PARSA CF University: Applying to Grants from American Foundations

Since its inception in 2006, PARSA CF has implemented a transparent and competitive grant process. By adhering to best practices in grantmaking, PARSA CF not only encourages Iranian-American nonprofits from all over the country to apply, but prepares them for how to apply for grants from other foundations as well, be they Persian or otherwise. Some Persian nonprofits have been very effective in finding grants from American institutions and the time has come for other nonprofits in the Iranian-American community to follow their lead. Whether you are a small nonprofit with local reach or a larger organization with an established track record, there are countless opportunities to benefit from American foundation grants. Diligent research and preparation can go a long way in securing these awards.

Proposal writing is a major step in the grantseeking process, but the process of planning, research and outreach to potential foundation donors is also pivotal in securing a grant. For nonprofits that are new to the grant application process, it is important to first understand what constitutes a foundation. A private foundation is a nonprofit corporation or charitable trust, with the purpose of making grants to organizations and institutions for charitable purposes. A private foundation derives its money from a family, an individual, or a corporation. An example of a private foundation is the Ford Foundation. A public foundation is supported by multiple sources, which may include private foundations, individuals and government agencies. An example of a public foundation is the San Francisco Foundation.

There are innumerable sources to help your nonprofit compile a list of foundations that can support your organization. When researching prospective foundations, it is best not to focus all your efforts on one ideal funder. The most successful grant applicants reach out to a number of foundations, since even the most experienced proposal writers receive more rejection letters than they do grants.

Some good sources to begin your search for foundations are:
  • The Foundation Center at www.foundationcenter.org. The center charges to search their foundation database online, but they also provide their Foundation Collection for free at selected public libraries throughout the U.S.
  • Guidestar at www.guidestar.org. Guidestar has the nation’s largest searchable database of foundations and also provides various donors’ IRS form 990 which can help nonprofits locate foundations that may give to them.
  • Foundation Search America at www.foundationsearch.com is a good source of information for over 103,000 foundations in the U.S.
  • Grantproposal.com at www.grantproposal.com is dedicated to providing free resources to nonprofit staffs.
When evaluating whether a particular foundation might be a good funding match for your organization, be sure to review their most recent grants as well as their stated funding areas and criteria. Although it might not always be explicitly stated, criteria foundations look for in finding a good match for a grantee often include:
  • Evidence that the applicant is well known in its community and that it addresses an existing need;
  • a history of funding by other sources to help establish credibility;
  • sound fiscal management, an involved board, committed volunteers and qualified staff;
  • a realistic and detailed budget; and 
  • evidence of financial sustainability beyond the period of the actual grant.

By organizing the grant application process into a set of structured steps, your nonprofit can increase its chances of successfully attaining a grant from an American foundation:
  1. Learn: Learn how the grantseeking process works and how to write a successful grant proposal.
  2. Research: Prospect which foundations may give to your nonprofit. Look for foundations that have already supported projects similar to yours, those that award the type of support you seek, and/or those in your geographic area.
  3. Gather: Your organization’s incorporation documentation, budget, history and mission of your organization and description of the program that you are applying for.
  4. Plan: Determine your project timeline, how the money will be raised and who will be responsible for each component.
  5. Write and submit the proposals: Complete each proposal according to each foundation’s giving guidelines and tailor your proposal for each foundation. Make sure to carefully read each foundation’s application guidelines. Many foundations request letters of inquiry concerning the suitability of a match between your organization’s proposal and their interests before you submit a full proposal. 
  6. Be patient: Foundations usually take at least three months to determine who they will award grants to. During that time, foundation staff and personnel are reading and evaluating all applications received for that funding cycle.
  7. Don’t stop applying for grants: Even after your organization’s need is satisfied, continue the process in order to strengthen your nonprofit’s fundraising capabilities.
Utilizing these steps will help your nonprofit identify its strengths from the funder's perspective and with a little perseverance, earn your nonprofit organization well-deserved funding. No matter what the size of your nonprofit, following these best practices will help advance the Iranian-American community towards a larger piece of the philanthropic pie.