Is your organization Grant-Ready?
If your nonprofit is relatively new and has experienced several unfruitful proposals or letters of inquiry lately, then this article is for you. Submitting a proposal is a good start, however, successful organizations share some commonalities that serve to get them funded. A grant-ready nonprofit is one that meets or exceeds the seven grant-ready secrets described in this article. From the perspective of a foundation, a proposal from a grant-ready nonprofit translates into a clear mission, strong support, and successful accomplishments. And nonprofits implementing these strategies are sure to better position themselves to get the funding they need.
Charitable foundations will generally pose common questions about your organization that should be addressed through your proposal. Considering your answers to these questions will serve to prepare you for the rigorous screening process your proposal will have to survive. The following questions will be addressed in this article:
- What will your organization accomplish?
- How well do you know your target population?
- How well does your organizational story emotionally engage others?
- Who is standing with your organization?
- How many hours are devoted to your cause?
- Are you legally designated as a nonprofit?
- Is your organization receiving sufficient financial support?
Have A Clear Vision and Mission
What will your organization accomplish? A well-established nonprofit has thoughtfully established a strategic plan with clear vision and mission statements. A well composed vision statement frames a super-future keeping everyone actively engaged and focused on the perfect “mountain top” experience. On the other hand, the mission statement declares the organizational purpose and serves as a call to other like-minded individuals who share a common passion or interest in the cause. A well-designed mission statement will also help to focus your organization and support decision makers striving to keep the organization on a consistent path.
Know Your Target Population
How well do you know your target population and the community you serve? Highly credible organizations utilize knowledge of their target population. Personal experiences within a community are valuable in building relationships, however, foundations are likely to place greater importance on the most current population data. Knowledge based on your experiences is often incomplete or biased. Using current data and information to describe your target population suggests you are operating with a body of knowledge more extensive than your own.
In addition, when you know your target population and are very knowledgeable about your cause, your programs will reflect that. This means taking time to determine the current problems plaguing your population and how your programs will work to solve those problems. By demonstrating sufficient knowledge of the population you serve, foundations will be more convinced to fund your organization.
Tell a Compelling Story
How well does your organizational story emotionally engage others? The facts and figures you have uncovered may seem rather mundane and uninteresting. The truth of the matter is that nonprofits seeking funding should be skilled at taking relatively common problems and turning them into compelling stories that capture the interest of others. Many foundations place great value on organizations that find innovative and effective approaches to address common problems. Nonprofit organizations that do a great job writing proposals to engage program directors, keep their attention and compel them to read the proposal in its entirety stand a better chance at being funded.
Select Board Members Who Stand With You
Who is standing with your organization? It is great that you are passionate about your cause and the people you desire to serve and it is even better when you have Board Members that stand with you. And the credibility of your organization increases with the credibility of your Board membership. So choose your Board members wisely. Board members have legal and institutional responsibility to implement policies and insure the organization is working toward its mission. Board members should be knowledgeable about your cause, fundraising leaders and devoted to the organization.
Have Staff and Volunteers That Work
How many hours are devoted to your cause? Staff and volunteers are critical to a thriving nonprofit. They represent the skills, experience and expertise needed to operate an agency. Volunteers may be students seeking community service credits or professionals seeking to get involved with the community or retirees seeking to stay connected. Keep in mind, it is essential to maintain a daily log of hours contributed by volunteers because those hours have a financial equivalent of $12.50 an hour. That means that 400 hours of volunteer service each week would save your organization $5,000.00 weekly or $260,000.00 a year!
Secure Legally Designated Nonprofit Status
Are you legally designated as a nonprofit? Many nonprofits are able to raise funds and cover costs without grant funding. However, for those organizations with more extensive budgets, it is imperative to maintain legal designation as a nonprofit. Legal designation begins with state incorporation. Once an organization is incorporated by the state, they can then apply for a 501(c)(3) designation through the IRS. This tax exempt status is granted through the Internal Revenue System (irs.gov). And after receiving federal tax exempt status, nonprofits must apply for state exemption through the Department of Revenue.
With a 501(c)(3) designation, the organization is exempt from certain taxes and donations are considered tax deductible. Given that most charitable foundations list 501(c)( 3) designation as a requirement for grant recipients, smart nonprofit leaders will make it a priority to meet that requirement.
Get Financial Support
Is your organization receiving sufficient financial support? This topic is last but it is certainly not “least”. Each year many nonprofits develop their annual budget along with a strategy for meeting it. The annual budget could include operational expenses, program costs, marketing campaign estimates, etc. Generally speaking, revenue to support a nonprofit will come from multiple sources such as fundraising, donations, and grants. Many experts suggest that agencies have a strategy in place to secure more than half of their budgeted expenses from donations and fundraising. This automatically suggests that agencies should make sure that their funding requests to foundations do not exceed %50 of their estimated budgeted costs for the year.
As a grant writing professional, I make it a point to hold consultations with prospective clients to determine if they are “grant-ready” before developing the first proposal. By using these seven strategies, you can determine whether your organization is a grant-ready nonprofit. If you have discovered that your organization is not grant ready, then devote your time to strategic planning, fundraising and organizational development to get you where you want to be.
On the other hand, if your assessment leads you to conclude that you are ready to pursue grant funding, then I say, “Congratulations!” Now secure the funding you need.