The

State of Grantseeking Survey Spring 2013

THE STATE OF GRANTSEEKING

Sixth Semi-Annual Survey Results Spring 2013

 The State of Grantseeking Survey Spring 2013

THE STATE OF GRANTSEEKING

Sixth Semi-Annual Survey Results Spring 2013

CONTENTS
Executive Summary ................................................................................................................................................ 1 Grant Management Profile (Questions 9-22) ........................................................................................................ 3 Respondents Grant Management Profile by Budget Size ..................................................................... 16 Grants Activity ........................................................................................................................................ 17 Grants Activity by Budget Size ............................................................................................................... 18 Challenges to Success (Question 23) ................................................................................................................... 19 Respondent Commentary .................................................................................................................................... 20 Challenges to Success by Budget Size .................................................................................................... 24 Organizational Profile (Questions 1-4, 6-8) .......................................................................................................... 25 Respondents Organizational Profile by Budget Size ............................................................................. 29 Service Area Profile (Questions 5, 25-27) ............................................................................................................ 30 Methodology ........................................................................................................................................................ 37 About GrantStation and PhilanTech .................................................................................................................... 37

The State of Grantseeking Survey Spring 2013

EXECUTIVE SUMMARY
The State of Grantseeking Spring 2013 is the sixth semi-annual informal survey of nonprofits conducted by GrantStation and PhilanTech to help illustrate the current state of grantseeking in the U.S. During February and March 2013, 1,017 nonprofits of different sizes, in different geographies, and representing different issue areas completed the survey online, reporting on information based on the last six months of 2012. References to small, medium, and large organizations occur throughout this report, as organizational size determined by annual budget is a key factor influencing the grantseeking experience. These terms are defined as follows: small organizations have annual budgets under $100,000; medium organizations have annual budgets between $100,000 and $999,999; and, large organizations have annual budgets of $1,000,000 and over.

In the last six months of 2012, respondents once again indicated that private foundations were the source of their largest grant awards, followed by Federal grants, corporate grants, state grants, and community foundation grants. The largest multi-million dollar grants remain more likely to come from government grantors. As over three-quarters of respondent organizations received awards in the last six months of 2012, it is clear that monies are available for funding. Organizations that do not submit grant applications appear to be caught in a chicken or egg scenario: with limited staff and time it is challenging to write grant applications, yet without the applications they have no chance at receiving awards. In the last half of 2012 (July to December), 82.8% of respondents applied for the same number of grants or more grants than they did during July to December 2011. Of the respondent organizations, 70.8% were awarded the same number of grants or more grants when compared to the same period in 2011. Moreover, 67.1% of respondents told us that their organizations received awards of the same size or larger. Comparing the spring 2012 report to the spring 2011 report, there was a 19.3% increase in organizations that received awards of a larger size. While lack of time and staff is still our respondents greatest challenge to grantseeking, there was less variation among the number of respondents selecting answer choices than in past surveys. This indicates that no one challenge stands out, and organizations are adjusting to the new normal of economic concerns. More organizations chose increased competition for grant awards (+65%) and relationship building with funders (+21.6%) as a grantseekers greatest challenge than in past surveys. Nearly one third of respondent organizations serve urban areas, followed by 27.3% of respondent organizations that serve all areas, resulting in 60.1% providing service in urban areas of 50,000 or more people. Urban clusters areas of 2,500 to 50,000 people and all areas are served by 51.3% of organizations, and 43.2% of organizations serve rural areas of 2,500 or fewer people and all areas. Larger organizations serve populous areas, while smaller organizations tend to serve less populous areas.

The State of Grantseeking Survey Spring 2013 Some key findings from the survey include the following: Organizations that received grant awards increased by 6.1%. Private foundations increased by almost 14% as the source of the largest grant.

The median largest grant in the last six months of 2012 was $50,000; the median largest grant in that same period of 2011 was $45,000. The importance of community foundation, corporate, and other grant sources diminishes as organizations grow in budget size. Federal grants are most frequently awarded to large organizations. State grants are most frequently awarded to medium and large organizations. Private foundations increased awards to larger organizations (+14.4%) and reduced support of medium organizations (-15.1%). Community foundations followed suit, decreasing their support of small (-40.6%) and medium (-11.3%) organizations to fund larger organizations (+36.0%). Corporate gifts of products or services decreased by 17.0%. Active grantseeking through submitted applications increases as organization budget size increases. Of survey respondents, 41.6% stated that grants contributed more than twenty-five percent of their annual revenue.

In the fall 2012 survey, we asked respondents to indicate questions they would like to see added to the State of Grantseeking Survey. The top four choices are included in this report, as well as a question regarding service recipient race/ethnicity. The organization age question is included in the Organization Profile section. The other questions resulted in the addition of the Service Area Profile section. We will publish an addendum to this report (in late spring) that further explores the state of grantseeking when viewed through the lens of these questions.
Top New Questions as Voted by Fall 2012 Survey Respondents Focus familiarity/popularity - mission recognition Location of organization - rural vs. urban settings Relative wealth or poverty of service area Age of your organization Response % 47.9% 47.5% 42.0% 18.8%

We hope that you find the information in this report both interesting and helpful in your good work, and we look forward to following up this research with the next State of Grantseeking survey, distributed in late 2013.

The State of Grantseeking Survey Spring 2013

GRANT MANAGEMENT PROFILE

Nonprofits raise funds from a number of sources. The most recent data tells us that fees for services and goods from private sources (49.6%) were the largest sources of overall funding, followed by fees for services and goods from governments (23.9%), private contributions (13.3%), government grants (8.3%), and investment and other income (4.9%)1.

Q9: How much of your organization's funding is from grants?

Grant funding as a percent of annual budget decreased between this springs report and last springs report. Grants contributed twenty-five percent or less of the annual revenue for 58.4% of survey respondents. When compared to the same period in 2011, organizations relying on grants for less than ten percent of their annual budget increased by 9.7%, while those relying on grants for eleven percent to twenty-five percent of their annual budget decreased by -11.2%.
1

The Urban Institute, The Nonprofit Sector in Brief, Public Charities, Giving, and Volunteering, 2012

The State of Grantseeking Survey Spring 2013 4 The greatest change in grant funding as a percent of annual budget came from small (40.0% increase) and large (30.1%) organizations for which grants provided fifty-one percent to seventy-five percent of their budgets2. Other notable changes include a -24.1% decrease in small organizations relying on grants for over seventy-five percent of their annual budgets, and a 23.1% increase in medium organizations that rely on grants for under ten percent of their budgets. Similar to past reports, medium organizations relied most heavily on grants for funding, with 51.0% of organizations with annual budgets between $100,000 and $999,999 receiving over twenty-five percent of total funding from grants. This is a -5.0% decrease from last springs report (53.7% in 2012). Large organizations (annual budgets over $1,000,000) saw an increase in grant reliance, with 37.9% reporting that grants comprised over twenty-five percent of their annual budgets versus 36.3% in spring 2012. Small organizations continue to rely more on other sources of support, with 33.3% of organizations with budgets under $100,000 reporting that grants made up over twenty-five percent of their total funding, a -6.4% change from the spring 2012 report.

Small organizations have annual budgets under $100,000. Medium organizations have annual budgets between $100,000 and $999,999. Large organizations have annual budgets of $1,000,000 and over.

The State of Grantseeking Survey Spring 2013 Q10: From what sources does your organization receive grant funding?

Almost seventy-seven percent of survey respondents received grants from private foundations and almost sixty percent received grants from community foundations. Compared to the spring 2012 report, receipt of private foundation grants is up 5.7%, while receipt of community foundation grants increased (2.9%). Over half of respondent organizations received grants from corporations (52.7%), a slight decrease from the 54.1% reported in the spring 2012 report. Respondents reported a 17.0% increase over spring 2012 in their receipt of corporate gifts of products or services. Grant funding from governments of all levels was stable, showing around 2.0% +/- change. Respondent organizations received grants from the Federal government (42.3%), state governments (47.1%), and local governments (38.6%). Survey respondents (15.5%) received grants from other grant sources, an 18.3% increase over last year. These other grant sources include funding from religious groups, the United Way, gaming proceeds, and private donations.

The State of Grantseeking Survey Spring 2013 Q11: Which is the largest source of total grant funding for your organization?

Survey respondents (30.8%) indicated that private foundations were their largest source of grant funding, followed by Federal grants (22.7%) and state grants (13.4%). Less than ten percent of organizations indicated each of the other sources (community foundations, corporations, local government, and other sources) as their largest funder. Religious groups, private gifts, and the United Way were most frequently mentioned within the other sources response. Still the most frequent source as the largest grant funder, private foundations increased by 13.7%, from 27.1% of respondent organizations in spring 2012 to 30.8% in spring 2013. All government funding decreased as the largest grant source, with state grants showing the largest decrease (-11.8%).

Organization size is a factor in the largest source of grant funding. Large organizations rely more (37%) on Federal government grants than do small or medium organizations; small organizations rely more on other grant sources (26.3%) than do medium or large organizations. In contrast, only 5.2% of small organizations cited the Federal government as the largest source of grant funding, and only 3.5% of large organizations cited other grant sources. Private foundation grants are awarded consistently to organizations regardless of size (27.6% to 35.7%). Government funding (local, state, and Federal) comprised the largest funding source for 43.2% of all respondents. Government grants were the largest source of funding for 57.9% of large organizations, 39.7% of medium organizations, and 21.1% of small organizations.

The State of Grantseeking Survey Spring 2013

These findings indicate the following: Private foundations are an important source of grants to organizations of all sizes; The importance of community foundation, corporate, and other grant sources diminishes as organizations grow in budget size; Federal grants are most frequently awarded to large organizations; and, State grants are most frequently awarded to medium and large organizations.

Q12: Which is the second largest source of total grant funding for your organization?

The second largest reported source of funding is more evenly dispersed among respondent organizations than is the largest source of funding, ranging from 9.3% to 22.5% (median 13.2%). Private foundations continue to be the second largest single source of grant funding. Government funding (local, state, and Federal) comprised the second largest funding source for 37.0% of all respondents, and increased as the second largest source of funding by 4.2% versus the spring 2012 report. Government grants were the second largest source of funding for 22.9% of small organizations, 30.4% of medium organizations, and 50.4% of large organizations. While 22.5% of respondents indicate that private foundations are their second largest source of grant funding, this is a -5.5% decrease from last year. Compared to last year, community foundation grants (13.2%)

The State of Grantseeking Survey Spring 2013 8 decreased as the second largest source of grant funding, as did corporate grants (15.3%). Other sources (11.9%), including funding from religious groups, the United Way, and private donations, increased by 17.8% as the second largest source of grant funding, as organizations looked for sources of funding to offset the decreases from private foundations, community foundations, and corporations.

Q13: Who in your organization has grantseeking as a primary responsibility? Respondent organizations rely on staff members (70.7%) to fill the role of primary grantseeker. Board members (10.0%), volunteers (7.2%), and contract grant writers (6.5%) were also cited as the primary grantseeker, while 5.7% of respondent organizations were not active grantseekers.

This primary grantseekers relationship to the organization correlates with organizational staff size and budget. Large organizations have staff as the primary grantseeker (90.5%), and 89.4% of large organizations employ eleven or more persons. Medium organizations have staff as the primary grantseeker (76.6%), and 91.6%

The State of Grantseeking Survey Spring 2013 9 employ one to twenty-five persons. Small organizations rely on board members (31.4%) or volunteers (23.7%) in addition to staff (25.6%) as the primary grantseeker, and 97.7% of small organizations are all volunteer (51.7%) or employ five or fewer persons (46.0%). Organizational reliance on contract grant writers as the primary grantseeker was consistent, regardless of staff size and budget size, ranging from 6.1% to 6.8%.

Q14: Did your organization submit any grant requests in the last six months of 2012? The majority of respondents are active grantseekers; 84.1% submitted grant requests in the second half of 2012 (July - December). This number is a very slight decrease in grantseekers compared to the same period in 2011, when 84.9% of organizations submitted grant requests. Again, as organization budget and staff size increase, so does the likelihood of recent grant requests.

Q15: How many grant requests did your organization submit in the last six months of 2012? Among all respondent organizations, 61.0% submitted between two and ten grant request during the second half of 2012 (July - December). Of respondents, 39.2% submitted six or more grant requests, 30.9% submitted between three and five grant requests, and 29.8% submitted fewer than three or no requests. The number of grants submitted correlates with organizational budget and staff size; the larger the budget and staff, the greater the number of grant submissions. Small organizations (59.3%) submitted between one and five grant requests; these organizations have budgets under $100,000 and are staffed by volunteers (51.7%) or one to five persons (46.0%).

The State of Grantseeking Survey Spring 2013 10 Between two and ten grant requests were submitted by 71.9% of medium organizations; these organizations have budgets between $100,000 and $999,999 and are staffed by one to twenty-five persons (91.6%). Between three and twenty grant requests were submitted by 67.8% of large organizations; these organizations have budgets over $1,000,000 and are staffed by eleven or more persons (89.4%).

Organizations with no grant submissions also correlated with organizational budget and staff size; 28.6% of smaller organizations had no grant submissions, while only 3.8% of large organizations had no grant submissions. Q16: How many grant awards did your organization receive in the last six months of 2012? At least one grant award, representing 77.9% of respondent organizations, was received in the second half of 2012. Over half these organizations (53.5%) received between one and five grant awards in the last six months of 2012. The receipt of no grant awards was reported by 22.1% of respondents, and 24.4% received six or more grant awards. The number of grants awarded correlates with the number of grants submitted and organizational budget and staff size; the larger the budget and staff, the greater the number of grant submissions, and the greater the number of awards. Organizations with no grant awards also correlated with organizational budget and staff size; 48.1% of smaller organizations had no grant awards, while 8.2% of large organizations had no grant awards.

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Among small organizations, 48.1% did not receive any grant awards, while 40.4% received one or two grant awards. One to five grant awards were received by 64.5% of medium organizations, with 20.8% receiving no awards. Among large organizations, 46.8% received six or more grant awards and 44.9% received one to five grant awards. The correlation between grants submitted and awards won can be seen in the following chart:

The State of Grantseeking Survey Spring 2013 12 As mentioned earlier, it is clear that monies are available for funding. Organizations that do not submit grant applications appear to be caught in a chicken or egg scenario: with limited staff and time it is challenging to write grant applications, yet without the applications they have no chance at receiving awards. Q17: What was the source of the largest grant awarded in the last six months of 2012?

Award recipients increased by 6.1%; 15.3% of respondents to the spring 2013 survey indicated that they received no grant awards, compared to 16.3% of respondents to the spring 2012 survey. Of those organizations that received at least one grant award, private foundations were most often the source of their largest grant awards (32.3%), followed by the Federal government (15.6%), corporations (15.3%), and State governments (14.2%). Community foundations (9.6%), other sources (7.3%), and local governments (5.4%) were less frequently the largest grant award source. Although there was an overall increase in the number of organizations reporting awards, when compared to the spring 2012 report the most frequently cited largest sources of awards all showed a decrease in the number of organizations funded. Organizations looked to local governments (+34.3%) and other sources (+83.7%) to make up for the funding decrease. The charts that follow show grant sources and percentages excluding those organizations that received no grant awards.

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The source of the largest single grant award for organizations of all sizes was private foundations. Large organizations were more frequently the recipients of Federal and local government grants, and small organization more frequently relied on grants from community foundations, corporations, state governments, and other sources. Our respondents told us that there were significant changes among funders as to the size (based on annual budget) of the organizations that were awarded grants. Private foundations increased awards to larger organizations (+14.4%), reducing support of medium organizations (-15.1%). Community foundations followed suit, decreasing their support of small (-40.6%) and medium (-11.3%) organizations to fund larger organizations (+36.0%). Corporate foundations decreased their awards overall (-4.1%), and moved their support from large organizations (-31.4%) to medium organizations (+13.2%). Federal grant awards decreased overall, although medium organizations showed a slight increase in Federal funding. State government grants increased across all organizations of all budget sizes, while local governments moved their support to small and medium organizations. All organizations found increased support from other grant sources.

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Q18: What was the size of the largest grant your organization received?

Respondent organizations that received grant awards of $50,000 or more increased by 8.5% (51.3% of organizations in the spring 2013 report versus 47.3% of organizations in the spring 2012 report). Awards of $10,000 or less decreased by -23.2%, affecting small organizations for which the under $10,000 category accounted for 54.4% of all awards. Awards ranging from $500,000 to $1,000,000 also decreased. The corresponding increase in awards ranging from $10,000 to $500,000 and over $1,000,000 suggests that the funders did not stop giving, but instead altered the amount of their awards.

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When compared to the spring 2012 report, all organizations received fewer grant awards under $10,000, and more grant awards in the $10,000 to $50,000 category. While smaller organizations request smaller grants, it is clear that funding is available in larger award sizes. These organizations may wish to start thinking big when preparing grant applications. Larger organizations receive more of the grant awards over $100,000, but are also applying for - and winning - awards under $100,000. Medium organizations focus on grants for less than $500,000 and have competition in the $10,000 to $50,000 award range from organizations of all sizes.

For all respondent organizations, the largest grant awards ranged from $40 to $18,000,000. The median award was $50,000 and the average largest grant award was $409,176. The average award size has declined over the last three reports, in conjunction with the decrease in the size of the largest grant awarded. However, the median award size has increased or remained steady over the past four reports, indicating that more organizations have received awards of increasing size.

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RESPONDENTS GRANT MANAGEMENT PROFILE BY BUDGET SIZE

While each respondent organization is unique, grant management profiles can be drawn of typical organizations when filtered by their annual operating budget. SMALL ORGANIZATIONS -- ANNUAL BUDGETS UNDER $100,000
The typical organization submitted less than five grant requests and received less than two awards.

Typical small organizations received grant funding from private foundations (53.6%), community foundations (39.8%), corporations (32.5%), and other sources (31.6%). Government funding was most frequently provided at state (24.0%), and local (21.9%) levels. The largest source of funding was private foundations (27.8%), followed by grant sources other than community or corporate foundations or government entities (26.3%). During the last six months of 2012, board members (31.4%) submitted between three and five grant proposals (30.8%), or no proposals (28.6%). Their organizations received no awards (48.1%) or one award (27.4%) under $10,000 (54.4%) from a private foundation (17.2%). MEDIUM ORGANIZATIONS -- ANNUAL BUDGETS BETWEEN $100,000 AND $999,999
The typical organization submitted between two and ten grant requests and received between one and five awards.

Typical medium organizations received grant funding from private foundations (77.2%), community foundations (60.9%), and corporations (47.5%). Government funding was provided at Federal (33.2%), state (41.1%), and local (33.4%) levels. The largest source of funding was private foundations (37.7%), followed by Federal grants (17.6%). During the last six months of 2012, staff members (76.6%) submitted between two and ten grant proposals (71.9%). Their organizations received one to five awards (64.5%) ranging from $10,000 to $500,000 (78.2%) from a private foundation (29.2%). LARGE ORGANIZATIONS -- ANNUAL BUDGETS OVER $1,000,000
The typical organization submitted between three and twenty grant requests and received between three and twenty awards.

Typical large organizations received grant funding from private foundations (89.3%), corporations (70.1%), and community foundations (69.8%). Government funding was provided at Federal (65.8%), state (65.0%), and local (53.2%) levels. The largest source of funding was Federal grants (37.0%) and private foundations (27.6%). During the first six months of 2012, staff members (85.3%) submitted between three and twenty grant proposals (67.8%). Their organizations received between three and twenty awards (58.5%), for over $100,000 from a private foundation (31.0%).

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GRANTS ACTIVITY
Q19: Compared to the last six months of 2011, did your organization apply for: (number of grants
relative to previous year)

Q20: Compared to the last six months of 2011, did your organization receive: (number of grants
relative to previous year)

Q21: Compared to the last six months of 2011, was the average size of grants you received: (award
size of grants relative to previous year)

Q22: In the next six months, do you think your organization will be awarded more, less, or the same number of grants? In the last half of 2012, 82.8% of respondents applied for the same number of grants (38.5%) or more grants (44.3%) than they did during July to December 2012. Of respondent organizations, 70.8% were awarded the same number of grants (41.9%) or more grants (28.9%) when compared to the prior year. Moreover, 67.1% of respondents told us that their organizations received awards of the same size (39.9%) or larger (27.2%). Comparing the spring 2012 report to the spring 2011 report, there was a 19.3% in organizations that received awards of a larger size. Our respondents remain optimistic about the future (80.8%): 47.1% expect to be awarded more grants in the next six months, and 33.7% expect to receive the same number of awards.

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GRANTS ACTIVITY BY BUDGET SIZE

Budget size had a measurable effect on grant activity. Smaller organizations were more likely to have applied for fewer grants in the last months of 2012 than in the last six months of 2011 (20.8%) than were medium (17.6%) or large organizations (14.6%). Smaller organizations were also more likely to have received fewer awards (33.3%) than were medium (29.9%) or large organizations (26.0%). Medium-sized organizations reported receiving smaller awards (34.61%) than in the prior spring survey more frequently than did small (31.8%) or large (31.1%) organizations. The smallest organizations were most likely to expect to receive a larger number of awards in the future (56.0%). SMALL ORGANIZATIONS -- ANNUAL BUDGETS UNDER $100,000
The typical organization applied for and received the same number of grants, for the same amount.

Compared to the spring 2012 report, small organizations applied for more grants (36.6%) or the same number of grants (42.6%). Small organizations received fewer awards (33.3%) or the same number of awards (44.1%) for the same amount (47.2%) or a smaller amount (31.8%). Organizations expect to receive more grants this year (56.0%). MEDIUM ORGANIZATIONS -- ANNUAL BUDGETS BETWEEN $100,000 AND $999,999
The typical organization applied for more grants but received the same number of grants for the same amount.

Compared to the spring 2012 report, medium organizations submitted more grant applications (44.9%) or the same number of applications (37.5%), resulting in the same number of awards (43.5%) or fewer awards (33.3%). Those awards were of the same size (38.8%), or smaller (34.6%). Organizations expect to receive the same number of grants (33.4%) or more grants (47.8%) this year. LARGE ORGANIZATIONS -- ANNUAL BUDGETS OVER $1,000,000
The typical organization applied for more grants, but received the same number of grants for the same amount.

Compared to the spring 2012 report, large organizations applied for more grants (47.9%) or the same number of grants (37.5%). These organizations received more awards (34.9%) or the same number of awards (39.1%) for the same amount (37.9%). (Of the awards, 31.1% were smaller and 31.1% were larger.) Organizations expect to receive the same number of (37.9%) or more (42.2%) grants this year.

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CHALLENGES TO SUCCESS
Q23: What is the greatest challenge to successful grantseeking in 2013?

Summary Grantseekings greatest challenges in 2013 continue to revolve around researching and writing mission specific grants and building funder relationships, in spite of reduced organizational funding, limited time, and staff to do so, and increased competition for grant dollars. While lack of time and staff is still our respondents greatest challenge to grantseeking, and is referenced in responses regarding other challenges, there was less variation among the answer choices than in past surveys. This indicates that no one challenge stands out, and organizations are adjusting to the new normal of economic concerns. More respondents chose increased competition for grant awards (+65%) and relationship building with funders (+21.6%) as grantseekings greatest challenge than in past surveys. The answers writing grants (+20.0%) and other challenges (+38.5%) were also chosen more frequently.

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RESPONDENT COMMENTARY
Lack of Time and Less Staff For 20.1% of respondents, the lack of staff to manage grants and mission and the lack of time to accomplish both was the greatest challenge to grantseeking. Some of their comments included the following: Keeping current grant funders updated via monitoring visits, grant reports (progress and financial), and attendance at required meetings and /or trainings make it challenging to carve time out to research new grant funding. It is very time-consuming to apply for grants and then not receive them. The detail that is requested even for Letters of Intent is such that we don't apply for as many grants as we should. We are short-staffed so the Executive Director does not have the time to devote to grantseeking that she would like.

The State of Grantseeking Survey Spring 2013 21 We are in a catch-22 of sorts: we know we should seek grants for several operations, but don't have the time to manage the grants we have, apply for the grants we know about, do all the other work of the company, AND research new funding sources. Capacity is a huge issue for us. Our work has expanded tremendously over the last three years and we lack the needed staff and time to write grants. Our board does not actively assist with fundraising. This has been a major problem. Researching and Finding Grants for My Organizations Mission Researching and finding grant opportunities was the greatest challenge reported by 12.9% of survey respondents. Organizations expressed difficulty in finding grants for their mission regardless of their focus. Some of their comments included the following: We do not have time for adequate research and writing and to do our jobs per description. We have tapped out usual sources who want to give but only every 2-3 years; we need new grant sources that might consider funding for historic preservation and historic education. We have the tools to research but it always seems to get pushed aside in order to keep up with ongoing grant writing and reporting. As the competition for grants increases, grantors are refining their criteria and focus. While our organization offers health services, we also provide mentoring and advocacy for at-risk youth and young families. Our greatest challenge is finding grants that fit our mission. Researching to find new grant opportunities to meet our organization's changing needs.

Reduced Funding Of respondents, 12.4% of respondents told us that less grant award availability and grant awards that provide less funding than in the past was the greatest challenge to grantseeking. Some of their comments included the following: Fewer foundations are doing general support funding for the kind of grassroots organizing and activism we do. The Federal government and the Commonwealth of Pennsylvania have been decreasing grants to victim service agencies over the last several years. This erosion of funding has taken its toll on our agency, because our services/programs to victims and their families, as well as our Prevention/Education community outreach, have increased during these difficult economic times. Our budget is stretched to the limit with government cutbacks and lower foundation grant amounts our biggest challenges. Our organization was created under the "Public Provider" model and the recent declines in funding of our principal funding agency and sequestration make our base funding grantseeking challenging and vulnerable. In addition, because we receive two large Federal grants, some private foundations are reluctant to fund us because we can get those Federal grants where other nonprofits are not able - so they fund those other nonprofits. The fact that many private foundations have decreased or stopped funding the arts. Also, many large foundations funding the arts are now only funding "creative placemaking" projects. Not every organization is prepared to or can do projects of this sort.

The State of Grantseeking Survey Spring 2013 Increased Competition for Grants

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Increased competition for available grants was the greatest challenge for 9.9% of respondents. Their comments included the following: We are not in a deeply impoverished area yet still have high numbers of free and reduced lunch kids. The competition is fierce. Obviously, tons of competition. Many private foundations discourage contact, which means that proposals are always "best guess." Increasing competition in the marketplace makes it more difficult to secure funding for mature organizations running both annual and capital grants programs. When the cause is not sexy, funders are not as interested in supporting it. More competition for fewer dollars, especially as those who relied on government funding begin to seek grants instead.

Relationship Building with Funders Respondents (9.0%) recognized building, nurturing, and expanding their organizations relationships with funders as the greatest challenge. Their comments included the following: Every year there seem to be fewer and fewer grants that are open for new applicants. It is very difficult to establish relationships with new major funders. We have longstanding relationships with funders but although our organization is growing, gifts are not. The same number of grant applications is resulting in smaller gifts than in the past. This is due to more competition, economic conditions, and some funders "spreading the wealth," etc. Also, finding new funders that are offering larger gifts (above $5,000) is a challenge. The same amount of time may be spent on a request for $1,500 versus $5,000 or more, with obvious differences in the result. Finding those bigger opportunities to focus on has been challenging. We are largely federally funded and want to diversity our grant-funding base, expanding the percentage of private foundation support. We are challenged to build relationships with a limited number of relevant foundations. Building relationships with funders is also a challenge for us. We have limited staffing and limited access to personnel at foundations and corporations with whom to build ties. Our paid staff does not have the time to build relationships and look for funding. They are overwhelmed just doing the work they need to do to keep the organization going.

Economic Conditions The continuing challenging economic conditions in the U.S. were a significant challenge to 8.7% of respondents. Their comments included the following: Grant funding at all levels (government, corporate, foundation, and other sources) has become very competitive during the economic downturn. Grant allocations have become smaller while human service needs have skyrocketed. Challenging economic conditions, funders besieged with requests and ever-stiffer competition for fewer dollars.

The State of Grantseeking Survey Spring 2013 23 We are trying to engage new foundations, but this is difficult given the economic climate. Our organization is also an intermediary, so finding general operating and capacity building funds can be difficult because foundations are biased toward primarily funding direct-service programs instead of organizational capacity building (and especially for intermediaries who may not provide direct services). The depressed economic climate has had a detrimental impact on the portfolios of local foundations and government funders. The economy hurts any organization that has started in the past 4-5 years. My Organization Needs a Grantwriter A small percentage of respondents (6.7%) stated that their organizations greatest challenge was the lack of a dedicated or contract grant writer. Their comments included the following: Very little time to dedicate to what seems to be a very time consuming process, and the lack of a grant writer or the funds to pay one. We are in desperate need of a grant writer. As the director, I do direct service and do not have time to seek grants or write grants. We do not have a dedicated grantwriter. Grantmakers are requiring more and have fewer funds, and more people are applying for the smaller pool of funds. Without funds to pay a grant writer, it seems hard to overcome the maze of grant approval. There is no grant process in place. Nobody is learning to write a grant, much less submitting requests for them.

Additional Challenges Respondents also cited funder practices and requirements (5.3%), internal organizational issues (5.1%), writing grants (4.2%), and other issues (5.4%), as the greatest challenge to grantseeking.

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CHALLENGES TO SUCCESS BY BUDGET SIZE

Small and medium organizations reported that lack of time and staff was their greatest challenge, followed by researching and finding grants for their missions. Large organizations most frequently cited reduced funding as their greatest challenge, followed by lack of time and staff. Nonprofit organizations are doing more with less, reducing staff sizes, and increasing the responsibilities of those who remain in order to keep up with the difficult economic climate. SMALL ORGANIZATIONS -- ANNUAL BUDGETS UNDER $100,000 Small organizations reported operational and grant writing-related concerns at a higher rate the other organizations. Some organizations may be experiencing operational growing pains, as 53.2% of respondent organizations are less than ten years of age. Their size appears to prevent the hiring of a professional grant writer, so the writing of grants is added to the tasks of their limited staff, volunteers, or board members. Small organizations were least affected by reduced funding when compared to medium and large organization, perhaps due to grant funding comprising less than ten percent of the annual budget for 49.0% of respondents. MEDIUM ORGANIZATIONS -- ANNUAL BUDGETS BETWEEN $100,000 AND $999,999 Medium organizations had the most challenge with the lack of time and staff (24.2%), and reported this choice more frequently than did small or large organizations. Researching and finding grants to meet their organizations mission (14.8%) was also cited frequently, and relationship building with funders was chosen more often by medium organizations. Grant funding provided over ten percent of the annual budget for 71.4% of medium organizations, and 76.6% of them relied on staff to manage grantseeking while meeting the demands of their mission and providing services. LARGE ORGANIZATIONS -- ANNUAL BUDGETS OVER $1,000,000 The largest organizations more frequently cited big picture concerns (including competition, economic conditions, and internal organizational issues) than did small or medium organizations. Among large organizations, reduced funding (18.7%) was most frequently cited as the greatest challenge to grantseeking; this coincides with large organizations most frequently relying on Federal dollars (37.0%). Several respondents specifically mentioned the negative effect politics at the Federal and state levels has on funding.

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ORGANIZATIONAL PROFILE
Q1: Please tell us what your affiliation is with the organization.

Most respondents (86.9%) were management, employees, volunteers, or board members of nonprofit organizations. Consultants to nonprofit organizations, for-profit employees, and government employees comprised 8.8% of respondents. The Other responses (4.5%) included owner, president, contractor, and intern. Q2: Which of the following terms best describes your organization?

The majority of respondents (84.1%) represented nonprofit organizations, while 6.8% represented educational institutions and 4.2% represented government agencies. The remaining respondents included for-profit businesses, independent consultants (e.g., grant writers), tribal governments, and libraries.

The State of Grantseeking Survey Spring 2013 Q3: What is the age of your organization?

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Most responding nonprofit organizations (57.9%) are between ten and fifty years of age. Of the organizations, 19.5% have been in existence over fifty years, and 22.7% of organizations are less than ten years of age. Of those organizations, only 2.2% are under one year old. Q4: Which of the following categories best describes the focus of your organization?

Respondents included organizations focused on education (14.7%); human services (12.9%); arts, culture, and humanities (10.3%); health care (8.2%); housing and shelter (6.4%); youth development (5.6%); community improvement (5.3%); social services (5.2%); environment (3.6%); animal-related (3.1%); food, agriculture, and nutrition (3.1%); and over twenty others. Q6: Where is the organization you represent headquartered? Responses generally mirrored the percentage of nonprofit organizations by state. California, Texas, New York, Georgia, Illinois, Washington, North Carolina, and Pennsylvania contain 41.0% of respondent organizations and

The State of Grantseeking Survey Spring 2013 27 39.7% of nonprofit organizations in the United States. Some organizations responded in greater proportion than their state ranking, including Washington, Alaska, Georgia, New Hampshire, North Carolina, Arizona, the District of Columbia, Maine, Oregon, New Mexico, Texas, Vermont, and West Virginia. Q7: What is your organization's staff size (full time employees)?

There was no change of note among the reported staff sizes between the spring 2012 and spring 2013 reports. This may reflect budget stabilization after several years of decreasing nonprofit organizational budgets and staff sizes. Among all respondent organizations, volunteer-only organizations comprised 12.8%, one- to five-employee organizations comprised 37.4%, and six- to seventy-five-employee organizations comprised 31.4%. Of respondent organizations, 7.6% employed seventy-six to two hundred persons, and organizations with over two hundred employees comprised 10.7% of respondents. Of organizations with paid staff, 42.9% employed one to five persons, 36.0% employed six to seventy-five persons, and 21.1% employed over seventy-six persons. Q8: What is your organization's annual budget?

The State of Grantseeking Survey Spring 2013 28 Again, there was no change of note among the reported annual budgets between the spring 2012 and spring 2013 reports. This may reflect budget stabilization after several years of decreasing nonprofit organizational budgets. Heres the breakdown: 37.8% of respondents represented large organizations with annual budgets over $1,000,000, 40.9% represented medium-sized organizations with annual budgets between $100,000 and $999,999, and 21.2% represented small organizations with annual budgets under $100,000. In the spring 2012 report, 22.0% of respondents represented small organizations, 41.0% represented medium organizations, and 37.0% represented large organizations.

The State of Grantseeking Survey Spring 2013

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RESPONDENTS ORGANIZATIONAL PROFILE BY BUDGET SIZE

While each respondent organization is unique, organizational profiles can be drawn of typical organizations when filtered by their annual operating budget. SMALL ORGANIZATIONS -- ANNUAL BUDGETS UNDER $100,000
The typical respondent was the executive director of an all-volunteer nonprofit organization, focused on arts, culture, and humanities, with an annual budget under $50,000.

Most respondents were executive directors (56.9%) or board members (23.2%) of nonprofit organizations (90.5%). Respondent organizations included those focused on arts, culture, and humanities (15.4%); education (11.5%); youth development (8.7%); and community improvement (8.7%). Among respondent organizations, volunteer-only organizations comprised 51.7% and one- to five-employee organizations comprised 46.0%. 63.0% of respondent organizations had annual budgets below $50,000. Small organizations tend to be less than twenty-five years of age (71.8%). Of these organizations, 30.7% serve rural areas, 28.7% serve urban clusters, and 22.8% serve rural, cluster, and urban areas. MEDIUM ORGANIZATIONS -- ANNUAL BUDGETS BETWEEN $100,000 AND $999,999
The typical respondent was an executive director of a nonprofit organization focused on education, human services, or arts, culture, and humanities, with one to five staff members and an annual budget between $100,000 and $500,000.

Most respondents were executive directors (60.0%) of nonprofit organizations (88.9%). Respondent organizations included those focused on education (13.2%), human services (12.2%), and arts, culture, and humanities (10.4%). Among respondents, one- to five-employee organizations comprised 64.1%; and six- to ten-employee organizations comprised 18.7%. Of respondent organizations, 43.4% had annual budgets between $100,000 and $249,999, 29.7% had annual budgets between $250,000 and $499,999, and 27.0% had annual budgets between $500,000 and $999,999. Medium organizations tend to be between five and fifty years of age (80.7%). Of these organizations, 27.0% serve urban clusters, 29.67% serve urban areas, and 26.7% serve rural, cluster, and urban areas. LARGE ORGANIZATIONS -- ANNUAL BUDGETS OVER $1,000,000
The typical respondent was an employee of a nonprofit organization focused on education, with twenty-six to seventy-five staff members and an annual budget between $1,000,000 and $4,999,999.

Most respondents were employees (59.2%) of nonprofit organizations (77.2%). Respondent organizations included those focused on education (18.5%), human services (17.7%), and health care (11.6%). Among respondents, eleven- to seventy-five-employee organizations comprised 43.1%, and organizations with more than two hundred employees comprised 27.4%. Of respondent organizations, 52.8% had annual budgets between $1,000,000 and $4,999,999 and 23.6% had annual budgets over $25,000,000. Large organizations tend to be over twenty-five years of age (76.6%). Of these organizations, 43.5% serve urban areas and 30.8% serve rural, cluster, and urban areas.

The State of Grantseeking Survey Spring 2013

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SERVICE AREA PROFILE

Q25: How would you describe your organization's location or service area3?

Nearly one third of respondent organizations serve urban areas, followed by 27.3% of respondent organizations that serve all areas, resulting in 60.1% providing service in urban areas of 50,000 or more people. Urban clusters (24.0%) and all areas are served by 51.3% of organizations, and rural areas (15.9%) and all areas
3

http://www.census.gov/geo/reference/ua/urban-rural-2010.html The Census Bureaus urban-rural classification is fundamentally a delineation of geographical areas, identifying both individual urban areas and the rural areas of the nation. The Census Bureaus urban areas represent densely developed territory, and encompass residential, commercial, and other non-residential urban land uses.

The State of Grantseeking Survey Spring 2013 31 are served by 43.2% of organizations. Larger organizations serve populous areas, while smaller organizations tend to serve less populous areas.

Rural Organizations

Most respondents were employees (69.5%) of nonprofit organizations (80.5%). Respondent organizations included those focused on education (11.0%), human services (10.0%), and community improvement (10.0%). Among respondents, one to five employee organizations comprised 49.4%, and all volunteer organizations comprised 20.1%. Of respondent organizations, 60.7% had annual budgets less than $250,000. Rural organizations tend to be between ten and fifty years of age (55.5%), and 65.6% of respondents told us that their organizations were somewhat well known or well known in their service areas. Grants provide over ten percent of the funding for 56.9 of rural organizations. Typical rural organizations received grant funding from private foundations (68.0%) and community foundations (51.0%). Government funding was most frequently provided at state (51.0%) and federal (46.3%) levels. The largest source of funding was the federal government (29.7%), followed by private foundations (25.0%). During the last six months of 2012, staff members (55.1%) submitted between two and ten grant proposals (63.3%). Their organizations received no awards (33.6%) or one to five awards (54.0%). The largest award size ranged from $350 to $3,000,000; the median award was $40,000 and the average award was $250,258. Rural organizations most frequently cited lack of time or staff (19.6%) or researching and finding mission- specific grants (13.7%) as grantseekings greatest challenge.

The State of Grantseeking Survey Spring 2013 Urban Cluster Organizations

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Most respondents were executives (49.8%) of nonprofit organizations (81.0%). Respondent organizations included those focused on education (15.7%), human services (11.4%), and arts, culture, humanities (10.0%). Among respondents, one to five employee organizations comprised 44.2%, and organizations with six or more employees comprised 43.2%. Of respondent organizations, 64.1% had annual budgets between $100,000 and $5,000,000. Urban cluster organizations tend to be between ten and fifty years of age (53.0%), and 65.6% of respondents told us that their organizations were somewhat well known or well known in their service areas. Grants provide over ten percent of the funding for 55.2% of urban cluster organizations. Typical urban cluster organizations received grant funding from private foundations (70.2%) and community foundations (56.6%). Government funding was most frequently provided at state (49.6%) and local (39.5%) levels. The largest source of funding was the private foundations (30.4%), followed by state grants (18.3%). During the last six months of 2012, staff members (69.7%) submitted between two and ten grant proposals (62.9%). Their organizations received no awards (28.3%) or one to five awards (58.2%). The largest award size ranged from $40 to $15,079,000; the median award was $35,000 and the average award was $338,117. Urban cluster organizations most frequently cited researching and finding mission-specific grants (18.9%) or lack of time or staff (18.5%) as grantseekings greatest challenge. Urban Organizations

Most respondents were executives (43.4%) of nonprofit organizations (86.4%). Respondent organizations included those focused on education (17.0%), arts, culture, and humanities (14.1%), and human services (13.2%). Among respondents, one to five employee organizations comprised 30.5%; and eleven to seventy-five employee organizations comprised 27.7%. Of respondent organizations, 64.4% had annual budgets between $100,000 and $5,000,000. Urban organizations tend to be between ten and fifty years of age (58.0%), and 67.0% of respondents told us that their organizations were somewhat well known or well known in their service areas.

The State of Grantseeking Survey Spring 2013 33 Grants provide over ten percent of the funding for 63.0% of urban organizations. Typical urban organizations received grant funding from private foundations (84.3%) and community foundations (66.3%). Government funding was most frequently provided at local (43.3%) and state (42.9%) levels. The largest source of funding was private foundations (34.3%), followed by the federal government (21.0%). During the last six months of 2012, staff members (77.1%) submitted between three and ten grant proposals (51.6%). Their organizations received one to five awards (53.1%). The largest award size ranged from $500 to $15,000,000; the median award was $50,000 and the average award was $393,120. Urban organizations most frequently lack of time or staff (22.2%) or reduced funding (12.4%) as grantseekings greatest challenge. Organizations Serving Rural, Urban Cluster and Urban Areas

Most respondents were executives (49.4%) of nonprofit organizations (86.4%). Respondent organizations included those focused on human services (14.8%), education (13.6%), and health care (8.8%). Among respondents, one to five employee organizations comprised 31.6%; and six to twenty-five employee organizations comprised 26.6%. Of respondent organizations, 59.4% had annual budgets between $100,000 and $5,000,000. Organizations serving rural, urban cluster and urban areas tend to be between ten and fifty years of age (61.6%), and 71.6% of respondents told us that their organizations were somewhat well known or well known in their service areas. Grants provide over ten percent of the funding for 67.9% of organizations serving rural, urban cluster and urban areas. Typical organizations serving rural, urban cluster and urban areas received grant funding from private foundations (78.9%) and community foundations (59.8%). Government funding was most frequently provided at federal (47.5%) and state (47.5%) levels. The largest source of funding was private foundations (29.7%), followed by the federal government (26.3%). During the last six months of 2012, staff members (72.2%) submitted between three and twenty grant proposals (65.2%). Their organizations received one to ten awards (64.8%). The largest award size ranged from $100 to $18,000,000; the median award was $66,000 and the average award was $502,424. Organizations serving rural, urban cluster and urban areas most frequently lack of time or staff (20.5%), reduced funding (12.9%), or researching and finding mission-specific grants (12.9%) as grantseekings greatest challenge.

The State of Grantseeking Survey Spring 2013 Award Size by Service Area Comparison

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Average award size increased with the service area population. However, median award size was larger for rural service areas than for urban cluster service areas. While the urban cluster area grant range had a larger high end than did rural areas, rural areas received more grants at the higher median.

Q5: Is your organization well known in your service area(s)?

The majority of respondents (59.5%) feel that that their organizations are well known within their service areas. Less well known (72.8%) were those organizations under one year of age, as were 61.0% of organizations with smaller budgets (under $100,000).

The State of Grantseeking Survey Spring 2013 Q26: What is the household income in your service area(s)?

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While more respondent organizations serve areas with household incomes under $50,000, not all respondent organizations have need-based missions. Half or more of all organizations serve populations in the lowest income bracket, while over 65% of respondent organizations serve populations with household incomes between $25,000 and $50,000. Large organizations serve populations with household incomes over $50,000 more frequently than do other organizations. Larger organizations more frequently had education and health care mission focuses that serve all income levels than did smaller organizations.

The State of Grantseeking Survey Spring 2013 Q27: With which racial or ethnic groups do those in your service area most identify? 4

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Service area race/ethnicity mirrors the population of the United States.

http://www.census.gov/compendia/statab/cats/population/estimates_and_projections_by_age_sex_raceethnicity.html 2012 Statistical Abstract US Census.

The State of Grantseeking Survey Spring 2013

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METHODOLOGY
This survey and the corresponding report present a ground level look at the state of grantseeking, and were not scientifically conducted. The survey was conducted online using Zoomerang. The survey was open from February 8, 2013, through April 8, 2013, and received 1,017 responses. It was promoted through the GrantStation Insider newsletter, a PhilanTech email newsletter, NTEN and TechSoup media, many partner organizations, and various social media outlets, including Facebook and Twitter.

ABOUT GRANTSTATION AND PHILANTECH

GrantStation offers nonprofit organizations, educational institutions, and government agencies the opportunity to identify potential funding sources for their programs or projects as well as the resources to mentor these organizations through the grantseeking process. GrantStation provides access to searchable databases of private grantmakers that accept inquiries and proposals from a variety of organizations, profiles of Federal financial assistance programs, state-level financial and technical assistance resources, and a growing database of international grantmakers. Our Mission: GrantStation is a premiere online funding resource for organizations seeking grants throughout the world. Providing access to a comprehensive online database of grantmakers, GrantStation helps nonprofit organizations, educational institutions, and government agencies make smarter, better-informed grantseeking decisions. We are dedicated to creating a civil society by assisting the nonprofit sector in its quest to build healthy and effective communities. PhilanTrack for Nonprofits is a secure web-based grants management system that streamlines the grants management process and enables nonprofits to easily view and manage grant-related information. PhilanTrack helps nonprofits manage grants efficiently from initial proposal through final progress report, saving time and money that can be redirected to the organizations programs and services. PhilanTech is a mission-driven company dedicated to using technology to increase efficiency and impact in the social sector. PhilanTech is committed to the same values our clients hold and is therefore a founding B Corporation. B Corporations are setting the standard for social and environmental responsibility. PhilanTech is the only grants management provider to be afforded this certification. Contact us to learn more about GrantStation and PhilanTrack and how we can help your organization.