Advice for Approaching Corporate Grant Makers During Tough Times

Fund raisers can expect a much tougher time winning grants from companies this year and next, according to a new Chronicle of Philanthropy survey. Seventy-three percent of the country’s largest corporations estimate that their donations will remain flat or decrease this year, according to the study, which looked at giving by 85 of the 150 largest American businesses.

Even in an economic downturn, though, some approaches can work and others fall flat. Among the tips offered by corporate leaders and fund-raising experts:

Look to bright spots in the economy. Some types of businesses — energy companies, law firms, accounting practices among them — may be thriving despite hard times elsewhere, says Steve Meyerson, a Washington fund-raising consultant.

Other companies may be poised to bounce back. “Everything is a cycle and we need to be positioned for the rebound,” he says.

Focus on relationships. It may not be a good time to seek out new donors, but an economic slowdown can provide an opportunity to strengthen relationships with past supporters. Remind corporate executives about the charity’s work and the impact of the company’s past grants.

Even if the company can’t offer support immediately, says Mark Shamley, president of the Association of Corporate Contribution Professionals, in Mt. Pleasant, S.C., the charity that maintains a relationship with a past donor might be the first to benefit when the economy improves.

Think beyond cash. Consider asking a company if its employees might provide pro-bono assistance. Says Mr. Meyerson: “That can appeal to a company that’s feeling bad about turning down nonprofits.”

He also recommends asking for smaller amounts of money in combination with employees’ volunteer time.

Communicate results. Corporate leaders want to see that their money will have an impact. The Verizon Foundation, in Basking Ridge, N.J., for example, recently retooled its grant making and now requires most grantees to complete progress reports every six months.

Says Nancy Williams, the fund’s national program director: “We’re asking ourselves three questions: What are we buying? What are the chances we’ll get it? and Is this the best possible use of our money?”

Don’t use the economy as a crutch. The downturn, or the fact that another donor abandoned a charity, won’t be enough to win support from others. “We need rationale, and one that isn’t simply, economic times are more difficult now,” says Gil Llanas, director of foundation and community relations with Northwestern Mutual Life Insurance, in Minneapolis.

Conduct research on the company’s philanthropic interests and financial health. Most companies aren’t changing their giving priorities as a result of the poor economy. “Our grant making is consistent regardless of the economic situation,” says Ms. Williams. “Do your homework on what the donor is looking for.” Like many corporate foundations, Verizon provides detailed information on its Web site about the types of charities it supports. Adds Timothy J. McClimon, president of the American Express Foundation, in New York: “As part of your homework, you have to find out if the funder still has the same budget and resources to meet your request.”

Acknowledge donors. Corporations have a greater need for visibility than do foundations and individuals, says Mr. McClimon. “I often say that if I have to put on my reading glasses to read an acknowledgement, it’s not big enough,” he says.

Look beyond the company’s leader. Chief executives are even more strapped for time during an economic slowdown, says Mr. Meyerson, so they are less likely to serve as chair of a charity’s fund-raising campaign. Consider asking the chief executive’s spouse, or other employees at the company, to chair a campaign instead.

Pursue meaningful grants. Companies narrow the focus of their philanthropy during tough times, so small grants to fund-raising events that have little to do with a company’s philanthropic or business goals are often the first to go, says Mr. Shamley. He says: “If you walk into a room and all you have is a sponsorship for a dinner, you’re not likely to get funded.”

Don’t be a pest. While it’s good to be persisent, says Mr. McClimon, don’t go overboard. If a company says its grant-making budget has been cut or it has already awarded grants for the year, don’t bug it again the next week.

Be empathetic. Fund raisers shouldn’t try to persuade a corporate executive that his or her company’s plummeting stock is not that big a deal, says Mr. Meyerson. “Right away,” he says, “you’ve turned somebody off.”