Grant writing is an essential tool for every nonprofit. With over $410B dollars being given every year through grants 1 , having an effective grant writing program is important for every nonprofit organization. The basic premise that Cathedral suggests is to focus write the grant focusing on the desired program and not to focus on writing the grant to a specific foundation. In other words, focusing on producing a high quality grant proposal and applying to a few foundations may be more effective than a less detailed, broader approach. This paper will explore those ways to develop that high quality grant proposal.
General Operations vs. Program Funds
Many organizations need money to keep the doors open and the lights on just as much as they need money for new technology or scholarships. Using grant writing is an effective mean to fulfill both needs; however each should be approached differently.
General Operations
Every institutional giving source knows that nonprofit organizations need funding to keep the lights on and doors open. Finding funding that covers the everyday operational expense can be more challenging than finding funding for a special project. Institutional funding sources like to fund projects that are exciting and have measurable results. That is not to say funding can’t be received for overhead costs. In order to make an overhead a grant proposal for overhead projects more exciting is to make them tangible, and make the results quantitative, by turning them into a special projects proposal.
For example, a nonprofit organization needs money for a new floor. A grant proposal can be developed that emphasizes the benefits of a new floor, such as the time savings, or energy savings. Any detail that can be used to excite the funding source would be very beneficial for the success of the grant proposal.
There is no denying that every nonprofit has certain basic operating costs that are not special projects, and which cannot be made exciting. Many nonprofits will make it their goal to have
Board of Directors’ giving cover the General Operations and grant writing and major gifts cover the programs. This approach underscores the fact that General Operating funds tend to come from close friends of the organization and those institutions who know the nonprofit well.
Program
Program funding is the lifeblood of every nonprofit organization. These are the types of projects and programs that fulfill the mission of the nonprofit. Requests for program funding are
1
Dr. Bruce Sliger, ECS Grants: Taking the Confusion out of Grants, 2011
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generally easier to fund than general operations because they are more exciting and directly provide an impact to the mission of the nonprofit.
Choosing the Program
In any given year, a nonprofit may have hundred of ideas for programs they would like to initiate. Due to limitations, whether that be staff, time, resources, etc. it is highly unlikely that all of the programs will be funded or executed. The question then becomes, “What should be a funding priority?”
There are certain areas that are more likely to be funded than others. Identifying those causes can be important for the success of the funding proposal. Cathedral likes to break these areas into four funding categories, Direct Services, Current Issues, Core Mission and Special Needs.
Direct Services
Direct services such as food, clothes, shelter, scholarships, etc. are all areas that are desirable by funding sources. These services directly impact the people they help, and the contribution can be measured quantifiably. This direct impact and accountability is very appealing to foundations. When creating the grant proposal and following up after receiving funding, it is important to show to the funding source the direct impact that their funding dollars has created.
Choosing a grant program that provides direct aid to individuals is a great way to provide the feedback that foundations are looking for. A homeless shelter which seeks to provide showers for homeless men is a good example of a direct service. A school that proposes to provide after school tutoring for students whose parents are not home after school is another example.
Current Issues
Current issues are issues that are “trendy” issues in today’s society. These hot-button issues are important to foundations because it provides a positive brand image for their foundation.
Cathedral has noticed several issues that appear to be on the upswing as trendy from foundations, they include technology and the environment or “green” issues. Often these issues are in the news. Budget cuts for education or the arts can make those issues current. A natural disaster may bring a type of service or geographical location suddenly very important to donors.
Core Mission
Every nonprofit organization has a core mission and they undertake certain ongoing programs to execute on that mission. A food pantry’s core mission, for example, is simply having food on the shelves for their constituents.. Sometimes, grant writers are so busy looking for current trends and hot topics, that they overlook their core mission as a potential program grant topic.
Moreover, the core mission likely contains elements of current issues and direct services, depending on the mission of the nonprofit organization. If at all possible, a nonprofit should work to include as many of these elements as possible when writing a grant. When focusing on grant writing, a majority of proposals written should aim to support the core mission of the nonprofit organization.
A nonprofit organization should try to stick to their established mission as much as possible.
There is a great temptation to start a new program because there is funding available. Funding sources will recognize a program that is new and they are able to tell if that program was created just because there are funds available.
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Researching a Specific Program
Researching is an essential component to writing grants. The person conducting the grant should spend at least as much time researching as they do writing the grant. Much of the success from a grant comes in taking great pains to attention to detail. There are several components to a successful research project. The number one most important rule to follow when researching is to get a clear understanding of the foundations guidelines and the application criteria. If an organization doesn’t follow those guidelines, there is a strong possibility the grant will be rejected.
Stay Local
Most funding sources want to make a difference in the community where their money was made. . Because of that, they typically tend to fund programs and organizations that impact that area, which as a rule of thumb is a 100 mile diameter. Pay attention to the Geographic
Focus information on the foundation database. In addition, try to find former grants or grantees that can help you make a connection with the foundation.
Get Personal
This goes with the staying local component. If the primary targets of an organization’s grant writing efforts are within that local zone, there is a strong opportunity to establish a personal connection. Most organizations have a funding officer who reviews the grant proposals before the board of directors. This person should be identified and if at all possible, a face to face meeting should be conducted. While a face to face conversation is preferred, it is not always likely to happen. The best way to ensure a positive relationship between the nonprofit and funding source is to establish a relationship through the phone. This personal relationship not only brings your organization to the forefront of the funding source’s mind, it will allow for a greater understanding of what a foundation is looking for in a fundable project.
Utilize Grant Writing Resources
There are a multitude of grant resources available for researching foundation. They range from free resources to paid subscriptions. One of the most underutilized resources are public libraries. Many libraries carry foundation material that provides information such as contact address, name, phone number, giving interest, etc.
Another great resource is www.foundationcenter.org
. This website offers a comprehensive searchable data base of foundations. This tool is a fantastic way to quickly and easily research foundations. However, it does cost money to use this service. Every nonprofit organization must weigh the advantages and disadvantages of utilizing a paid resource vs. a free resource before conducting their grant writing. When using a database to search for information, there are several search criteria that can important look for such as, average gift amount, funding interests, application requirements, etc. The more research and understanding the grant writer has about the target foundation, the potential for success increases.
Another resource that is often overlooked is the 990-PF. This is a tax return that all private foundations must file. It shows the financial information for a particular nonprofit, while displaying the nonprofit organizations that foundation gave money to.
Writing the Grant
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Grant writing can be a tedious task, and often times the writer of the grant is unclear how many projects a grant should be written for, how many foundations should be approached, etc. There is no clear and fine answer to these questions, however undertaking more than one or two grant projects at a time can be confusing and the chance for making an error increases.
The most important thing a grant writer can do is spend time and care in preparing a grant. The more articles that support a grant, the more letters of recommendation, all of this extra time really impacts the success of a grant with a foundation or funding source. To be successful, the extra time and care that is spent in preparing a grant improves the successfulness of the grant proposal.
There are several components to a successful grant, including:
1. Cover Letter
2. Title Page
3. Table of Contents
4. Executive Summary
5. Mission, Vision, History
6. Statement of Needs
7. Program and Project Description
8. Project Timeline
9. Goals, Outcomes, Objectives
10. Evaluation
11. Budget
12. Appendices a. Positive articles about the nonprofit b. Letters of recommendation c. Academic support d. Other research
Grant writing can be a challenging issue for many nonprofits. However challenging, it is an essential aspect to any fundraising effort. By focusing on specific funding programs with organizations that are close by, a nonprofit organization can develop powerful connections that could lead to an increase in contributed funds.
Peter Giersch is COO of Cathedral Consulting Group, LLC and a Managing Director in the
Midwest Office. Drew Dillard is a former Associate in the Midwest office.
For more information, please visit Cathedral Consulting Group LLC online at www.cathedralconsulting.com
or contact us at info@cathedralconsulting.com
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