Finding Funders Online

Now it’s time to do the hard work of sourcing out grants for your NGO. Thankfully, the Internet has made this task easier—and cheaper for NGOs who also wish to maximize their resources. You only need to use your computer with an Internet connection to search and even apply for funding.

There are two types of international funders:

1) Corporate and

2) Independent.

Corporate foundations are formed using funds from a company while independent foundations are those that are formed by individuals, a group, or family. If The Foundation Center (http://www.foundationcenter.org/) is the main resource in the United States, similar organizations also exist in other regions in the world. The main ones are The European Foundation Centre, Imagine Canada, United States International Grantmaking, and Grantmakers without Borders.

The European Foundation Centre (http://www.efc.be)

The European Foundation Centre (EFC), based in Brussels, Belgium, is composed of international foundations and corporate funders. In its database, you can search more than a thousand of these potential funders that work in or have an interest in Europe. However, you have to pay an annual membership fee of 5,000 € to access the profiles of the funders there. You need to become a member because the EFC only supports the work of its members and does not give grants or any kind of financial support nor does it provide services directly to grantseekers.

When you already have subscribed to EFC, you will have access to the members-only area of the website where you can update your organization’s profile, view the full profiles of all EFC members, submit a request for information, and find contacts in the funder database. One of the best ways to make full use of the EFC’s vast plethora of resources for potential international funders is to study the funder’s profile carefully. The reason why reading their profiles is important is because you can find if your organization treads on common ground with a corporate funder who might be willing to give you the monies you need.

A funder’s profile gives such a fertile ground of information that will help you decide if they are worth making initial contact. A funder’s name (both in English and another language), location, its primary address and contact person, mission, background, geographic focus, related organizations, program areas, types of support given, application procedures, restrictions, accepted languages, type of funder, legal status, and other important information about its staff and budget can be found in the funder’s profile.

Take a very careful look at the program areas that it focuses in as this gives you the funder’s area of focus. Usually, the EFC has members that provide funding for those organizations that do work in Central and Eastern Europe, culture, disabilities, education, environment, AIDS/HIV, minorities, and the youth.

If the membership fee is too stiff for your organization as of the moment, the EFC does give you a stepping stone in its Resource centre, specifically the tab that points to “Advice for grantseekers.” You can find links to Websites on Fundraising; European Resources; Foundations and Corporate Funders; Guidance for Nonprofits; and Resources for Students.

Imagine Canada (http://www.imaginecanada.ca/)

Another international subscription-based funding database website, Imagine Canada aims to support and strengthen nonprofits and charities so that these organizations can also give support to the communities they serve. Its members are Canadian charities and nonprofits that work for the good not only of Canadian communities but also of communities worldwide. By becoming a member, you get to engage and network with other members; have access to education and resources; get discounts; and get recognized. A one-year membership costs $550 while a two-year membership fee is $1000.

Perhaps the most valuable resource for organizations looking for potential funders is Imagine Canada’ GrantConnect (http://grantconnect.ca/). This was formerly known as the Canadian Directory to Foundations & Corporations. They call this updated feature an “innovative and comprehensive tool that connects charities with funders who share their cause.”

GrantConnect boasts of four dynamic searches—Funder Search; Quick Look-up; Gift Explorer; and People Seeker. It also has what it calls Imagine Canada Prospect Index which is an algorithmic ranking that gives the best funder matches for each charity. Its Detailed Funder Dossiers allow you to get the most comprehensive information for each listed funder, using multiple data sources to ensure that the information is fresh and accurate.

Subscribers also access a funder’s gift-giving history displayed in interactive tables and Google map. Another equally valuable feature is LinkedIn Connections which enables you to discover key influencers in your network by looking at the LinkedIn connections of the hundreds of funders. Management tools, customizable labels, monthly newsletter, and allowing multiple users from an organization are the other innovations that you can take advantage of if you subscribe to GrantConnect.

United States International Grantmaking (http://www.usig.org/ )

The USIG, a project of the Council on Foundations together with the International Center for Not-for-Profit Law, aims to “facilitate effective and responsible international grantmaking by U.S. foundations. Thus, it basically caters to grantmakers who want to fund organizations based outside the U.S. Still, you can find such helpful resources as country information; legal issues; global disasters and response; and links which, although targeted for grantmakers, are helpful for grantseekers as well.

Grantmakers without Borders (http://www.internationaldonors.org)

Global social change philanthropy is practiced by the public and private foundations and individual donors that are members of Grantmakers without Borders. It has around 160 members to date that gives grants globally. Although this is not a funding organization and therefore does not review proposals from grantseekers, it does give a lot of helpful information for organizations looking for prospective funders. Click on the “advice for grantseekers” tab under the site map and you will find links to international foundations and organizations that give grants as well as other helpful tips for organizations and individual grantseekers.

From the links in these international funders and funding databases, you have access to hundreds of other sources of funds for your NGO. Don’t neglect to search for local grantmakers in the country where your operations are centered in so that you have a whole spectrum of potential funders to apply for monies for your advocacies.

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International Grants for Non-Government Organizations

Non-Governmental Organizations

A non-governmental organization, more popularly known as an NGO, is an organization that delivers programs at a local, national, or international level. It operates independently of government even if the NGO approval is given by the host country where it delivers its projects and/or services. NGOs provide projects in various areas— health, education, food stability, environmental conservation, information, and calamity response, just to name a few. Famous NGOs whose advocacies have made them famous worldwide include The Wikimedia Foundation (information); Oxfam International (humanitarian work); and CARE International (poverty alleviation). However, there are hundreds of thousands of NGOs making a difference around the nation and all over the world.

If you’re working for an NGO, then there’s a lot of good news when it comes to sourcing out funds. You can apply for funding not only from grantmakers in the United States but from foreign governments, foundations, and corporations as well. Compared to for-profit businesses whose funding sources are limited, NGOs are able to enjoy a wide variety of funding sources both in the national and international levels.

Eligibility for International Grants

Before you can apply for funding from both national and international funders, you have to make sure that you are eligible to apply for grants from them. This means that if you are an NGO based in the United States then you have to register as a nonprofit organization with the Internal Revenue Service. The 501(c)(3) status that it will give when you have complied with all the requirements is valid for all the 50 states. Furthermore, this means that your search for funding sources is limited only to grantmakers in the United States. You can pretty much forget international funders if you are operating solely within the country since the focus of these funding agencies is on giving their monies to NGOs with advocacies where they are located.

Now if you are a non-governmental organization with programs in a specific country or countries then you can source out funds from international sources. To ensure that you have NGO status in the country where you are operating in, you have to make sure that you register your organization with the proper authorities there. Follow the rules and regulations in the country where you have your programs so that you won’t run into any glitches when applying for grants. If you’re operating in multiple countries, you do have to follow the policies in each country where you have programs and seek approval letters from each of them.

It’s very important that you keep your NGO approval letters in a safe place. It’s recommended that you make not only physical copies but electronic ones as well of your approval letters and other important documents so that you don’t have to worry if you lose any of them. Approval letters are extremely important since funding applications generally require that these be attached together with other documents about your organization.

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Grants to Expand Existing Businesses

If you already have an existing business, there are federal and state grants that you can apply to. At the federal level, you can check out the Small Business Innovation Research Program (SBIR) and the Small Business Technology Transfer (STTR) Program.

The SBIR/STTR Programs

The SBIR/STTR Programs are intended specifically for domestic small businesses in the field of Federal Research/Research and Development. If you believe that your business has technological and commercial potential then you can try to see if you can qualify. Keep in mind, however, that the competition is very tough. The federal government awards these programs to stimulate technological innovation; meet federal research and development needs; foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons; and increase private-sector commercialization of innovations derived from Federal research and development funding.

The following agencies participate in the SBIR/STTR Programs: Department of Agriculture; Department of Commerce – National Institute of Standards and Technology; Department of Commerce – National Oceanic and Atmospheric Administration; Department of Defense; Department of Education; Department of Energy; Department of Health and Human Services; Department of Homeland Security; Department of Transportation; Environmental Protection Agency; National Aeronautics and Space Administration; and the National Science Foundation.

There are three phases to the SBIR Program. In Phase I, your small business must establish the technical merit, feasibility, and commercial potential of your proposed research/research and development efforts. This is where the federal government determines if the small business awardee is still eligible to receive further funding support.

In Phase II, funding is received based on the results that are achieved in Phase I and the technical merit and commercial potential of the project. Funding for this phase usually does not go above $1,000,000 total costs for 2 years. Phase III is the final phase and this is where the small business awardee pursues commercialization objectives after the initiatives achieved in the first two phases. No Federal monies are awarded for the final phase.

Your business can only qualify for these programs if it is organized for profit, with a place of business located in the United States; has at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, or at least 51 percent owned and controlled by another for-profit business concern that is at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States; and; has no more than 500 employees, including affiliates.

Funding Opportunities from your State

Business expansion opportunities are also available from your state since they usually earmark funds for this purpose. These grants are usually given to businesses that will also help stimulate the economy of the state. These are also awarded to businesses that advance causes that are generally beneficially for all. These include ventures that have to do with harnessing alternative energy; the environment; medicine; education; and science and technology.

To start your grant search to expand your business, you can go to your state’s Department of Commerce. Get right to the point when talking with the representative from your state government. Introduce yourself and your business, where you are located, the nature of your products and services, and the reason why you want to expand. Be courteous and thankful even if there are currently no opportunities for funding. They might even be able to point you out to other sources of funds where you can apply to.

If you cannot really find grants to make your business grow, you can always consider other options, such as obtaining a loan or continuing to work full time while working to make your venture grow. Don’t look for business expansion opportunities from only the federal and state governments. You can also try sourcing out grants from private institutions and grantmakers.

As we have said above, finding grants to start or expand your business is a tough job. Still, this does not mean that there won’t be any grants for you in the future. Just keep your eyes open to new opportunities by signing up for an organization’s mailing list—if that is provided or constantly monitoring new business funding opportunities in the Internet. Use your connections to find out if there are grantmakers who are currently accepting applications from entrepreneurs who wish to start or expand their businesses.

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Grants for Business Startups and Expansion

Are there Grants to Help you Start or Expand your Business?

If finding grants for individuals is a challenging task than trying to find grants to start or expand your business is like trying to find a needle in a haystack. Generally, the federal government does not offer grants to help you start your own for-profit business or make it grow. Uncle Sam does not also give grants to help you cover your business operating expenses or pay off debts incurred by your enterprise. It used to do so back in the seventies and eighties, allocating money for CDCs or Community Development Corporations. However, this is not an available option now.

But this does not necessarily mean that you can’t find grants for your enterprise venture. There are still rare treasure troves of available grants if you’re looking for funding for your own business. Be ready to do a lot of searching, however, as these grants are not going to be easy to find.

When it comes to grants for start ups and expanding your business, you can look up business plan competitions, private grants, and state grants.

Business Plan Competitions

Business plan competitions, as the name suggests, are contests started by universities and other funders for the best business plan. Whoever can write the best business plan will receive grant money to be able to start their business. Yes, it’s a tough way to get a grant (but then again, getting any form of funding is not easy). If you’re joining a business grant contest offered by an educational institution, you are going to be competing against equally-brilliant postgraduate students. If it’s sponsored by an organization that accepts entries from all parts of the globe then you are up against the best international minds.

But the good thing about joining a business plan competition is that you learn a lot from it even if you don’t actually get to win. Some of the contests are designed so that feedback is given to all participants in whatever stage of the process. This means that even if your business plan is rejected outright, you still receive valuable insight from experienced mentors who can help you improve your business plan, the foundation for any ultimately successful enterprise. Those who advance to the next level of competitions can get the chance to attend conferences, workshops, and mentoring programs—all non-monetary benefits that any neophyte entrepreneur can certainly benefit from.

Here are some examples of business plan competitions that we have sourced from the Internet just by typing the keywords “business plan competitions” on Google.

1.       MassChallenge (http://masschallenge.org)

MassChallenge is the world’s largest accelerator program and startup competition that seeks to connect resources and entrepreneurs. Any early-stage startup from anywhere in the world in whatever industry can apply to MassChallenge. Benefits include mentorship and training, free office space, access to funding, and media, among others. They highlight the fact that they don’t put restrictions and take no equity from the participants.

2.       Harvard Business School New Venture Competition (http://www.hbs.edu/entrepreneurship/new-venture-competition/overview.html)

Formerly known as the Business Plan Contest, this competition sponsored by Harvard Business School gives an opportunity for students to put their entrepreneurship principles in practice. The winner gets $50,000 in cash plus in-kind services while the runner-up receives $25,000 in cash and in-kind services. For the business track, all teams are eligible to enter for as long as they have at least one Harvard Business School student. For the social enterprise track, all teams entered are eligible as long as they have at least one person who is: a) an HBS MBA student, b) a Harvard University Reynolds Foundation Fellow, or c) a full-time Harvard graduate student currently enrolled in the Social Entrepreneurship Collaboratory or the Entrepreneurship in the Social Sector course at KSG.

3.       Wharton Business Plan Competition (http://bpc.wharton.upenn.edu/competition.html)

In this 7-month platform, entrepreneurs and their teams fight for the Venture Finals which award three top prizes. The group with the best business plan walks away with The Perlman Prize which carries $30,000 cash prize and $15,000 of in-kind services. The contest is divided into two phases: Phase 1 is an advisory phase and is optional while Phase 2 is the competitive phase—you must enter Phase 2 if you want to compete for prizes.

There are still other business plan competitions offered by other institutions. Check them out weekly so you are updated on the newest contests and can prepare accordingly. Two other sources for listings of contests for budding entrepreneurs are Biz Plan Competitions (http://www.bizplancompetitions.com/) and changemakers (http://www.changemakers.com/).

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How much should you Put into your Emergency Fund?

Three to six months’ worth of living expenses completes your emergency fund. The question now is: Should you go for three months’ worth or should you put in more? Only you can answer this question based on your job, your way of life, and the level of risk you are willing to take. If you have been with the same company for more than 15 years, for example, and are living a fairly good life (no major illnesses in the family, both spouses are working, etc.) then perhaps it’s safe to say that you have completed your emergency fund when you’ve put in three months’ worth of your living expenses in it. Government work is fairly stable compared to working for private companies so if you have no plans of quitting work for Uncle Sam then you could opt for the three-month rule as well.

However, if you are working on commission or are self-employed or are the sole breadwinner in the family, putting six months’ worth living expenses into your emergency fund would be prudent. The instability of commission-based income means that there will be times when there won’t be any cash flowing in. When you are on a single-income household, a higher emergency fund is recommended because any event that will mean a loss of that income can really cripple you financially.

Take note that the emergency fund is meant to be used for your expenses when you do not have any income flowing in yet. Thus, your calculation should be based on your monthly expenses, not your income. You dip into this to keep food on the table and pay for the utilities so you continue to have water and electricity. You do not use this to invest into your retirement while you are still weathering the financial storm.

So where can you find money for your emergency fund?

When you are already on the road towards financial fitness, you’d be surprised at the many avenues you can find to get the money you need to fully fund your rainy day savings. You can still sell stuff or work extra hours just to get that three-to-six months’ worth of living expenses together.

But remember the payments you used to make for your Debt Snowball? Well, now that you are totally debt-free except for your house, you can use the monies you used for your snowball and put those this time into your emergency fund.

It’s very important that every member in the family are into the entire plan, especially both spouses. As a couple, you should agree on anything about money. Secrets will not only ruin your budget, it will also destroy trust and cause problems in your relationship. Besides, once everyone is on the same page financially, you will serve as each other’s cheerleader and police. If one is feeling just how difficult staying on track is, the other can give that much-needed support and encouragement. If one is buying something that is not on the budget, the other can check and admonish.

Saving for your Own Home

When you are already at this stage—paid up all debts and already have an emergency fund—it is very tempting for those who are currently renting to buy a house of their own. Can you get that money for the downpayment from your emergency fund? Absolutely not!

Keep in mind that this fund is only for the rainy days. If you want to get a house of your own, you have to save for it. Let us repeat that: The money you should use for the downpayment should be saved up. Leave your emergency fund alone.

While a home is always a good investment, you should not rush into it. If you do, it will become another burden on you. If you save for a substantial downpayment, you get the advantage of having to make lower monthly payments in the course of the mortgage. However, if you are so eager to get a home with zero down, you will realize later on just how straining the monthly payments are on your budget. If you want to own a home, save for it first. By now, after doing your Debt Snowball and completing your emergency fund, you should already have sufficient experience getting the money together.

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Getting your Emergency Fund Fully Funded

Completing your Three to Six Month- Emergency Fund

The third step in Dave Ramsey’s Total Money Makeover is to complete your emergency fund. If you remember, you started with just $1,000. Obviously, that amount is only good for those little emergencies that come your way, like a broken air conditioner or a minor car trouble that needs immediate fixing. But your starter fund can’t cover those real emergencies that are bound to catch anyone of us at one point in our lifetime—the loss of a job, a major illness, or death of the primary breadwinner in the family. It is for these events that you need to be truly prepared.

Fully-funded emergency savings should be able to cover three to six months of your living expenses. In figures, the amount can range anywhere from $5,000 to more than $20,000 depending on your lifestyle. If you are currently living on $3,000 a month and have a fairly stable job then having $9,000 in your emergency fund can be sufficient. But we will be covering in more just what a “fully-funded” emergency fund is later on in this report.

At this point, you should remember that this is the third step in your Total Money Makeover. You only complete your emergency fund after eighteen to twenty-one months when you have already wiped out all your debts through the Debt Snowball. At this point, you are only spending for the basics of food, utilities, and other basic necessities and the only debt you are paying for is the mortgage on your home. You can imagine just how easy it is going to be to completely fund your savings earmarked solely for emergencies.

The whole point of following the Total Money Makeover step by step is to modify how you think and view debt and money. Paying off your debt little by little also liberates you one step at a time. Now that you have nothing to pay up except the house and are making all your purchases in cash, you can now complete your emergency fund. When that dreadful and unwelcome thing happens, you still feel the blow but the financial damage that it will cause is not totally irreparable. You will not regress into getting into debt again to cover it.

Why you need an Emergency Fund

For many Americans who are still caught in the downward spiral of dependence on debt, the credit card is used as a go-to tool during those moments when we are caught in tight fix and have nowhere else to go. The problem is, using plastic for emergencies can only tide you over for so long. You will have to pay for it after a month. If you can’t, you will get interest—huge interest— slapped on you.

But what happens if the emergency persists? Let’s use the most common—and most feared—example of a real emergency: Getting fired. Without three to six months of emergency savings to use for the meantime, you keep on swiping plastic to cover the cost of groceries and make cash advances on it for your other expenses. Meanwhile you continue to hunt for a job. But what if you don’t get hi.

It is difficult to pay for debt as it is but it is even more challenging to pay for debt when you don’t have any income. This is why having savings which you must only dip into when the rainy days come is of paramount importance. But just what exactly falls under the term “emergency”?

Emergencies are those circumstances which take you unaware. Aside from getting laid off or fired, other situations that can qualify to be real emergencies include accidents or sickness requiring a high deductible before insurance kicks in; the death of the main breadwinner in the family; or a major car repair like a blown engine. If your house got severely damaged by a typhoon or earthquake then that qualifies as a real emergency, too.

What do not qualify as emergencies? School expenses like your son’s college tuition and miscellaneous; that vacation in some exotic Asian island; or even the startup money you need to start a new business are not emergencies. They are things that you should plan and save for. Even that mall clearance sale that temptingly offers that kitchen showcase at 80 percent off for one day only is not an emergency. If you don’t have the money, you can’t dip into your emergency savings funds to get what you want.

A savings fund is for those real emergencies that knock the wind off of you. It is meant to give you peace of mind so that whenever something happens that has to do with money, you know you’ll be able to face it and survive without drowning into debt.

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