Grants are a powerful complement to donations when it comes to funding nonprofit organizations. While they typically cannot replace donations completely, they can be a boon for the nonprofits that operate in sectors where government and foundation support is available. As with donations, acquiring grants requires skills, time, and energy, which might mean adding additional members to the organization’s staff.
That being said, the investment can be worth it, especially if your nonprofit can establish consistent relationships with trusted grant makers. The following are some effective tips for helping nonprofit organizations find more success when applying for grants.
Hire a Grant Writer
Grant writing is a specialized skill that requires time and effort to master. While lots of people can theoretically learn to submit grant applications, most nonprofits find that their resources are better utilized by hiring a professional grant writer, so that others in the organization can focus their time on their core responsibilities.
In addition to having excellent, persuasive writing and storytelling skills, a good grant writer will also be up-to-date on current grant guidelines and skilled at identifying grant opportunities that are the right fit for your organization. They can tell which grants are worth pursuing and which aren’t. They can also help you strategize how to fit grants into your operations. Moreover, they’ll be able to take charge of the follow-up process involved in grant applications, which can be quite extensive, lasting months or even more than a year. While a good grant writer won’t necessarily come cheap, the investment is typically worth it.
Research Grant Makers
There are a lot of organizations out there offering grants—more than most people realize. This is why it’s so important to do research and find out exactly what grants are available in your sector. At the same time, it’s not a good idea to just apply to every grant that’s available, because most have specific parameters and target recipients; if you apply without a strategy, you’ll probably be rejected. Rather than wasting hundreds of hours applying to dozens of grants that aren’t a good fit, it’s a better use of your time to research and narrow the list of applications down to those funders that are most likely to support you. Keep in mind that just because a funder is larger or more well-known, this does not automatically mean it’s worth applying for a grant from them. It could be a better strategy to target smaller foundations who have a niche interest in your sector.
There are a number of grant databases and platforms—some available at no cost, others requiring a fee—where you can search for funders and grants, like Grants.gov, a free database of government grants; Instrumentl, a grant discovery and application platform; Foundation Directory Online (Candid), one of the most well-known grant databases; and Grant Gopher, which caters to smaller, grassroots organizations as well as schools.
Get to Know the Grant Makers’ Guidelines
Every grant is different, and they all have unique requirements and guidelines that applicants are expected to follow. The fastest way to get thrown into the “reject” pile is to disregard these guidelines and apply in a way that has been disallowed. Your application will also be immediately tossed if you apply for a grant you’re ineligible for. Read the fine print! By following guidelines closely, you stand a better chance of getting your application past the initial hurdles and in front of the deciders who can more carefully consider the merits of your application.
Make a Strong Case
In addition to following all guidelines provided by the grant maker, it is also important to build as strong a case as possible for your organization. Grant writing is a competitive endeavor, as there is only so much money to go around, and a lot of people are trying to get a piece of the pie. The application should spell out succinctly and effectively how the grant is relevant to your organization’s mission and projects, why you deserve to be selected, and how the funds will be used to achieve a specific, worthwhile impact.
Take the Time to Craft an Effective Application
Ideally, grant writing should not be rushed, as working through the process too quickly makes mistakes more likely. Work slowly and methodically and give yourself enough time, which means beginning the application well in advance of the deadline. Again, this is where a professional grant writer can make a world of difference—they can seek out and identify grants, create project timelines for each one, and complete applications to meet the deadlines.
Attain 501(c)(3) Status
Most grants are only available to nonprofit organizations that have attained 501(c)(3) status from the IRS, so it’s important to apply for this as soon as possible. There are plenty of other benefits of being a 501(c)(3), of course, such as tax exemption. You also gain greater credibility and, usually, the ability to provide tax write-offs to donors. In addition, a Data Universal Numbering System (DUNS) number is also needed to receive federal grants, while an Employer Identification Number (EIN) is often required for grants from many foundations and corporations.