Ten Grant Proposal Tips

As the competition for grants continues to grow, nonprofit organizations should always ask themselves how they can make their applications stand out. This article discusses ten ways to enhance your proposal writing to help you develop the best applications possible. Some grant proposal tips are about preparing or planning your applications, while others concentrate on framing up or writing your applications. Taken together, they should help you polish your proposals to perfection! 

Tip 1: Be Prepared

It is a great idea to have several projects sketched out so that you are ready to refine and enhance your proposals and not start from ground zero. The minimum information you want to have “shovel ready” includes data and statistics on the addressed need. You should know what you will do (your approach) and what changes you will make in the lives of those you serve. It would help if you also thought about your community (outcomes) and the budget. 

Write this information in a program planning framework, a logic model, or a simple worksheet or word document. 

Having an “arsenal” of potential projects will give you a competitive advantage in several ways. First, it will help you identify funders and funding opportunities that match your project. Before funding searches, know who the project serves, your solution, and what you will change. The resources you need so your search is as comprehensive as possible and uncovers a wide range of funders. 

Second, it helps avoid “mission creep.” This is the process of matching your projects to the funding source instead of the funding source for your project. You want to ensure you find solid matches between the funding opportunity and your project. Don’t change your approach to meet funding opportunities that do not align with your mission and vision. 

Third, most funders do not give you much time to develop your applications. So, this preparation will help you focus on improving, enhancing, aligning, reviewing, and editing your proposals to have the most significant impact. 

Tip 2: Involve Those You Serve in the Design of Your Programs

Involving your target population in the design of your programs is a great way to ensure that the work you are proposing to do (your approach) will meet the needs of those you serve. Nonprofit organizations address a wide variety of community challenges—and the root causes of these problems are multifaceted. Working with your target population helps you create impactful strategies that address the underlying issues leading to adverse outcomes. 

For example, let’s say your organization provides one-on-one tutoring to help adults learn how to read. You know the statistics and demographics of your target population—the percentage of adults not able to read past a fourth-grade level. When you examine the “why” behind the statistics (i.e., Why are 25% of adults reading below a fourth-grade class?), you may find several different reasons. It could be because there are no literacy programs for adults. Or perhaps there are sufficient programs but no transportation to the schedule. Or maybe there is so much stigma that adults needing services don’t come forward. 

Knowing the “why” behind the need leads directly to the approach you will develop. And engaging the target population in this discussion will get you the best answer. For example, if stigma is the reason, potential/past participants can share ways to reach out to the target population that are sensitive to their needs and reduce the stigma they face. Without their input, you may propose a strategy that does something but not the thing the target population needs to help them overcome obstacles.

Tip 3: Partners—You Can’t Be the Lone Ranger

Going hand-in-hand with the root cause analysis is the ability to identify partners to collaboratively address issues, using the skills and resources from several organizations/entities. Again, most of the problems nonprofits deal with have several root causes, and you will find other agencies to partner with to address the issue holistically. Using the previous example, there may be an existing program that transports individuals to job training or to access educational opportunities. Thus, you could partner with this organization to provide transportation for your adult literacy programs. Funders like to see scarce resources shared among programs instead of duplication of services. 

Tip 4: Write With the Reviewer in Mind

It is essential to understand that grant reviewers—the people who score and rank your proposals—are people too! They may be community volunteers who donate their time or staff at the agency or foundation. It is essential to write your application with the reviewer in mind and make their job of understanding and scoring your application as easy as possible.

First, assume that the reviewer knows nothing about your community or organization, the needs you address, what you do, or how you do it. Almost exclusively, the reviewer only uses the documents submitted in your application to evaluate your proposal. Therefore, if you want them to know something, you must write it out and explain it clearly. 

Second, reduce or eliminate jargon in your writing. It is easy to fall into the habit of using terminology and acronyms that make sense in your world. But most grant reviewers do not live in your world. Explain unique terms and concepts and spell out all acronyms.

Tip 5: Follow the Directions

Funders usually have application forms to complete and a list of instructions you are to follow. These instructions typically include questions to answer and attachments in your submission. These are called Application Guidelines, Grant Instructions, Requests for Proposals (RFPs), Funding Opportunity Announcements (FOAs), or various names. Regardless of the term used to describe the application instructions, follow them to the letter. Answer questions in the order they are listed, use the funder’s headings and terminology, and complete the forms they provide (if applicable). 

Tip 6: Highlight Your Strengths, Not Your Needs

How do you create an application that shows you are worthy of funding? A funder (or any donor) wants to hear about what you change, your impact on the community, and your solutions to community challenges, not what your organization needs. Having a laundry list of requirements (“I need a staff person,” “We need a building,” or “My organization needs equipment.”) is not a compelling argument to a funder who is looking to support community change efforts financially. All nonprofits can provide a list of what they need. 

You want to be solution-based, demonstrating your ability to effect change—not a needy nonprofit organization that will go out of business if it doesn’t receive funding. If you write from a deficit-based perceptive, make the shift to position yourself as a strong and viable organization that is competitive for a funder’s investment.

Tip 7: Don’t Underestimate the Time It Takes to Craft a Strong Proposal

Writing successful proposals takes time and energy. Creating a proposal writing schedule can help ensure you account for the time it will take to prepare, review, and edit a strong proposal. After identifying a grant you want to apply for, list all the documents that need to be submitted. Make note of tasks to complete, the people responsible for each job, and the due dates.

One way to submit the most robust application possible is to get input and edits from others. You want to schedule a time to get these reviews of your drafts. To ensure your application is straightforward, have someone completely unrelated to your organization read it and provide feedback.

Tip 8: Demonstrate That You Have Designed the Most Cost-Effective Solution Possible

In your budget narrative, communicate to the funder how you have leveraged other funds to support your project, used cost-saving measures, and maximized all available resources to show you are making the best out of the funder’s investment. Again, don’t assume that they know you have developed a cost-effective approach—tell them how you have done it. 

Tip 9: Increase Your Skills by Reading Successful Grant Proposals

Reading successful grant proposals helps you hone your proposal writing skills. You can dissect them to see what was clear, how information was laid out and presented, and other elements you can mimic in your proposals. 

Read through successful proposals to find ways to tell your organization’s story, study what makes proposals strong, and discover your proposal writing voice. It doesn’t matter if the topics in the sample applications are relevant to your organization. You’re just looking for the key elements that make the applications strong so that you can apply them to your writing.

Tip 10: Be Persistent

Proposal writing is a skill that can be developed, but it does take time and effort. For rejected applications, reach out to the funder. You can ask for feedback about how your application could have been more vigorous. Use your investment of time and energy put into the first application to enhance a second (or third!) effort.

Federal Grant Checklist to Help You Prepare

As you conduct grant research to uncover new opportunities for your organization, you may come across grants from federal government agencies. And as grant funding through federal economic recovery programs distributes, we’ll see even more competitive opportunities arise at the federal, state, and local levels.

Federal grants can be game-changers for nonprofits. It gives them funding for programs and improvements while also boosting their track record and reputation. However, applying for a federal government grant is time and resource intensive. They are highly competitive to win and demanding to manage if received. 

This means you must be prepared to compete effectively for federal grants. So how can you set yourself up for success?

This federal grant checklist walks through our recommendations for preparing to compete for federal grants.

☑Registration

First, ensure that your nonprofit registers in the federal grant system. Competing for federal grants will require at least these three steps:

1. Receive a DUNS (Data Universal Number System) number to identify your nonprofit in the federal system
2. Register with the federal System for Award Management at SAM.gov. This platform manages and reports on grants once you receive them
3. Register your nonprofit at Grants.gov, where you’ll find and apply for federal grants

Depending on the opportunity you are pursuing, you may need to register in additional federal systems to compete. For example, several agencies like the Substance Abuse and Mental Health Services Administration require registration in a system called eRA Commons.

Most importantly, handle this process early. Registration can be complicated and involves a waiting period. You must renew your registrations annually. Begin the registration process (or double-check your renewals) at least six weeks before a grant application deadline.

☑Time and Capacity

Federal grants can have a turnaround time of only a few weeks between the initial release and application deadline. This tight window of time means that you’ll need the capacity of your team to handle everything required of the application. 

The steps to apply for a federal grant can include compiling lists of community partners, securing letters of support, detailing a program model, and developing budgets. You may also need to prepare other unique attachments, handle logistical upload tasks, and more. As soon as you identify a grant opportunity, sit down to objectively assess what your team can accomplish with its current resources.

These steps are easily overwhelming. You just can’t stop progress on other fundraising activities and grant deadlines while you are focused on submitting a federal grant. It can be a wise and fruitful investment to partner with a grants consultant with experience at the federal level. They can advise you and manage the steps of compiling a high-quality application.

☑A Collection of Standard Application Materials

If you pursue a federal grant, having a ready-made set of standard application materials can save your team time and stress. Most federal grant applications require these documents: 

• Reviewed and audited financial statements
• Organizational and program-specific budgets
• Bios and resumes for leaders and key program staff

If you don’t have these materials on hand but want to begin pursuing more grant opportunities, create them early before you enter the time crunch leading up to a deadline.

☑Data to Illustrate Your Impact

Data is an integral part of any winning grant proposal. It completes the story you tell about your vision and goals. It gives more authority to your claims by illustrating your track record of success, the impact you’ve had so far, and the problem you’re seeking to solve. Effective use of data can make your proposal stand out in a crowded field.

But to see these benefits, you’ll need the actual data. Determine whether your organization is ready to quantitatively demonstrate a strong track record by considering these questions:

• Do you have a record of data collection, evaluation, and successful outcomes with other programs?
• Does the program you’re proposing have a compelling need and data to back it up?
• Do you have internal structures in place for data entry and analysis, like a properly-configured CRM or database?
• Are you prepared to engage an external evaluator to support the analytics and evaluation that may be required for executing and managing the grant?

Building a data and tech infrastructure is a worthwhile investment for growing organizations. It will allow you to craft more compelling grant proposals over time and continually assess and improve your strategies.

☑Partners and Supporters

Federal grant applications often require letters of support, sometimes referred to as Memorandums of Understanding. They prove that you have a network of supporters in your community who can vouch for your work and who may be directly involved in helping to achieve the proposed plans and goals. These supporters and partners might include other organizations, local foundations, corporate sponsors, public officials, major donors, and constituent organizations or individuals. 

Securing signed letters can be a lengthy process, so start as early as possible. Discuss your potential documentation needs with your key partners ahead of time. You want them to be ready to help if you are putting together a proposal for a new program soon. For funding opportunities for existing programs, documenting your partners’ current and planned participation will also simplify the application process.

☑ Grant Management Capabilities

Let’s say you win a federal grant—congratulations, and great work! 

But there’s still plenty of work regarding grant management and reporting. Federal grants have stringent post-award requirements to prepare. For instance, once you use the funding, most federal grants will automatically require an official financial audit. Specifically, you’ll need to ensure that you have these capabilities and resources:

• A team to handle program execution, financial management, and compliance
• Staff who can make grant-related work a top priority for the duration of the program
• Time and resources to create detailed financial reports and the tools to manage and track federal funds separately from the rest of your finances
• The infrastructure and staff to manage data collection, analysis, and reporting
• The ability to effectively learn and use the required federal grant management systems
• The team capacity to actively manage your relationship with your federal grant management officer and/or program officer.

It sounds like a lot, but it comes with the territory of competing for game-changing federal funds. If you currently have any gaps that would complicate these types of tasks, taking the time to build your internal capacity and infrastructure beforehand is likely the smartest move. A focus on development and capacity-building, expanding your network of partners and major donors, and improving your systems can yield dividends once you’re ready to compete.

Federal Grant Checklist Summary

Writing a compelling grant proposal is always hard work that requires careful thought, attention, and preparation, and federal grant opportunities are especially so. The points in this checklist cover the most important steps, resources, and capabilities that will help you stand out in a crowded field (and avoid biting off more than you can chew).

Key takeaway: There are many steps and components to preparing a competitive federal grant application. A federal grants consultant can help improve your chances of funding—and bring you peace of mind! But now you can get prepared with this federal grant checklist.

Your best competitive advantage will be an active grants program backed up with best practices. This will give your team experience, allow them to hone their skills, and prepare when the time is right. If you’re new to grant seeking, working with experts can help you build a robust pipeline of opportunities and show you best practices in action.

 

Grants for Non-profits are an Attractive but Complicated Pursuit

Is there anything as appealing as a large capital infusion based on your mission’s sheer merit and virtue? It’s pretty compelling. That is why every non-profit invests countless hours and dreams into winning grants. But, for many, it feels like a lost pursuit. Rejection is hard, and getting traction in the foundation game can be challenging. That said, there is hope! Roughly one-third of foundations receive less than 50 proposals per year, and 35% of foundations award half of the appeals they receive – those are not bad stats (Candid, 2022)! So, why isn’t your organization winning? Let’s look at the basics of grant writing:

 

Non-profit Start-up Grants, a.k.a. Unicorn Fuel

I’m not saying a startup grant isn’t possible, but I am confirming that it is not likely. Most foundations require their funders to, at a minimum, have their 501c3 status in place. More prominent awards typically require an organization to be established and in good standing for three years. Beyond that, requirements can include everything from audited financial statements to certificates of good standing with the state of the non-profit’s incorporation. Red tape abounds. Grants rarely fund startups and high-risk projects. Those rare unicorns receiving startup funding are the exceptions; you are likely part of the rule (sorry). 

 

Rather than pitching your organization as the next non-profit unicorn, consider partnering with a like-minded organization that already has foundation relationships and a solid track record. Collaborative projects between multiple non-profits tend to rank ahead of single pursuits in the grants game. 

 

A 501c3 Doesn’t Guarantee Grants for Your Nonprofit, but It’s Necessary. 

Your determination letter has arrived! You’ve made it! …Almost. Contrary to popular belief, exempt status doesn’t promise support. While a 501c3 determination letter is a valuable ingredient in your grant application, it is not a guarantee of funding. Your application will need a few more ingredients to be grant ready. As mentioned earlier, many foundations require this letter and a duration of time in operation, so the sooner you can file and receive exempt status, the better. Wondering how to raise revenue in the meantime? Consider these tried and true tactics:

 

• Find a Fiscal Sponsor | Working with a like-minded partner organization can help you create a collaborative project, but it can also open doors to grant funding. A fiscal sponsor is an exempt organization that agrees to allow your organization to operate under its 501c3 status. 
• Earn Your Income | Earned income is revenue your organization brings in through common business means, i.e., sales, membership, or programmatic fees. While you lose the ability to offer tax deductions to those who support the cause through these means, you’re still making headway toward building a fully operational organization.
• Take Some Risk | If you’re within a reasonable period of time from receiving your determination letter, consider informing donors that your exempt status will be retroactive to the date you filed. That’s right! Early supporters can still reap the tax-deductible benefits so long as your application for exemption is approved. 
• Start as a Volunteer Organization | While not possible for all causes, if you have the capacity to launch your non-profit dream as a volunteer operation, you should consider this route. Learning to do your work for free/low investment will build efficiency and help you get started sooner.

 

Start with Local Non-profit Grants

While your cause is worthy of the Ford Foundation and Bill Gates should expedite your request to his funding chair, your best bet is closer to home. Your local community is the best place to start for early grant funding…especially if you aim to meet a community need. Community Foundations and even local corporate and family foundations are in place to support the philanthropic desires and cause work represented in their community – that includes you! Get a meeting to learn more about your local foundation’s giving priorities, and be sure to ask about the following:

 

• Grant guidelines and giving priorities. Do they align with your cause?
• Technical assistance grants to help with technology and professional services necessary to scale your organization.
• Referrals to other corporate and family foundations who may have an interest in your cause. 
• Community Giving Days or other community activities where multiple charities are supported. 

 

Finding Non-profit Grants on the Web

Did you know that only about 10% of U.S. foundations have websites? Foundation grants are not a digital pursuit, whether they don’t want to be found or simply haven’t gotten around. The good news is that our friends at organizations like Foundation Center Online (warning: expensive) and Instrumentl house enormous and highly searchable databases of grant opportunities. While there is a cost associated with the research, it’s worth the investment once your organization is grant-ready. 

 

If you need a free option, consider setting up Google Alerts for keywords related to your mission and territory. For example, if you’re an animal shelter in Boise, IA, you could set up the following alerts:

 

“Non-profit Grant Animal Shelter Boise,” or 

“Grant for Animal Rescue Idaho”

 

The Google alert will notify you of a press announcement with those keywords. Hopefully, this will clue you into other similar-mission organizations that have received grant funding and who they received it. This will help connect you to future philanthropic partners, but you will find new collaborative partners as well.

 

Knowledge Saves Time 

The more prepared you are for grant funding, the better your chances of receiving the funding you need to grow your organization. There are many avenues, tripping points, and hurdles, but they are all more easily navigated with the foundational knowledge of the grant process. Consider signing up for the Grant Writing Basics Certificate Course to prepare yourself and your non-profit for success. This self-paced course includes over 40 lessons on the granting process with a curriculum tailored for small to mid-sized organizations. Get started here. 

 

Grant Research: Facts vs. Assumptions

When you need to find a grant-maker, or a set of grant-makers, to fund a specific program or project, the first step is to undertake primary research. You identify a list of potential grant-makers using an online database, such as GrantStation. This primary research, while incredibly important, is really only the first step when starting your research process, and the secondary research results in finding the best grant-makers to approach. 

The most productive grant research is fact-based. Instead of throwing requests at your list of potential funders, you have to dig deeper. This secondary research, which comes on the heels of primary research, is the process of determining which potential funders are your best bet. The information you uncover will be the groundwork for thinking through your strategic approach.

Your overall approach to each grant-maker is a combination of facts and assumptions. You make assumptions about who can give you what and when, but these assumptions are based on facts.

What Is Primary Research?

Primary research consists of using key search terms to identify an initial list of possible funders. This will include looking at all types of funders, making sure you meet their criteria and generating a list of funders to pursue. For example, if you’re a regional food bank and want to start a community garden, your key search terms might include hunger, nutrition, gardening, agriculture, etc. Let’s say you need to raise $25,000 to get the community garden off the ground this coming summer. 

To begin your primary research, you should review each grant-maker’s profile to see if their mission aligns with your community garden project. You are also looking to see if the financial support they offer makes sense for your given project. If they only give $1,000 grant awards, is submitting an application to them really the best use of your time? However, if they provide awards of up to $25,000, is it wise to ask them for the entire amount if you have no existing relationship with the funder? These are issues to consider.

Of course, you are also looking at eligibility. Perhaps they give in your county but seldom give in your community. That could be a red flag. On the other hand, maybe your community is their main focus — bingo, we have a winner!

And finally, check out their deadline for proposals.  If they accept proposals every quarter, this should fit into your project calendar. If their deadline just passed, and it is an annual deadline, you may want to set that funder aside.

Secondary Grant Research

Once you have reviewed all of this information, you should have a good working list of potential funders. Now is the time to begin your secondary research as you want to narrow that list to those funders that are the best fit for your project.

Secondary research consists of looking more closely at each funder you’ve identified so you end up with a list of the best possible sources. The sources you collected will be woven into your overall funding strategy. You now need to review each funder’s:

• application guidelines;
• annual report;
• grants awarded; and,
• IRS 990 (for nonprofit sources).

Application Guidelines

Reviewing the funder’s application guidelines is critical since you must confirm that your project fits these guidelines. For example, the guidelines may require matching funds, which might be impossible for you to secure before the deadline, so you should drop that particular funder from your list. Or you may find that they only fund collaborative projects, and though you don’t have a partner at present, you could develop a partnership to meet their guidelines.

The application process generally isn’t too complicated with private funders, but it can get time-consuming with government grant-makers. Once you review the application guidelines, you will better understand how each funder fits into your overall timeline and strategy.

Annual Report

If a private grant-maker publishes an annual report, take a few minutes to look it over. When you review the annual report, focus on the Executive Director’s or CEO’s opening statement because it will often give you a feel for what they have accomplished in the past year and where they will be in the next year. This information can provide a better idea of how your project fits their objectives. Take note of the language they use in their report, as you may want to mirror it in your application. In the case of corporations, you will often find a list of grantees in their corporate annual report posted on their website.

Grants Awarded

Some funders have a special section on their website that lists recently awarded grants. This list gives you a good indication of the types of organizations they are funding, the organizations’ locations, and the amount of the grant awards. You will glean a lot of information from reviewing this information. This will help you craft your own request. It can also be helpful to talk to one or two of their grantees that work in your field to get a sense of the “dos and don’ts” when working with a particular funder.

IRS Form 990 for Grant Research

IRS Form 990s are available on the IRS website. Access is free. You can search for specific funders and charities by either their name or EIN (employer identification number). Once you find the organization you are looking for, you will see copies of the filed IRS Form 990s. Another option to acquire the information is to directly ask the funder to email you a copy of their latest IRS Form 990.

The IRS Form 990 provides detailed financial information such as sources of revenue, a summary of an organization’s expenditures, and changes in net assets or fund balances. The IRS Form 990 also includes direct and indirect public support an organization receives. It will also outline the number of contributions it receives from federal, state, and local governments.

Most funders include details on their charitable giving for the previous year. You may find details such as their total annual giving and a list of grantees, their location, the amount given, and for what reason (e.g., general support, building funds, project support, etc.). This is in Part XV of the 990 and is typically on page 11. However, it might be later in the document or included as an addendum.

Check to see if the grants given match your funding priorities. This list may help determine if you should include a grant-maker in your funding strategy. Keep in mind that an organization’s financial information is more useful if examined over a more extended period. One year’s IRS Form 990 presents only a limited amount of data. We recommend reviewing the three most recent 990s to fully understand the funder’s priorities and programs.

Additional Website Review

If a funder still seems like a potential fit after reviewing their application guidelines, annual report and grants awarded list, then look around their website to get a sense of their mission, objectives, etc. 

The website might also provide an eligibility quiz to take or a pre-application form to fill out before applying for funding. Either of these can be helpful as a pre-screening tool. 

If the grant-maker publishes a blog, scan the topics they focused on in the past six months. As a result, you will indicate what they consider their top priorities. If you find a relevant post to your work, you might even include a quote from it in your proposal.

Stay Flexible!

Throughout the research process, it’s essential to stay flexible in your thinking and keep in mind these search tips. You want to consider multiple alternatives and entertain a range of scenarios. Your overall approach should be adaptable. You have to be able to make revisions as you go forward. A denial of a request may shift your approach, just as receiving an award will. And make sure you give as much thought when adjusting the strategy as you have to the initial development. For example, if you get a larger award than expected upfront, you will need to re-think your approach. You’ll have the best chance of success in your grant-seeking by staying flexible.

This spotlighted blog post is courtesy of Grant Station.