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Ed Rachal Foundation

Annual Giving
$24.5M
Grant Range
$25K - $0.1M

Ed Rachal Foundation - Funder Overview

Quick Stats

  • Annual Giving: $24.5 million
  • Total Assets: $723.6 million
  • Success Rate: Low (foundation states "only a small portion of requests can be approved")
  • Decision Time: Board review schedule (specific timeline not published)
  • Grant Range: $25,000 - $100,000 (typical)
  • Geographic Focus: Texas only

Contact Details

Overview

The Ed Rachal Foundation was established in 1965 following the death of Ed Rachal Jr., a Texas rancher who died in an automobile accident in 1964. Born in Rockport, Texas on July 12, 1878, Rachal and his wife Louise had no children but demonstrated a deep commitment to education and youth. By the terms of his will, Rachal stipulated that his estate be used "exclusively for the benefit of charitable, scientific, literary or educational purposes within the State of Texas." Today, the foundation manages assets totaling approximately $723.6 million and distributes around $24.5 million annually through 248-273 grants. The foundation is one of the largest property owners in Corpus Christi and maintains a broad philanthropic approach focused on youth, education, land conservation, arts and culture, churches, and animal welfare within Texas.

Funding Priorities

Grant Programs

The Ed Rachal Foundation operates a single general grant program with rolling applications. Most grants range from $25,000 to $100,000, with an average grant size of approximately $108,000. Applications are accepted year-round with no deadlines, making this a true rolling grant program.

Priority Areas

The foundation's grantmaking interests include:

  • Education: Including higher education institutions, K-12 schools, and educational programs
  • Youth Development: Programs benefiting children and young people
  • Land Conservation: Environmental and agricultural research initiatives
  • Arts and Culture: Cultural institutions and programs
  • Religion: Churches and religious organizations (particularly Christian)
  • Animal Welfare: Animal-related programs and facilities
  • Health: Healthcare facilities and services
  • Human Services: Family services and child welfare programs

Funds may be used for capital and infrastructure, capital campaigns, emergency funds, equipment, general support, and program development.

What They Don't Fund

  • Individuals: Grants are not given to individuals
  • Organizations outside Texas: All grant funds must be expended for exempt purposes within the State of Texas
  • Non-501(c)(3) organizations: Grants only awarded to exempt organizations qualified under IRS Code 501(c)(3) or governmental entities

Governance and Leadership

Board of Directors

The Ed Rachal Foundation is governed by seven board members who are responsible for final approval of each grant:

  • David L. Hoyer - Chairman
  • Kenneth W. Trawick - Vice Chairman
  • John J. Johnson - Secretary/Treasurer

Executive Leadership

  • Paul D. Altheide - President/CEO

Paul Altheide has emphasized that the foundation values organizational financial health and management capability over polished grant applications. He has stated that "the application process does not require a grant writer" and that applicants don't need to hire expensive professional grant writing services.

Application Process & Timeline

How to Apply

The Ed Rachal Foundation accepts applications at any time throughout the year via a rolling application process. This is a one-step process with no initial letter of inquiry required.

Application Requirements:

  • Must use the foundation's online application form
  • Submit completed application to info@edrachal.org
  • Applicants may only submit one application per fiscal year (September 1 - August 31)
  • Organizations must disclose any relationships with board members in their applications

Eligibility:

  • Must be a 501(c)(3) tax-exempt organization or governmental entity
  • Must operate exclusively within the State of Texas

Decision Timeline

When grant proposals are submitted, they are placed on the next appropriate Board of Directors' agenda for consideration. If a grant is awarded, applicants are notified by mail of the funder's decision. Specific timeframes for decisions are not published, but decisions are made at regular board meetings.

Success Rates

The foundation receives funding requests "far in excess of its ability to fund" and states that "only a small portion of requests can be approved." In recent years, the foundation has made:

  • 2024: 273 grants totaling $24,546,468
  • 2023: 248 grants totaling $26,869,852

While the foundation does not publish the total number of applications received, the language suggests a highly competitive process with a low acceptance rate.

Reapplication Policy

The foundation limits applicants to one application per fiscal year (September 1 - August 31). The foundation notes that "a decision not to fund a proposal does not reflect on the merits of the applicant or the value of the proposal," suggesting that unsuccessful applicants may reapply in subsequent fiscal years. However, no specific waiting period or restrictions beyond the one-per-fiscal-year rule are published.

Application Success Factors

Board Connections Are Valuable

According to CEO Paul Altheide, "organizations that receive awards are typically known to at least one board member." The application specifically asks applicants to disclose any relationships with board members, indicating that these connections are recognized as relevant to the funding process.

Financial Health Matters More Than Grant Writing

Altheide has emphasized that "applications are vetted by reviewing financial statements and then the Ed Rachal Foundation makes a determination on how well the requesting organization is run." This suggests that demonstrating strong organizational management, financial sustainability, and responsible fiscal practices is critical. The foundation values substance over style and does not require professional grant writing services.

Long-Term Relationships and Major Support

The foundation has demonstrated capacity for significant, sustained support to organizations with which it has developed relationships. Texas A&M University has received more than $21.4 million from the foundation, representing almost one-third of the foundation's total distributions over 52 years. This includes funding for 31 scholarships and five faculty chairs across four colleges.

Recent Funded Projects Include:

  • Northeast Texas Community College (2023): $25,000 to expand the Work4College Program
  • Driscoll Children's Hospital: Funded purchase of an airplane to transport physicians
  • Palacios Marine Agricultural Research facility: Sole source of funding for oyster spawning and reef restoration research
  • Texas A&M University: Ongoing major support for scholarships and faculty positions

Broad Interpretation of Mission

The foundation interprets its charitable, scientific, literary, and educational mission broadly, funding everything from churches to animal welfare to marine research. Applicants should not feel constrained by narrow programmatic requirements but should clearly demonstrate how their work serves Texas communities within the foundation's general mission areas.

Key Takeaways for Grant Writers

  • Focus on financial statements and organizational health - The foundation prioritizes well-managed organizations over polished grant narratives
  • Board connections can help - While not required, being known to a board member appears to increase likelihood of success
  • Think big picture and long-term - The foundation is capable of major, sustained support for organizations that align with their mission
  • One shot per fiscal year - With only one application allowed per fiscal year (Sept 1 - Aug 31), timing and preparation are critical
  • Texas-only focus is absolute - All grant funds must be expended within Texas; this is a hard requirement
  • Competition is intense - With "a small portion" of requests approved, applications must be exceptionally strong
  • No professional grant writer needed - The CEO has explicitly stated that expensive grant writing services are unnecessary; focus on clear, honest presentation of your organization's work and finances

References

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