Once you’ve located some grants, do as much prep work as possible before trying to write one.
- Find the right fit. Carefully review the guidelines and only apply if your organization meets all of the criteria:
• Your mission is clear and aligns with theirs
• You are in the geographic location they require
• You have the correct tax status
• You are/are not a religious organization, depending on which they fund
Depending on who makes the grant, the requirements could be more extensive. Make sure you meet every one. Don’t apply to an almost match. Grant reviewers receive many more requests than they can fulfill. They need a quick way to eliminate applicants, and not meeting the requirements is a fast and easy one. Applying for grants that aren’t the right fit is a waste of everyone’s time. - Understand your budget. The person writing the grant is usually not the same person who handles the finances. Make sure you understand your income and expenses before diving in. How detailed your budget needs to be will vary from grant to grant. In most cases, you will need to provide both an overall budget and a project budget. As a general rule, government grants have more strict requirements.
Nonprofits:
• Know your program costs vs. your administrative costs. Find out which expenses are being classified as which. Wages for program staff can be categorized as program expenses. It’s important that your program expenses exceed your administrative expenses. A general rule is that you should be spending at least 60-65% on programs.
• Be able to show multiple streams of income. It feels like having money discourages funders from helping you because they don’t see the need. Don’t trust that feeling! It’s counterintuitive, but foundations would much rather see that you have money coming in from a variety of sources. You’ll never be able to fund everything with one grant, and it’s a red flag to reviewers if you’re trying.
For profit:
• Be able to show what money the owners or investors have put into the business. Unless the grant is specifically for start-ups, the funder is going to want to see investment on your part.
• Make sure your budget reflects fiscal responsibility and that you have achievable goals. If you’re just getting started, make sure your projections are realistic. If you’ve been in business for a while, demonstrate your responsible choices with spending. Provide accounting documents like a break-even analysis, a balance sheet, an income statement, and a cash flow analysis.
• Emphasize whatever the funder is trying to achieve. For example, if the grant is for job creation, you’ll want to break down the cost of having employees (salaries, benefits, workers’ comp insurance, etc.). If the grant is for capital projects like buildings, computer equipment, etc., be able to show the costs and benefits of the project.
Note on capital projects: There is a very specific process you must follow for capital projects from government funds. Typically, you must publish an RFP (Request for Proposals) in a local newspaper, and get at least three bids before choosing a contractor. Additionally, whoever gets the job must sign off on the Davis-Bacon Act (which guarantees a fair wage for their employees), among other things. It would take far more space than is allotted here to get into specifics, but feel free to contact me with questions. - Gather supporting documents. Again, these requirements vary. Typically, you’ll need:
• Project Budget
• Overall Budget
• EIN (Employer Identification Number)
• Proof of tax status (especially for nonprofits)
• Your most recent taxes or financial statements
• Proof that you hold any legally required insurance (in most states, this includes general liability and workers’ comp)
• Board members bios (for nonprofits) or owner(s) and key staff bios (for businesses)
• Salaries of the people involved with the project
• An overview of your clients. For nonprofits, this will be: what you do (disability services, civil rights advocacy, medical research, etc.), how many people you serve, and client demographics (geography, income, sex, gender, race, ethnicity). For businesses, this will be the service or good you provide and an analysis of your customers. - Choose a focus. Unfortunately, most grants are not for general operating expenses. Choose a narrow focus within the funder’s broader focus area. Choose something specific that can help meet the funder’s goal. If they want to help kids in low income areas, don’t say “the funds we receive help kids in low income areas.” Say “these funds give 42 children access to our after school program, which focuses on academics, sports, life kills, and recreation.” Your focus should be something that will have a measurable result.
Now that you’ve done your prep work, you’ll be ready to write your grant!
Substance and Style 