Funders and Foundations

What you need to know about foundations …

And what they can do for artists' non-profit organisations.

What are Foundations?
Foundations are non-profit organisations that give money, such as grants, to other non-profit groups. They can be private or public.
What do Foundations fund?
Foundations have specific mandates, such as health, literacy, culture, the arts, education, etc. When looking for specific foundations to fund your arts-related project, make sure you have a solid sense of what they have supported in the past. Do you fit their mandate and is your request appropriate (i.e. are you seeking help for a special project or operating funds)?
How many Foundations are there?
Philanthropic Foundations Canada (PFC) states that there are more than 8,750 foundations in operation, and Canadian foundations give in excess of $1 billion dollars in grants each year. Typically, around six percent of all foundation grants are given to arts and cultural projects. (http://www.pfc.ca/cms_en/page1087.cfm)
What are the benefits of getting foundation grants?
Foundation support is invaluable because it often means building a strong and lasting relationship with an individual patron (or sometimes a committee who represents the foundation). If they support your project, they probably feel just as passionate about the arts as you do. Unlike government funding bodies, which must remain at arm's length from the people and projects they fund, individuals from private foundations often want to become involved with what you do. Beyond financial support, this may include their participation in your organization, whether it be making a speech at your fundraiser, buying a subscription to your performances, receiving your newsletter or simply being a great advocate and promoting your work with their network of donor friends.
Foundations and the arts: what are some of the drawbacks?
There are a few issues to consider when making contact with foundations to request a grant or donation. Here are some of them:
Competition.
Establishing relationships with foundations can be a lot of work and may take a very long time, even years. You need to demonstrate to a foundation that your cause (whether it be children's theatre, a writing program or community choir) is distinct and unique.
Changes in funding priorities.
Changes can also occur in their funding mandates. While some foundations remain thoroughly committed to funding specific causes, board members or individuals may change their minds about where, what, and who to give to in the future. If it is a private foundation, it is their right to do so.
How should I approach foundations?
If you are interested in working with a foundation, many fundraising experts suggest that the best place to start is to convene with your own board members to discuss future donor relationships. Your board members may already have valuable fundraising experience or may have already established contacts with individuals who can help.
Where do I find information?
There are a number of groups that can help your non-profit organization find out about foundations by matching your interests with theirs, such as Imagine Canada (www.imaginecanada.ca). Philanthropic Foundations Canadas (PFC : www. pfc.ca) is also a good place to start when starting your research on the numerous foundations that exist in Canada. They have lists of foundations that have information on-line. You can start narrowing your search to the ones that are interested in funding projects related to the arts and culture.
Useful Resources

Foundation Directories

Foundation directories are usually available at public and university libraries. Usually they are for reference only and cannot be borrowed. However, they are invaluable resources, supplying contact information for foundations, a detailed description of how and where they fund projects, as well as past grant recipients.

Canadian Directory to Foundations and Grants (Two volumes). Canadian Centre for Philanthropy (2004)

Répertoire des sources de financement pour organismes de charité du Québec (4e édition). Publié par le Centre québécois de philanthropie (2004).

Website links

Imagine Canada's directory to Foundations and Corporations. Directories to awards, foundations and corporate donors. This organization can help you search for foundation grants that match your interests.

Philanthropic Foundations Canada (PFC). Located in Montreal the PFC has statistics on foundations, links to foundations with Websites, and other useful information.

Canadian Heritage Document from Canadian Heritage on the "timing" of asking for donations.

The Centre for Community Organizations (COCo). Useful resources, links to fundraising ideas, as well as an on-line catalogue of books available at their centre on how to approach foundations and fundraising in general.

Books (French and English)

The following list of books provides helpful and accessible information on how to attract donors for your non-profit projects, and general fundraising strategies.

Fundraising for Non-Profit Organizations (including Arts Organizations)

Marketing. Programme de formation à la Direction Bénévole. (1984)

Le financement des organismes sans but lucratif : un guide vers l'autonomie. Skills programme de formation à la direction bénévole (1995).

Paul B. Firstenberg. The 21st Century Nonprofit: Remaking the Organization in the Post-Government Era. The Foundation Center (1996).

Joan Flanagan, Successful Fundraising: A Complete Handbook for Volunteers and Professionals (2nd Edition). Contemporary Books (2000).

Ken Wyman, Fundraising Ideas That Work for Grassroots Groups. Voluntary Action Program, Department of Canadian Heritage (1995).

Ken Wyman, Planning Successful Fundraising Programs (2nd Edition). Canadian Centre for Philanthropy/Le Centre canadien de philanthropie (1997).

Ken Wyman, Face à Face : l'art d'obtenir des dons plus importants de personnes très genereuses. Direction du Soutien aux organismes volontaires, Ministère du Patrimoine canadien (1993).

Philip Kotler, Marketing for Nonprofit Organizations (2nd Edition). Prentice Hall (1982). See section V on Attracting Resources and working with donors such as Foundations.