Tuesday, June 30, 2009

Private and Grant Funding options

On June 25th, the Library Board had a presentation by two experts in the private fundraising profession:

Presentation by Pam Graber, Resource Strategist

Private Funding: Ongoing and Current Needs

Twice a year annual appeal (mailing)
Annual Fundraiser events
Gift envelopes
Public awareness enhancement

Current need: capital campaign
Basic Steps in Capital Campaign
1. Feasibility Study
2. Case for Support
3. Asking
4. Stewardship
(Campaign Committee will be formed, honorary chair is usually appointed)

Feasibility Study, via interviews, seeks information and advice from top prospects to get their input on and buy-in on the project.

Interview topics include:

Their knowledge, usage and opinion of the library and its services
Library's reputation
Library staff reputation
Public satisfaction, i.e., what's the word on the street?
Knowledge of other fundraising efforts in town and their support of them
Advice on how to garner support of the library project
Their own capacity/willingness to support financially

Old adage: “Ask for money and get advice. Ask for advice and get money!”

Who do you interview?
Folks are known supporters
Others of influence or affluence identified via prospect research
Case for Support, aka Case Statement is an interesting and readable document that tells about the project and why it is deserving of support
Describes the current library and the benefits it offers our community
Describes your vision of how the new library will be better
Describes “what's in it” for the donors, i.e., donor recognition, donor appreciation, naming opportunities, other giving extras

Asking The main reason people don't give is that no one asked-

Major gifts are solicited face-to-face
Boards and committee members will be key
Sara will be “at the table” for most asks
It's not that scary. Remember, you're not asking for yourself, you're asking on behalf of everyone in the community who will benefit from the new facility.

Stewardship- The ongoing care and feeding of donors

Thank yous, appreciation events, invitations, personal contacts

Michelle Schmitter, Development Manager for

Carson Tahoe Regional Medical Center

In my experience here are some Basics for success: Very important that Development person be involved throughout the process (Space planning, Focus Groups, etc.); Look at Funding mechanisms that were successful for other library (Milpitas); Start with the Clients/users (30,000) in the search for funding.

A. Feasibility Study – Grants Opportunities

Compile list of appropriate projects, i.e. equipment, furnishings, artwork, technology with expenses. You will be looking for capital or special needs funds not Operating. Most Foundations do NOT award grants for operating costs
As part of the application process, most Foundations will require an organizational history so it is good to have that prepared ion advance
Audit – some Foundations require an audit, so if you haven’t had one in the last three years, you might want to budget for one – this would be an audit on the Friends group, the 501(c)(3)
Research – 80% of your effort - using foundation center database as well as a host of other resources available Foundations that fund library projects in Nevada
Review their guidelines and then if you have determined there is a 60% chance of funding, write grant proposal – 20% of time
Project budget – will need lots of detailed information
Follow the guidelines - Very important to create a unique grant package for each funding source which directly answer all the questions they provide

B. Case for Support

Know the facts, create the “story”

Research and Quantify:
Community Impacts
Economic Impacts
Environmental Impacts (if applicable)
Local Values

C. Asking or How do we get the project financed?

1. Look beyond traditional funding strategies:

Public/private partnerships
Federal funding and/or tax credits
Non-profit and foundation grants with “green” focus
Donations in-kind (technology, etc.)

2. Develop a creative, layered financing approach:

Traditional financing (private & public)
Tax Credits (if applicable)
Grants and Donations
Donations in-kind, or “demonstration” systems

3. Explore all the Possibilities as each possibility brings other possible sources of public and private financing and funding options

A. Adaptive Re-use of an Existing Building
B. Community Development
C. LEED or High Performance Building
D. Stewardship – Follow through with Funding Sources

All successful grants come with individual set of requirements associated with the gift. Important to follow the instructions or contract which is sent with the successful grant award.
Setting up a Fund accounting system will allow you pull a financial report of grant funds detailing income and expenditures when needed.
Annual Reports – Some Foundations may require you to submit a report once the project is completed where they will be looking for quantifiable information, i.e. number of people served.
Reimbursable grants – Some grant funds (mostly state and federal dollars) ask that you expend the money and then submit “lots of paperwork” so they can then send you a check. This process requires the organization to first outlay the cash to pay for project costs, so you need to make certain that you have the funds.
Please, please always remember to thank the funding source in writing immediately on receiving the grant. Invite the Trustees for a hardhat tour, to the opening event, to the dedication ceremony.
Handout - Naming Opportunities

Possible examples for the Library project include:

$5,000 Gift
Provide computer equipment
Furnish the lounge
Provide 1 Drinking Foundation
Purchase books
Provide unrestricted funds toward completion of the project.

$10,000 Gift
Furnish the conference room with tables and chairs
Underwrite security cameras to ensure client safety and building security
Underwrite artwork for the donor wall in the reception area
Provide unrestricted funds toward completion of the project.

$25,000 Gift
Provide landscaping for outside garden area
Furnish the reception area
Provide unrestricted funds toward completion of the project.

$50,000 Gift
Landscape the building exterior
Furnish racks for books
Pave the parking lot
Provide carpeting for the building
Provide unrestricted funds toward completion of the project.

$100,000 Gift
Children’s Reading Area
Underwrite the heating or air conditioning system for the building
Provide unrestricted funds toward completion of the project.

$250,000 + Gift
Underwrite the expenses for the building to be LEED (Leadership in Energy and Environmental Design) certified
Provide unrestricted funds to fill the entire funding gap of the project

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