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Basic Grant Writing
- 1. Grant Writing Building Financial Partnerships
- 22. Income Sources
- 23. Expenses
- 31. Questions!
Notas del editor
- Grant writing is more than filling out an application in hopes of getting money. It is building long term relationships between nonprofits and organizations that have similar interest. The nonprofits have the ideas and the capacity to solve problems, but no dollars with which to implement them. The foundations and corporations have the financial resources but not the other resources needed to create programs. Bring the two together effectively, and the result is a dynamic collaboration.
- Research:
- Grant research has been greatly enhanced by the internet. Although not all foundations have websites, you likely to find some useful information on a foundation. Many local and national business have a charitable giving program. If you can’t find it on the company website, call to ask. Local companies like to act as a sponsor and many more companies are requiring their employees to volunteer or contribute financially to a local non-profit. Network with professional organizations to make contacts with businesses and foundations that may lead to a donation. Share and exchange information about foundations with other members. Personal contacts many also lead you to a foundation that shares your mission.
- Data bases are available through memberships such as AGM, FoundationSearch, Guide Star, SNOP. Some free options include researching other human service to get a list of their funders. Information on a foundations’ 990’s can provide a lot of information. We will review this later. 990s can be found through Foundation Center and Guidestar. There are also numerous websites that will help with grant writing; search the web.
- Visit foundation websites for mission, grant guidelines, a list of previous funders. Beyond the website, the 990 is a valuable tool providing the name, address, and some times phone number of the foundation contact. Also some foundations include grant submission requirements. They are required to list all grants awarded. If you find similar programs that received awards, then you know your program might be of interest. Also note the geographic area where the grants are awarded and how much they received. Review 990 form, what to look for-insert 990 slides here.
- Once you have reviewed a foundation’s website that you think is a good fit, call to introduce your organization (if phone number is provided). Find out if there are any changes to the mission or focus not mentioned on the website or are they considering changes in the near term. Make sure that your program operates within their geographic range; ask if your program is of interest to them; mention similar programs that they have funded; what might be the expected range of awards.
- Sample handout LOI should be no more than 2 pages typed on letterhead describing your organization and how you believe that your mission matches the foundation’s interest. Show examples of other similar organizations they have funded. Request guidelines to determine if there is a match. Some LOIs request funds others are an introduction to the funder. Use your judgment in deciding whether to ask for $ in the LOI.
- So now you received a reply to your LOI and the guidelines match your mission. You’re one step closer to the partner’s hand shake. Get busy on your Application
- Hand out sample cover letter. Cover letter – one page summary of organization, project, justification for project, requested amount, program budget total, and how funds will be used to support organization and foundation’s mission; who and how many people will benefit. This is the place to mention something not covered by the application. Once you write one proposal, use this as a template and tweek as necessary to meet funders guidelines.
- Hand out example Summary/Cover Sheet here. Executive Summary- not many funders ask for an executive sum but some ask for the AGM cover sheet which summarizes the project. Some provide their own form. Narrative follows foundation guidelines specifically to the word count. Many applications are now electronic with specific word limits.
- Organization’s history – one paragraph about how organization got started, current status, and future plans. Mission statement – a few sentences describing the purpose and focus. Goals & objectives – how the mission will be achieved; measurable indicators. Programs & services list programs and brief summary. Organization structure – professional experience that brings direction and operates the organization -board members, staff, admin, and volunteers.
- Summarize in 1 or 2 sentences how much and for what purpose funds are being requested. Know in advance about previous awards made by the foundation. They often list a award range on the website or you can determine this from viewing their tax returns 990. What % of your budget are you requesting? Many foundations ask for this or determine whether your request is reasonable. They do not want to be the primary funder. Types of Support: make sure the foundation awards the type of funding you are seeking. Many do not offer general operating support but will provide program support.
- Identify problem - What is the problem? Why does the problem exist? Is it specific to your community? Support with data and statistics. Who is the population/demographic to be served? How will your program solve the problem or improve the situation? How will your organization fill the gap? What resources do you have available and what additional resources are needed? Is there any competition, similar programs; what makes yours different or better?
- Together, objectives, and methods dictate staffing and administrative requirements. They then become the focus of the evaluation to assess the results of the project. The project's sustainability flows directly from its success, hence its ability to attract other support. Taken together, the five subsections present an interlocking picture of the total project.
- The program objectives need to be identified in terms of outcomes(what do you want to achieve) and methods (how you are going to succeed). Do not confuse goals with objectives. Goal is the overall or umbrella approach; objects are the means to the goal, how goal will be achieve.
- Describe your program in a few paragraphs. Be clear and concise. If a foundation member doesn’t understand what you are trying to do or understand the significance of your project, they will not fund it. Staffing may also be mentioned in this section. Personnel experience can be key to a successful program. Describe the population that will benefit; use statistics; numbers speak.
- Some applications ask for a description of the program staff (bio). The credentials of the employees can be influential in that the foundation is not only investing in the organization but will be relying on the staff to fulfill the mission.
- How well did you do? How many people were served and how affective was the delivery. Data collection – quantitative and qualitative. What does it all mean and how can you improve next time. Did you meet the stated objectives and does the form of data support your objectives.? Having accurate data is important. Data that does not support your objectives is worthless.
- Program and project terms may be interchangeable.
- You may require an organization and a program budget, the same concept applies to both. Reasonable-You want to be accurate but conservative. Look at prior year results to build a budget that makes sense. Avoid a budget that results in a shortage. Although you want it to be reasonable an organization that runs in that operates in the red does not look like a good investment to a funder. Line-item specific -Hand out template- All grantors ask for something a little different. They may require that you complete their form or they may give the option of sending in your own budget. Be sure to give them the breakdown they are looking for. The hand out I’ve just given out is in the Associated Grant Makers (AGM) format. Many funders have moved to this format so if you start with something like this you will be able to make adjustments as requested.
- You want to group any funds you receive into these categories. It doesn’t matter how you group them for bookkeeping purposes because you’ll have to summarize them into a format similar to this one. Individual Contributions would also include any fundraising income you’ve received. Earned income would include if you share space with another organization and they pay you rent. In-kind support would include the value of food you receive or space you use to store food or supplies or the value of your volunteers. Anything you receive for free that you would otherwise have to pay for. Other income – pallet income
- Self explanatory.
- Some applications require a budget narrative. It is primarily used to describe unusual circumstances or line items that funders may not be familiar with or that seem to be out of line. You may want to explain what makes up a rather large in-kind number (value of food) or if you’ve received any one-time unusual income or expenses. If you are working in collaboration with another organization on say a fundraiser where you will both be splitting the funds received explain this here. Many funders like to see organizations working together toward a common goal, it shows responsibility and a good use of resources. Indicate how much has been raised to date, expectations of meeting other financial goals, including fundraising, program income, others. Here’s a good opportunity to emphasize the results of a successful fundraiser you just had or the receipt of a large donation from a corporate “partner”. Try to stay positive in your narrative.
- Have a separate list of funds committed and/or pending and those received to date. Also, list any matching funds that are committed. Also have a separate organization and program budget to include in the grant application.
- Funders do not want to be the sole or primary means of financial support. Many provide only one year of support, others limit to 3 years so that organizations do not grow dependent on them. Foundations want to know how you intend to keep your program operating in the long run. Provide a list of funders and a plan to obtain future funds through a variety of means: grants, fundraising, individuals. Be specific and realistic about current and future funding streams. Foundations not only what to see how much money you expect in the future, but from whom. They view the list of other foundations as a criteria for your success. If they see that your program is backed by significant financial strength (big names), they maybe more willing to form a partnership with you.
- Foundations give money to invest in similar interest, focus, as well as in the personnel of the nonprofit. Even if a nonprofit has a great idea, foundations will not invest if they do not think that the staff has the capacity to complete the mission. They are in the business to invest their money to the best possible use. It is in their best interest to see you succeed.
- If unsure of anything in the request, call to clarify.
- Yay! Be sure to send a thank you note. Follow their directions-use the funds for what you requested and what they approved. Be sure to send year end report if required. Nay-Send a letter thanking the funder – specifically any contacts or staff. You can call to ask for comments or clarification for improvements how to strengthen proposal. If they are willing to offer feedback it can be used for future proposals and offers an opportunity to build a relationship with this funder.