Grant Writing FREE Grant Writing Funder Prospect Research Questions and Answers 2

Question 1

Which database is most commonly used by U.S. nonprofit professionals to research foundation giving histories and application guidelines?

Accepted Answer

Foundation Directory Online (Candid)

Answer

Foundation Directory Online, now part of Candid, is the leading database for researching U.S. foundation grants, trustees, and giving patterns.

Question 2

When conducting prospect research on a potential corporate funder, which financial document provides the most insight into their philanthropic priorities and community investment areas?

Accepted Answer

Annual report

Answer

Annual reports typically include dedicated sections on corporate social responsibility and community giving priorities that reveal philanthropic focus areas.

Question 3

What is the primary purpose of reviewing a foundation's IRS Form 990-PF during prospect research?

Accepted Answer

To verify the foundation's grant amounts, recipients, and officer compensation

Answer

Form 990-PF discloses a private foundation's grants paid, grant recipients, assets, and officer/trustee compensation, making it essential for prospect research.

Question 4

A grant writer discovers that a target foundation has given 80% of its awards to organizations within a 50-mile radius of its headquarters. What does this pattern indicate for prospect qualification?

Accepted Answer

Geographic giving preference should be a primary screening criterion

Answer

A strong geographic concentration in past giving indicates the foundation prioritizes local impact, making proximity a key qualification factor.

Question 5

Which prospect research technique helps identify whether a potential funder's board members have personal connections to your organization's cause?

Accepted Answer

Linkage, ability, and interest (LAI) analysis

Answer

LAI analysis evaluates a prospect's linkage (connections to your organization), ability (financial capacity), and interest (alignment with your mission) to prioritize cultivation efforts.

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing FREE Grant Writing Funder Prospect Research Questions and Answers 2