A recent study of not-for-profits and their granting needs has revealed that charitable trusts and foundations should consider funding “unsexy” areas of not-for-profit operations such as administrative costs and capacity building. Annie Kirwan reports.
A recent study of not-for-profits and their granting needs has revealed that charitable trusts and foundations should consider funding “unsexy” areas of not-for-profit operations such as administrative costs and capacity building. Annie Kirwan reports.
When it comes to making grants to not-for-profit organisations, many charitable trusts and foundations like to fund specific projects related to programs or services, or special capital needs such as new buildings and equipment.
However, new research by the Queensland Community Foundation (QCF) has found that many not-for-profits would benefit from funding directed to more basic aspects of their operations such as building expertise in fundraising, management and governance, and underwriting some administrative costs.
Research Objectives
QCF undertook the research to identify the most effective ways in which it could assist Queensland not-for-profits. This meant identifying funding gaps for not-for-profits and examining the way QCF interacts with the sector.
More than 60 organisations provided input to the research through a series of seminars, focus groups and a survey, and the Centre of Philanthropy and Nonprofit Studies at Queensland University of Technology played a major role in gathering and analysing information.
Research Findings
The research process enabled not-for-profits to provide a picture of what they wanted from an “ideal” charitable trust or foundation, and how not-for-profits and foundations could best work together.
Funding
One of the most important findings was that not-for-profits need funding for capacity building. Areas such as management, governance and fundraising were critical areas for not-for-profits to build expertise and knowledge.
For example, the area of grant writing in particular is a priority. Some organisations undertook little to no activity in grant seeking and were unaware of the options available to them because the cost of the resource required made it prohibitive. Funding not-for-profits to gain greater expertise in fundraising would enable them to secure additional funding.
The types of not-for-profits in the greatest need of funding were: welfare, health, education and community development.
Funding of administrative costs, particularly those associated with service delivery to rural, regional and remote communities is another gap QCF may assist with. The vast distances of intrastate travel in Queensland means that service delivery is often very costly.
Engaging with Not-for-Profits
An important finding was that QCF has an opportunity to be more than simply a granting body that hands over money to worthwhile causes. It can play a role as a broker and “networker” by fostering partnerships with not-for-profits and other funding bodies, and encouraging not-for-profits to work collaboratively where appropriate.
QCF may also be proactive in seeking out appropriate not-for-profits to support rather than just being reactive to the unsolicited applications it receives.
QCF will also review its level of due diligence in assessing applications; reporting requirements for funded recipients; and the degree of evaluation of funded projects.
Funding Applications
When it comes to applying to foundations for funding, not-for-profits sought:
greater flexibility in the method of making applications, ie, options to submit online and in hard copy application guidelines that are easily accessed and are clear and explicit about funding criteria greater input from foundations during the application process including guidance and feedback before, during and after applications have been made, and greater accessibility to foundation staff to talk through queries and ideas About QCF
QCF was established in 1997 and a number of charities, companies and other groups have set up sub-funds under the QCF Trust Deed to support a cause. The funds are invested in perpetuity, with the income only being distributed, thus preserving the capital.
The pool of invested funds has grown to more than $12 million. Of this amount more than $1 million is held in the General Fund, and it is the income on this fund that QCF will begin using for grants.
The foundation is aware of more than $250 million in bequests that may come to it in time. While many of these bequests will go directly to the charities and not-for-profits with established sub funds in QCF, there is a considerable sum bequeathed to the General Fund.
During 2004 an average of $4 million per month was made known to the QCF as forming part of unrealised bequests. In that same year close to $5 million was received by QCF from bequests.
