GrantWise Summer 2006

A Northern California leader shares her views on change
in the nonprofit sector

By Katy Pasini, Sierra Health Foundation Communications Associate


This issue of GrantWise is dedicated to Jan Stohr, founder and executive director of the Nonprofit Resource Center in Sacramento for 18 years. As she transitions into retirement, we asked her to share some of her experiences and offer insight for nonprofit organizations that seek grant funding. We join many other organizations that wish to sincerely thank Jan for all her work on behalf of Northern California nonprofits and the people they serve.
 Jan Stohr
Jan and Phil Stohr at "A Tribute to Jan Stohr" on July 12 at the Crocker Art Museum.

Photo courtesy of Tia Gemmell, Riverview Media Photography

In this issue

The creation of a nonprofit career...and a resource center

From an office space on the second floor of the Sacramento Public Library, the Nonprofit Resource Center is a primary source of information for nonprofit organizations in 19 Northern California counties. Jan Stohr began the center in 1988 in response to a community need—and after a series of experiences led her to a nonprofit career.

A Northern California native, Jan taught history at McClatchy High School in the mid-1960s while her husband, Philip, began a law career. She left teaching to start a family, but immediately got involved in the American Field Service, raising funds for McClatchy students going abroad, as well as students coming to the high school from other countries.

She later accepted an invitation to join the Sacramento Junior League, and after the first year went on its public affairs committee. "It did nothing," Jan said. "I complained so then, of course, they made me the chair."

It wasn't long before her committee had three major projects, which included hosting a public affairs conference in Sacramento. The following year the League asked her to chair a child abuse prevention project. While attending a conference on child abuse in San Francisco, Jan got the idea to start the Child Abuse Council (now the Child Abuse Prevention Council), which was formed in 1976 with support from the Junior League and co-sponsored by the Community Services Planning Council. In need of funding for the organization, Jan heard about the James Irvine Foundation, met with a program officer, wrote a grant proposal and received a $14,000 grant.

"I'd never heard the word foundation—I didn't know what foundations were," Jan remembers. At that time, several hundred women worked to raise up to $25,000 at the Junior League rummage sale. "Here I was, one person, writing a grant proposal and getting $14,000."

While visiting the James Irvine Foundation, the program officer suggested that Sacramento needed a community foundation. Jan presented the idea to the Junior League, but did not want to drop her child abuse work to start the project. The idea languished in various committees until 1981, when Jan joined other Junior League women to research and develop the foundation. In 1983, they launched the Sacramento Regional Foundation (now the Sacramento Region Community Foundation). After it got off the ground, Jan worked with the UC Davis Medical Center to research development of a children's hospital.

Jan connected with Sierra Health Foundation in the late 1980s, when the foundation began to look into grant training opportunities for nonprofits. Colleen Sotomura, a Sierra Health staff member who knew Jan from the Junior League and had talked to her years earlier about the subject, approached Jan to research creation of a grant center in Sacramento.

"There weren't a lot of funding opportunities and there was almost no training—there was no one place to go and do the research," Jan explains.

In 1987, Jan worked as a consultant for Sierra Health and created what in 1988 became the Nonprofit Resource Center. Although she didn't intend on becoming the center's executive director, she found her calling and remained for 18 years.

While the world changes and nonprofits face numerous challenges, Jan firmly believes in the nonprofit sector and its place in society. Though this summer she is transitioning into retirement, she plans to get involved in the community after some time off. When asked what she'll miss the most about her work at the center, she simply and sincerely said, "The people."

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Growth, changes, challenges

Recently, Jan reflected on the changes she has seen through her years at the Nonprofit Resource Center, and how those changes affect the way nonprofits are run and how they seek funding.

Taking the technology leap
When she began her nonprofit career, Jan remembers going through books to search for funding sources, and pulling tax forms at the attorney general's office to find information on foundations. Then came the personal computer and the Internet. What used to take days now can be done online in a fraction of the time. "It's just mind boggling that this is available, compared to what we had when we opened the center," Jan says.

One valuable tool is FC Search, a database for grantseekers created by the Foundation Center, a national authority on philanthropy. With FC Search, a nonprofit can find profiles of 80,000 funders, descriptions of more than 300,000 recently reported grants and links to more than 6,000 grantmaker Web sites. The Nonprofit Resource Center has six computers dedicated to FC Search, which are available for nonprofits to use at no charge.

One online source the center recommends is GuideStar.org, which grantseekers can use to get IRS-990 tax-return information on nonprofit organizations, including foundations, when researching potential donors. "It has always been public information, but it used to be very hard to get to and the Internet really changes all of that," Jan explains.

While technology advances have made research much easier, Jan points out another aspect of technology: Organizations are expected to keep up with the changes. However, many nonprofits don't have the technology infrastructure they need to grow and stay in business.

"We find that a lot of nonprofits don't have their computers networked, they may not have the appropriate fundraising software, they might not know what kind of software to get for their financial reports, so having the right kind of hardware and software is really critical," Jan explains.

While she realizes many nonprofits have limited resources and rely on hand-me-down equipment, she believes "they have to take that leap." Having a Web site is expected and is a place to tell your organization's story, while offering donors an opportunity to give online. Many funders now require sophisticated financial reports and data from grantees, and reliable donor databases are a must—all requiring up-to-date software and equipment.

"The technology is just incredible and all of us have to keep adjusting to that," Jan says. "This is where it's very critical for nonprofits to get people on their board of directors who understand this. Technology has impacted everything—the way we fundraise, the expectations of funders—everything has changed."

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Proving programs make a difference
Jan remembers when funders gave money to nonprofits with the expectation that they would do good work with it, but now they want proof the funds made a difference.

"I think a lot of funders have put money into things that haven't really resulted in change," Jan says. "However, I think some societal issues are so overwhelming it's going to be hard to see some of that change, because some of the issues involved are so multifaceted."

Because some grantmakers may not fund multifaceted programs that are difficult to measure, Jan advises nonprofits to look at their programs in the short term, where a funder can see that if this and this happen now, it's likely it will result in the desired outcome later. She warns that program staff in some organizations are strong in program design, but often don't spend time on how to prove the program will make a difference—and bring additional funding.

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Keeping pace with funding sources
One major change Jan cites is the increase of initiative funding, with state money going to a particular issue or demographic, such as Proposition 10, which created the California Children and Families Commission and First 5 county commissions throughout the state. With state money going to children 0 to 5, Jan has seen many funders develop grant programs for other age groups, even though First 5 is limited in what it can fund. If nonprofits focus on the 0 to 5 age group, they now find it difficult to get funding.

"Nonprofits need to watch the initiatives and work to help shape them," Jan suggests. She has found that many legislators and their staffs are eager to learn about issues, and nonprofit people should be educating them.

Another funding change came about in the late 1980s, when corporate giving moved away from a focus on general philanthropy to giving that also benefits the corporation. Jan's recommendation to nonprofits? Look at a corporation's strategic interests and find out how your work will help meet those needs.

Regarding foundations, Jan has seen a movement away from general support grants to funding for programs with specific criteria. In response, some nonprofits try to refocus their programs to fit within those criteria to qualify for funding. Another result of the emphasis on program funding is that there is less grant money to support general operations. For sustainable general funding, Jan suggests researching non-staffed foundations to find the ones with an interest in your organization's cause.

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Changing demographics and fundraising
One common topic around the water cooler these days is growth in the valley. Whether viewed as positive or negative, it's happening at a steady pace with no end in sight. One outcome of that growth is increased business activity, which may lead to more funding sources for nonprofits. Jan also sees an opportunity to recruit Bay Area retirees moving to the valley, who may have expertise, time and wealth to share with local nonprofits.

In 2000, California became a majority-minority state, which can have implications for nonprofit fundraising. Nonprofits need to recognize cultural differences in attitudes toward philanthropy and look at how minorities and minority issues are being funded. Also, organizations should ask themselves: How do we draw in people so that our boards and staff represent the colors and cultures of our state?

A demographic change Jan sees as having an effect on volunteerism is the growth of two-worker households. With more women working and men helping with the children, there is little time for volunteering or serving on nonprofit boards. Jan suggests nonprofits need to respect volunteer and board member time by engaging them in meaningful work, running meetings efficiently, avoiding information overload and taking advantage of technology to keep them informed.

Another challenge Jan cites is a growing gap between the rich and the poor. One down side for nonprofits is that with salaries increasing for corporate jobs, it is getting more difficult to attract young people to enter the nonprofit sector, where they generally earn much less. She says many nonprofit organizations are concerned about the need to pay higher salaries and provide more benefits. In developing grant proposals and contracts, Jan emphasizes the need to include and advocate for what is necessary to pay staff adequately. She adds that nonprofits should be involved in public policy work and, with other organizations, advocate for the nonprofit sector.

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10 additional ideas to help nonprofits thrive


In her 18 years at the Nonprofit Resource Center, Jan learned what it takes for an organization to succeed. Here are some fundamentals:
  1. Have a plan. The first thing many donors want to see is a business plan, and you may lose out on funding opportunities if you don't have one.
  2. Focus on your message and how you tell your story.
  3. Build a diverse board of directors based on expertise and personal qualities. Members need to be dedicated to the organization's mission and support its staff.
  4. Find ways for your organization to increase earned income through fees for service and business ventures.
  5. Focus your fundraising on where the money is. Of money received from private sources, 85 percent comes from individuals, 11 percent from foundations and 4 percent from corporations. Knowing that, where do you put your time?
  6. Because money from individual donors is a strong source of income, board members need to get involved in donor relations and telling your story.
  7. Seek the greatest diversity of funding possible for your organization.
  8. Having a good volunteer base is critical; volunteers often become donors.
  9. Collaborate with other nonprofits and consider merging with similar organizations, as long as it is done for the right reasons and is not driven by funders.
  10. If you form a nonprofit, you must fill a real need. Find out what else exists. If there is clearly a need, get broad support from people who can help you be successful.

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For more information on the Nonprofit Resource Center, go to
www.nonprofitresourcectr.org or call (916) 264-2772.

Other resources:
Foundation Center
GuideStar.org

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Sierra Health Foundation | 1321 Garden Hwy, Sacramento, CA 95833
916.922.4755 | fax 916.922.4024 | www.sierrahealth.org