The Founding of a Foundation

Many of GrantStation's Members are intimately familiar with the process of starting up a nonprofit from scratch: the struggle of finding those important first donations, the elation of that first successful program, the effort of that first grant application. But what about the organizations on the other side of the equation, the foundations? What hurdles do they face when starting up? Understanding foundations can help other nonprofit organizations when they are applying for grants.

Recently, GrantStation had the chance to talk with Pamela Villagra, Executive Director of the Foxwynd Foundation. (GrantStation Members may access the Foundation's profile in the GrantStation funder database.) The Foundation—which was created as a legacy for the Bentley family, owners of Bentley Systems, to ensure that generations of family members would have a vehicle to make an impact—was formed in the last couple years and just recently solidified its grant application process.

The Foundation is small, currently with a staff of just two. Fortunately, Pamela was supported by a cooperative and helpful board as the Foundation was working to get started. She stressed the importance of creating a strong mission statement to guide the organization's work; the Foundation's mission went through several versions as it was fine-tuned.

Eventually, the Foundation settled on what it calls its pillars: housing, healthcare, and environmental sustainability initiatives. Pamela mentioned that within the area of housing, the Foundation has an interest in homelessness issues, as well as foster children and orphanages. In addressing these issues, Pamela said that the Foundation "takes a very upstream approach to things; we're very proactive, and we want to try to solve the problems before they happen."

In the area of healthcare, the Foundation has an interest in food security, as well as other issues that would fall under the healthcare umbrella, such as domestic violence and counseling. Pamela stated that the Foundation likes to take a holistic approach to healthcare, addressing "the whole person, the whole being."

For the area of environmental sustainability, the Foundation has an interest in "reducing carbon emissions, deforestation, trying to save endangered species, working with coral reefs, and placing a special emphasis on animal cruelty."

Pamela then returned to the Foundation's upstream approach:

I remember one of my initial meetings with a trustee. The trustee mentioned that they don't want to fund the boats that go on the ocean and skim the water of trash. We're trying to work with the landfills and prevent trash from blowing into the ocean and take a more proactive approach.

When foundations form, one huge question that greatly affects grantseekers must be addressed: Does the foundation choose to have an invitation-only application process, or does it accept applications through a competitive process? The Foundation recently switched to an invitation-only process after starting with a more open approach. Interested organizations must schedule an intake meeting to discuss their project and fit, with some of those organizations then being invited to apply. We asked Pamela for some insight:

The Foxwynd Foundation chose an invitation application process for several compelling reasons. Firstly, the process of extending an invitation allows the Foundation and the grantee to open the lines of communication and explore different areas of funding. The Foxwynd Foundation invites grantees to apply during an intake process: a 30-minute virtual meeting where the nonprofit makes their case and are asked a series of questions to ensure it's a strong fit. 
  
Additionally, the Foundation observed a positive ripple effect: When one organization is awarded a grant, it often encourages similar organizations in the vicinity to apply. This leads to a broader and more diverse pool of applicants who are already motivated and proactive in seeking support.  
  
In essence, the invite-only application process aligns with the Foundation's goal of efficiently and effectively identifying and supporting organizations that are actively making a difference in their communities.

Unlike many funders that have prospective organizations go straight to submitting an application, the Foxwynd Foundation starts with a brief intake meeting with potential applicants. Pamela gave an example of the benefits of this process:

The beauty of the intake meeting is that it's similar to a brainstorming session, where we're helping them craft a strong grant application. This call is an opportunity for our Foundation to "shop around." We may hear two to three different needs an organization may have; however, we will choose to fund the strongest alignment. Not only does this provide us with reassurance that we're funding programs inline with our mission, but it also provides high hopes for the nonprofit—knowing that the pitch has already been vetted. It's just a matter of getting it in writing.

Pamela went a little further into the Foundation's focus on being able to leverage its grants in positive ways:

We think of leverage in two different ways. One is leveraging impact. Instead of giving you the fish, let me give you the rod. A great example of this is funding for a Director of Development position, which in turn should pay for itself down the line. The other leverage is dollar-for-dollar matches. If a match entices another private foundation to fund the organization, that's an ultimate win for us. My patrons just don't want to be the lone soldier; they also don't want to fund a need entirely. They want to help nonprofits build momentum, create a movement, and help them reach their goals.

To check up on the Foundation's own momentum, we followed up with Pamela a couple of months after our initial interview to see how things were going. She shared some insights on adjustments to the Foundation's process.

She mentioned that "The Foxwynd Foundation's Board of Trustees aims to prioritize its giving to the greater Philadelphia area, while still accepting grant applications from all 50 states." They initially launched an open application process and saw a noticeable increase in out-of-state grant applications. Pamela said, "To better align with the Foundation's priorities, the number of weekly intake meetings for out-of-state applicants has been limited. Conversely, the availability for in-state intake meetings has been increased to ensure that local organizations receive the attention and support they need." The Foundation also switched to its current method of inviting applications.

Additionally, to manage the high volume of requests—most of which were being approved—the Foundation hired a Grant and Partnership Manager. Pamela said that "this new role will help streamline the application process and ensure that all requests are handled efficiently and effectively. This strategic approach allows the Foundation to maintain its focus on the greater Philadelphia area while also supporting worthy causes across the country."

No large endeavor ever hits the ground fully formed. The first couple years of a nonprofit organization or a foundation often include a steep learning curve. GrantStation would like to thank Pamela and the Foxwynd Foundation for the insight into their process. We would also like to wish their future grantees the best of luck on their grants journey.