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As your nonprofit grows and you begin to scale your efforts, you will need revenue to hire staff, rent or buy space, and purchase needed supplies and technological resources. Ideally, revenue will come from multiple sources: income from services (if you charge any fees), individual donors, corporations, matching giving, foundations, and/or state/federal funding. Many of these sources will require a grant application.
The application process may seem intimidating, but as you become familiar with the process I hope you see it as a way to invite more people into the work you are doing. Most funders want to make the world a better place by meeting real needs, and they do this by funding your work. Your job is to tell your story well and provide a compelling invitation to join you!
Before You Begin
Before you begin writing a grant proposal, it’s helpful to gather information about your organization. Here are some of the kinds of information you will likely need:
- History and Vision: Who founded your organization, when was it founded, and why did they start the organization? Who is your President/CEO and what are their qualifications? What problem does your organization address? Why are you uniquely situated to help solve it? What is your purpose, mission, and/or vision statement?
- Key Facts and Statistics: What are the key statistics regarding the need in the area you serve? Since you were founded, how many people/animals/kids have you helped or how many houses have you built? Has your organization won any awards? How many staff does your organization employ? What is the makeup of your Board of Directors? Do you have community references or recommendations from other partners? Are you a registered 501(c)3? If so, you will often be asked to provide a copy of your determination letter. To receive federally funded grants, you must be a 501(c)3 and you must register for a UEI number from SAM.gov.
- Budget: Do you have your organization’s annual budget showing expected expenses and revenue and an itemized program budget (if you’ll be applying for program support)? Do you have the most recent financial statements, ideally independently audited? What controls does your organization have in place to ensure an appropriate use of funds?
- Goals: What are 3-5 SMART (specific, measurable, achievable, relevant, and time-bound) goals for your program or organization? How will you achieve these goals? How and when will you evaluate your progress?
- Photos, Videos, and/or Stories: Gather compelling materials that demonstrate the need you are working to meet. Make sure that you have permission to share anything identifying, or remove identifying details. Also, make sure that anything you share maintains the personal dignity of the people you serve (even if they aren’t personally identifiable). Note that stories do not need to have a conclusion in the proposal. These stories and other materials demonstrate the need and help compel donors to get involved. You are inviting them to step into the story and change its direction.
Researching Funders
Finding the right potential funder is key to a successful grant application. Before applying, make sure that you are in the geographic area they fund, working with their target demographic, and that you are doing the kind of work they typically support.
Your public library can be a great resource when grant-seeking. For example, the Poudre Valley Library system has nonprofit resources like subscriptions to the Colorado Grants Guide, the Foundation Directory, and Candid Learning. They also have a dedicated Nonprofit Services Librarian. If your library doesn’t have a book you want, Candid has a great free online library of e-books and audiobooks on nonprofit topics.
Building Relationships
Once you’ve identified a foundation or corporation that seems like a good fit, here are a few tips for building a relationship with the funder. A warm introduction and/or invitation to apply is worth pursuing.
- Utilize your network. See if anyone on your staff, board of directors, or volunteer team knows someone at the foundation and is willing to introduce you.
- You can also see if there is a phone number listed for the grants manager. A quick call to introduce yourself and your organization can be a good way to confirm their interest in your work and begin getting to know the grants manager. An email can also work if a phone number isn’t available.
- If you have a warm conversation with a grants manager in your area, consider offering a meeting over coffee or a site visit to continue the conversation in person.
- Follow their instructions. You may be required to submit a Letter of Inquiry (LOI) before applying. If so, think of this as your written elevator pitch. In 1-2 pages, what is your story and how does your work fit into the grantmaker’s priorities? Show that you understand their mission and have a great opportunity for them to accomplish their mission by funding your work. Tell them who you are and why you’re qualified, what problem you’re solving, how you’re solving it, how they can help, and when you will report what kind of measurable results.
Writing the Application
A cover letter frequently accompanies the application or proposal. This one-page letter should be on your organization’s letterhead and addressed to your primary contact at the foundation. Typically, you should print and sign the letter, then scan it as a PDF if you’ll be submitting it electronically. The letter should include a brief introduction of your organization and your qualifications, a summary of your project or program, who the funding will benefit, and your ask. Thank them for considering your request. If you have space, you can include a short story, relevant statistic, or anecdote. If you spoke or emailed with the grant manager, mention that they encouraged you to apply. Your cover letter should catch their interest and show how your priorities align.
Many foundations have a standard application form that you must complete. Here are a few writing tips:
- Answer application questions completely, clearly, and concisely. Once you’ve completed a question, take a break, then go back and reread the question to make sure you’ve answered or addressed each part of it.
- Only include information that is relevant to the specific application. It may make sense to briefly mention other programs or initiatives to demonstrate your expertise, but you should primarily focus on what the application will fund.
- Make sure that your narrative and budget coordinate and support one another. Both show your priorities and help tell the story of what you’re working to accomplish.
- Be persuasive. Your application should show your organization’s passion for the work you do.
- Be sure to check for spelling or grammar mistakes. A plugin like Grammarly can be helpful, but don’t assume that suggestions are always correct. I always recommend having someone else with a fresh perspective proofread applications.
- Gather all supporting documents. Unless otherwise directed, attach all documents as PDFs (including the cover letter and application or proposal).
These tips also apply if you’re writing a proposal without an application form. Your proposal should typically include an executive summary, need statement, project/program description, project/program goals and objectives, organizational information, and a project budget. Check out this blog by Candid for a brief explanation of each of these proposal categories.
You want to make the grant manager’s job easier! Remember that a grant manager is reading many applications—they will deny your application if it is incomplete or if your responses are unclear or fail to directly answer their questions.
Following Up
The funder may say when and how they will respond to funding applications. They may also say how and when you can contact them to follow up.
If you are funded, send a prompt thank you note or letter. You will likely be asked to submit a report at the end of the project timeline. You may also be asked for a mid-year report. If possible, keep in touch regularly with updates as you implement the project. Invite partners to key events and ask them to celebrate milestones with you.
Don’t be discouraged by a no. It may take time to build a relationship with a new funder. If the no is a “not at this time” or “not in this round of funding” or anything other than a hard “no, we aren’t interested”, then the door is open to pursue future funding. Always thank the grants manager for their time and, if it seems appropriate, ask if they have any feedback that might make a future proposal stronger or align better with the foundation’s goals.
