One of the axioms of non-profit fundraising is to not bother with the smaller grants. Set your threshold at $25,000 (or higher) to make it worth the development team’s time.

 But in my experience, cultivating and applying to interested small family foundations–who typically award between $5,000 and $40,000 to an organization during a grants cycle, can be a worthwhile strategy. Family foundations are usually extremely mission-driven, reflect the interests of the founders, and can be loyal funders once you build trust and demonstrate success. Some of the grants I have been proudest to receive have been from smaller foundations such as The Morris Stulsaft Foundation and The Barrios Trust. With those funders, I know they have considered the impact of their work, researched what their grantees are about, and have made their grants very intentionally.

Here are some reasons why working with family foundations has worked for me (and may work for you too):

• Family foundations are loyal funders, committed to their causes.
• They often have less paperwork to apply, and less onerous grant reporting.
• They are relationship-driven and will take the time to visit and get to know you.
• Once they get to know you, they may make larger gifts.
• There are an infinite number of family foundations, so the opportunity to connect is broad.

If you want to approach family foundations for grants in the $10,000-$20,000 range, here are some steps for your strategy:

• Create a templated case study for a program you’re seeking support for and a draft budget of what it will take to operate.
• Research and find family foundations that fund to address the problems your program aims to solve.
• Check if they are active and giving out money. Is there a grants cycle on their website? Does their latest 990 show they disbursed funds?
• Understand their application process. Do they have scheduled dates or rolling submissions? Are they invite-only?
• See if you already have a connection. Does the foundation have a board member someone in your network might know? Is the administrator someone you’ve worked with before? (Family foundations often hire experts to help administer their work.)
• Plan some outreach. Rather than submit cold, send a letter to family members or administrators, briefly outlining why you could be a match. If you need an invite to apply, this can help get one.
• Once you have prospects, create a funding calendar to manage your applications. Get to work using your template and draft budget.

Be prepared to submit:

• Copies of your IRS letter
• An overall organizational budget
• Information about your board
• Annual reports

After applying:

• Follow up to ensure you get a response. Family foundations can delay decisions due to transitions. Stay on top of timing.
• If funded, start building the relationship with an appreciative note.
• If not funded, see if you can get feedback to strengthen a future application. It’s common to not get the first request, but that doesn’t mean a future one wouldn’t be granted unless you’re not aligned with their strategy.

Here’s how to decide if a family foundation is not a fit:

• The organization is not aligned with your mission and does not fund your area of focus.
• The application is overly burdensome compared to the potential amount.
• The potential amount is too small to justify the effort. Assess your needs.
• The process is opaque—a sign they mainly support existing friends/colleagues.
• The timing doesn’t work, like a deadline next week.

Researching and cultivating a portfolio of family foundations has benefited my organization. Platforms like GuideStar, and The Foundation Directory, as well as others, can support your research. With programs aligning with their goals and data to back up requests, this funding approach can pay off.

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