Grant Information for Secular Nonprofits

The last post was specific to faith-based organizations, yet most of the guidance also applies to secular nonprofits, so it is worth reviewing. This post focuses on the importance of understanding grant writing requirements and managing the fundamental processes needed to apply for a grant.

Before applying for a grant make sure you have set a foundation for success. Here are a few obstacles other organizations have encountered. The Board of one nonprofit start up delegated filing the nonprofit paperwork a board member. Most grants are submitted electronically. In some cases there is a built in process to cross reference the federal tax identification number to verify IRS nonprofit status. After three unsuccessful attempts, the message indicated the organization was not found in the IRS database, so it was impossible to proceed. After a brief investigation the Board learned the paperwork had not been filed. They also had made requests for donations stating they were a nonprofit organization (believing they were). Fortuneately they took prompt action to remedy the situation, and before their event took place their nonprofit status was granted. They also had a back up plan that would have worked if their nonprofit status hadn't come through in time.

Another organization had a small development team and a heavy workload. Although they had been operational for decades, received many grants and were part of a huge parent organization, they needed to adapt to changes in technology. Filing paper grants is rarely done, so they had to assemble necessary and customary documents in an electronic format.

The most difficult situation was a nonprofit that had obtained only one small grant in the past four years, and wanted a large capacity building grant. Consulting is often a prerequisite to successful grant funding. The Board struggled with fundamentals. They had no business plan at all, and only a vague idea of their goals. They were able to identify their funding needs, but had not established a track record and lacked the skills to manage a project timeline. They could not demonstrate other project support which is often an expectation. They did receive one small grant, but did not keep their end of the agreement. This lead to a reorganization of the Board and hiring someone with the expertise to help reposition them for success.

These observations are not intended as criticism, but they do highlight lessons learned. Understand the requirements and make sure the fundamentals are in place before applying for a grant.
The next post will be Five Websites to Review.

Is Your Organization Grant Ready?

How many grants has your organization received in the past four years?
If the answer is none, or sparse, it's time to do some homework.
Homework assignment will vary depending on whether the organization has established a track record. Does your organization have cash sponsors or corporate donors?

Small and large organizations struggle to get aspects of their plan together. Here are some very general questions. Do you know how to write outcome measures? What kind of statistics are tracked? Can your team manage a project timeline? Is your funding plan reasonable? How will you demonstrate fiscal responsibility?

Make sure to have a copy of nonprofit status, tax identification number and other documents to send as attachments.

Set up a simple form to track research. Use the research to decide if the organization meets the grantors funding guidelines and other pertinent information.

Determine if the grantor accepts unsolicited letters of inquiry or full grant proposals. What are the grant reporting requirements?

There are different types of grants-program, project, operational funding, capital projects, capacity building grants, technology, equipment and mathing grants to name a few. Most do not fund 100% the identified need. Be prepared to submit required figures, ratios, corresponding budgets if requested, and a list of other supporters.

Grant Training

Grant Readiness Part 1

• Align your mission and vision statement with a visual strategic business plan.
• Increase organizational visibility.
• Understanding your ABC’s and PDF’s.
• Write measurable goals.
• Manage a simple project timeline.

Grant Readiness Part 2

• Set up an evaluation and improvement process.
• Statistics-Your New Best Friend
• Research grants and set up a basic grant tracking spreadsheet.
• Foundation Relations and Expectations.
• Fulfill your end of the agreement.

Grant Writing: Developing Creative Strategies

• It’s a Match: How to Satisfy the Requirement Without Using Cash
• Fiscal Sponsors:  Understanding the Parent –Daughter Relationship
• Company’s Coming