How to Maximize your Nonprofit’s Grant Report

Remember when your nonprofit organization won that institutional grant? No doubt you celebrated — at least a little. After all, you put in a lot of hard work and it finally paid off.

Several months later, you found yourself at Step 11 along the “Grant Roadmap” in my online Grant Writing and Managemen t course track (co-created with TechSoup): the grant reporting phase. One of the best ways to continue building a good relationship with your funder is to submit thorough and useful grant reports, on time, and in the requested format. Here’s how.

What to Expect

Your funder is going to want to know if they made a wise investment when they funded you. Essentially, they will want to know four things from your grant report:

What’s working and what’s not
What needs are going unmet
How you can improve in the future
How you are spending their money

Almost all funders expect at least one report showing how you used the grant to further your program. That is, you are often asked for both narrative reports and financial reports. These reports are often due sometime during the grant period (called “progress reports”), at the end of the grant period (“final reports”), or both. Some funders will withhold part of the grant until they receive the required reports.

Not only do you want to show what you’ve done, what difference that has made, and what you are learning for the future, you also want to position yourself as a strong candidate for a possible grant renewal down the line.

Each funder has a specific grant reporting format in mind. Some have detailed requirements or provide grant report templates, and others are very general in nature. You will need to develop funder-specific formats, and you will most likely need to cover the following topics in your narrative reports and financial reports.

Narrative Grant Reports

Accomplishments: Of course, you will want to recount all of the relevant results you achieved during the funding period. Look back at the grant proposal’s measurable goals and objectives. How many of them did you meet or exceed? Maybe you even accomplished some unanticipated things! If so, describe, explain, and highlight.

Client profiles, success stories, testimonials: Tell a couple of stories of people who benefited from the grant-funded work. Show how their lives were improved because of your project, using their words as much as possible. Of course, the stories you choose should be especially relevant and interesting to the specific funder at hand.

Lessons learned: What did you learn from doing the project? Funders are interested not only in your successes but also in how you modify your work to address any challenges you encountered along the way. For example, you may have found that you needed to work with unexpected collaborators and that the new coordination demonstrably improved your project’s outcomes. By sincerely showing how you analyze your effectiveness and strive to learn how to maximize it, you demonstrate that your organization is dynamic and responsive to changing realities.

Your partnership with the funder: Think back to the foundation’s goals, objectives, and priorities. Write about how your work addressed those things. Demonstrate how your partnership with the funder made that possible.

Plans for the future: Unless your project was a one-shot deal that is now banished to the dustbin of history, tell the funder how you intend to build on it. This will help show that the funded project was part of a sustained effort. You may want to share emerging trends or shifting contexts impacting your work.

Financial Grant Reports

You will need to account for all of the expenditures you made with the grant money. Some funders will require receipts, invoices, or other documentation. Others are less stringent. In either case, be prepared by tracking your actual expenses versus your proposed grant budget.

Submitting Your Grant Report

This should go without saying, but I will emphasize it: Don’t miss the grant reporting deadlines! Doing so will leave a bad taste in your funder’s mouth. If you find that you absolutely cannot meet the deadline, ask for an extension at least a week before the due date. Many funders have a little wiggle room, but you should not assume that.

Once you have submitted a grant report, make sure to store it appropriately and record the date you sent it.

Post-Reporting

As you approach the end of your grant period, you will want to take the final step along the Grant Roadmap we use in the Grant Writing and Managemen t course track (co-created with TechSoup). That is, Step 12: exploring opportunities for renewing the grant or possibly applying for funding for a different program of interest to the funder. If your reports were solid and demonstrated success, learning, and good nonprofit financial management, you may be eligible for future funding.

(Of course, a tarnished relationship with the grantmaker is a good way to NOT get renewed funding.)

But grant reports also serve an important purpose for your organization itself. Clearly, they can help you track your progress, measure your success, and learn from challenges. In addition, if you share them internally, grant reports can be repurposed for a variety of fundraising and marketing material. Annual reports to the public, newsletter or website articles, social media posts, appeal letters, and presentations are just a few ideas.

By the Way …

If a funded program reaches a major milestone or needs to make a significant direction change during the grant period, your funder needs to know that. While these contacts are not technically the requested “reports,” it behooves you to make sure your funders are aware of both major successes and modifications you are making.

Grantmakers do not like last-minute surprises that they should have known about beforehand. Show that your organization is a responsible manager of grant funds with a commitment to a partnership with the funder.

Keep your funders abreast of the work their grants funded — with the right grant reports — to help strengthen your relationship. The good news is that your organization overall — and the specific funded programs — can also benefit directly from the information you collect.

How to Read a Funder’s Request For Proposals

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Do you know how to evaluate a funder’s Request for Proposals?

If you have been in the grant writing world for any length of time, you are bound to have come across a number of funding opportunities. Released a few weeks or months before the deadlines, they are usually called Requests for Proposals (RFPs). Alternatively, some funders simply publish “funding guidelines” for grantseekers to follow when applying for any given grant cycle.

You will have to assess each funding opportunity to see if and when you should pursue it.

Think About Your Nonprofit Organization’s Priorities for Grant Funding

Remember: You’re trying to fund the high-priority current and future programs at your organization — not chase after money that is only tangentially related or sends you off course.

“Chasing the money” is basically trying to fit a square peg (your program) into a round hole (the grant opportunity that is not central to your work). If you do that, you will either: A) waste valuable resources applying for a grant that funders know is not appropriate for you, or B) somehow win the grant and then have to work on a low-priority program that siphons time away from your more important priorities.

Instead, only apply for grants that are truly aligned with your most important work.

Then Match with the Funder’s Grant Priorities

When a funder’s Request for Proposals says it “gives priority” to any item, that means that most–if not all– grant awards will go to organizations or programs that fulfill those criteria.

If you don’t fall into that category, you have a much lower chance of winning that grant. I recommend keeping funders like that on your radar, but not in your top tier of funding prospects.

On the other hand, if you DO fall into the funder’s “priority” category, that means that grantor should be high on your agenda for grant proposals.

Think about how you can package your priorities in ways that make sense in the funder’s world. Remember: Those categories may not necessarily directly map to the way things work in your internal systems.

For example, one of my client organizations, Acta Non Verba, runs a youth urban farm with seasonal camps and a Community-Supported Agriculture micro-enterprise. They position their work to appeal to many different funder interests – packaged in one-year grant periods. Those categories include:

Environmental/outdoor/STEM education
Food access
Youth development
Workforce preparation
Micro-enterprise training/financial literacy
Nutrition/healthy living
Community-building

This isn’t really how they divide things up internally. But that’s what makes the most sense to grant makers.

Examine the Details

Before moving forward, be sure to review the list of qualifications and exclusions in the funder’s Request for Proposals. This may include things like geography, organizational budget size, length of time in official existence, tax status, specific communities served, etc. You don’t want to waste time and effort if you don’t even qualify.

Many RFPs state a text limit – number of pages, words, or even characters for online applications. This will set your expectations for how much you will have to write. Note that sometimes writing a short piece can be harder than writing something longer because of the editing you will need to do.

Also included will be a list of exactly what they want to see, or types of information they will seek, in your application. Consider it like a checklist and make sure you cover it all …to the best of your ability. Some of the information you are likely to already have on hand; other parts may require some digging.

Don’t forget to note the deadline and if there is a specific time that day that the application is due online, in postal mail, delivered to their offices, etc.

A deadline should be your signal to ask yourself if your organization or program is really ready to apply. Do you have enough time and resources to do a good job with the proposal?

For example, I recently worked with a client who spoke to me after her proposal was declined. She was later able to speak with the funder and learned that her proposal lacked some important information that the funder expected. My client realized that she had a lot of work to do! She now plans to re-apply in response to next year’s RFP.

As was true in her case, the RFP might tell you how often you will have the opportunity to apply. For example, a funder’s Request for Proposals might come out annually or quarterly. Take note of those facts and plan accordingly.

The RFP will also tell you the grant period being discussed. It’s usually one year but it may be 18 months, two years, or more. You can use that timeframe to lay out your proposed work.

Of course, RFPs will ask for the financial information the funder requires – such as proposed budgets, financial statements from previous years, and the like. That list is likely to be part of a longer list of proposal attachments that the funder requires or recommends.

And finally, the RFP will probably give you a dollar amount to request or at least a range of grant amounts they are offering. If you’re unsure, check out the sizes of the funder’s recent grants.

Next Steps to Review an RFP

You can expect to read through an RFP a few times to make sure you are aware of everything involved. I usually use yellow highlights to make sure I’m remembering the most important or unusual information.

Be sure to alert your other grant team members of any missing pieces you will need (such as special attachments, forms, or updated program information) — and when you’ll need it. If you can gather all of the information well before the deadline, your job as final editor will be much less stressful!

Got questions about anything on the RFP? Most of the time there will be a contact person to ask. If possible, get in touch and ask for any clarifications you need. You may also have an opportunity to gauge the funder’s interest in your work. If you get that chance, jump at it!

Before you submit your grant application, go back to the RFP to double-check that you provide everything the funder wants in the precise sequence and format they request.

In my Grant Writing and Management course series, I actually walk you through each individual part of a sample RFP. We then move forward in the grant proposal process.

Analyzing a funder’s Request for Proposals or funding guidelines is an important first step before deciding to devote resources to preparing a grant application. Make sure you proceed wisely!

How To Create a Stellar Grant Writing and Management Team

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If you read my most recent blog article, 8 Essentials You Need To Set Up Your Nonprofit for Grant Success, you are already aware of the many fundamental informational components you will need to gather for a successful grant proposal. But what if your nonprofit organization is not quite fully prepared with all 8 of these items?

This is a great time to start thinking about how you can get all your “ducks” in a row. No doubt this will take some work with your organization’s leaders and staff all working together.

Gathering the eight information essentials is just the first step. Once you have them ready, you’ll then start to pursue specific grant application opportunities. To develop those grant proposals, you will need a team of folks — at different points in the process.

How to Lead Your Grant Writing and Management Team

If you are leading the grant team, you will play a significant role.Your job is to rally the troops while staying calm, cool, and collect. You will make sure that everyone is together, going in the same direction. You lead by example and inspire others to go with you.

So … what does that look like?

1. Setting the Tone

Start out by setting a collaborative tone. It’s all about teamwork and joint ownership. You want to show that you expect everyone to ‘play well together,’ to achieve a common goal.

You will convene an initial meeting (or several one-on-one conversations) with the key players and sometimes the supporting actors — to discuss project plans and go over specifics of the grant proposal and information on the funder.

Often, you will be the only glue that binds these different “troops” together during the grant process. I have found that many times, the people I am working with are very thankful to have me take the lead. They would prefer to be a grant team member and not have the responsibility of leadership.

Everyone is an Expert

Everyone likes to be treated as an expert, so each team member will have a specialty. Sometimes that’s obvious from their job title. But if it’s not, I encourage you to confirm that people will play specific roles. Remember that a single person may take on more than one role; on the other hand, more than one person can share any given role.

Grant Team Roles

Let’s take a quick look at the different team members’ roles:

Community Needs Assessor

To get started, you’ll need a Community Needs Assessor to help establish why the program or project is so crucial in the first place. That critical piece should embrace as much community involvement as possible – after all, who would be better positioned to know the issues?

Program Specialist

You’ll also need a Program Specialist to outline the vision, objectives, and implementation of the prioritized program or project to be funded. That person will be very involved in creating and reviewing proposal drafts for content accuracy.

Researcher

While that is being done, you’ll need a Researcher to find appropriate funding opportunities for the proposed program and keep track of requirements and deadlines for those applications.

Relationship Cultivator

You’ll also need a ‘Schmoozer’ or Relationship Cultivator to initiate and maintain relationships with those funders.

Evaluator

Once the program or project is funded, you’ll need to have an Evaluator to monitor the implementation and effectiveness of the program, according to the grant proposal. When it’s time to report your progress to grantmakers, that person will provide information about the project’s status and outcomes.

Administrative Staff

Throughout the process, you’re likely to need some Administrative Staff. That often includes people in human resources, accounting, legal, technical, clerical, and other specialties.

One Other Critical Team Member: Strategic Supporter

There is actually one more role on your team that is critical, and it needs to be filled by the Executive Director and/or key Board Member. That is, the role of Strategic Supporter of your grant-seeking work. This person will provide the resources and inspiration to facilitate grant success. Without their strong support and vision, your grant team will lack direction, priorities, and motivation.

Grant writing and management team — A grant writing and management team review a grant proposal. (Photo: Courtesy of Canva)

Where to Find Your Grant Team Members

Whew! That sounds like a lot of people. And it might be, depending on your organization’s size. Remember that while most team roles will be played by staff members, you may also look to board members, outside experts, or volunteers to help out. Sometimes all they need is a little support to improve their skills and confidence in this area.

You may find that some folks at your nonprofit are a little reluctant to help in grant-seeking efforts. But everyone in the nonprofit sector should know that at some point, they are very likely to be part of fundraising. It’s just the nature of the beast.

Even if someone hates the idea, you can try to make it more pleasant for them. See if you can demonstrate how much stronger your grant proposal will be with their input. After all, no one else has their expertise!

Then try to make it easy for them to help you out.

For example, consider drafting your proposal with blank spaces for them to fill in with the information that only they know. It’s much simpler to fill in the blanks than to start from scratch.

Some people would prefer that you interview them for a few minutes, and then have YOU fit their words into the format a funder is looking for. This is a good option to offer them.

I have seen both approaches work well.

Just remember to give them time to schedule the work on their calendar. That means you have to plan ahead – well in advance of the proposal deadline.

Another idea is to collaborate with a peer organization to see if together you can get to a place of readiness for grant success. Or perhaps a more developed organization is interested in doing a project that you can contribute to; in that case, you would serve as a member of THEIR team and simply contribute as a “service provider”.

If You Must be a Grant Team of One

If you find yourself traveling alone on your grant-seeking journey, wearing many different hats, don’t despair. You will just have to expect that grant success may take a bit longer to achieve, given your constraints. Remember the many resources out there to help you along, including grant training and coaching, and working with consultants from time to time.

The bottom line: Make sure your nonprofit organization has the people-power to succeed in the grant world. Grant seeking is a team sport.

Ask Your Grant Writing Question

8 Essentials You Need To Set Up Your Nonprofit for Grant Success

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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 2^nd and 4^th 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.

Ask Your Grant Writing Question

How to Build a Proven Simple and Easy Funder-Friendly Budget

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If you follow my work, you may have noticed that my advice on writing a grant proposal usually focuses on the written part – called the “narrative” section. But a full grant proposal actually has at least one other component: the budget. Both parts are crucial to grant success and, along with administrative pieces, comprise a total grant proposal package.

Your grant proposal narrative will point the way to your proposal budget; the process is straightforward. In fact, the more directly your narrative flows to the budget the better.

A Thumbnail Sketch of Your Grant Proposal

The good news is that the budget is usually much shorter than the proposal narrative — as brief as a single page.

Creating a program budget should be fairly easy once you have nailed down exactly what your proposed program looks like. At that point, you know what items you need; you just have to figure out (or at least estimate) what each item will cost and how those costs will be covered.

If you have never actually tallied up all of the expenses involved in your program, this process may uncover costs that you had simply glossed over before. A full list may prove to be quite an eye-opener.

Another piece of good news: In many organizations, budgets are created jointly by several members of the grant team. That means that if you are not so great at spreadsheets and finances, someone on your team can help you out.

As a good grant writer, your focus needs to be on making sure the numbers are reasonably accurate from a funder’s point of view and that the proposed work has some plan for financial sustainability.

Your grant proposal’s budget needs to tightly align with your proposal narrative. In fact, some funders read through your budget before slogging through your narrative. So, the budget needs to provide a consistent “thumbnail sketch” of what you’re proposing. You want to encourage the funder to want to know more and potentially get on board.

Grant Writing and Management Course

Two Kinds of Grant Proposal Budgets

Your grant proposal will be seeking funding for either your entire organization (usually called “general operating support”) or for a specific program or project your organization is doing or is planning to do. So, you will need both an organizational budget and a program/project budget for each grant proposal.

Organizational budgets tend to be somewhat complex, depending on the organization’s structure, and are developed by the organization’s management, finance department, etc. That budget will most likely be approved by your Board of Directors on an annual basis.

On the other hand, program or project budgets are built by the finance department, program director, and/or the development director. Sometimes, the grant writer will need to take the lead on getting these budgets together – in consultation with others.

Remember: Plan for Both Expenses and Revenue

Your budget should contain two distinct parts: Expenses and Revenue. That is, you’ll account for both money you will need to spend AND money you expect to receive to pay for it all.

On the Expenses side, you will probably be asked to separate “direct” and “indirect” expenses. What’s the difference?

Direct expenses pertain only to the proposed program at hand. That is, you would not incur those expenses without the particular program. Typical direct expenses include dedicated staff time, mileage, equipment, and supplies – all as described in the proposal narrative.

Indirect expenses are often called “overhead” or “administrative costs.” They include costs for items that your organization would have to pay for anyway, but that you are also using for the proposed program. That includes things like rent, utilities, office software, accounting, some fundraising expenses, etc. Some funders don’t support indirect expenses at all; others usually cap them at 10-15 percent.

The expenses you are budgeting for should be carefully researched and calculated according to the best estimate you can find, referring to the prevailing rates in your area.

Some funders will ask exactly which of your expenses you plan to use their money for. That’s a fair question. Remember that some funders have restrictions on what they will or will not fund. For example, many funders will not fund debt, salaries, rent, videos, or publications.

And what about the Revenue side? Many people forget to include this important second part of a program’s budget. Grantmakers want to know what other support is already lined up, or at least your other pending or planned proposals. Think about how you can show that your proposed work has several sources of revenue and is sustainable beyond the specific grant you are requesting. For example, can you list several different funders, individual donors, events, and/or in-kind donations?

So, take a deep breath and realize that building a funder-friendly budget is easier than you might think. Even if you are not a wiz at finances, remember that you can get help from other grant team members with financial or accounting expertise.

Your prospective funders are looking for a strong budget paired with a strong written narrative. Make sure that’s exactly what you submit to them.

For more detailed information on how to create an entire grant proposal package, join me in the Grant Writing and Management course track on TechSoup Courses.

Grant Writing and Management Course