Cultivate Lasting Relationships: 9 Tactics To Schmooze Grant Funders

The relationships you build with the community you serve inform the work you do. The relationships you build with funders and foundations transform your ability to do it.

In this article, we’ll discuss steps you can take to enhance your funder relationships at every step of the funding cycle. At the end, you’ll feel well-prepared to connect with your funders in new and meaningful ways.

Sounds good? Let’s jump in!

Did you know that you can help cultivate funder relationships before you even get the grant? By taking the time to better understand your funder (their mission, vision, values, motives, etc), you are able to make certain they align with your funding needs, and ultimately develop a partnership which will last beyond a single grant.

Here are four steps you can take during the pre-award planning stage that will help set you apart and get off on the right foot with your potential funders.

1. Research and Select the Right Funders

Your time and resources are limited, so you want to make sure that you search for funders who align well with your organization.

One question you should ask as you research for new funders is: do they have a specific focus area?

For example, the Richland County Foundation funds nonprofits in the Richmond County area of Mansfield, Ohio, with a focus on improving quality of life across health, economic development, basic human needs, education, cultural activities, environment, and community services.

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Funders want to form relationships and cultivate partnerships with nonprofits who have similar visions and missions, and it’s easier to develop a relationship when you have a shared purpose. If your work doesn’t align, you will waste resources developing a proposal, so it’s critical that you identify funders whose interests match yours.

Instrumentl has a fantastic grants database that you can filter to ensure only opportunities you qualify for and that align with your mission will appear. This targeted search saves time and effort since you’re not starting from scratch.

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As a bonus, funders will view you in a positive light because they recognize that you personally took the time to apply for the grant because of your shared goals, not simply because you’re spamming all opportunities to see what sticks.

2. Make a Strong Initial Contact

Once you have the right opportunities identified, you need to consider how you’ll make a positive first impression.

Here are some different ways you might pursue initial contact:

• Letter of Inquiry: Many funders require a letter of inquiry before the full application process. This is a one-to-two-page overview of your organization, your programming, and your funding needs. If the funder responds positively to your LOI, you will be invited to submit a proposal.
• Meeting: If you have connections with the potential funder, consider leveraging them to set up a meeting. This will be a great way to make a personalized connection and discuss needs organically.
• Phone call or email: After reviewing all the information on their website, you may want to call funders with additional questions or to introduce yourself. Make sure to review their website carefully to ensure you’re following their procedures. They may prefer an email vs. a cold call.

Pro Tip: When you look up a foundation in Instrumentl, you get access to a list of Key People that you can distribute to your board to see if they have any connections.

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Whatever mode of communication you use, you’ll want to use these strategies to make a good impression during your pre-award planning:

• Be direct: Have your elevator pitch ready of who you are and what you want—funders receive a lot of requests, so they only have a few minutes to see if you’re a good fit.
• Be targeted: Make sure your outreach is personalized to the funder. Make connections where your missions align and emphasize how their organization specifically can help you make a difference in the community.
• Be respectful of their time: Only apply for opportunities that you qualify for. Funders may not view your organization positively if you waste their time applying for grants that you don’t meet the minimum eligibility requirements.
• Be excited: Show the funder you are excited to be on their team. You want to make certain that the funder can see how you help them fulfill their mission. They have a desire to see a better world, and you want them to know that you are ready and able to make that happen.

Your first impression matters, so make sure it’s a good one!

3. Submit a Compelling Grant Proposal

Your grant proposal is a more detailed breakdown of your project or initiative and why it deserves funding, so it needs to wow potential funders and inspire them to be a part of the difference you’re making. While specific proposals will vary based on the funder, they should typically include the following:

• Title
• Executive Summary
• Organization Background
• Needs Statement
• Project Description
• Budget
• Goals and Objectives

A well-crafted proposal should address the funder’s priorities. For example, the Urgent Action Fund supports feminist activities, so if you were submitting a grant proposal, you will want to stress how your work is advancing women’s rights and why the Urgent Action Fund can uniquely support your efforts.

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By emphasizing your alignment and sharing insights into the impactful partnership you could build, you become the funder’s best chance at making the difference they are fighting to make.

This is your opportunity to shine, so your proposal should be compelling, error-free, and meet the funder’s requirements to maximize your odds of landing the grant.

4. Follow-Up Thoughtfully

After you’ve applied, you want to follow up with the funding organization to keep them engaged and informed. Here are some ways to follow-up thoughtfully post-award:

1. Consider sending a printed copy of your annual report or email a digital version if printing is not feasible.
2. Include a personal thank-you from a staffer, aside from the grant-writer; programming staff is a suitable choice for this gesture.
3. Draft a thank-you email to the director expressing gratitude for considering the nonprofit for the opportunity.
4. Connect with funders to inquire if they would like to stay informed about the organization through newsletter subscriptions or social media connections.

Nonprofit funder engagement touches like these will help you stand out from others, showing that you’re willing to go the extra mile to make a good impression.

Even if you don’t receive the grant, you can still cultivate your relationship with them by asking for feedback and making sure to thank them for considering your organization.

The work doesn’t stop once you’ve gotten the award! You should continue to establish your relationships with funders during the post-award stage.

1. Express Gratitude and Acknowledge the Grant

Once you’ve won the grant, make sure to share your excitement and express your gratitude to the funder immediately! This will show them that:

• You’re grateful for their investment in you.
• You’re eager to get started and make a difference in the community.
• You appreciate the funds that make the programming possible.

You’ll be in touch throughout the entire lifecycle of the award, but a timely and heartfelt acknowledgment of the grant will make them feel recognized and appreciated for their investment. It will make a big difference in setting the tone for your relationship for the duration of the funding.

2. Set Yourself Up to Always Have the Best Answer

Grant compliance is critical if you want to foster long-lasting funder relationships, and ongoing communication is one way to prove that you’re doing what you said you would and executing within the confines of the grant.

Examples of this include:

• Quarterly reports with updates on program performance and grant allocation.
• Sharing individual success stories and impact data.
• Being open with changes in direction based on unforeseen circumstances.

One way to really stand out to funders is to always be prepared to answer all their questions. By keeping all of your grant-related documents easily available and accessible (such as in Instrumentl’s document library), you’ll set yourself up for success whenever a funder reaches out.

Ultimately, these efforts will help establish trust between your nonprofit and the funder. Funders should never have to wonder what you’re doing with their funding.

3. Involve Funders in Your Journey

You want your funders to feel connected to the work they’re supporting, so make sure that you bring them along on the journey with you. This could include:

• Program visits: Conduct a tour and let them see the program in action. Experiencing the work firsthand is a great way to make them feel connected to your mission and to show them why the funding is necessary.
• Event invitations: If you are hosting speaking engagements, fundraising galas, or other nonprofit events, make sure to invite your funders. Let them feel like they are part of a greater community. Give them the opportunity to network with others who also support you. This is a great way to foster a sense of connection with your organization while allowing them to hear more about your impact.
• Newsletter updates: Subscribe your funders to your ongoing communication outreach, though you will want to exclude them from solicitations. This will help them stay updated on your programs.
• Spur-of-the-moment communication opportunities: If something amazing happens, pick up the phone! Shoot off a quick email. Capitalize on these opportunities to share your excitement in an organic way.

Feeding San Diego put together a video that could be shared with funders, making them feel like they are part of a bigger movement where they can watch their impact up close.

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Nonprofit funder engagement like this helps supporters feel like they’re playing a critical part in how you advance your mission. Look for ways to organically foster connection with your funders during your post-award stewardship, and you’ll notice a big difference in your funder relationships.

4. Seek Feedback and Collaborative Opportunities

One fantastic way to cultivate long-lasting funder relationships is to treat them like partners. Actively seek their feedback and look for new ways to collaborate as part of your grant lifecycle management. You never know what you’ll learn!

Many times, funders are experts in the field, and they see a lot of different projects throughout the year. They know what works, what doesn’t, and what you need to succeed. As a nonprofit, it’s critical that you are open and receptive to feedback because it will help you improve your operations and become more efficient.

• Ask for advice: Leverage their expertise as seasoned funders if you need help with a problem.
• Ask for feedback: Check-in after your reporting to see if they have suggestions on how you can enhance your project’s effectiveness.
• Strive for collaboration: If they have access to resources you need, ask if you can tap into them or leverage internal partners for support.

You can also see if the funder knows of another grantee where your organizations may be overlapping. This may offer you an opportunity to collaborate with another nonprofit they are wanting to fund. This will often allow for a second funding opportunity, giving you a chance to strengthen the network for your constituents and show that you are as supportive of the funder’s mission as they are of your’s.

Your funders have more to offer you than just deep pockets, and when you recognize that, you will open up new avenues for partnership that will serve you well in the future. All you need to do is ask.

5. Recognize and Renew the Relationship

Throughout the grant lifecycle, you should have taken the time to celebrate milestones together, report on your progress, and share your gratitude for the fantastic work your funders have made possible.

These ongoing communication efforts help you stay connected with your funders and lay the groundwork for future support. As your current grant is winding down, make sure to connect with the funder to renew the relationship.

• Reach out to your contact to identify if there are opportunities to extend the grant.
• Ask for feedback if you need to apply to renew funding.
• Leverage your network if there are new opportunities.

You have to invest time and energy into maintaining your funder relationships, and when you do, you’ll see a fantastic difference in the opportunities you receive as a result.

Cultivating strong funder relationships is an ongoing journey, not a destination. The work is never really done, and no matter what grant lifecycle management stage you’re in, it’s up to you to stay connected with your funders—and these nine steps should help:

Pre-Award Stage:

1. Research and select the right funders
2. Make a strong initial contact
3. Submit a compelling proposal
4. Follow-up thoughtfully

Post-Award Stage:

1. Express gratitude
2. Set yourself up to always have the best answer
3. Involve funders in your journey
4. Seek feedback and collaborative opportunities
5. Renew the relationship as you can

Integrate these practices into your regular grant management processes to help build lasting funder relationships. From identifying grant opportunities to tracking your applications to maintaining important grant deadlines, Instrumentl can help you throughout the entire process. Sign up for your free, 14-day trial today and see the difference that Instrumentl can have in your grant-seeking efforts.