Understanding the Grant Landscape
Grants are competitive funds awarded by foundations, corporations, and government agencies to support nonprofit programs and operations. Understanding the different types of funders and grants is essential to developing an effective strategy.
Types of Funders
Private Foundations
Funded by individuals, families, or corporations. Required to give away 5% of assets annually.
- • Example: Ford Foundation, Gates Foundation, local family foundations
- • Typical grants: $5,000 - $500,000+
- • Best for: Program funding, capacity building
Community Foundations
Public charities that pool donations to support local communities. Often more accessible to small nonprofits.
- • Example: Silicon Valley Community Foundation, local community foundations
- • Typical grants: $1,000 - $50,000
- • Best for: Local programs, general operating support
Corporate Foundations & Giving Programs
Funded by corporations, often focused on communities where they operate.
- • Example: Walmart Foundation, Bank of America Charitable Foundation
- • Typical grants: $2,500 - $100,000
- • Best for: Programs aligned with corporate values/initiatives
Government Grants
Federal, state, and local government funding for specific programs and populations.
- • Sources: Grants.gov, state agencies, local government
- • Typical grants: $10,000 - $1,000,000+
- • Best for: Established programs, specific populations served
Start Local
Small nonprofits have the best success with community foundations and local funders. These grantmakers are more accessible, often have simpler application processes, and prioritize local impact. Build a track record with smaller grants before pursuing larger national funders.
Finding the Right Grants
Grant research is about finding funders whose priorities align with your mission and programs. Quality over quantity—applying to well-matched funders yields better results than mass applications.
Where to Find Grant Opportunities
Free Resources
- • Local community foundation website
- • State nonprofit association grant alerts
- • Grants.gov (government grants)
- • Corporate websites' giving pages
- • Google Alerts for "[your cause] grant"
- • Peer organization recommendations
Paid Databases
- • Foundation Directory Online (Candid)
- • GrantStation
- • Instrumentl
- • GrantWatch
- • Local library access (often free)
Evaluating Grant Fit
Before applying, ask these questions:
- Does our mission align with their funding priorities?
- Do they fund organizations our size and age?
- Do they fund in our geographic area?
- Is our requested amount within their typical range?
- Have they funded similar organizations?
- Are they currently accepting applications?
Grant Readiness Checklist
Before submitting your first grant application, ensure you have these essential elements in place:
Organizational Documents
Program Information
Create a Boilerplate Library
Keep a folder of pre-written content that can be adapted for proposals: organizational description, mission statement, need statement data, program descriptions, staff bios, and budget templates. This dramatically reduces proposal writing time.
Anatomy of a Winning Proposal
While every funder has specific requirements, most proposals include these core components:
1. Executive Summary
One-page overview of your request: who you are, what you're proposing, how much you need, and what it will accomplish. Often the most-read section.
2. Organizational Background
Brief history, mission, programs, accomplishments, and qualifications. Establish credibility and capacity to execute the proposed project.
3. Statement of Need
The problem you're addressing: statistics, context, and why it matters. Connect local need to your proposed solution.
4. Project Description
Your proposed solution: activities, timeline, methods, and how it addresses the need. Be specific and realistic.
5. Goals, Objectives, and Outcomes
Measurable targets: what you'll accomplish and how you'll measure success. Use SMART framework.
6. Evaluation Plan
How you'll measure and report on outcomes. Include data collection methods and evaluation timeline.
7. Budget and Budget Narrative
Detailed costs and justification. Show how funds will be used and why amounts are reasonable.
8. Sustainability
How the project will continue after grant funding ends. Show long-term thinking and diversified funding.
Writing a Compelling Need Statement
The need statement (or problem statement) is often the make-or-break section of your proposal. It must convince funders that the problem is significant and that your solution is warranted.
Essential Elements
Use Data and Statistics
Ground your need in credible data. Use local statistics when possible.
"In Jefferson County, 23% of children live in food-insecure households—higher than the state average of 17% (Feeding America, 2023). Among these families, 78% report skipping meals at least once a week."
Include Human Stories
Balance data with human impact. Brief anecdotes make the need tangible.
"Maria, a single mother of three, often goes without dinner so her children can eat. 'The end of the month is always the hardest,' she says. 'I just pray the pantry has food when I get there.'"
Connect Need to Solution
Bridge the gap between problem and your proposed intervention.
"Traditional food pantry hours (9-5, weekdays) exclude working families. Our evening and weekend distribution model reaches 400+ families who cannot access daytime services."
Avoid These Mistakes
- • Circular reasoning: "We need funding because we don't have funding"
- • Organization-focused need: Focus on community need, not your need for money
- • Outdated statistics: Use data from the last 3-5 years
- • Global without local: National stats alone don't show local impact
Goals, Objectives, and Outcomes
Clear, measurable objectives tell funders exactly what you'll accomplish and how you'll know if you succeeded.
Understanding the Hierarchy
Goals
Broad statements of desired change. Big-picture, aspirational.
"Reduce childhood hunger in Jefferson County"
Objectives
Specific, measurable steps toward goals. SMART criteria.
"Provide weekly food assistance to 500 children by December 2024"
Outcomes
Changes that result from activities. Impact on people/community.
"85% of families report improved food security"
SMART Objectives
- Specific: Clearly defined, not vague
- Measurable: Quantifiable with numbers or percentages
- Achievable: Realistic given your resources
- Relevant: Connected to your mission and the need
- Time-bound: With specific deadlines
Types of Outcomes
| Type | Definition | Example |
|---|---|---|
| Outputs | Direct products of activities | 500 meals served, 20 workshops held |
| Short-term Outcomes | Immediate changes (knowledge, skills) | 80% learned new job skills |
| Intermediate Outcomes | Behavior changes | 60% obtained employment |
| Long-term Outcomes | Lasting impact | Reduced community unemployment rate |
Creating a Strong Budget
Your budget tells the story of your project in numbers. It should be detailed, realistic, and align with your narrative.
Standard Budget Categories
| Category | Examples |
|---|---|
| Personnel | Salaries, benefits, payroll taxes (often 60-70% of budget) |
| Fringe Benefits | Health insurance, retirement, FICA (typically 25-35% of salary) |
| Supplies & Materials | Program supplies, office supplies, educational materials |
| Equipment | Computers, furniture, specialized equipment |
| Travel | Mileage, airfare, lodging, conference registration |
| Contractual | Consultants, subcontractors, professional services |
| Other/Direct Costs | Rent, utilities, communications, printing |
| Indirect Costs | Administrative overhead (typically 10-15%) |
Budget Narrative Tips
Your budget narrative explains and justifies each line item:
- • Show the math: "Program Coordinator: $45,000/year × 50% FTE × 12 months = $22,500"
- • Explain need: Why is this expense necessary for project success?
- • Justify amounts: How did you determine these costs? Market rate? Past experience?
- • Connect to activities: Link expenses to specific project components
Show Diversified Funding
Include other funding sources (confirmed and pending) in your budget. Funders want to see that you're not entirely dependent on their grant and have a sustainable funding mix.
Common Mistakes to Avoid
Ignoring Funder Guidelines
Follow instructions exactly. If they say 3 pages, don't submit 5. If they want specific attachments, include only those.
Generic Proposals
Don't use a one-size-fits-all approach. Tailor each proposal to the specific funder's priorities and language.
Unrealistic Budgets or Goals
Don't underbudget to seem efficient or overpromise outcomes. Both damage credibility and future relationships.
Missing Deadlines
Late applications are almost always disqualified. Build in buffer time and submit early.
Poor Proofreading
Typos, grammatical errors, and inconsistencies suggest carelessness. Have multiple people review before submitting.
No Relationship Building
Cold applications have lower success rates. When possible, introduce yourself to program officers before applying.
After You Submit
The work doesn't end when you click "submit." Here's what to do after your proposal goes in:
If You Win
- • Send a prompt, genuine thank you
- • Review grant agreement carefully
- • Set up tracking systems for reporting
- • Keep the funder updated on progress
- • Submit reports on time
- • Invite them to see your work (site visits, events)
- • Begin planning renewal application
If You Don't Win
- • Thank them for considering your application
- • Request feedback (many funders provide it)
- • Ask if you can reapply in the future
- • Learn from the experience—improve next proposal
- • Maintain the relationship for future opportunities
- • Keep the funder on your newsletter list
The Long Game
Grant relationships are built over time. A rejection isn't necessarily permanent—many organizations receive funding after being declined initially. Stay engaged, demonstrate growth and impact, and try again when appropriate.
Frequently Asked Questions
How do I find grants for my small nonprofit?
Research local community foundations, search Foundation Directory Online or Candid, check corporate giving programs in your area, explore government grant databases (Grants.gov), network with peer organizations, and sign up for grant alert services. Start with local and smaller foundations before targeting national funders.
What percentage of grant proposals are funded?
Grant success rates typically range from 10-30% depending on the funder and competition level. Well-established relationships with funders can increase success rates to 40-60%. Small nonprofits should expect to submit 10-20 proposals to win 2-4 grants, especially when starting out.
How long does a grant proposal take to write?
A quality grant proposal typically takes 20-40 hours to write, depending on complexity and whether it's your first proposal. Letter of inquiry takes 2-4 hours. Having boilerplate language, organizational documents, and data ready can significantly reduce writing time for subsequent proposals.
What makes a grant proposal successful?
Successful proposals clearly align with the funder's priorities, present a compelling need statement with data, offer a specific and achievable solution, include measurable outcomes, demonstrate organizational capacity, present a realistic budget, and are well-written and error-free. Building relationships with funders before applying also significantly increases success.
Can small nonprofits compete for grants?
Absolutely. Many funders specifically seek out small, community-based organizations. Focus on local and community foundations, demonstrate deep community connection and trust, highlight efficiency and direct impact, and partner with larger organizations when appropriate. Your size can be an asset—funders value grassroots organizations.
Need Help With Grant Writing?
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