Grant Writing Funder Prospect Research 2 — Questions and Answers
Question 1: Which database is most widely used by nonprofit professionals for foundation prospect research in the US?
- Foundation Directory Online (Candid) (Correct answer)
- LexisNexis Academic
- Salesforce NPSP
- IRS e-File Portal
Correct answer: Foundation Directory Online (Candid)
Foundation Directory Online, now part of Candid, is the premier database for searching US foundation grants and giving history.
Question 2: What does a foundation's 'geographic focus' restriction mean for a grant seeker?
- The foundation only funds organizations headquartered in specific locations (Correct answer)
- The foundation requires travel reimbursement for site visits
- The foundation funds only international projects
- The foundation requires projects to be conducted online
Correct answer: The foundation only funds organizations headquartered in specific locations
Geographic focus restrictions limit eligibility to organizations or projects located within a funder's designated service area.
Question 3: A funder's 990-PF form is valuable for prospect research primarily because it discloses:
- All grants awarded, including recipient names and amounts (Correct answer)
- The foundation's investment portfolio details only
- Staff salary negotiations
- Pending litigation against the foundation
Correct answer: All grants awarded, including recipient names and amounts
The 990-PF lists all grants made by a private foundation in a given tax year, including grantee names, purposes, and dollar amounts.
Question 4: When a foundation states it does NOT accept unsolicited proposals, a grant seeker should:
- Seek an introduction through a mutual connection or board member (Correct answer)
- Submit a letter of inquiry anyway to test their interest
- Send a cold email proposal with a compelling executive summary
- Wait until they post an open RFP
Correct answer: Seek an introduction through a mutual connection or board member
Foundations that don't accept unsolicited proposals typically fund through invitation only, so a warm introduction is the best pathway.
Question 5: Which of the following is an indicator that a corporate foundation is a strong prospect for your organization?
- Their employees volunteer in your community and the company has a local office (Correct answer)
- The corporation is publicly traded on the NYSE
- Their annual revenue exceeds $1 billion
- They sponsor a national sports team
Correct answer: Their employees volunteer in your community and the company has a local office
Corporate funders often prioritize communities where their employees live and work, making local presence and volunteer ties strong alignment signals.
Question 6: What is 'due diligence' in the context of funder prospect research?
- Thoroughly vetting a funder's history, values, and past giving before applying (Correct answer)
- Submitting your application before the deadline
- Reviewing your own organization's financials
- Completing required grant reporting forms
Correct answer: Thoroughly vetting a funder's history, values, and past giving before applying
Due diligence means carefully investigating a funder's track record and priorities to confirm they are a genuine fit before investing application resources.
Question 7: A grant seeker notices a foundation has dramatically increased its giving to climate organizations over three years. This trend suggests:
- The foundation's priorities have shifted toward environmental issues (Correct answer)
- The foundation is planning to shut down soon
- The foundation is diversifying away from its core mission
- Climate grants are mandated by federal law
Correct answer: The foundation's priorities have shifted toward environmental issues
Tracking giving trends over multiple years reveals shifts in a funder's strategic priorities that can signal new funding opportunities.
Grant Writing Funder Prospect Research 2
Which database is most widely used by nonprofit professionals for foundation prospect research in the US?