In this episode, we discuss the white whale of the nonprofit world – grants. Everyone wants grant money, but no one knows how to find the applications. Grant Writer Mentor Teresa Huff talks to me about grant writing for nonprofits. We cover topics on where to find grants when to apply, and what to do to get ready.
Most importantly, be patient with the process. Begin by focusing on getting the nonprofit up and running before applying for grants. Grantmakers want to see a track record of fundraising and programs before giving money away. In the meantime, build relationships and research grant opportunities from small or community-minded organizations as those can be easier to obtain than larger grants.
Are you ready for grants?
All nonprofits want grant money but not every NPO is ready to apply. Take your time. Funders want to give money to established organizations. They will want to know the program for which the monies will be used and how the program will be sustained when the grant money runs out. That means you must find ways to raise money as you’re building your NPO.
Teresa Huff tells us that the most important is to obtain 501c3, the nonprofit tax status. Then serve clients for 2-3 years before applying for grants. You’ve got to show proof of concept.
Grantmakers want to see sustainable programming before they will fund your nonprofit.
- How many people are you impacting currently?
- How many will you be able to serve with the addition of the grant for which you’ve applied?
- How will the program continue when the grant money is gone?
- Is the Board of Directors diverse, established, and dedicated to the mission as well as their fiduciary responsibility to the organization?
- How does the nonprofit benefit the community?
These are questions grantmakers often ask on applications. The stronger a case you can make for your organization, the better the odds of obtaining the grant money.
Build Relationships
In fundraising, one of the keys is to build relationships. We’re not talking to dollar signs; we’re talking to real people. They want to understand the organization and where their donation is going. You’re talking to people so start building relationships before even asking for money. This concept goes for grant makers as well. Get to know the funders and their organizations so that you can write a better grant application.
What are funders looking for?
- Depends on the funder but most times, they want to supplement an existing nonprofit or support the expansion of a program. For example, if you have a food pantry, an additional program would be to send school kids with a backpack of food for weekends and school vacation time.
- Have a plan in place for how you will use the funding and continue serving at the same level after the grant funds are gone.
- Timing is everything. Grants can take weeks to a year to hear from after you apply. If you want to launch a program for the summer, think well ahead of the end of the school year to apply.
- Grant writing can take hours to weeks depending on the grantmaker. Federal grants and those from larger organizations can take 100-200 hours to request letters of support, gather data, and write the grant. If you’re new to writing grants, start with smaller grants to learn the process and get a track record built before the bigger grants.
- Read the guidelines to the letter. Don’t add documents or information that have not been requested. That’s a sure way to get your grant application declined.
