I agree with Susan's comments. The "friends of" concept is a very practical and realistic alternative. I'd be curious as to the type of state agency. I have found occasionally foundations that will make a grant to a state agency, but a lot depends on the type of agency. To make sure you do not miss even one possible funding source for your situation search the Foundation Directory 1 and 2 in a cooperating collection of The Foundation Center at a large urban public library. If you are not sure of the location of a cooperating collection, consult The Foundation Center's website, fdncenter.org--make sure you check out the Learning Lab on the website,too. To effectively use the directories, take an orientation offered by the cooperating collection or ask the librarian in charge to help you utilize the directories. It might be helpful to first look for foundations in the state where the agency is located and then to broaden your search.