By Shane Thacker
So far in this series we have learned that preparation is key to getting technology funding, whether for a project or for modernizing the nonprofit. Assessment, planning and finding the right funding resources are all aspects of the search for funding that cannot be ignored.
However, there is one action to which the others lead; one thing that will almost always be necessary for an organization looking for specific funding for technology: They're going to have to ask for it. How they ask may be the most important part of the process.
In a time when computers seem necessary for almost everything, funders most sympathetic to tech funding requests i.e., those funders that offer specific funding for technology are going to get flooded with proposals for grants. Other funders, who may not offer specific funding for technology, but may be sympathetic to the nonprofit's cause, may not necessarily understand the technology behind the proposal and be reluctant to fund it.
In order to find out what nonprofits can do when they are asking for technology funding in order to maximize their chances of being noticed, we talked to somebody with experience in reviewing those proposals: Michele Cavataio, Senior Director, Corporate Relations at America Online (AOL).
Cavataio has been reviewing applications for a large part of her career, first for the United States Department of Commerce's Telecommunications and Information Infrastructure Assistance Program (TIIAP) which gave out more than $17 million last year and later at AOL. During that time she has formulated a list of proposal dos and don'ts for any nonprofit that wants to make a funder's decision a little easier. While the list can change, the principles on which it is built do not.
First the dos:
Add interesting technology components to proven ideas
For a lot of funders, funding for cutting edge technology isn't immediately attractive, Cavataio says. Most are going to want to see how the nonprofit is using technology to be innovative in fulfilling its mission.
One way to do that, Cavataio says, is to look at tried-and-true methods of delivering your services that you know work, and then asking how technology can make them better. One example is telementoring where mentoring is combined with the ability to telecommunicate. Funders have seen mentoring projects before and may be excited by the prospect of using technology to extend a classic technique.
While it is easy to get excited about the new technology that seems like it will make your organization better, faster and stronger, funders don't necessarily want to just hear about the technology. They're going to want to know what you are planning to do with it. A good idea using old technology will trump a nebulous idea using the cutting edge.
Know how you fit into past and current projects
Research, research, research. Research can help nonprofits know where they stand before their lack of funding tells them.
It is important, Cavataio says, to show that you are aware. That means aware of other nonprofits who may be doing the same thing, aware of how your project will fit into the context in which you are working, and aware of the complexity of the project.
Funders are less likely to fund your effort if you are simply latching on to a hot idea and doing the same thing everyone else is doing, Cavataio says. One example in the 1990s has been community technology centers, which aim to help those with little access to technology to become a part of the wired world.
While community technology centers are a great idea something, in fact, that AOL is quite concerned with in its efforts to help close the digital divide the onus remains for the organization seeking funding to explain why their particular center is a great idea.
If the center isn't innovative in some fashion that differentiates it from other centers, then it will be less likely to be funded, Cavataio says. Knowing how to present that difference is a matter of research. Innovation may be as simple as putting a center where none other exists or as complex as setting up a jobs program for the homeless.
Involve a team
Unless you're in the luckiest organization in the world, there is probably someone in your community that knows the technology for which you are trying to get funding better than your organization does. Perhaps they know better how to explain the technology, or where to get funding for the project, or how to get the project started.
Any way that might be, one task that any nonprofit applying for funding might want to put into their schedule is finding that person or organization and asking them to help. Not only will it bring extra expertise and a fresh outside viewpoint, but funders like to see that people can agree the project is worth doing in its present form.
So how do you choose the right partner? Look for one that complements your organization. One of the most useful kinds of people to have around, says Cavataio, is that rare person who knows the technology inside out, yet can explain it in plain English (or whatever language is appropriate).
If the project is youth-related, involve young people
Funders appreciate the ability of an organization to actually benefit the population at which a project is aimed. It helps to bring up at the first how the project will benefit that population by actually involving them, Cavataio says.
For instance, running a technology center for children from an economically-disadvantaged neighborhood is a good end in itself. However, including those same young people in the project from the beginning, or in running the center, or in setting up the computers adds ways in which the clientele can benefit from the center.
Since many foundation have specific causes to which they can give, it helps to see in just how many ways your project can benefit that cause.
Have a good evaluation plan
As with many other kinds of projects, technology-related or not, funders like to see a good evaluation plan in place. In a time of "venture" hands-on philanthropy, evaluation becomes even more important. Organizations want to see some sort of results for their money.
Cavataio suggests that this aspect of a project is so important that organizations might want to budget 10 percent of the total proposed funds for it. Nonprofits that can plan for a continuing evaluation show a long-term thinking that is good in any endeavor.
Technology is not an unequivocal good in and of itself. It should be part of your organization and its mission, and as such should be evaluated just like every other part of the organization.
Anticipate training, breakdowns and obsolescence
Along with evaluation, another of the most important ways that an organization can show it is serious and prepared for a grant is for it to anticipate some of the intangibles when making its proposal.
"Nonprofits need to go beyond talking about hardware and software when they make their proposals," Cavataio says.
Going beyond the equipment allows the proposal to address such needs as training, maintenance and time.
New technologies will almost always require staff training to integrate it fully into the operation and take full advantage of its capabilities. Machines will require maintenance, which means a portion of the budget set aside for equipment and personnel, as well as contingency plans for downtime. Finally, time will pass and advances in technology will continue, at seemingly breakneck speed, eventually rendering that "cutting edge" technology absolutely obsolete.
"Nonprofits applying for technology funding need to ask themselves the question, 'What is this project going to look like in three years?'" Cavataio says. "They need to plan to spend money."
The way to do that is to include a realistic budget, Cavataio says, that includes all of the items for which you are likely to need money. Funders want to see that an applicant has thought out what resources their project will require, even down to what the applicant may have to provide themselves.
Be direct and follow guidelines
Of all of the recommendations mentioned above, this one may be the most important to the success of your proposal, Cavataio says. After all, if the writing, style and lack of structure obscure the message behind the proposal, how is a funder going to know that you have a great idea and a good plan to pull it off?
Cavataio recommends that any proposal be as clear as possible. Clarity permits the funder to spend their time thinking about your ideas, rather than trying to decipher what you are trying to say.
If the funder has particular guidelines, follow those guidelines. They were established for both the funder's and the applicants use, allowing communication between them to be structured.
Know how to explain, in clear language, what you are planning. Putting together a plan beforehand helps, since it tends to force the organization to state the technology in a manner more than one person can understand.
For technical projects, don't be afraid to go into detail. In fact, Cavataio recommends it, since most funders are going to want to know that you understand what you are doing.
Make sure the proposal is related to your mission or to a goal. Just asking for new computers probably won't cut it, but asking for new computers so you can provide a service might, particularly from a funder concerned with that mission.
Finally, don't be afraid that the proposal will trap you into a project that has no flexibility. A good relationship with a funder can work wonders.
"AOL is very supportive when nonprofits have to make changes or have problems," Cavataio says. "We stay very involved during the entire process."
AOL provides services for its grantees like hosting online discussions, providing a support network for the nonprofits receiving their funding, Cavataio says.
Cavataio also has some don'ts for organizations seeking funding:
Don't focus on your tech being cutting edge; focus on the outcome
Odds are, particularly with a technology-oriented funder, an organization isn't going to impress by talking about the "cool" tech that they will be using to accomplish their goal. They've probably already heard of it, may be using it, and may very well know why you shouldn't be using it.
Focus on the outcome instead, Cavataio says. Mission-oriented funders want to see that your nonprofit can relate its technology needs to that mission as well. It's not good enough to walk in and use the latest buzzwords; funders want to know what you are planning to accomplish. After that they'll decide whether to pay for the tech.
With that in mind, it's important to relate the level of technology you want (and, hopefully, need) to the goal. "With this, we'll be able to do this" is a good way of relating tech needs to outcomes.
Don't request funding for basic operating activities (fold into other requests, think of it as an operating expense)
This recommendation centers around one of the most contentious questions in the funding world. How can nonprofits get money for simple operating expenses rather than projects?
Well, the answer for tech funding is the same as the answer for most other grants: You often won't be able to.
However, take heart. It is important to remember that this situation really isn't much different than most of the rest of nonprofit funding. How do you get money for operating expenses normally?
In the case of new technology, the answer may even be simpler than asking the same question about, say, desk chairs. It is easier to relate a new computer to your mission or to a project goal than it is to do the same with a place to sit, even though both are required tools.
Cavataio recommends two possible courses for operational technology funding: folding it into project-oriented grants or simply treating it as another operating expense.
Folding operational technology into a project-oriented grant is helped by the nature of most of the technology nonprofits would be using. Computers, most software, even phone equipment can be used for more than just a single project, so if a nonprofit can find funding for project technology that is also useful for day-to-day operations, good for them.
However, some things just aren't going to be relatable to specific projects. If so, then ask where the organization usually gets operational funding. If from contributions, then that organization may just have to deal with spending the money, if they think they will get a positive return.
If the nonprofit is already getting operational funding from a particular funder, though, think about asking them. Most nonprofits are projects, in a broader sense, in that they have goals and ways of accomplishing them. Sometimes, Cavataio says, a relationship with a funder that recognizes the nonprofit as a kindred project will be just as valuable to technology needs as the more technology-oriented funders.
When putting together a proposal for technology funding, remembering a few simple things will help an organization's chances greatly, Cavataio says.
Start with a good idea. AOL particularly likes to fund innovative ideas, Cavataio says, even going so far as to simply ask organizations to send in concept letters that described those ideas during one funding round.
Research that idea to see if others are doing it, and to see what it would take to do it. How does the idea fit into the world and into the nonprofit?
Ask yourself if bringing in partners would help. Partnerships and networks are becoming the way to do business in the new economy. If they're working for people who are making millions, can they work for you?
Describe the idea clearly. Clarity is a virtue, particularly when dealing with funders that may not be privy to the thought processes of your organization and with reviewers who have to read through large quantities of applications for funding.
These steps should help any organization in its quest for funding.
Of course, in order to make a proposal, it's good to have some idea of where to make it. As the Tech Funding series continues, we will begin looking at resources that can help you fill specific technology needs.
This article is the fifth in a continuing PNN series on technology funding. If you have any questions, comments or suggestions, please contact Shane Thacker at shanethack@mindspring.com or (919) 899-3746.
