The article ’15 learnings we’re sharing from 15 years of working with grant-seekers and funders’ by the Strategic Grants team first appeared in the Winter 2024 edition of the F&P (Fundraising & Philanthropy) magazine.
It is hard to believe that 2024 marks 15 years of the ‘official’ Strategic Grants (we have been in the grants game much longer, but we’ll save that story for another time!).
Over the past decade and a half, we have had the privilege of working with incredible for-purpose organisations across Australia and New Zealand, witnessing firsthand the transformative impact of their missions.
Our success is measured by the success of our for-purpose partners, and it is this philosophy that has guided us through 15 years of impactful work.
As we take a moment to pause and reflect, we’re sharing 15 learnings from our work in strengthening the charitable and philanthropic sectors through grants and partnerships best practice.
For those who have joined us on this journey, we are incredibly grateful for your support and friendship. And for those who we are yet to meet, we hope we get the opportunity soon.
1. Fundraisers are braver and bolder than ever.
This is evident with the Reframe Overhead campaign, which has sparked meaningful conversations amongst fundraisers and the Pay What it Takes initiative, which many funders are showing their support for. But as a community, we need to keep the conversations going. As always, open, honest and transparent communication between grant-seekers and grant-makers is critical.
2. Resourcing continues to be one of the biggest challenges grant-seekers face, despite the significant income opportunity.
Using data from industry resources, such as the recent Strategic Grants Benchmarking Report (which shows investing in a grants program has a 430% median return on investment) or reports from the Benchmarking Project and More Strategic, would strengthen the case for grant-seekers to seek more resourcing for their grant and major gift programs.
3. For fundraising and grants strategy success, program delivery teams and fundraising teams raising the money for the programs must work cohesively.
Support from the CEO and management team is also crucial for an effective grant-seeking and fundraising strategy.
4. Ask yourself: Do you have a centralised list of funding priorities approved by your Board and/or Executive Team?
To guide grant-seeking, organisations need to ensure that grants identified and applied for are aligned with their purpose and meet short, medium and long-term needs. This list then needs to be communicated clearly and regularly across the organisation.
5. Ensure you make the time to meaningfully engage with and steward your funders.
It starts with the introductory phone call or email at the very least, wherever possible. Being strategic and intentional with your engagement activities allows you to demonstrate to the funder how vital their support is and how important the relationship is to your organisation and those you serve. A great way to keep on top of this is to create a stewardship plan as soon as a grant has been confirmed. This plan should identify engagement and reporting activities and touchpoints, their frequency and who is responsible for each. Ideally this plan is based on a template you can tailor for each new funder, and is either complimentary to, or includes, your acquittal reporting plan.
6. Remember that each funder is unique and their interest in, and availability for, engagement beyond the basics will vary.
Some funders may not be interested in additional stewardship activities—if they tell you this, respect their wishes. For others who are time poor, receiving an invitation or a personalised message from a project beneficiary can be incredibly powerful. We have seen a short video captured on a mobile phone of a project beneficiary saying thanks to the funder (and texted to them) lead to enduring partnerships.
7. The number of grant applications submitted does not necessarily equate to revenue and therefore should not be a KPI of your grants program.
It is the quality and most definitely NOT the quantity of applications. Instead, focus on new grant funding opportunities identified, number of conversations you are having with funders, ensuring that 100 % of your funder reports are submitted on time, that you and your team are reaching your budget targets and whether you are receiving repeat gifts from funders. These KPIs ensure a strategic approach is in place. The ultimate performance goal is to have such strong relationships that your funders call you when they have funds left to distribute!
“The ultimate performance goal is to have such strong relationships that your funders call you when they have funds left to distribute.”
8. Over the last 15 years, Private Ancillary Funds (PAFs) and Public Ancillary Funds (PuAFs) have grown significantly.
While managed funds, foundations, and trusts have existed in Australia for over a century, 2009 marked a key turning point with new legislation and guidelines introduced through the Private Ancillary Fund Review, with bipartisan support (2009 Philanthropy Australia Annual Report). Since then, the data shows consistency with the number of new PAFs created annually, with over 100 new Ancillary Funds reported in the 2024 financial year. The most recent report from The Australian Centre for Philanthropy and Nonprofit Studies shows that in 2021, the 1939 publicly listed PAFs held a total corpus of $11.6 billion and distributed $511 million. Additionally, PuAFs are also increasing their giving potential by encouraging sub-funds for donors as another philanthropic avenue to donate without all the legal requirements of a PAF (a trend being driven by investment and wealth management organisations as an option for their clients). According to the Strategic Grants Benchmarking Report, 26% of respondents received funds from PAFs which is encouraging. So—if approaching PAFs is not a part of your grant strategy, it should be!
9. A big challenge for the charitable sector is accessing PAFs.
So, how do you make the approach? A great way to get in touch is via third parties. Cast your net through your internal network first, beginning with your Board and Executive Team. Then look to external referrers—think other funders and major donors that you have good relationships with, advisors like accountants and lawyers and intermediaries such as peak bodies, Trustee Companies and Family Offices. Don’t be afraid to use your networks.
10. AI has gained a lot of momentum in recent years and while it can be an asset, it’s important to use it in an ethical and transparent way.
Not all AI tools are created equally. If you are using ChatGPT, think of it as your handy personal assistant, rather than your writer. Use it to brainstorm, edit, and summarise your drafts, remembering that human oversight and expertise is critical. People give to people, and personal relationships and stories of your success in delivering your mission are something that a bot can’t (easily) replace!
11. Funders DO undertake due diligence before distributing grants.
Make sure your website, ACNC reports, and all publicly available documents (e.g. annual reports and audited financial statements) are current and that your key messaging is consistent across all your communication channels.
12. The resilience of the fundraising community is inspiring.
To say there have been challenges over the past few years is an understatement—natural disasters, a global pandemic, more natural disasters and a cost-of-living crisis, if we are keeping track! You’ve been through it all and back again, with seemingly more passion than ever to support your mission. That is a strength and major achievement! Remember that and showcase your enduring capabilities to deliver your mission.
“Our success is measured by the success of our for-purpose partners, and it is this philosophy that has guided us through 15 years of impactful work.”
13. Strong application writing skills are required, but can be learnt.
Remember the basics—talk the funder’s language, highlight the alignment between funder objectives and your project, and do not use acronyms that the funder may not understand. In fact, presume the funder doesn’t know your organisation, or the project for which you seek funding. Reviewers are often experts in their respective fields. If your application is highly technical or specialised the reviewer may not understand the project. Your goal as a grants writer is to leave no unanswered questions in the assessor’s mind.
14. Believe it or not, some of our funder friends have told us that it is not uncommon for them to hear about significant organisational changes through a third party, and not from the beneficiary directly.
Funders want to hear directly from their partners, not from third parties. Keep them informed whether it be successes, challenges, or staff changes. They are major stakeholders of your organisation, and they want to hear directly from you! Strong, communicative, and respectful relationships are the cornerstone of so many aspects of life and the for-purpose sector, and funder partnerships are no different. Your donors are, quite literally, invested in your success and they want to celebrate your wins and support you in your challenges. By leveraging your monitoring, evaluation and reporting, using both data and stories to communicate your outcomes, you can become a fantastic steward who enjoys ongoing, successful funder relationships.
15. There has never been a better time to be a fundraiser.
With Philanthropy Australia’s blueprint to double structured giving to $5 billion by 2030, to record-breaking attendances at peak body events such as Fundraising Institute Australia and Fundraising & Philanthropy conferences, to giving finally back to pre-pandemic levels (JB Were NAB Charitable Giving Index 2023) it’s clear that fundraisers and philanthropists alike are more devoted than ever. Invest in your own professional development (it is your career after all) and advocate for professional development and training within your organisation. Continue to engage in the sector and engage your funding partners.
Thank you
We are filled with pride for what we have accomplished together as a community and excited for the many years of collaboration and impact that lie ahead.
From the invaluable conversations we have been privileged to have with thousands of passionate fundraisers, to the deep learnings from our discussions with funders near and far and the countless opportunities to share our knowledge and expertise through training, conference presentations and one-on-one chats with our clients, we are truly grateful. Thank you.
2024 marks 15 years of Strategic Grants. You can find out more about the Strategic Grants team here.