Iowa Cultural Trust Sustainability Challenge Grants

Grant Program Description

Iowa Cultural Trust Sustainability Challenge Grants help Iowa nonprofit cultural organizations strengthen their long-term financial sustainability by increasing their endowments. Organizations awarded Sustainability Challenge Grants are required to raise a minimum of $3 in new endowment funds raised specifically for this campaign for every $1 of grant funds awarded. Sustainability Challenge Grant funds will be paid to grantees after they document that they have achieved the 3:1 cash match, but no later than two years and 90 days beyond the date of the award.

When to Apply

A limited number of Sustainability Challenge Grants will be approved annually. No organization may receive more than one Sustainability Challenge Grant in a five-year period.
The deadline for the 2011 grants is October 15. This is NOT a postmark date. All application materials must be received in the Iowa Cultural Trust office by 4:30 p.m. on the deadline date.

Grant Amount

Organizations with an operating budget up to $150,000 may request up to $20,000. Organizations with an operating budget over $150,000 may request up to $35,000. The requested grant amount should be appropriate to the needs and the fund-raising capacity of the institution.

Use of Funds

Iowa Cultural Trust Challenge Grant funds, and all matching funds, must be deposited into an endowment fund designated to support annual operating expenses of the grantee organization.

Eligible Organizations

An eligible applicant organization must:

Operate with one of the following organizational missions:
1. Arts Organizations: primary mission and purpose must be the arts; it must operate as an arts organization, such as an art museum, performing arts-producing organization, or community arts agency.
  OR
2. Historical Organizations: primary mission and purpose must be historical; it must operate as an historical museum or interpretive center.
  OR
3. Cultural Organizations: primary mission and purpose must be cultural; it must operate as a cultural center, civic arts presenting venue, botanical center, museum, or zoo.
Have been in existence in its community for at least 3 years.
Be incorporated in Iowa under the Iowa Nonprofit Corporation Act and hold federal 501(c)(3) tax-exempt status.
Have at least one paid part-time or full-time professional employee who is responsible for managing the business of the organization.
Have, at the time of application, an established endowment fund for the support of organizational operating expenses.
Demonstrate that it is actively implementing a multi-year strategic plan that incorporates a fundraising plan with long-term sustainability as a clear, measurable goal.
Certify and demonstrate that its operational practices are in good alignment with the Iowa Principles and Practices for Charitable Nonprofit Excellence. Alignment may include any of the following:
1. The board of directors may pass a resolution adopting the Iowa Principles and Practices for Charitable Nonprofit Excellence as the standards for institutional operations.
2. An organizational representative may complete an Iowa Principles and Practices for Charitable Nonprofit Excellence training program which will result in a certificate of completion for a stated period.
3. An Iowa charitable nonprofit that is accredited by a national organization or licensed by a state agency will be presumed to have significantly complied with the Iowa Principles and Practices for Charitable Nonprofit Excellence.
Institutions may apply for only one Cultural Trust Sustainability Challenge Grant at a time and may have only one application pending at a time. An institution is eligible to apply for a subsequent challenge grant beginning in the fifth year after the ending date of its most recent Cultural Trust Sustainability Challenge Grant. For example, if a grant ends June 30, 2012, the institution that received the grant could not apply for a subsequent challenge grant until July 1, 2017.

NOT eligible to apply:

Individuals
An entity of federal or state government
An organization applying through a fiscal agent
An organization with an outstanding late Final Report to the Department of Cultural Affairs or any of its divisions
A library, park, or recreation center
A for-profit corporation or business
A religious organization, labor union, political party, or national service/professional organization
An educational institution, organization, or K-12 school, whose primary orientation, mission, and purpose is education and the awarding of academic credits

Applications from ineligible organizations will not be reviewed.

Matching Funds

All matching gifts must be made (i.e., given, pledged, and pledges fulfilled) during the Sustainability Challenge Grant period.
Gifts eligible for matching must be made explicitly in response to the Sustainability Challenge Grant.
Donors must be aware that their gifts will be used to support the organization’s general operating expenses and to match the Sustainability Challenge Grant.
Eligible types of gifts may include:
1. Cash.
2. Nonfederal and non-state grants.
3. Special legislative appropriations from county or municipal governments and government organizations. This appropriation must represent a level of support above the normal appropriation for the recipient institution.
4. Net proceeds from special fundraising events or benefits held specifically to raise funds to match the Sustainability Challenge Grant. Only the net proceeds are eligible; the intrinsic value of items donated for auction or sale is not eligible.
5. Membership contributions, “friends” or alumni giving, or similar campaigns. The value of any tangible items received by donors, such as magazines, newsletters, or gift “premiums” must be deducted from a membership contribution to assess the actual gift value. Membership forms or solicitation material should indicate that contributions will be used to match the Sustainability Challenge Grant.
6. Marketable securities, valued as of the date of transfer from donor to grant recipient, if the securities are held in the endowment and are earning interest.
7. Real estate donated during the period of the Sustainability Challenge Grant and converted into cash by means of sale before the end of the grant period. The value of the gift is equivalent to the net sale value.
8. Charitable gift annuity contracts that are signed during the period of the Sustainability Challenge Grant. Annuities will be valued at the amount of the donor’s charitable deduction.
Ineligible gifts include:
1. Gifts deferred beyond the end of the grant period.
2. Bequests and other forms of planned giving that are not paid out or completed during the grant period except charitable gift annuities that are finalized within the grant period and meet the criteria outlined above.
3. Discounts on goods or services provided through contracts.
4. In-kind gifts or donated services.
5. Income from other endowed funds.
6. Gifts that derive from the grantee institution itself. For instance, the sale of land or assets already owned by an organization would not be eligible unless the land or asset was donated within the Sustainability Challenge Grant period and in response to the Sustainability Challenge Grant.

Acknowledgment.

Organizations that receive a Sustainability Challenge Grant must recognize the funds donated by the Iowa Cultural Trust and the matching funds raised to meet the grant requirements in either a separate listing or a named endowment fund for the lifetime of the organization.
Organizations that receive a Sustainability Challenge Grant must also acknowledge the Iowa Cultural Trust’s support for the project in all related signage, program materials, promotion, publicity and advertising activities, and other printed and electronic forms of communication pertaining to the project.
Organizations that receive a Sustainability Challenge Grant must return the grant funds to the Iowa Cultural Trust if the recipient closes, loses its nonprofit 501(c)(3) status, or goes out of business. The recipient may not donate these funds to another organization, individual, or company.

Application Contents

A. Submit one (1) copy of each of the following forms, which are required by the State of Iowa:

Substitute W-9 Form
Minority Impact Form

B. Submit twelve (12) copies of the following material:

Table of contents
Include all the parts of the application with page numbers.
Institutional Fact Summary
Provide the following in a 1-2 page outline:

Sustainability Challenge Grant Amount Requested
Organizational contact information and required data, including

Legal name and address of the organization
Name, title, phone number, and email address of the organization’s Director, Board Chair, and Chair of the Challenge Grant campaign
Organization’s Federal Employer Identification Number
Organization’s DUNS number

General facts about the organization, including

History
Mission
Physical facilities
Board size and composition
Staff size and composition

Data on cultural programming activities, including

Types and numbers of events, programs, exhibitions, or other cultural programming in the past two years
Size and nature of audience or population served
Evidence for the success of these activities or offerings

Current endowment information, including

Organization’s history of raising endowment funds
Current status of the organization’s endowment
How the endowment fund is managed (i.e., by the organization’s board, a community foundation, etc.)
What aspects of the organization’s operations are (or could be) supported by the endowment

Campaign plan
In 1-2 pages, describe the organization’s plans for the endowment campaign, including the organization’s overall endowment goal, start and ending date of the campaign, members of the campaign committee, and strategies/methodology for raising the funds required to match the Cultural Trust Sustainability Challenge Grant. Describe the potential impact on the organization of this endowment campaign.
Financial summary
Include a 1-2 page summary of the institution's finances that will provide reviewers a clear picture of the financial status of the organization during the most recent three-year period. Provide information about annual operating budgets only (not capital campaigns or other special income, or capital project expenditures). Figures should be compatible with figures cited elsewhere in the proposal. Explain any significant operating surpluses or deficits.
Organizational management and sustainability
In one page or less, describe:

The elements of the organization’s current strategic plan that speak specifically to a fundraising plan with long-term sustainability as a clear measurable goal
Examples of the organization’s management practices that demonstrate that it is in good alignment with the Iowa Principles and Practices for Charitable Nonprofit Excellence

Lists of trustees and staff
Provide a list of the organization’s board of directors with their professional affiliations; include board officer titles, board committee assignments, and number of years serving on the board. Also provide a list of staff members; for those in primary positions, please include titles and principal responsibilities, and number of years employed by the organization.
Letters of support
Include letters of commitment or support to raise the matching funds within the time frame indicated, from

The organization’s board chair
The chair of the Challenge Grant campaign
Director of the entity responsible for managing the endowment fund (if not managed by the organization’s board)

Optional Appendices
Copies of printed brochures, flyers, or other descriptive materials related to the endowment campaign or the organization’s structure and financial management may be included.

Please do not submit bulky materials, such as catalogs, journals, or books.

Application Review Criteria

Each application is scored on the degree to which the proposed project clearly addresses the following areas. There are 60 points possible; each criterion may receive up to 10 points.

Significance and impact
Reviewers will consider the applicant’s organizational and financial history, mission, programming, and the impact of the endowment campaign on the organization.

Organizational History: The organization shows through its narrative and support letters that the scope, reach, and quality of the arts, history, or cultural programming/services that it provides are highly valued and supported by its identified community (individuals, members, community leaders, schools, other organizations, etc.) and its continued existence is important. (up to 10 points)
Financial History and Capacity: The organization provides the required financial information and has clear goals, procedures, a financial plan to ensure the organization’s sustainability, and incorporates the Iowa Principles & Practices for Charitable Nonprofit Excellence into management policies and procedures. The organization explains clearly any operating surpluses or deficits during the last 3 years. (up to 10 points)
Impact: The need for Cultural Trust and endowment funds is clearly stated and the application narrative clearly defines the impact the campaign and the funds will have on the organization’s ability to achieve its mission and goals. (up to 10 points)

Feasibility of the proposal
Reviewers will consider the applicant's resources, leadership, staff, and experience with conducting a successful campaign, the ambitiousness of the goal, and the achievability of the plan within the two-year challenge grant period.

Campaign plan: The applicant shows clearly that it has the resources, leadership, staff, experience for and commitment to conducting a successful endowment campaign. There is clear evidence of how it will balance project responsibilities with other ongoing duties. The budget is appropriate for the scale and scope of the campaign. If partnerships are part of the application, there is evidence that all partners are aware of the grant requirements and can fulfill their role(s) in completing the project goal. (up to 10 points)
Fundraising: The applicant clearly outlines the fundraising plan (goal, participants, strategies, etc.), demonstrates that the plan and the goal are feasible, and describes how it will broaden the base of support for the organization. The applicant also provides evidence of the organization’s experience in successfully completing endowment and other fundraising projects. (up to 10 points)
Endowment: The applicant demonstrates how the organization manages its current endowment; how it will manage the endowment funds raised through this campaign; and how the interest from the endowment funds will be used to support the organization’s operations. (up to 10 points)

Review, Approval, and Notification Process

Sustainability Challenge Grant applications will be screened for completeness and eligibility by staff of the Department of Cultural Affairs, and then submitted to members of the Iowa Cultural Trust board for review. Incomplete applications or applications received from ineligible applicants will not be reviewed.
The Iowa Cultural Trust board may contact the organization via phone or email with additional questions or requests for information prior to making an award decision.

Applications will be reviewed in November with final approval by the Cultural Trust Board of Directors in December. The two-year grant period for raising matching funds will begin on March 1, 2011 and run through February 28, 2013.

Questions?

Be sure to read the Frequently Asked Questions for Sustainability Challenge Grants.
Contact staff Monday through Friday between the hours of 8 a.m. and 4 p.m. The office is closed weekends and state holidays. Email is our preferred means of communication.
Contact:
Sandi Yoder
Cultural Trust Grants Manager
Sandi.Yoder@iowa.gov
515.281.8749