Today I read an article about the importance of challenge grants by Michael Kaiser, CEO of The Kennedy Center for the Performing Arts on Huffington Post. He writes specifically about the arts and arts grantmaking, but his points are well taken - particularly this one:
Amen, brother. And this goes for foundations as well. Sure, there's the regular work of administering a multi-year grant and the occasional story about it in the annual report or newsletter, but foundations usually miss the boat when it comes to really tapping into their ability to share their messages and mission in a truly meaningful way with others in their community.
Kaiser says,
Obviously, a challenge grant creates a solid marketing opportunity for any nonprofit, but think of what if can also do for the foundation. A community foundation, for instance, could offer its own donor advisors the opportunity to contribute to the challenge and subsequently mobilize a corps of brand ambassadors. A private or family foundation could convene community discussions about the arts (or homelessness, or whatever the issue) during the challenge grant period to stimulate more engagement and elevate its reputation as a servant leadership organization. Corporate grantmakers could couple the challenge grant with a cause marketing opportunity, engaging customers with the nonprofit in question while promoting their own corporate social responsibility. Foundation executives of all stripes could serve on discussion panels, provide newspaper editorials, or even serve as a media resource for the issue addressed by the challenge grant.
None of these are "one-off" opportunities. They can continue throughout the life of a challenge grant.
In engaging in marketing activities of this type, the foundation wins by elevating its profile as an engaged, caring member (even leader) of the community. The nonprofit wins through increased opportunities to cultivate more donors (which is also a win for the foundation). And the community wins through greater understanding of the issues it faces and the people and organizations that are tackling those issues.
"Too many organizations that receive this first big grant build the infrastructure to support their new, increased programming without thinking about the day the grant period ends."
Amen, brother. And this goes for foundations as well. Sure, there's the regular work of administering a multi-year grant and the occasional story about it in the annual report or newsletter, but foundations usually miss the boat when it comes to really tapping into their ability to share their messages and mission in a truly meaningful way with others in their community.
Kaiser says,
"I have long lobbied foundations to make their grants to smaller organizations in the form of challenge grants. A challenge grant must be matched by other contributions, often by new gifts or increased gifts from existing donors. By forcing the organization to build a new, larger donor base during the grant period, the transition when the grant is over is eased. The foundation's money might be gone but the new donors attracted by the match help fill the void.
But many foundations simply do not want to do the oversight work required of administering a challenge grant. And if the foundation is not far-sighted enough to give a matching grant, the organization must be disciplined and smart enough to create its own challenge grant. The senior staff and board must use the grant period to build its donor base. A serious, concerted effort to attract new donors must be pursued."
Obviously, a challenge grant creates a solid marketing opportunity for any nonprofit, but think of what if can also do for the foundation. A community foundation, for instance, could offer its own donor advisors the opportunity to contribute to the challenge and subsequently mobilize a corps of brand ambassadors. A private or family foundation could convene community discussions about the arts (or homelessness, or whatever the issue) during the challenge grant period to stimulate more engagement and elevate its reputation as a servant leadership organization. Corporate grantmakers could couple the challenge grant with a cause marketing opportunity, engaging customers with the nonprofit in question while promoting their own corporate social responsibility. Foundation executives of all stripes could serve on discussion panels, provide newspaper editorials, or even serve as a media resource for the issue addressed by the challenge grant.
None of these are "one-off" opportunities. They can continue throughout the life of a challenge grant.
In engaging in marketing activities of this type, the foundation wins by elevating its profile as an engaged, caring member (even leader) of the community. The nonprofit wins through increased opportunities to cultivate more donors (which is also a win for the foundation). And the community wins through greater understanding of the issues it faces and the people and organizations that are tackling those issues.
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