Tag Archives: grant writing

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

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

Beware! Know When a Grant is a Mistake to Apply For

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I know your nonprofit organization is probably eager to attract some grant money to help support your good work. The idea of a funder handing a large check to your nonprofit probably makes your heart flutter. Visions of popping the champagne might come to mind.

And that’s what grants are there for!

But you should know that not all grants are good for you. Before diving in, I suggest that you first get clear about the difference between a grant that can be helpful to your organization and one that actually doesn’t do you any favors.

Pursuing a grant strategy is a major endeavor and you want to go in with your eyes wide open!

Grant Application Consideration #1

Grants generally take up to 6-12 months to be awarded after you apply— and that’s not counting the time it takes to prepare your application. In fact, good preparation (read: grant writing) is quite time-consuming itself!

[Recently, especially with COVID-19 grants, emergency or “rapid response” grants have had shorter turnaround times. But that is rare.]

A waiting period of many months is often too long for an urgent project. Sometimes board members, or even Executive Directors, are unfamiliar with grantseeking and may think that grants offer a quick and easy way to fund the organization. This is generally NOT the case.

Grant Application Consideration #2

Grantmakers often change their priorities and can be unreliable. You don’t want your organization to be dependent on only 1 or 2 grants that could disappear next year! You can protect your organization’s well-being by having many different sources of income in case any suddenly slow down or dry up.

What are those other sources of income? Think individual donors, events, fees for services you provide, or social enterprises you run.

My point: Any grant strategy should be part of a MUCH LARGER fundraising plan.

Grant Application Consideration #3

Grants are only temporary and have no guarantee of continuing. Your organization needs to be sustainable – that is, have a strategy to ensure that you can survive or thrive past the duration of any specific grant.

While grants can and should be part of the mix, you can’t expect them to be anything more than a short-term fix for a year or two. And if they end up being long-term, when then, you will be pleasantly surprised!

Living grant-to-grant is like living paycheck-to-paycheck without a guaranteed job – not a good idea if you can help it!

Grant Application Consideration #4

Grants are actually NOT free money! Sorry if this bursts your bubble.

There is a LOT of work involved in seeking and managing different types of grants.

Your nonprofit organization has to decide if it’s worth dedicating the needed time, effort, and other resources in exchange for the possible cash you could receive in the form of a grant.

In addition, some grants come with strings attached. You have to consider the agreement you’re making to accept money from any particular funder. For example, sometimes a funder demands way too much work in exchange for a grant that will only partially cover your expenses. What would you do then?

Grant Application Consideration #5

Your organization might simply not be ready. If you are not prepared with all of the information, people, and other resources you’re going to need, you will be wasting your time and money pursuing grants. You need to make sure you are able to take this on.

For example, funders may see your organization as not yet organized enough — with the right capacity — to make the best use of their grant. And they might be right!

You may find that a given grant application or proposed project doesn’t fit with your organization’s stage of development right now. Or perhaps you have to address some internal challenges before you can put your best foot forward to a funder.

As you can see, it’s not always the right time for any given nonprofit organization to seek and manage any given grant. I encourage you to carefully consider your options and adopt a clear-eyed perspective about the grant opportunities that come your way. In fact, you might want to share this information with others at your organization who may need to see the larger picture.

When you are sure a grant would be truly good for your organization, you’ll be set to start your grant seeking and grant writing journey.

Register Today: Grant Writing & Management

Today’s Changemakers: Discover a Rich Career as a Nonprofit Professional

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If you are just graduating from college, you have so many choices before you! A big one is your future career. Do you want to devote your profession to making a real difference in the world? Will work in the nonprofit sector suit you?

If you are thinking about it, as I did when I was a recent college graduate many moons ago, you will want to consider many factors:

What really needs to get done?
What are you good at?
What do you enjoy doing?, and
What will be financially sustainable?

(By the way, these are also good questions to ask yourself if you are considering a career in government service or socially responsible businesses.)

Passion is Not All You Need

Notice that I am suggesting not to just focus on the issue or cause you are passionate about, but also the actual skills you will be bringing to the job. With a newly minted degree, you probably have up-to-date knowledge about your field. And that is so helpful! But you also need to know the answer to the question: “Yes, but what can you DO for us?”

And there is a lot that needs doing! Nonprofit jobs make up about 10% of private sector employment in the U.S. That’s a good chunk – accounting for over 11 million positions.

No matter what specific job you end up in, you’re virtually guaranteed to be involved – directly or indirectly – with fundraising. It’s the lifeblood of the nonprofit sector. One important component of fundraising is grant seeking strategy. It’s a skill you would be wise to pick up because it will help open doors for you.

I recently wrote a blog post describing the Top 12 Traits of a Good Grant Writer, but regardless of your specific job title, knowing how to attract grants can be an important feather in your cap or tool in your toolbox (choose your favorite metaphor).

Now, most of us don’t come to the nonprofit sector because we want to be fundraisers, per se. Instead, we are compelled by an organization’s mission, activities, outcomes, and the like. But don’t overlook fundraising! You will add enormous value to your (current and future) employers if you bring experience and expertise in one or more aspects of revenue generation strategies.

Basically, those of us with fundraising backgrounds are always in demand.

Where to Begin?

New-College-Graduates-Careers — Newly minted college graduate interviewing for her first job to become a nonprofit professional. (Photo: Courtesy of AdobeStock)

What’s that? Your resume is kind of thin in that regard? Not to worry. You can find opportunities everywhere that will help beef it up. Stepping up to take a little initiative with an organization you’re interested in goes a long way.

Are you good at schmoozing? Researching? Storytelling? Running numbers? Are you closely tied to the community you want to serve? How about multi-tasking?

If any of that described you, grant writing just might be up your alley.

You may have been one of the fortunate students who took a grant writing course in school. If you were extremely lucky, your instructor had some recent real-world experience in the field. If so, great!

But odds are that you, like most people in the nonprofit sector, never studied grant writing or grant management. Instead, most people try to learn the needed skills on the job — and that can take many years.

To help address this situation, TechSoup and I teamed up recently to co-create an on-demand course series on Grant Writing and Management. This learning track consists of 5 courses that form a “starter kit” for grant writing.

In the courses, we travel step-by-step along the “Grant Roadmap,” where you will learn to:

First ensure the organization’s readiness for grant seeking.
Then plan and draft an entire grant proposal package.
You will perform a mock review to make sure it is complete.
You will also learn to research and approach your most likely funders.
And manage the grant after it is awarded.

Here is the welcome video for the course track:

TechSoup and Writing to Make A Difference’s Grant Writing & Management course Welcome video.

In all 5 courses, you’ll engage with me through videos, interactive activities, and quizzes. You will also find dozens of samples, templates, checklists, and other resources. And each module comes with its own transcript for easy reference.

Special Discount for Recent Graduates

We are pleased to offer recent graduates a 20% discount on the Grant Writing and Management course track! To get the discount, just enter code: GRANTMGMT20 when you sign up. The discount expires on 6/30/21, but the good news is that the courses themselves have no expiration date — take them whenever you wish.

By the way, the course track makes a great graduation gift for any graduate considering the nonprofit world! [Hint, hint.]

For Best Results…

TIP: Take the time to identify an organization that interests you. Try to contact them to see if they would like to partner with you. To get the most out of the courses, you will need lots of information about the organization and its programs – and some of it will probably NOT appear on their website.

Be sure to let them know that if they work with you, they will get a free grant proposal template out of the deal – quite an incentive!

The Bottom Line

Get some training and experience in fundraising/grant writing and you will boost your marketability in the nonprofit sector, regardless of your primary focus. Hey, maybe you’ll even get a foot in the proverbial door!

P.S.: For more help, thinking through a nonprofit career path, I suggest this great article from WildApricot.com.

Register Today: Grant Writing & Management

Top 12 Traits of a Good Grant Writer

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If you’ve worked in the nonprofit sector for any length of time, you have already figured out the central role that fundraising plays. No nonprofit can do the good work it does without financial support. Even volunteer-run organizations have funding needs at some point.

This process started for me as a child. I wanted to do something to help improve the world around me. I saw a lot of needs going unmet. What could I do?

You guessed it: I ended up Trick -or-Treating for UNICEF and then selling lollipops to raise funds for the American Cancer Society. That is, fundraising.

But that story is not limited to youngsters. Adults with careers in the nonprofit sector—like you—also must focus on fundraising skills. While fundraising does take many different forms, a large number of nonprofit workers find that even if their job titles do not include the words “grant” or “fundraising,” they are expected to be involved in some grant writing.

And, of course, some of us eventually focus primarily (or entirely) on the grant side of things.

If this sounds familiar, or if you aspire to become a nonprofiteer, ask yourself if you have what it takes to shine in the grant writing world:

1. Strong writing and storytelling skills

If you have a knack for crafting messages to engage readers, or you know how to tell a good story, you’re already on your way (even if you were not an English major).

2. Content knowledge as a specialist or generalist in your field

You don’t have to be an expert on all of the details; that’s what your colleagues are for. But you need to be constantly adding to your understanding, and be willing to learn quickly.

3. Passion for the nonprofit’s work

Of course, you can only spread enthusiasm for supporting an organization if you have that passion yourself. As you learn more about your organization’s mission and why it’s important, you will probably become even more of a fan.

4. Training and on-the-job experience

Courses and books can help you get started. But you also need to get some hands-on, real-life experience. Coaching and mentoring during that process can elevate you to a new level of understanding and skill.

5. Resourcefulness as a self-motivated, tenacious researcher

You’ll need to research appropriate funders, as well as specific pieces of information about your organization or its issues of concern. You just need the right tools and contacts to follow the right leads.

6. People skills

You have to be good at building and maintaining relationships by listening and working with a team on each grant proposal. Grant writing is not just about hiding behind a computer screen!

7. Strategizing Skills

Your colleagues will often look to you to help them strategize which grants to pursue and how. You are the knowledgeable guide who can lead them to design work that is attractive to grantmakers.

8. Multi-tasking and prioritizing skills

With so many deadlines and projects to manage, you need to know how to handle it all with graceful and flexible planning. You might have heard the quote from Douglas Adams: “I love deadlines. I especially love the whooshing sound they make as they fly by!” Wouldn’t it be great to be able to do that? Instead, grant writers go by the maxim: “How do you eat an elephant? One bite at a time!”

9. Ethics and integrity

Funders and your organization will both need to be confident that they can trust you to do the right thing and do it consistently. You need to be clear on the ethical obligations involved with professionally soliciting and managing funds.

10. Administrative skills, both big picture and nitty-gritty details

This includes the ability to follow both a funder’s guidelines to a “T,” and any internal requirements at your nonprofit. You also need to be able to organize and track your work, as well as handle the myriad of pesky document processing issues that pop up (e.g. word count, layout, etc.).

11. Ability to learn from rejection and persist

Even the best grant writers can’t win ‘em all. Learning from mistakes comes with the territory. Actually, I think rejection is UNDER-rated! When you are rejected repeatedly, it should be a red flag that means you’re doing something wrong. You will need to learn more, get better advice, do more research, and ask more questions.

12. Confidence based in knowledge and preparation

Bottom line: You need to feel confident that you have the background, support, and tools to get the job done well.

If you have most or all of these characteristics, you’re well-equipped to help your nonprofit attract and manage a nice portfolio of grants. If you have identified a few traits you want to cultivate further, consider ways to develop those skills. You and your nonprofit will be glad you did!