With the end of the “summer slowdown,” nonprofit fundraising professionals are entering the busy year-end season. Their goal: winning grants this fall that support mission-driven programs and projects into next year and beyond.
The competition is fierce. Grantmaking organizations receive hundreds — even thousands — of applications a year, according to Margit Brazda Poirier, founder and owner of Grants4Good. Some fund substantial percentages of applications, but more often than not, the percentage of applications that are funded is “really quite low,” she said in a recent webinar.
The National Science Foundation, for example, funds fewer than 3 percent of proposals, she said — a lower acceptance rate than Harvard University.
So how can grant writers score a win? Cynthia Adams, founder and CEO of GrantStation, a searchable database of funders, breaks the process into three key steps.
First, develop a comprehensive plan.
Start by identifying a “deep and meaningful need” and explain how your organization will address it in a unique way.
To do this, identify your target audience (the group who benefits from the program) and your competitive advantage (the reason why your organization is better positioned than others to solve the problem). Document your desired outcomes, and the inputs (staff, equipment, etc.) and activities (services provided) needed to achieve them.
Some grant writers jump the gun, and begin the search for funders before completing the planning phase, Adams said. Others go further, identifying potential funders first — and then coming up with a program or programs that align with the funder’s mission.
That approach may work once in a while, but it’s not an effective long-term plan.
“You might get lucky,” Adams said. “But, as they say, luck is not a strategy.”
Next, identify potential funders.
This process can be overwhelming, given the universe of grantmaking institutions. There are nearly 100,000 private foundations in the United States alone, Poirier said, a number that doesn’t include government or other sources of funding.
“If you don’t screen … you’re in trouble,” warns Adams, who launched GrantStation two decades ago after an exhaustive search to fund a camp for Native youth in rural Alaska. Her company now offers a suite of services and resources, as do others that cater to fundraising professionals, such as Instrumentl. Candid, a nonprofit organization, also offers a foundation directory and low- and no-cost online courses.
Find out if anyone at your organization has a connection to the targeted funder and ask them to reach out. Otherwise, go with the cold call and leave a voice message if no one answers. That way, “at least they’ve heard you,” Poirier said.
Additional options to consider: write a formal letter of introduction (which is sometimes required), send an email or a note on social media, or fill out a form on their website.
But do your research first, especially before picking up the phone. If someone answers, be prepared to talk about what your organization does and why it matters, as well as your annual budget and how much you’re seeking, Poirier said. And be sure to research the funder and look up its IRS Form 990, which details its activities, governance, and finances. They’re available for free at Candid and on other websites.
Aimee Finn of Starlight Children’s Foundation, a nonprofit serving seriously ill kids, calls funders to get to know them and find out what they’re interested in and what interests them about her organization. She takes notes and does research, which she draws on when writing grants.
“I use language that mirrors their language,” she said.
Then, write a compelling proposal.
Applications take many forms, but Adams lists three key components: The problem statement; the project description; and the budget.
In the first section, document and quantify the need with factual data and explain how your organization is in a unique position to address it. Introduce new information, such as new survey results or a different perspective on existing data, Adams says, and explain how you obtained the information.
Stories are helpful. Grantmakers skim hundreds of dry applications. Vignettes and quotes can catch the eye, add color, and support the group’s overall narrative.
Finn agrees. She’s always on the lookout for examples of kids who have benefitted from Starlight’s programs. She tells their stories and incorporates outside voices too, such as comments from hospital workers.
Last, but not least, is impact. Funders are essentially “buying impact,” Poirier said. They want to know the direct results of your organization’s work in the target population. But don’t overlook secondary impact, Adams advises. If your organization provides financial literacy classes to teens at a local high school, for example, explain the results not only for teens but also for the local public school system and other less direct beneficiaries.
Demand for philanthropic dollars is high, especially as COVID-19 continues.
But supply is there: The $2 trillion American Rescue Plan enacted earlier this year unleashed an enormous amount of federal aid, and the stock market has been strong, Poirier said. That means private foundations, many of which invest in the market, have cash to burn. By law, they’re required to spend at least 5% of assets every year.
“Foundations are making a lot of money,” Poirier said. “And because of that, they have to give out a lot of money.”
