Grant Writing Funder Prospect Research 5 — Questions and Answers
Question 1: Which factor distinguishes a 'cold prospect' from a 'warm prospect' in funder research?
- A warm prospect has an existing relationship with your organization or a mutual connection (Correct answer)
- A warm prospect has a higher grant award average
- A warm prospect has funded you before and requires no new application
- A warm prospect is a newer foundation with less competition
Correct answer: A warm prospect has an existing relationship with your organization or a mutual connection
Prospect 'temperature' refers to the strength of your relationship with the funder, not funding history or award size.
Question 2: A foundation's annual report is valuable for prospect research because it typically includes:
- Narrative descriptions of funded projects and funder priorities for the year (Correct answer)
- Audited financial statements required for your own application
- A list of declined applications
- Staff contact information for program officers
Correct answer: Narrative descriptions of funded projects and funder priorities for the year
Annual reports often feature stories of funded work and board messages that reveal a funder's evolving values and strategic priorities.
Question 3: What is a 'suspect' in the prospect research pipeline?
- An unvetted potential funder that appears promising but has not yet been researched for fit (Correct answer)
- A funder who has previously denied your application
- A foundation under IRS audit
- A funder who requires references from prior grantees
Correct answer: An unvetted potential funder that appears promising but has not yet been researched for fit
In fundraising pipeline terminology, a suspect is an unqualified lead — it needs research to determine whether it becomes a true prospect.
Question 4: When a funder's guidelines say they fund '501(c)(3) organizations only,' an organization with 501(c)(4) status should:
- Partner with a 501(c)(3) fiscal sponsor to apply on its behalf (Correct answer)
- Apply anyway and note their tax-exempt status
- Request a legal exemption from the IRS
- Submit proof of their social mission to qualify
Correct answer: Partner with a 501(c)(3) fiscal sponsor to apply on its behalf
A 501(c)(4) organization can access funding requiring 501(c)(3) status by partnering with a qualified fiscal sponsor.
Question 5: Which of the following best describes 'prospect cultivation' after initial research is complete?
- Building a relationship with the funder through site visits, updates, and strategic communication before applying (Correct answer)
- Sending the completed grant application to multiple funders simultaneously
- Researching additional prospects to expand your pipeline
- Updating your prospect database with new 990-PF data
Correct answer: Building a relationship with the funder through site visits, updates, and strategic communication before applying
Cultivation is the relationship-building phase between identifying a prospect and submitting an application, aimed at warming the connection.
Question 6: A community foundation posts a competitive grant cycle open to all local nonprofits. Which prospect research step is MOST critical before applying?
- Reviewing recent grant awards to identify which program areas received funding (Correct answer)
- Confirming the foundation was established before your organization
- Verifying the foundation's assets exceed $10 million
- Checking whether any board members attended your last event
Correct answer: Reviewing recent grant awards to identify which program areas received funding
Analyzing recent awards reveals which program areas and project types the foundation has actually funded, helping you assess true competitive fit.
Question 7: When tracking prospects in a grants calendar, which information is MOST critical to record for each funder?
- Application deadline, expected decision date, and required submission format (Correct answer)
- The foundation's total endowment value and year established
- Names of all staff who have previously contacted the funder
- The funder's social media follower count
Correct answer: Application deadline, expected decision date, and required submission format
Deadlines, decision timelines, and submission requirements are the operational essentials that determine how and when you take action on each prospect.
Grant Writing Funder Prospect Research 5
Which factor distinguishes a 'cold prospect' from a 'warm prospect' in funder research?