Grant Writing Basics for Nonprofits

Grants are financial awards provided by governmental agencies, private foundations, or corporations to eligible nonprofits to support specific projects, programs, or initiatives. Unlike loans, grants do not need to be repaid and typically do not carry any equity or ownership stake. This makes them an attractive funding source for nonprofits.

2. Identifying Funding Opportunities

To identify suitable grant opportunities, consider the following sources:

• Government agencies: Federal, state, and local governments often provide grants to support various social, environmental, and economic causes. Visit websites like grants.gov and your state’s official government website for listings.
• Private foundations: Many private foundations offer grants to nonprofits. The Foundation Directory Online (FDO) is a valuable resource for finding these opportunities.
• Corporate grants: Some corporations have philanthropic arms that provide grants to nonprofits. Research potential corporate partners whose values align with your organization’s mission.

3. Preparing for Grant Writing

Before diving into grant writing, gather the following essential documents and information:

• Nonprofit status: Ensure your organization has a 501(c)(3) status or partners with a fiscal sponsor.
• Organizational documents: Articles of Incorporation, Bylaws, and your Employer Identification Number (EIN) are typically required.
• Financial records: Include audited financial statements, annual budgets, and IRS Form 990.
• Board and staff: A list of board members, key staff, and their qualifications.
• Organization history: A concise overview of your organization’s accomplishments, mission, and programs.

4. Crafting a Compelling Grant Proposal

A well-structured grant proposal can significantly increase your chances of success. Here are the key components to include:

4.1. Executive Summary

The executive summary should provide a brief and compelling overview of your proposal. It should answer the following questions:

• Who is your organization?
• What is the problem you are addressing?
• How will your project or program solve this problem?
• What are the expected outcomes and impacts?

Example:

“XYZ Nonprofit is seeking $50,000 to launch an after-school tutoring program for low-income students in the Anytown community. Our program will provide academic support, mentorship, and skill-building opportunities to help 100 students improve their grades and increase their chances of attending college.”

4.2. Organization Overview

Provide a detailed description of your nonprofit, including its mission, history, key accomplishments, and current programs.

4.3. Statement of Need

The statement of need should:

• Clearly define the problem or issue your project will address
• Use data and statistics to support your claims
• Explain why your organization is uniquely qualified to address the issue

Example:

“In Anytown, 40% of low-income students do not graduate high school on time, compared to the national average of 15%. Our research indicates that these students often lack access to academic support and extracurricular activities. XYZ Nonprofit has successfully implemented after-school programs in three other communities, resulting in a 25% increase in on-time graduation rates.”

4.4. Project Description

Provide a comprehensive overview of your project or program, including:

• A detailed outline of the activities and strategies involved
• The target population and how they will be recruited or selected
• A project timeline, including milestones and anticipated completion dates
• Any partnerships or collaborations involved in the project

Example:

“Our after-school tutoring program will run from September to June, offering tutoring sessions three times a week. Certified teachers and trained volunteers will provide one-on-one tutoring in core subjects like math, science, and language arts. In addition to academic support, we will offer workshops on college readiness, career exploration, and financial literacy.”

4.5. Goals and Objectives

List the specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives of your project. Include both short-term and long-term goals.

Example:

• Goal: Improve academic performance of low-income students in Anytown.
• Objective 1: Increase the average GPA of program participants by 20% within one academic year.
• Objective 2: Increase the on-time high school graduation rate of program participants by 15% within three years.

4.6. Evaluation and Measurement

Describe how you will measure the success of your project and evaluate its outcomes. Include any tools, surveys, or metrics that will be used for data collection and analysis.

Example:

“We will use pre- and post-program assessments to measure students’ academic progress. We will also track attendance, grades, and high school graduation rates. An external evaluator will help analyze the data and provide recommendations for program improvements.”

4.7. Sustainability

Explain how your organization plans to sustain the project beyond the grant period, including funding strategies and plans for scaling or replicating the program.

Example:

“After the initial grant period, we plan to pursue additional grants, solicit corporate sponsorships, and organize fundraising events to support the continuation of our after-school tutoring program. We will also explore partnerships with local schools and community organizations to expand our reach and impact.”

4.8. Budget and Justification

Provide a detailed budget for your project, including:

• Direct costs, such as personnel, materials, and equipment
• Indirect costs, such as administrative expenses and overhead
• In-kind contributions and volunteer hours, if applicable

Include a budget narrative that explains and justifies each budget item.

Example:

“The $50,000 grant will be used to cover the costs of program staff, tutoring materials, and student transportation. A portion of the funds will also be allocated for program evaluation and administration. XYZ Nonprofit will contribute in-kind resources, including office space, computers, and volunteer hours.”

5. Submitting and Following Up on Your Grant Proposal

Once your proposal is complete, submit it according to the funder’s guidelines. Keep track of submission deadlines and ensure you meet all requirements. After submission, follow up with the funder to confirm receipt and inquire about the review process.