Don't Tell the Donor received a tip that NOZA, Inc. is set to launch a free private beta of a new foundation grant research database at the CARA Conference in Orange County, CA later today.
If true, the announcement is sure to send shockwaves through the multi-million dollar industry that currently charges nonprofits to research potential foundations who may (or may not) be interested in reviewing grant applications. Why, you ask?
Several weeks ago Waddy Thompson had an article in the Nonprofit Times profiling the differences between five different products:
* The Foundation Center's Foundation Directory OnlineToward the end of the article he offers this as part of his conclusion, "With fees ranging from $19.95 for one month to nearly $2,500 for a year (with no monthly option), price definitely becomes an issue." In addition to the financial costs, I know many fundraisers who spend lots of time traveling in order to research foundations.
* GuideStar's Grant Explorer
* Prospect Research Online (aka PRO Platinum)
In fact, one industry insider told me that nonprofits collective probably spend well over $20 million a year for foundation research. How will the Foundation Center and other nonprofits react when this revenue stream is threatened? What will this mean for the for-profit businesses of Metasoft and the Chronicle of Philanthropy's grant lookup product?
If fundraisers could find close to one million grant records when the free foundation database launches at nozasearch.com - that certainly will be a game changer.