I have spoken with untold numbers of people representing nonprofit organizations that really want to get started — or better at — grantseeking. No wonder! Just think what great work your organization can do with some extra cash.
But wait! There is definitely no “free lunch” and you’d be well-advised to look before you leap. After all, if you’re not really ready to enter the grant world, you will just waste a lot of time, energy, and maybe even money.
If you want to maximize your grantseeking efforts, you need to prepare your organization to be worthy of a grant maker’s investment. That is, you need to be able to show that you are credible, well-run, and effective at carrying out your mission. Not only that, but you have to be set up to use a grant effectively – from their point of view.
Let’s look at the 8 essentials you’ll need at your fingertips. Once you have these essentials set up, you will have a solid foundation from which to travel through the grant world. If you skip this crucial step, you will find yourself wasting precious time backtracking to fill in the gaps. (Or worse, lack the needed information when applying for a grant you want.)
1) Official nonprofit tax status
You will need either your own non-profit status or if you are not yet an independent nonprofit you will need a fiscal sponsor that agrees to administratively sponsor your organization in exchange for a fee.
At a minimum, you will need to have certifications on the federal and state levels, and some areas also require a county or city business license or other documentation.
2) A clear, unique mission
Think about how your organization plays a special or unique role in your field. If your mission statement could describe any other organization that is similar to yours, think again.
You will need to clarify what you set out to do in your community — in terms so clear that anyone can understand. Periodically revisit your mission to make sure it continues to be relevant and inspiring, even as times and circumstances change. (Does that sound familiar in this age of COVID-19?)
3) An active, financially supportive, diverse Board of Directors
Of course, your organization has a board of directors. But do they meet regularly? And do they all contribute financially in a meaningful way? Are they connected to the community you serve?
It’s best to have a good variety of folks on your board who are familiar with the various parts of your organization. If the group includes some current or former clients and is representative of the ethnic and socio-economic communities you serve, you’re already off to a great start.
4) Appropriate financial information
You will need to produce several financial documents: budgets, expense and revenue reports, IRS filings, balance sheets, and the like. Make sure you have the proper systems to do that.
You also need to show that you are on solid financial ground — even if you are just starting out. So, If you are in debt, I strongly encourage you to settle it before seeking new grants. If you have any tax issues, clear them up now.
On a related note, funders want to know that you have multiple sources of support. They are not interested in being your only lifeline. So you need to show a solid history of financially sustaining yourself, and a plan to do so in the future. Even if you are new, you need to be able to show some sort of community support that keeps your head above water.
5) At least 1 priority program with its own realistic budget
You may know that the vast majority of grants are given for specific work for only 1 year at a time. With that in mind, you will need to divide your work into specific units — programs or projects — with realistic expectations for a 1-year period. These bite-sized chunks need to be centered on your strengths or core competencies.
Remember that each program or project needs a realistic budget: the money you will need to run it and where you expect to find those funds.
If you are a new organization, you may only have one “program” you’re working on. I encourage you to think deeply about how you could slice and dice it into smaller pieces.
6) Method of quantitative and qualitative evaluation
Funders will want to know the quantitative results of your work (e.g., how many people you served), and the quality of the impact you made (often in clients’ own words).
Funders often call these “measurable outcomes.” Plan from Day 1 for how your program will measure and demonstrate its results.
7) Track record of success (or at least the right leadership to make that happen)
You will need to be clear on how your organization and/or project has already made a positive difference in your community. That is, what results have you already seen? There are lots of ways to tell the story of your past that can then lead to a bright future.
8) A strategic plan of some kind
Even if you can’t carry out a full-blown strategic planning process, your board and staff can at least envision an outline of where you are headed over the next 1-3 years.
This doesn’t need to be fancy. You just need to demonstrate that your work is coherent and realistic in accomplishing your mission, given the context you’re working in.
Get started
Try your hand at gathering these 8 essential pieces of information, and jot down your thoughts about each. If you see any showstoppers, make sure your organization addresses them before moving forward.
With these pieces of info in hand, you will be ready to go forth and win some grants!
Have grant writing and management questions? Join me, Dalya, at Ask Dalya Live! I answer your grant writing and management questions at 12 p.m. PT every 2nd and 4th Wednesday of the month on Facebook Live @writingforcommunitysuccess.
This Wednesday, August 11, the floor is yours at Ask Dalya Live! to ask whatever burning grant writing and management question you have.
