Everything You Need To Know To Get Grants For A Nonprofit

It a time of shrinking budgets and limited resources, many nonprofits are looking for ways to supplement their funding. One way is through grant money. Grants can be a great source of funding, but they can also be complicated and confusing.

This guide will teach you everything you need to know about applying for grants as part of your fundraising strategy for nonprofit organizations.

6 Types of Grants for Nonprofits (and how to find them)

Takeaways
Understand the basics of grant funding and its significance for nonprofits.
Research and identify grant opportunities that align with your organization’s mission and projects.
Pay close attention to eligibility criteria and requirements for each grant application.
Craft well-written grant proposals that clearly outline your organization’s goals, strategies, and intended impact.
Effectively communicate the unique value of your nonprofit and how funding will contribute to positive change.
Thoroughly review and follow application guidelines, submission deadlines, and any specific instructions provided by funders.
Continuously track and measure the outcomes of funded projects to demonstrate accountability and impact to funders.
Building relationships with potential funders and maintaining a positive reputation can enhance your chances of securing grants.
Embrace a proactive approach to grant-seeking, seeking out new opportunities and adapting strategies based on feedback.
Stay informed about trends and developments in the grant landscape to optimize your nonprofit’s grant-seeking efforts.

Table of Contents

Assess Your Needs

The first step to getting grants is to assess your needs. In order to get a grant, you will need to know what your organization needs and how much it costs.

First, write down what kind of resources are missing or in short supply and then make note of the costs associated with those necessities. For example:

We need a new computer because ours crashed last month, but we would also like a printer for our office space. The cost would be around $1,000 per machine ($2,000 total).

Our budget is tight so we can only afford one full time staff member; this means that she has no backup if she gets sick or goes on leave for some reason (like maternity leave).

This can cause problems for our clients who rely on her help and support when they don’t have anyone else available during business hours! We need someone part time who can fill in when needed ($8-$12k/year)

Once these things have been written down, create a budget based off these items so you know how much money you’ll need overall before applying for any grants at all. Once that’s done then we move on to research where we’ll look into various programs which might help us out here…

Grant proposal writing requires careful planning and attention to detail. Learn how to improve your grant proposal skills with our guide on tips for writing an exceptional grant proposal. Crafting a compelling proposal is essential for securing funding for your nonprofit’s projects.

Create A Fundraising Plan

A fundraising plan is part of your overall strategic plan and helps to guide you in terms of how much money you will need, when and why you will spend it, and how you will use the funds.

A fundraising calendar is an important tool for planning out all of your fundraising activities. It can include both short-term (monthly) and long-term goals (yearly).

The calendar should also help keep track of when certain events such as grants are due by so that there are no surprises or missed deadlines later on.

A good way to create this outline is by using Google Calendar with time blocks dedicated to each item listed above: raising awareness about the cause; cultivating relationships with potential donors; asking for donations; tracking donor information; etc.

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Establish A Donor Database

Your donor database is crucial to your organization’s success. A database can help you track your donors, as well as keep records of their gifts and pledges. You can use it to plan future fundraising activities, determine who has given money in the past (and when), and more.

What Is A Donor Database?

A donor database is a system for storing information about donors, including contact information and donation history.

How Do I Set Up My Database?

First off, make sure you have access to software that allows users to enter data into tables or spreadsheets easily.

You’ll also need some kind of programing language like PHP or Ruby on Rails to retrieve the data stored in these tables/spreadsheets when needed by others within your organization (like the people writing thank-you notes).

There are plenty of options out there! We recommend using CodeIgniter because it’s easy enough for beginners without being too limited feature-wise like Laravel might be at times due to its popularity among developers at large companies.

Such as Amazon Web Services want something simple without having any trouble finding support when they get stuck somewhere along their journey while trying out various new technologies thanks too many online resources available online today so just make sure everything stays secure before going live!

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Research Local, State, And Federal Funding Opportunities

Researching funding opportunities can be a daunting task for any nonprofit organization and this is especially true if you’re starting from scratch. The good news is that there are several local, state, and federal government websites that make searching for grants easy.

Even better news? You don’t even have to leave your couch! All you need is an internet connection (which you already have) and a half hour or so to look over the various resources available in your area.

Here are some helpful tips on how to search for grants:

Check out local, state and federal government websites – Start by checking out the websites of local, state, and federal governments as well as nonprofits that do this kind of thing all day long (like us!).

These organizations will often post grant opportunities on their websites so it’s worth taking some time to explore them before moving on elsewhere.

Look at specific funding opportunities – Once you find an organization that seems interested in supporting your cause with grant money.

Take a closer look at their website or contact them directly by phone or email to get more information about their specific funding opportunities and if they have any upcoming deadlines!

Check the application process – When researching potential grant sources it’s important not only what kinds of funding they offer but also who qualifies for each opportunity (i.e., nonprofits vs charities).

Some organizations may require applicants submit applications online while others prefer sending hard copies via snail mail; either way make sure know what type(s) apply before submitting anything official

Decide If You Need To Partner With Another Organization

Whether you’re a new nonprofit or have been around for decades, partnering with another organization can help you get grants and accomplish your mission.

Let’s take a look at some of the reasons why partnering is so important:

It will help you reach specific communities more effectively. If your organization is focused on serving a certain demographic, like Native Americans or people living in poverty, it can be difficult to provide services to these groups without working with other organizations.

For example, if your nonprofit provides housing assistance for low-income families in an urban neighborhood but none of your staff members live there themselves.

If and don’t know how people in those areas communicate with each other (and what they need), then partnering with an organization that has this expertise makes sense.

The funding landscape is changing rapidly and many opportunities aren’t advertised anywhere except through word-of-mouth within the community. Working collaboratively allows nonprofits to cover more ground than they would otherwise be able to do on their own.

And when news breaks about grants available from government agencies or private foundations that serve disadvantaged populations? You’ll want someone else’s eyes on them so they don’t get lost among all those emails clogging up your inbox!

Understanding the intricacies of grant funding is essential for nonprofit organizations. Dive into our comprehensive guide on grants funding 101 to gain insights into the basics of obtaining grants and funding to support your nonprofit’s mission.

Network With Other Nonprofits

To look at the bigger picture, it’s important to build relationships with other nonprofits. You don’t have to be competing with each other for grants; instead, you can share resources and ideas.

For example, if there are two nonprofits in your area that focus on similar things but have different approaches or target demographics (for example: one is focused on providing services for seniors while the other is focused on helping students find jobs).

Then they can share information about their past successes and failures so they can improve upon what they’ve done before.

Similarly, if one nonprofit has a good contact at a foundation that funds their work and another nonprofit wants to get funding from that foundation as well, then both groups could team up for some joint meetings or brainstorming sessions about how best to approach this potential donor.

Check With Philanthropic Foundations

Once you’ve identified the grants you want to apply for, it’s time to start digging into your research. You’ll need to do some detective work in order to figure out if your organization qualifies and how much you’ll be awarded.

The first step is to make sure that the foundation or organizations of interest actually exist. If they don’t, that’s not necessarily a deal breaker it just means that they might not be able to help you with your specific needs.

The next step is researching where these organizations get their money from and what types of organizations they tend to give funding too. This information will tell you whether or not applying for those particular grants is even worth it.

Once you’ve confirmed that an organization is legitimate and fits within the parameters of what interests yours does, it’s time for some legwork! You’re going to have submit an application package consisting of a variety of documents including:

A letter requesting financial support from this organization (a letter outlining why your cause deserves funding)
A budget detailing exactly how much money will be needed over what period (usually three years)

Create A “Wish List” Of Potential Grant Opportunities

A “wish list” of potential grant opportunities is one of the first things you should create when you’re creating your grant-seeking strategy. Here’s why:

You’ll be prepared to make a list of grant opportunities if someone asks for one, or if you find yourself in conversation with someone who is not familiar with the grant landscape.
It will help clarify what it is exactly that YOU need as an organization — what projects do you want to take on? What equipment or supplies does your organization need? What programs would be significantly enhanced by having more money available?
A wish list will help prevent duplicate applications–if an opportunity has already been applied for but not yet awarded, it may be best to save your energy and let another applicant have that award instead.
A wish list will also help prevent rejected applications–if an opportunity has already been rejected by another applicant (or even by yourself), there’s no sense spending more time applying again.

Contact The Foundation Or Organization Directly

Once you’ve found a foundation or organization that interests you, it’s time to reach out.

You can contact the foundation or organization directly through their website. If they don’t have an online form for grant applications, you can also contact them via email at [email protected] and request an application be mailed to your office.

If you’re still having difficulty contacting the foundation or organization after trying both of these methods, try reaching out through a contact person with whom you are familiar who works at another foundation or organization that has similar interests as yours.

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Prepare A Written Budget Proposal (Grant Application)

You will want to create a written budget proposal that is detailed, well-thought-out, and easy to follow, use and share with others. The easiest way to do this is by using Microsoft Excel or Google Sheets (a free alternative).

You can also download an open source program like OpenOffice, which has similar capabilities as Microsoft Office products but at no cost.

There are several things you should consider when developing your budget:

Be sure that the document contains all the information necessary for grant reviewers so they can easily understand what you plan on doing with the grant funds. This includes: descriptions of programs/projects;

Budgets for each program/project; timelines for implementing each program/project; staff/volunteer hours required for each program/project;

Financial statements (income statement, balance sheet) showing how much money was raised prior to applying for a grant from foundations or government agencies; other sources of revenue (donations from individuals); etcetera …

Write A Cover Letter For Your Grant Proposal

A cover letter is a document that introduces your organization and the grant proposal itself. It should include information about who you are, why you are seeking funding, how the funds will be used, and how you will report on them.

You may want to write an introductory paragraph detailing who you are, what your organization does and why it exists, how long it has existed (if this isn’t obvious), and what kind of support it’s gotten to date (if any).

And any other relevant details that would help convince a funder that they should fund your project over another one. In addition to being informative for potential funders reading through their inboxes looking for promising applicants like yours.

And not just randomly clicking through links in spam emails hoping something catches their eye it’s also important because some grantmakers have strict guidelines regarding exactly what information needs to appear in each applicant’s cover letter (for example certain required language).

Ask For The Right Amount Of Money In Your Grant Proposal Letter

It is important that you ask for the right amount of money. It should be enough to get your nonprofit off the ground, but not so much that it will put a strain on your organization if you do not receive the full amount. There are two main issues with asking for too little or too much:

If You Ask For Too Little Money

You may think that asking for less than what you need is a good idea since it makes it more likely that they will give it to you.

The problem with this strategy is that even if they approve your application, there’s a chance they won’t provide all of the funds requested because of their own budgetary concerns or other factors outside of your control (like an economic downturn).

This can lead to problems in carrying out those projects and programs because some things were cut short due to lack of funding or having to scale back the project itself so as not overstep any thresholds set by donors/grantors/foundations.

Before being cut off entirely due to lack of funds (which often happens when nonprofits spend too much money quickly before getting approved).

If You Ask For Too Much Money

If an organization asks for too much from donors/grants/foundations then there may be problems later on down the road once those organizations realize how much money was spent without proper accountability measures being taken beforehand.

Such as ensuring quality control measures were implemented during development stages; monitoring contractors closely; etcetera…

Register With The IRS As A Tax-Exempt Organization (If Appropriate)

The first step to becoming a nonprofit organization is registering with the IRS. If you are a nonprofit, you must register with the IRS as a tax-exempt organization, even if your state does not require it.

This registration allows you to be recognized by the federal government as an eligible nonprofit that can receive tax-deductible donations and apply for grants.

The most common way of registering with the IRS is through their online application process.

And then complete your application once all of your information has been verified by submitting Form 1023 or 1024 (the form depends on whether or not you have assets). The forms are available here: https://www1.irsgov/charities_nonprofit_organizations/.

If you need help filling out these forms, there are many resources available online that will walk you through each step of setting up an account, completing Form 1023 or 1024, and filing them electronically once they’re ready to submit (usually within four months after beginning).

Follow Up On Your Grant Application Or Funding Request

Follow up with the grantor to make sure they received it and have enough time to review it. Ask for feedback, but be prepared for the answer “no.” If you do not hear from them after a few weeks, follow up again.

The more you follow up, the better chance you have of getting funded by this organization. It is important to do this at least once a month until either your first funding proposal is approved or funds are denied by that particular source.

If possible, contact someone directly involved in reviewing your project’s merits rather than submitting requests through an automated system which may take longer for someone else (like a secretary) to see and respond back in full detail regarding status updates on applications received by their company/organization before reaching final decision makers (such as presidents).

Provide Effective Reporting On How You Used The Funds From The Grant Source

One of the biggest concerns for most nonprofits is how to use these funds effectively and efficiently.

To be considered for future grants, you’ll need to provide effective reporting on how you used the funds from the grant source, including details on your programmatic goals and outcomes.

If a foundation or government agency needs proof that its money was put toward its intended purpose and not wasted, then you’re going to want to satisfy that requirement by providing clear evidence of how it was spent.

Using these grants as an opportunity to further your mission means showing how they can be used in conjunction with other programs;

This way, many organizations will see how their collective efforts can benefit those in need together. In addition to showing that all funds were used appropriately, being accountable for them is also important.

For example: if a nonprofit received 1 million dollars in funding but only accomplished half of what they said they would accomplish with those dollars (or even less), they may not receive future grant money from that particular organization again.

So it’s important not only to show progress but also to demonstrate accountability when working with this type of financial support!

Continue To Build Relationships With People Who Can Help Your Nonprofit

Once you’ve gotten your initial funding, it’s important to maintain relationships with people who have helped you.

This could include donors and volunteers, as well as other organizations that have similar missions. Maintaining these relationships can help you find new funding opportunities in the future.

Also continue networking with people in your industry and community. You never know when someone will see a need that they want to fill, or a way they can assist your organization in becoming more efficient or effective at its work.

Finally, don’t forget about other nonprofits and especially those that are similar in mission! These organizations often share resources like staff members or volunteers.

Conclusion

If you have done everything right, your grant request will be approved. The key to getting a grant is to put in the time and effort to research your target organization and communicate with them directly.

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FAQs

How can I determine my eligibility for grants?

Understanding whether you qualify for specific grants requires careful review of the eligibility criteria outlined by the granting organizations. It’s important to assess your organization’s alignment with their objectives and priorities.

What are the key benefits of securing grants for nonprofits?

Grants provide essential financial support to nonprofits, enabling them to carry out their missions and implement projects that create positive social impact. Additionally, grants can enhance an organization’s reputation and credibility within the philanthropic community.

Where can I find reliable sources of information about available grants?

Reputable platforms like Grants.gov, Donorbox, and Springly offer valuable databases and resources to help you identify and access various grant opportunities that align with your nonprofit’s goals.

How can I make my grant proposals stand out to potential funders?

Crafting compelling grant proposals involves highlighting your organization’s mission, objectives, and the specific impact your projects will have on the community. Demonstrating a clear plan, measurable outcomes, and a strong case for support can significantly enhance your proposal’s effectiveness.

Are there any common mistakes to avoid when applying for grants?

Yes, some common mistakes include submitting incomplete applications, failing to tailor proposals to fit the funder’s priorities, and overlooking submission deadlines. Thoroughly reviewing guidelines and requirements is crucial to avoid these pitfalls.

Costantine Edward

Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.