FREE Grant Writing Funder Prospect Research Questions and Answers

Question 1

When analyzing a private foundation's Form 990-PF for prospect research, which section provides the most direct insight into its specific funding priorities and giving patterns?

Accepted Answer

The complete list of grants and contributions paid during the year.

Answer

The complete list of grants and contributions paid is the most valuable section for a grant writer, as it shows exactly which organizations were funded, the amount of each grant, and often the purpose of the grant. This provides concrete evidence of the foundation's actual funding behavior, beyond the general mission statement.

Question 2

A nonprofit focused on local after-school arts programs is researching a foundation. The foundation's website states a broad mission of 'supporting youth development.' Which of the following is the grant writer's BEST next step to determine if this funder is a strong match?

Accepted Answer

Analyze the foundation's past grantees and the average size of their grants.

Answer

The most effective next step is to research the foundation's giving history. Analyzing who they have funded in the past and the typical grant amounts will reveal if they have a history of supporting arts programs specifically and if their funding levels align with the nonprofit's needs. This research ensures the application is targeted and well-aligned with the funder's actual priorities.

Question 3

Which of the following is the primary goal of funder prospect research?

Accepted Answer

To create a list of potential funders whose giving priorities align with the organization's mission and programs.

Answer

The core purpose of prospect research is to identify and qualify funders who are most likely to support the organization's work. This involves finding a strong alignment between the funder's stated mission and past giving history and the nonprofit's own mission, goals, and specific needs.

Question 4

A grant writer discovers a foundation that has funded a very similar organization in the same city for the past three years. What is the most prudent interpretation of this finding?

Accepted Answer

It could be a positive or negative sign, and further research into the relationship and the grantee's performance is needed.

Answer

This situation requires more nuance. While it shows the funder is interested in the cause (a positive sign), it could also mean they have that niche filled. The best approach is to investigate further. If the current grantee is performing well, the funder may be unlikely to switch. However, if there are issues or the funder is looking to expand its portfolio, there could be an opportunity.

Question 5

When beginning the prospect research process, what is the recommended first step for a grant writer?

Accepted Answer

Creating a detailed list of the organization's funding needs and specific projects.

Answer

Before searching for funders, it is essential to have a clear and detailed understanding of what the organization needs money for. Creating a 'needs list' with specific projects, programs, and capacity-building goals allows the grant writer to search for funders whose priorities match those specific needs, leading to more efficient and effective research.

Grant Writing Practice Test

Grant Writing Practice Test

FREE Grant Writing Funder Prospect Research Questions and Answers