Trends Affecting Grantwriting

1
Trends Affecting Grantwriting
2
Background Is it The Economy, Stupid?
3
The Financial Markets Wiley Coyote Moment.
The worst stock market crash since the Great
Depression. The dotcom crash of 2000-2002 lost
4,244 points over 2 1/2 years. This one lost
7,427 points in 1 1/2 years, to less than half of
its peak value. Many foundations lost 40 of
their assets on paper (although theyve recovered
somewhat).
4
In addition to stocks, the over-inflated housing
market and its drop caused many people losses to
their biggest asset.
5
This recession is different than other recent
ones.
Recession officially began December, 2007. So 12
months is Dec, 08 and 24 months is Dec, 09.
6
States are facing large budget shortfalls
CNBC says Oregon is the 14th worst off in 2010,
with a 1.6 billion budget gap, 18 of general
fund.
7
Total Private Giving to Nonprofits is Down.
Current dollar giving has only gone down two
times 1987 2009. (Some say this Giving USA
study is too rosy, many nonprofits giving is
lower)
8
Stimulus Funding

• The American Recovery and Reinvestment Act
  (ARRA) of 2009, aka Federal Stimulus, injected
  747 billion into the US Economy.
• Most went directly to States or individuals, but
  billions also went into Federal agencies to be
  released as grants.
• One time funding to be used (in most cases) by
  the end of 2010 - but RFPs are still coming out
  of the agencies. Look at agency websites, not for
  stimulus websites.

9
(No Transcript)
10
How are Foundations Doing?
11
BUT foundation giving grew five-fold from 9.2
billion to 46.8 billion in 17 years from 1991 to
2008. The Foundation Center predicts 2010 to be
flat and 2011 to show modest growth. Foundation
giving closely tracks assets, so assets have
grown equivalent amounts.
12
The number of foundations has skyrocketed, more
than tripling since 1980.
13
Growth in Foundations

• Foundation growth is driven by demographics and
  economics, and shows no signs of declining in the
  near future. At least four things are happening
• Rich people are dieing and creating or
  enlarging foundations in their wills.
• Rich people are aging and creating or enlarging
  foundations as part of their estate planning.
• Newly rich people are creating foundations (the
  most famous being the Bill Melinda Gates
  Foundation, the worlds largest).
• The stock market went berserk in the 1990s,
  with the Dow Jones Industrial Average more than
  tripling in value from about 3,300 to over
  11,000. Because most foundations are invested in
  stock markets, this increased the assets of
  existing foundations.
• While the stock market has been fluctuating
  wildly, over the long haul it will probably
  continue to trend uphow fast depending on the
  reset in the global economy.

14
Growth of Oregon Foundations
15
On The Other Hand Grants Trends of the 21st
Century
16
Foundation Behavior in 2010

• After the 2000 dot-com crash and the 2008
  financial meltdown, foundations are being more
  cautious. Even if their endowments are doing
  better, theyre not sure that they can count on
  it in the future.
• Many are focusing on strengthening established
  organizations theyve funded before, especially
  shoring up ones that were hurt by the downturn.
  Some are making operating funds grants to these
  groups for at least a limited time.
• A hard time for startups.
• There was a move towards basic needs, funding
  groups that help people impacted by unemployment
  and poverty -- food banks, shelters, low income
  housing, etc.
• A hard time for arts organizations.
• Theres been an acceleration of the trend to
  look beyond the project to the strength of the
  applicant. Can you show a strong financial
  statement, diversified funding? Can you
  demonstrate program success with data, stories,
  testimonials?
• Again, this favors established organizations.
• Foundations that cut staff during the downturn
  are looking for nonprofits to operate leaner too.
  
• Dont want to fund business as usual

17
Growth of nonprofits since 2000 (from Giving USA).
18
(No Transcript)
19
(No Transcript)
20
(No Transcript)
21
Non-Grant Issues Affecting Grantwriters
22
(No Transcript)
23
(No Transcript)
24
Old 990
New 990
25
Old 990
New 990