25 Feb Small Nonprofit Building Block Series: Prospect Research by Megan Campbell, MPA, GPC

Prospect research is the term commonly used for the process of identifying potential sources of funding for an organization or program. If your organization is a small or start-up nonprofit with limited staff or development support, the task of prospect research can feel both urgent and overwhelming. Fear not. Here are a few tips for beginning your prospect research process that will help start you on a path to success.

• Foundation Directory is an online database of foundations that is searchable by geography, areas of interest, and more. It is a paid service with several subscription levels varying in price. While a full two-year professional subscription (currently $3,037.92 for 2-year advance payment) may not be feasible for smaller nonprofits with limited unrestricted dollars, there is a monthly option for as little as $54.99 per month (plus tax). If you subscribe by month, you can cancel anytime, so paying for one, two, or three months could be worth the investment – but only if you set aside time to maximize the resource while you have it. Additionally, some library systems offer free access to Foundation Directory. Make a game plan, learn more about organizing research, outline your search parameters, and create an organized file system for saving search results before you subscribe or visit the library.
• If you have funding to invest in building your organization’s growth strategy but not the time to dive into research, contact a quality grant consulting firm like AGS with access to available funding data and the dedicated time to find potential matches. This option gives you peace of mind, knowing that a professional team will provide solid prospects and strategy guidance while you focus on operations and delivering programs and services.
• Google – Major upside: it’s free. Another upside is that you can perform a wide search with keywords (for example, “Missouri grants children’s health”) and get a lot of information if you have the time to scroll. This option also allows you to gain insight directly from the source by clicking through individual funder websites. Downside: potential for information overload. Users should also click with caution to avoid false links and advertising scams.
• Attend local networking and events that foster relationships with service providers and your local funding community. These are often free or come with the cost of membership with chambers of commerce, nearby chapters of the Grant Professionals Association (GPA), the Association of Fundraising Professionals (AFP), or other nonprofit associations (i.e., NPConnect in the Kansas City metropolitan area). Networking with other people who do this work can provide you with a wealth of resources to further your own organization’s mission.
• Reach out and schedule coffee or lunch with colleagues and leaders from like-minded organizations. Similar-sized organizations may have tackled some of the same issues you experience. Larger organizations often have the advantage of being connected to a broader sampling of funding opportunities in your area. Those meaningful connections may bring opportunities for you to create partnerships or collaborations that increase funding feasibility and better serve your target population.

In case you missed it, check out the first part of this small organization building block series: Community Relations. AGS is also launching a new training series in May, Capacity Building for Small Organizations. The six-session course focuses on key elements that will prepare a new or small organization for grant readiness. Sessions are tailored to help participants build their knowledge and skills to create pathways to success for grant-seeking. Registration is live! Follow along with the small nonprofit blog series by subscribing for updates. In the meantime, learn more about a variety of topics with AGS online training sessions available on demand.

If you are interested in grant services, training, or federal review services, or are interested in our career opportunities,  Julie Assel, CGMS, GPC, President/CEO, will be happy to talk with you about this opportunity and provide you with a quote for grant services.

This blog post is aligned with the Grant Professional Certification Institute’s Competencies and Skills.

1: Knowledge of how to research, identify, and match funding resources to meet specific needs