A seed funding grant is more than just financial support; it’s a powerful way to make an impact by getting involved early in a project’s journey. This small, initial investment allows nonprofits or entrepreneurs to test their ideas before pursuing larger grants from corporations, foundations, or government agencies. At the same time, seed grants give your foundation the opportunity to explore new ideas, reach new audiences, and remain aligned with your strategic goals.
Tips for Successful Seed Funding
Consider these tips to enhance the effectiveness of your seed funding.
Understand the Risk
Like traditional investments, philanthropic investments come with risks. While you might not receive financial returns, you could gain social or environmental benefits. As a foundation leader, be prepared to take these risks for potentially greater rewards.
Learn About Your Focus Area and Partners
Before making seed funding decisions, it’s crucial to understand the field and organizations you’re supporting. This includes:
- The people and groups involved
- What has worked or failed in the past
- The challenges being faced
- Current trends and gaps
Being informed will help you make better decisions and feel more confident in supporting new ideas.
Set Aside Funds for Seed Grants
Decide on a percentage of your grant budget to dedicate to seed funding (e.g., 1%, 5%, or 10%). Be clear about the returns you wish to see—whether social, environmental, or a combination of both. Clearly communicate these expectations to your board so they understand the risks and goals involved.
Your First Seed Grant: 10 Questions to Consider
Here are ten questions to help you navigate your first seed grant:
- What’s a new impact you want to achieve that you’re not already working on?
This could be a new research area, project, or technology. - Who could be a good partner for this project?
Think about existing or potential partners you’d like to collaborate with. - How should you approach these partners?
Are you open to their ideas, or do you have a specific idea in mind for them? - What budget can you allocate for this project?
Consider the risks and rewards. Are you ready to help find additional funds if needed? - What’s the timeline for seeing results?
Are you looking at weeks, months, or years? Would you prefer to work out the timeline with your partner or follow their lead? - What outcomes and impacts are you hoping for?
If the project doesn’t succeed right away, are you interested in the lessons learned? How will you track and reflect on these learnings? - Do you have a plan for rolling out the project?
Can you trust your partner to manage it? How flexible are you with their approach? - How will you track progress and milestones?
Will you set these up with your partner, or let them take the lead? - When can the project start?
What needs to be done before it can begin? - What would you need to see from this grant to get your board and staff to support more seed grants?
Think about potential successes, impacts, and lessons from any failures.
Feel free to use these points to guide your seed funding decisions, and remember, you’re not alone in this process!
About the Authors
Howell Conservation Fund (HCF) is a registered 501(c)(3) that specializes in catalytic leadership, supporting nascent organizations and programs that address root causes of today’s most pressing environmental issues.
Blackstone Ranch Institute has been offering seed grants to a variety of national and global environmental sustainability initiatives for the past 16 years.
Coaching Offer: HCF and Blackstone Ranch are offering complimentary, one-hour consulting sessions to help Exponent Philanthropy members develop their seed grants. Please reach out to info@howellconservation.org for more information.