[ASK AN EXPERT] Who Are The Best Endowment Campaign Prospects For A Local Historic Charity?

Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity.

Today’s question comes from a nonprofit employee who wants advice on where to seek endowment funding for their local historic charity. 

Dear Charity Clairity,

We are a 501c3 and are in desperate need of a new roof for our historic building. Also need endowment to preserve Opera House paintings and surrounding ghost town. Any suggestions of where to seek funding?

–The ghosts are watching

Dear the ghosts are watching,

The first thing to understand is, while you and the ghosts think this is a historic mission, the majority of the universe has no idea you even exist. So rather than begin with having to overcome this huge boulder of a barrier to fundraising, consider the path of least resistance.

The best place to start is always in your own backyard. Your best donors are those with whom you already have a foot in the door. They have LIA (Linkage; Interest; Ability). Too often nonprofits make the mistake of beginning with ability (wealth), ignoring the fact the Rich-So-and-So they are targeting has (1) no interest in their cause, and (2) no linkage that makes it possible for them to connect with this prospective donor. Not to mention the fact that they may have no demonstrated history of philanthropy! 

First make a list of all those who are closest to you. Think of the universe of prospective donors as concentric circles. Closest in are your board and staff. Then current and recent donors. Then former donors, volunteers, clients and, finally, friends, family and associates of all those in your inner circles. The further you get from the center, the less people who know who you are. Also, the less they already have skin in the game by virtue of their previous investments of work, wisdom, and wallet. Take your “close in” list and begin to segment and tier it, prioritizing those with the greatest likelihood of becoming a lead major donor. For more on this, see How to Find Your Nonprofit’s Highest Likelihood Major Donors and 5 Indicators for Identifying the Best Potential Donors.

Next, move to the level of people with philanthropic interest. Generally, this will be foundations, whether community, private, or corporate. If you have a local community foundation, begin there. They have a geographic focus and are looking to fund organizations that have a demonstrated positive impact on their shared communities. The same may be true of local businesses though, unless you’re blessed by Fortune 500 companies in your vicinity, these may not be your best resources for major capital or endowment gifts. Next, begin your research into private foundations established by individuals, families, or corporations. They will have varying missions, and your goal is to find those who align with yours. So, consider all the aspects of your mission that may align (e.g., art preservation; historic buildings; tourist experience, and so forth). Take some time to think this through thoroughly, as the more points of alignment you find the better. Vague, generic mission statements will get you nowhere. Every nonprofit wants to “create positive change.” The fact that you “affirm the importance of art and beauty” could apply to hundreds of other nonprofits. Who do you help? How do you do it? What makes you unique? Why would it be sad were you to cease to exist?

In-state funders are likely your best bets, yet if you have national reach (demonstrated by the addresses of those who visit you) you can move further afield. This is where it’s helpful to search for foundations that fund capital (bricks and mortar) and/or endowment campaigns. For some these are non-starters, so you’d be wasting your efforts applying to any of them. If in doubt, reach out to the foundation staff and set up a virtual or in-person exploratory meeting. You can use a research tool like Grantli or the Foundation Center Directory.

Whatever you do, try to steer away from the fringes. It’s not uncommon for board members to suggest celebrities, influencers and the like, but your chances to getting connected to these folks are like your chances of winning the Mega Millions lottery. These are “pie in the sky.” I’d rather see you focus on “your piece of pie.”

I hope this helps you to put your best foot forward and, when you’re ready to reach out, no one ghosts you!

— Charity Clairity

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