Grant application processes differ between funders. By-invitation funders are grant-makers who directly invite organisations to apply for funding and do not accept unsolicited applications or proposals. If you’re a GEMS user, you’ll recognise these as the grants flagged in your customised grants calendar under the ‘By Invitation’ category.
For grant-seekers, ‘by-invitation’ can feel like a closed door. In reality, it often signals a funder’s focus on relationships, strategic alignment and long-term impact, making these opportunities worth pursuing.
So how can grant-seekers decide which by-invitation funders to prioritise, and how best to engage them? The answer lies in embedding prospect research into their strategy – a systematic process of in-depth analysis to confirm which funders are the best prospects, and to build a deeper understanding of what motivates them.
This blog explores how to use prospect research to build relationships with by-invitation funders and improve grant success.
Best practice in prospect research goes beyond identifying and qualifying by-invitation funders and their grants. It provides the insight needed to shape effective engagement strategies.
1. Identification
- Review the funder’s stated priorities, eligibility information and historical giving records to identify those that align with your organisation’s strategic objectives and established funding priorities.
- Remember to look beyond current grant rounds to identify by-invitation funders.
NB. By-invitation opportunities may be available ongoing by a funder, or through a specific grant round.
2. Qualification
- Further establish funder alignment, capacity, giving patterns and connections to qualify prospects.
- Review funder-related media and publications promoted by the funder or their grantees, to further understand motivations for giving, funding preferences and key features of established partnerships.
- If the funder has an ACNC record analyse their financial reports, Annual Information Statements and governing documents to find out more about their strategic focus, beneficiaries, amounts granted and giving patterns (i.e. multi-year funding, how many new organisations do they support annually, etc.).
- Identify the funder’s entity type (Private Ancillary Fund, Public Ancillary Fund, Donor Advised Fund, other philanthropic trust, Corporate Foundation, Corporate Social Investment, etc.) to understand their legal requirements for giving which may inform your engagement strategy.
- Explore professional biographies and social media (e.g LinkedIn), to delve into the individual profiles and networks of trustees – connections with these individuals can significantly support your organisation in its engagement.
NB. The Strategic Grants’ Grants Expertise Management System (GEMS) is an excellent tool to commence prospect research; it contains ACNC financial distribution data, historic funding partners AND Trustee names. You can also add your own prospecting notes against funder records in GEMS. Remember to record all relevant information and links collected through prospect research so you can efficiently refer to again. Pending your organisation’s business rules, this could be through GEMS, your CRM and/or shared filing system.
3. Engagement
- Share qualified and aligned by-invitation funders with senior leadership and your board to identify existing trustee connections, as these individual relationships can be key to establishing organisational engagement.
- If no existing connections exist, consider what the funder says publicly about how to engage them and preferred contact methods. If ‘cold’ contacting via the phone or email, utilise the intel from the prospect research conducted to show you understand the funder’s priorities and to demonstrate your organisational alignment.
- Seek an opportunity to speak with the funder to learn more about their interests and processes – remember your initial contact should never be a fully formed proposal for by-invitation funders, as they do not accept unsolicited applications.
- Collate a profile or brief on the funder (and their grant/s) utilising the prospect research already obtained to support engagement. This profile should provide a comprehensive overview of the philanthropic opportunity, key personnel and their affiliations, background information, key media and alignment with your organisation’s funding priorities. It will help your colleagues and board members to feel prepared for the engagement and to support effective relationship development.
Goals for initial engagement will depend on the prospective funder and any existing relationship, but may include to:
- Learn more about their interests and the process through which they invite new applicants.
- Send further information about your organisation and its strategic funding priorities.
- Contact the funder at an agreed time (e.g. ahead of their next Board meeting).
- Invite them to meet with others at your organisation, or to attend an event.
- Or simply leave a positive impression. Remember building a relationship with by-invitation funders (and securing funding!) takes time.
Regardless of the goal, prospect research will support your organisation to be strategic in its engagement, feel confident in your alignment and position your organisation for success with by-invitation funders.
Ready to strengthen your prospect research?
If your organisation needs support identifying the best fit grants and by-invitation funders, we can support you through our In-Depth Prospect Research service to identify prospects that align with your funding priorities.
If you’ve identified a well aligned by-invitation opportunity but need support to further profile to determine engagement and support effective relationship development, consider our Funder Profiling service.
Contact our team if you’d like to learn more about these services.
Strategic Grants has been working with for-purpose organisations across Australia and New Zealand for over 17 years to build their capacity and support their success in grants fundraising.
About the author
Lauren Vertigan is a Grants Strategist and Prospect Lead at Strategic Grants with 18 years of experience across the for-purpose and education sectors. She specialises in grant-seeking, prospect research, relationship development and fundraising strategy, with a particular focus on building organisational capability and sustainable funding practices.
Lauren was accredited as a Certified Fundraising Executive (CFRE) in 2021. She holds a Graduate Certificate Business (Philanthropy and Nonprofit Studies) from the Australian Centre for Philanthropy and Nonprofit Studies at Queensland University of Technology and a Bachelor of Communications (Public Relations).