FREE Grant Writing Funder Prospect Research Questions and Answers Flashcards
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Which database is most commonly used by U.S. nonprofit professionals to research foundation giving histories and application guidelines?
Answer: Foundation Directory Online (Candid)
Foundation Directory Online, now part of Candid, is the leading database for researching U.S. foundation grants, trustees, and giving patterns.
When conducting prospect research on a potential corporate funder, which financial document provides the most insight into their philanthropic priorities and community investment areas?
Answer: Annual report
Annual reports typically include dedicated sections on corporate social responsibility and community giving priorities that reveal philanthropic focus areas.
What is the primary purpose of reviewing a foundation's IRS Form 990-PF during prospect research?
Answer: To verify the foundation's grant amounts, recipients, and officer compensation
Form 990-PF discloses a private foundation's grants paid, grant recipients, assets, and officer/trustee compensation, making it essential for prospect research.
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?
Answer: Geographic giving preference should be a primary screening criterion
A strong geographic concentration in past giving indicates the foundation prioritizes local impact, making proximity a key qualification factor.
Which prospect research technique helps identify whether a potential funder's board members have personal connections to your organization's cause?
Answer: Linkage, ability, and interest (LAI) analysis
LAI analysis evaluates a prospect's linkage (connections to your organization), ability (financial capacity), and interest (alignment with your mission) to prioritize cultivation efforts.
When building a funder prospect profile, what is the most reliable indicator that a foundation will likely fund your program area?
Answer: A consistent pattern of recent grants to similar programs and populations
A track record of recent grants to organizations with similar missions and target populations is the strongest predictor of funding alignment.