Your Nonprofit Checklist for Building Relationships with Grant Funders

There are thousands of dollars in grants available for nonprofits each year, yet finding the right funders can be a confusing and laborious process. 

Having a structured approach to establishing funder relationships is key, which is why we’ve put together a comprehensive checklist for building relationships with grant funders during the pre-award and post-award management phases. 

Keep reading for a list of strategies that will help your nonprofit cultivate lasting and successful grant funder partnerships.

Our checklist for building relationships with grant funders starts with the pre-award stage. 

This stage primarily involves doing research to find relevant funders and then going through the process of actually applying for their grants. The following strategies will help ensure you are laying the groundwork for finding the perfect grants and establishing relationships with funders.

Checklist Item: Identify and Research Potential Funders

The first thing you and your team will need to do is identify funders whose missions align with yours. 

Funders, just like nonprofits, have their own missions that guide their giving priorities. When searching for grants, it’s important to understand a funder’s giving focus and application processes so that you don’t waste time on opportunities you aren’t eligible for or that aren’t a good fit. 

The more closely aligned your mission is with a funder’s, the easier it will be to establish a relationship with them and secure their support. 

Pro Tip: Grants databases like Instrumentl are fast and efficient ways to find grants that align with your nonprofit’s mission and funding needs. You can input your nonprofit’s funding focus and search criteria and then Instrumentl curates a list of potential funders and active grant matches in seconds. 

Checklist Item: Initial Outreach and Engagement

The next step in our checklist for building relationships with grant funders has to do with initial outreach and engagement. 

Once you find good-fit grant opportunities, you will need to begin engaging with the funder, which may include crafting a compelling letter of inquiry (LOI).

Sometimes funders will request an LOI before they will accept a full proposal. In the LOI, you get the chance to introduce your organization and its mission to the funder and if they think you’re a good fit, they will invite you to submit a full proposal. That way, both you and the funder can save time from having to develop/review a full proposal if your missions do not align.

You can also save some time in this step by using our LOI template found here. 

Checklist Item: Tailoring Your Proposal

Now you can continue the grant lifecycle management process by developing and customizing a proposal that meets the specific interests and guidelines of the funder. 

Many grantmakers will provide a detailed Funding Opportunity Announcement or a Request for Proposal (RFP) which will outline exactly what they are looking for in the proposal. However, most proposals will include the following elements: 

• Project title
• Executive summary
• Organization background
• Statement of need 
• Project narrative
• Proposed budget 
• Goals and objectives
• Evaluation plan

During this step, you want to make sure that you tailor your proposal to the funder’s specific interests. You want to show them how your mission is aligned with their funding goals and the impact your potential partnership could have. 

Checklist Item: Comprehensive Review Before Submission

Did you know that only one in seven grant applications are awarded? 

One of the main reasons the other six applications are rejected is because they simply do not follow the proposal requirements and guidelines. This is why you must take the time to complete a comprehensive review of your application before submitting it to the funder.

This responsibility should be completed by two or more team members, as a second set of eyes is ideal for catching errors. Make sure to double-check your application for completeness, accuracy, and adherence to guidelines.

Checklist Item: Prepare for Possible Site Visits or Interviews

Developing face-to-face, personal connections is one of the best ways to build relationships with funders. Once you’ve submitted your proposal, you should prepare for possible site visits or interviews. You want to be prepared to show the funders who your nonprofit helps and how successful your project can be with their support.

Before inviting a funder to your site, you will want to ensure your team is ready to present your project and organization effectively. 

Congratulations, you won the award! However, building a relationship with your grant funder doesn’t end just because you received the funding. 

Your team will then go through a short “award stage” which includes formalizing the grant agreement before entering the longest and most important stage in your relationship: post-award management. 

Checklist Item: Expressing Gratitude and Acknowledgment

First and foremost, you will want to promptly thank the funder and acknowledge their support through timely communications. Expressing gratitude is a key part of our checklist for building relationships with grant funders. In fact, it is one of the most powerful ways to cultivate nonprofit funder relationships. 

You should make sure you thank your funder within 48 hours of receiving your award. Then, you can continue to acknowledge their award throughout the life of the grant using your website, social media, and through personal communication. 

For example, the Arboretum at Penn State has a thank you page for all of its donors and supporters. The donors are listed by either the monetary amount or by what they specifically donated. When you click on the “+” sign, a list of donors is prominently displayed.

Checklist Item: Transparent and Timely Reporting

Transparent and timely reporting is key to developing strong grant funder relationships. 

Most grant funders will require you to develop reports to show them that you are spending the grant as planned. It’s important that these reports are delivered on time and provide the funder with a clear picture of how their funding is making a difference. 

It’s also important to keep the funder informed of any challenges your nonprofit faces along the way. This transparency will help you establish trust with them. 

Pro Tip: Keeping track of multiple reporting deadlines for multiple grants can be a challenge. Instrumentl has customizable grants calendars where you can share tasks and deadlines with your entire team so that nothing gets missed. 

Checklist Item: Regular and Meaningful Communication

Make sure you keep the funder updated throughout the life of the grant with regular and meaningful communication. Remember that you are building a relationship with them, which means they should be treated like a partner, not just a dollar amount. 

This communication could include:

• Regular updates on the program
• Success stories of who is positively impacted
• Invitations to events

Personal communication and meaningful connections will make your funders feel valued throughout the life of the grant.

Checklist Item: Seeking Feedback and Incorporating Suggestions

Seeking feedback and incorporating suggestions will not only show an openness to learning, but it will also help you improve your grant proposal writing and awards success rate in the future. 

Grant funders usually give feedback either during the lifecycle of the grant or after the grant has ended. Being proactive about asking for funder feedback shows them that you value their input and want them to have an active role in your success. 

Checklist Item: Discussing Renewal and Ongoing Support

Just because this grant eventually comes to an end doesn’t mean there are no future possibilities to continue your partnership with the grant funder. As the grant winds down, be sure to engage in conversations about renewing the grant or future ongoing support for your program or initiative. 

All of the steps above, including meeting and communicating regularly and being transparent with reporting, will build towards a future relationship with your grant funder.

There are a few additional considerations your nonprofit organization will want to adopt in your checklist for building relationships with grant funders. 

Checklist Item: Building a Culture of Philanthropy in Your Organization

Building a culture of philanthropy in your organization will make it much easier to establish and sustain funder relationships. You will also want to ensure that everyone understands the value of funder relationships and their role in maintaining them. This includes your staff, board of directors, and even your volunteers. 

A culture of philanthropy means everyone in the organization embraces a donor-centered and funder-centered environment. As a nonprofit leader, you should be in charge of making sure that everyone is involved in promoting the success of your grant-funder initiatives. 

Checklist Item: Ongoing Learning and Adaptation

The grant funding journey is an ongoing learning process. Just because you successfully built a relationship with this grant funder doesn’t mean you won’t need to adapt to changes in the funding landscape. You will want to adapt your strategies accordingly.

There are invaluable grant writing resources and workshops that can help you and your team further develop your skills for future funding opportunities. That way, you can always stay up-to-date on the reporting and compliance changes down the road.

It is important to have a systematic approach to building funder relationships, which is why implementing a checklist for building relationships with grant funders will ensure that you maintain successful and sustainable partnerships. 

If you need help finding grants and funders that align with your nonprofit’s mission, you can create a 14-day free account on Instrumentl. Happy grant seeking!