Strategies for Selecting Proposals with Merit
Identifying Superior Proposals for Optimal Foundation Investment
Apr 28, 2009
Each year, foundations are inundated with thousands of requests for funding. With the economic downturn's adverse impact on their investment portfolios, it is crucial that foundation boards and managers identify those proposals that represent the wisest investment. How can a foundation determine which proposals to fund and which to deny? Here are strategies for honing in on and selecting the best recipients for limited funds.
Narrow the Field by Eliminating the Nonconformists
There are ways to reduce the pile of proposals to allow for greater attention to those with the most merit. First, scan the proposals and eliminate those that are not consistent with the foundation’s mission and guidelines or criteria. For example, if the foundation’s mission is to reduce the incidence of childhood diseases in homeless youth in Illinois, then those grant applications that seek funds to provide shelter for the elderly in Indiana can safely be eliminated.
Identify Proposals From Known Entities with Successful Records
With limited funds, it may be wiser to invest in those organizations that are well known, with the best reputations and records of success. If the applicant is well known to the foundation and has achieved success with their past ventures, then this is a grant worth considering. These organizations are more likely to be financially and operationally stable with staff that can take grant funds and make projects a success. Conversely, an applicant with no track record or a spotty one represents more of a risk and should receive less consideration. Those organizations that are familiar, with a solid reputation and track record should be advanced in the evaluation process.
Evaluate the Proposal for Greatest Benefit at the Most Reasonable Cost
From this pool of proposals it is important to determine how many people will benefit at what cost. If an inordinate amount of money is requested to help just a few people then providing funds may not be worthwhile. On the other hand, a grant that invests a modest sum of money for services that will benefit many people may be a wise investment. Comparing the cost benefit ratio among the remaining proposals will help to identify those worthy of greater consideration.
Uniqueness
Uniqueness of approach is another element worth considering in a proposal. A unique approach to solving a need offers the foundation an opportunity to distinguish itself among its peers and for advancing the resolution of a particular problem. For example, a project that has a different approach to solving problems associated with childhood diseases, will improve the treatment of children’s health in general and the reputation of the foundation in particular.
In tough economic times, this process and these strategies offer a means for identifying the best financial bets for a foundation’s limited resources.
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