Grant Writing Funder Prospect Research 4 — Questions and Answers
Question 1: When building a prospect research spreadsheet, which data field is LEAST useful for prioritizing applications?
- The foundation's year of incorporation (Correct answer)
- Average grant size
- Application deadline
- Stated funding priorities
Correct answer: The foundation's year of incorporation
The year a foundation was incorporated has no bearing on whether it's a good prospect or how to prioritize your application efforts.
Question 2: A funder's Request for Proposals (RFP) specifies that they fund 'capacity-building' projects. Which project would be the strongest fit?
- Hiring a development director and upgrading donor database software (Correct answer)
- Providing direct services to 500 low-income families
- Conducting a one-time community health fair
- Purchasing a new van for food delivery
Correct answer: Hiring a development director and upgrading donor database software
Capacity-building grants specifically fund improvements to an organization's infrastructure and operational effectiveness, not direct service delivery.
Question 3: Which search strategy best identifies corporate giving programs that are NOT foundations?
- Reviewing a company's corporate social responsibility (CSR) report and website (Correct answer)
- Searching the IRS Tax Exempt Organization database
- Reviewing Foundation Directory Online listings
- Searching Grants.gov for corporate funders
Correct answer: Reviewing a company's corporate social responsibility (CSR) report and website
Many corporations give directly through CSR programs rather than through a separate foundation, so their company website and CSR reports are the primary source.
Question 4: What is the purpose of the 'five-point fit test' in prospect research?
- To score alignment between your project and a funder's mission, geography, population, funding level, and timing (Correct answer)
- To test whether your grant writing team has the right skills
- To evaluate five competing funders and pick the best one
- To ensure your budget matches exactly five line items
Correct answer: To score alignment between your project and a funder's mission, geography, population, funding level, and timing
The five-point fit test assesses whether a prospect aligns with your work across the dimensions most likely to determine eligibility and success.
Question 5: A foundation's website says 'by invitation only — we reach out to grantees proactively.' What is the best response for a grant seeker?
- Track the foundation's interests closely and look for relationship-building opportunities over time (Correct answer)
- Submit a proposal anyway since foundations often say this but still review unsolicited requests
- Send a brief email asking to be added to their invitation list
- Remove them from your prospect list permanently
Correct answer: Track the foundation's interests closely and look for relationship-building opportunities over time
Invitation-only funders typically develop relationships over time, so building visibility through networks and events is the right long-term strategy.
Question 6: USASpending.gov is primarily used in prospect research to:
- Analyze past federal grant awards to identify relevant agencies and programs (Correct answer)
- Submit federal grant applications
- Search for foundation giving history
- Find corporate sponsorship opportunities
Correct answer: Analyze past federal grant awards to identify relevant agencies and programs
USASpending.gov tracks all federal spending including grants, allowing researchers to identify which agencies fund work similar to theirs.
Question 7: When a foundation's IRS 990-PF shows 'investment income' of $2 million but total grants of $150,000, this likely indicates:
- The foundation is significantly under its 5% payout requirement and may increase giving (Correct answer)
- The foundation is about to close due to financial mismanagement
- The foundation is not required to follow payout rules
- The foundation reinvests all income and never grants
Correct answer: The foundation is significantly under its 5% payout requirement and may increase giving
A large gap between investment income and grant distributions may signal that the foundation is building assets or will need to increase grantmaking to meet IRS requirements.
Grant Writing Funder Prospect Research 4
When building a prospect research spreadsheet, which data field is LEAST useful for prioritizing applications?