What are best practices when establishing a new 501c3 funding arm for an existing nonprofit?
I'm working with a nonprofit in "Start-Up" mode that has actually been established for about ten years, but is now seeking new sources of funding (they were primarily funded by a single donor). Now that we've applied for a separate 501c3 as a "Friends Of (name of nonprofit)", what are our best practices for explaining this when applying for grants? Is it just a statement inside the body of the application? Because essentially it's the same group, but we're using one to fund the other as our previous designation did not allow for Government or Foundational grants...
Thanks so much for your time, keep fighting the good fight...
Best Answer
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@JoshMcKinley I'm curious what others think, but I suspect you're first government and foundation grants will come from funders that are also foccused on the problems your larger organizaiton is addressing. They may already be aware of the change, and why you made it. But if not, why not use this as a chance to reach out to them? Approaching funders outside the grant cycle to let them know about changes in an issues/area/topic they are focused on may be appreciated. And it gives you a chance to tell your story.
If you don't already, I would also have some answers to "why a new nonprofit?" and other FAQs ready. In addition to adding it to your website you can use it in written proposals to foundations and government. You could even mention the url (www.myorganization.org/faq) in text of a proposal for people who want more info.
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Answers
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@JoshMcKinley I'm curious what others think, but I suspect you're first government and foundation grants will come from funders that are also foccused on the problems your larger organizaiton is addressing. They may already be aware of the change, and why you made it. But if not, why not use this as a chance to reach out to them? Approaching funders outside the grant cycle to let them know about changes in an issues/area/topic they are focused on may be appreciated. And it gives you a chance to tell your story.
If you don't already, I would also have some answers to "why a new nonprofit?" and other FAQs ready. In addition to adding it to your website you can use it in written proposals to foundations and government. You could even mention the url (www.myorganization.org/faq) in text of a proposal for people who want more info.
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Thanks so much, this is exactly what I needed!
Appreciate the help, and enjoy your week...
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