Domanada Foundation



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Objectives of Grant Making

A stated goal of the Domanada Foundation is to "demystify" our process of grant making. Often it seems that grant applicants feel they have to cautiously probe about, stealthily discerning the exact words and actions required before a foundation agrees to release the desired funds. The Domanada Foundation would like the process of grant making to be open, honest, and transparent on all sides. In an attempt to be open, this article is intended to illuminate one aspect of our thinking regarding how we approach making grants.

One of our favorite quotes is from C.S. Lewis, who wrote "The proper aim of giving is to put the recipients in a state where they no longer need our gifts." In a sense, Lewis is referring to the timeworn "give a man a fish" vs. "teach a man to fish" adage. This principle has influenced the thinking of the Domanada Foundation in a number of ways. In essence, we desire that our financial grants assist a ministry or organization to become healthier. By "healthier," we mean less dependent on a few major financial donations to sustain the ongoing work of the ministry.

This principle takes on different meanings in different settings. A portion of the Domanada Foundation's grant making is done in the Chicago area. In the U.S., most non-profits derive the majority of their income from donations. Certain types of non-profits are able to meet a portion of their annual budget through other revenue sources-tuition, fees, sales of goods and services, and so forth-but nearly all non-profits need to do a certain amount of fundraising to meet their financial needs.

Obviously, fundraising is made easier and less time consuming if a small number of donors commit to give large portions of an organization's budgetary needs. Equally obvious is that this is a dangerous practice. Dependence by any organization on a small number of major revenue sources places the organization in a vulnerable position. The impact of this reality on the Domanada Foundation's giving practices is that most of our grants are primarily intended to help an organization broaden and deepen their donor base.

The Domanada Foundation works almost exclusively with new, small, and moderate sized organizations, particularly at times when the organization is expanding or launching new endeavors. A primary objective of our work with these organizations is to help them strengthen their financial base. For a new organization, this means helping them build a broad donor base, ideally involving several categories of donors. With established organizations, this means helping them expand and deepen their donor base so they can launch into new areas of service.

The normal method of grant making in each of these cases is a matching grant. The primary purpose of the matching grant is not to fund a specific project or program, but rather to stimulate new giving to the organization. In essence, the matching grant is best used as a fundraising tool to encourage new donors to become involved, or to inspire existing donors to give more sacrificially.

The principle of building long-term financial strength takes on different meanings in Central and Eastern Europe, our primary area of involvement. In Central and Eastern Europe, as in much of the developing world, many ministries are largely dependent on Western funds for their financial survival. We believe it is entirely appropriate for wealthy nations to provide all types of resources to brothers and sisters in developing nations; in fact we feel specifically called by God to support ministry in Central and Eastern Europe. However we also believe that this support must be given and used in ways that work towards ending a long-term cycle of co-dependency. To give in ways that perpetuate financial dependency is unwise, and ultimately destructive.

One of our major areas of interest in Central and Eastern Europe is economic development, or "business as mission." We believe entrepreneurial Christians need to build successful businesses in Central and Eastern Europe, not just to provide funding for national ministries, but also to be desperately needed "salt and light" within their communities. We believe Central and Eastern Europeans need to continually be developing the financial, theological, and practical means for financially supporting ministry in their own nations. The objective is not to stop the flow of funds from the West, but rather to provide the type of support that will allow the Church in Central and Eastern Europe to grow towards financial self-sufficiency over the next 10, 20, or 30 years.

In addition to business as mission, the Domanada Foundation also supports ministries in Central and Eastern Europe committed to theological studies and educational ministries. Within these two areas of focus, we have similar objectives. First, to help Central and Eastern European ministries to deepen and broaden their donor bases in the West, and second, to encourage them to continually develop ways of funding ministry without reliance on Western dollars.

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