tool like Impala or Instrumentl, you can access an organization’s 990s through Candid or directly from the IRS website.
3. Create a Targeted List: Set some qualifying criteria to help you narrow down your list. Here are some criteria to consider:
Mission Alignment: Ensure the funder’s mission aligns with your organization’s work.
Frequency of Grants: Look for funders who give grants regularly.
Openness to New Grantees: Prioritize funders who are open to new grantees.
Average Award Size: Consider the typical grant amount to ensure it meets your funding needs.
You can also head over to our Seedling Tray and download our done-for-you Grant Decision Guide with built-in scoring criteria!
4. Leverage Peer Organizations’ Insights: After identifying a potential funder, consider reaching out to peer organizations that have already received a grant from that funder. Here’s how to approach them:
Introduce Yourself: Send a friendly email or message introducing yourself and your organization. Explain that you’ve noticed their successful funding from the particular grantmaker.
Request Tips: Politely ask if they can share any tips or insights on how to approach the funder. Many nonprofits are willing to help each other, and you may gain valuable information on crafting your application or making the right connections.
Build Relationships: Establishing a rapport with peer nonprofits can lead to long-term relationships, potential collaborations, and a stronger network within your sector. Don’t be afraid to make some friends in your field!
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