In order to develop a sound strategy for raising funds, it is first necessary to understand the nature of the various types of funders, how much money they give, and for what purposes. Here are the major types of funding sources:

Federal Government-The US Federal Government gave over $85 billion in grants in 1998. Schools can apply for grants from the US Department of Education, as well as federal programs that focus on substance abuse prevention, the humanities, arts, science, literacy and health. These grants ebb and flow with the political climate, and often are targeted to current issues. The applications are quite detailed and require significant amounts of time to complete. Government funders like programs that can later be replicated elsewhere. They like to disburse the money somewhat evenly across the country. These grants are highly competitive, so when you decide to write one, determine that you will spend the necessary time and aim for excellence.

State/Provincial Government--These are similar to federal grants, but may not require as much detail. They vary from year to year, so be sure to talk with the contact person and use the most current RFP.

Foundations--There are approximately 63,000 foundations in the United States and 1,500 in Canada. This number is growing rapidly. Many US foundations make grants to Canadian organizations. By law, US foundations must give away 5% of the average market value of their assets each year. Thus, in 1999 they gave away approximately $11 billion dollars. This is about 10% of the total funds distributed to nonprofit groups through non-governmental organizations and individual donations. There are four basic types of foundations:

1. Independent-founded by an individual or group of people for a specific philanthropic purpose. This accounts for the majority of the foundations.
2. Company sponsored-started by a corporation or business
3. Community foundation-set up to serve a particular geographic area
4. Operating foundation-set up to run a specific service program

The application requirements from foundations vary considerably depending on the size and scope of the organization. The majority of foundations are very small organizations without any staff, so proposals are usually kept short and simple. Sometimes all that is necessary to get started is a phone call and a short letter of inquiry. Then, if they are interested, you will be asked to write a full proposal.

Corporate Giving--Approximately 5.7% of non-governmental giving is generated by corporate donations. Businesses give grants through their own foundations, or give cash awards to deserving projects. This is called "community reinvestment". There are over 5 million corporations in the United States. Approximately 35% of them take tax deductions for charitable contributions. They want to be good citizens in their community, and also hope to promote a positive image for their company in the geographic area where they operate. Thus, local businesses are usually more receptive than large national chains. Describe your project in terms of how it will benefit their organization, as well as the participants. In addition to asking for money, consider creative requests such as use of facilities, donating staff time, donating used equipment, or contributing company products and materials. Be sure to publicly recognize these supporters.

Service Clubs & Organizations--Don't overlook the large number of civic organizations in your community. Network to obtain insider support. Often procedures are quite informal, such as making a request during a meeting. Sometimes these organizations will adopt a cause over several years. While the dollar amount of their support may be relatively small, this can be leveraged as matching funds for larger grants. Larger grant makers like to see local support, including volunteers and in-kind donations, as well as financial contributions.

Bequests--These account for approximately 9% of non-governmental money given to philanthropic causes. Schools sometimes receive bequests from former students. This becomes more likely if there is consistent outreach to those individuals and specific information is given about how to make bequests.

Individual Donors--Approximately 75% of non-governmental support for philanthropic causes comes from individual donors. In 1997 they gave $109.35 billion, with about 47% of that going to religious organizations. If you are considering this source of funds, recognize that significant fund-raising efforts must be made to implement a campaign for individual giving. To be successful a fund raising program must be strategically and systematically sustained over many years.