Representatives from over 100 nonprofit organizations attended a presentation (including a panel discussion) on how Toledo area funders are responding to the economic crisis.  The session was moderated by George Espy, President of the Ohio Grantmakers Forum.  

Pam Howell-Beach, Stranahan Foundation – The Stranahan Foundation’s endowment has gone from over $100M to approximately $70M.  As a result, it is expected that the Foundation’s grantmaking will total $3.5M this year (compared to $5M last year).  Ms. Beach further indicated that they are putting a hold on receiving applications from any organization with which they are not already in relationship.

Keith Burwell, Toledo Community Foundation – TCF’s assets have fallen from approximately $150M to $100M.  However, they calculate their grantmaking based on a 20 quarter rolling average, which will mitigate the immediate impact on their grants budget.  In fact, it is expected that the Foundation’s grant making will be up slightly this year. 

Karen Fraker, Fifth Third Bank – Ms. Fraker reported that the Bank’s Foundation, which traditionally makes $150 - $200K in grants annually, will not be making any grants this year (except for its annual contribution to the United Way).

Peter Gerken, Lucas County Commissioner – Commissioner Gerken reported that Lucas County has the highest unemployment rate in the state.  In addition, over 50% of the county’s population lives at or below 200% of the poverty level.  Sales tax revenues are down 10.2%.  As a result, some county employees are being laid off.  In addition, the county is bracing for an anticipated $4M reduction in TANF funding.  Previously, the county had provided $250,000 is general grants to local nonprofits.  However, they have not been able to do so for the past two years.

Bill Kitson, United Way of Great Toledo – United Way’s most recent campaign raised $13.5M (toward a goal of $15M).  This is down 7% from last year.  As a result, they are anticipating a 5% reduction in the allocations that will be made this year.  This will translate into a continued narrowing of United Way’s focus.  Mr. Kitson also stated that United Way supported programs are noting a surge in requests for services, including those provided by 211, the Salvation Army and the Family & Child Abuse Prevention Service.

What funders are doing from a grantmaking perspective:

• The United Way and the Toledo Community Foundation have (with commitments of $100,000 each) jointly established the Safety Net Fund, which will provide grants in support of basic needs in the community.  Details regarding the application process will be forthcoming.  This fund will, however, sunset at the end of 2009.

• The Stranahan Foundation has started to provide limited general operating support (up to $25,000) for some of its current grantees.  Toledo Community Foundation is willing to consider gen. op. on a case-by-case basis.      

• The County is actively pursuing federal funds to address one of the most pressing needs in the community – the foreclosure issue.

• The Toledo Community Foundation is asking more critical questions of its grantseekers.  It is also less likely to support capital campaigns given current conditions in the sector.  

Tips for grantseekers:

• Be realistic and honest in terms of your request.  Now is not the time to be submitting requests that contain non-essentials. 

• There most likely will need to be some consolidation in the nonprofit sector.  Agencies will need to partner, or in some cases even merge.  Make use of available resources to foster these relationships.  For example, the Strategic Alliance Partnership (a joint project of The Stranahan Foundation, Toledo Community Foundation and United Way) provides grants to help organizations explore collaboration – ranging from joint ventures to mergers.

• Whenever possible, present a funding plan that will leverage addition support from other sources.  Moreover, diversify your funding base.  Remember:  80% of an established nonprofit’s funding should come from internally generated sources, only 20% should come from grants.

• Be creative and ahead of the curve.  Anticipate the needs of your constituencies.  The funding process will continue to become more competitive.  Those who present a legitimate plan and make the first ask in regard to a community need will most likely be the one that is funded.