Q: What is the best way to measure return on investment for grantwriting?

A: You may be tempted to think that it’s simply the amount of money you immediately bring in minus the time and money you spent to procure that grant. Right? Not so fast…

We need to look at grantwriting’s return on investment in both the short term and long term.

The number and size of grants directly resulting from any given proposal is often out of your control. Foundation board members consider many factors when funding different grants, and (I dare say) the quality of your proposal is only one of them. The organization’s reputation or history in the community, changing funder priorities or staff, unexpected limitations on funds, and a perceived mismatch with a proposal’s emphasis are just a few. So the short-term success of any proposal (i.e., getting funded) is not the only way we can measure the effectiveness of grantwriting work.

The good news is that the grantwriting process itself can be valuable to the organization in several ways. For example, thinking through the responses to a Request for Proposals can be a great strategic planning exercise. Creating a program budget may shine a light on expenses you have never tallied up before. While writing a general operations proposal, seeing the big picture of an organization (beyond its day-to-day parts) can be an eye-opening experience. I have seen many organizations benefit in these ways from the grantwriting process (whether or not they get a specific grant). Continue reading →