This story is part of a series looking at the impact of St. Louis' Arch Grants startup investment program after 10 years. For more, go here.
Arch Grants founder Jerry Schlichter says he’s noticed plenty of nonprofits that “wither on the vine” after they’ve launched.
The reason: fundraising. Many nonprofits face a tension between trying to balance their annual budgets and pursuing their long-term ambitions, Schlichter said. He wanted Arch Grants to chart a different path.
Since its founding in 2012, Arch Grants has raised millions of dollars from a mix of government, corporate and individual backers, placing a focus on both securing annual donations and creating an endowment.
The nonprofit organization earlier this year marked a major milestone in its effort to secure its financial future, announcing it raised $21.5 million in its Sustained Impact Campaign. While it has continued that fundraising effort, it has started this year to deploy capital from it to boost its programming.
RELATED: 10 years in, here's a look at the status of Arch Grants recipients
According to Arch Grants’ website, more than 30 donors provide the nonprofit with at least $25,000 in funding annually. They include government entities like the U.S. Economic Development Administration, Missouri Technology Corp., and St. Louis Development Corp. as well as major corporate backers like the Centene Charitable Foundation, Wells Fargo, Spire and Bank of America Foundation. Several big names in St. Louis also fund Arch Grants. They include John McDonnell, former chairman and CEO of McDonnell Douglas; Rodger Riney, founder of Scottrade; and philanthropist and political activist Rex Sinquefield.
Continuous donors since Arch Grants’ founding include the Emerson Charitable Trust, Kellie Hynes and Robert Guller, Charles and Rosalyn Lowenhaupt, Missouri Technology Corp., Jerry and Sue Schlichter and St. Louis Development Corp.
Arch Grants Executive Director Emily Lohse-Busch said Arch Grants’ ability to fund 207 companies, 165 of which are still in operation or have been acquired, has created a track record that donors have found attractive.
“For people who want to make a difference in this community and do it in a very tangible way, they can see their funds being put to work immediately to bring new companies. That’s a really powerful thing,” she said.
