It’s Not Magic … It’s Strategy
There are many thousands of charitable foundations throughout the United States. And, according to technology company Foundation Source, U.S. foundations awarded an average of 33 grants averaging between $25,000 and $28,000 each in 2022 (the most recent year for which data is available). A lot of grant money is out there for nonprofit organizations that know where to look and how to qualify for it. Here are some suggestions.
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Match Your Mission With Their Interests
Probably the most important thing to remember about foundations is that they tend to specialize, making grants to certain types of charities or in specific geographic regions. It’s not enough to be a 501(c)(3) organization — though your exempt status is important. For your nonprofit to succeed at obtaining a grant, its mission and programs must align with the foundation’s interests.
Before you apply for a grant, review the foundation’s annual reports, tax filings, press releases and any other information you can get your hands on. One place to start is the nonprofit data organization Candid’s online directory of foundations.
Once you have a list of matches, don’t just start sending out long, detailed proposals. Call your target foundations and talk to staff members about the information they need and their communication preferences. Most will be happy to provide insights into their decision-making process and shed light on your chances of securing a grant.
Finish What You Start
The most successful foundation grant proposals have several qualities in common. For example, foundations tend to like projects that are well-defined and data-driven with specific goals. They also want to know that their gifts are effective, so achievement of goals needs to be measurable.
In your grant proposals, make sure you outline the project’s life cycle and how you plan to fund it to completion. Many foundations provide the money to initiate projects but expect nonprofits to use their own funds and other grants to continue them. In fact, if you hope to establish a long-term relationship with a foundation that has given you a grant, you must successfully finish what you started.
Just because a grant proposal is rejected doesn’t mean the same foundation won’t welcome future applications — and say “yes” to them. Call the decision-maker and ask that person to explain why your application was rejected. Foundation personnel may be able to provide tips on making your proposals stronger. Many organizations are competing for the same foundation funds, so tenacity is crucial.
Many Priorities
If you’re worried about funding your nonprofit’s many priorities, contact a nonprofit professional at GBQ Partners. We may be able to suggest additional ways to find new revenue and cut existing expenses.
