Grant writing is the 2nd most effective fundraising strategy in terms of ROI.
- In 2022, Foundations – which accounted for 21% of all giving – donated $105.21 BILLION to US charities. This represents a 2.5% increase over 2021.
- That same year, corporate foundations provided 6% of all nonprofit funding, contributing $21.08 BILLION This represents a 3.4% increase over 2021.
As you can see, this is a significant amount of money! And, foundation giving has increased every year for the past 11 years.
Some of you may be wondering what the future holds. I don’t have a crystal ball, but I can tell you that philanthropy has increased – by billions of dollars – over the past decade and has a long history of being responsive.
People are generally kind and want to do good in the world.
As you can see from the numbers I shared, things are not as bleak as we might think. The US is also in the middle of what some have dubbed “The Silver Tsunami,” in which approximately $69 TRILLION is changing hands.
This is leading to a massive uptick in Donor Advised Funds (DAF), some of which are housed at community foundations.
Grants are often an under-tapped resource. While many nonprofits secure some grant funding, many are missing opportunities to leverage more grant revenue.
For example, I’ve cultivated a list of more than 200 funders in Central MA, yet most mid-sized nonprofits are submitting 20-40 applications, leaving money on the table in the process. Let me share two examples:
Growing Grant Revenue by 270% for a Women and Children’s Nonprofit
Abby’s House is a nonprofit that serves women and children, with a 9-bed shelter and 55 units of affordable housing.
I was hired to pinch-hit for their Director of Development, who had a medical emergency. When I first started working with them, they were submitting about 30 grant applications/year, which produced just over $100,000 in revenue.
By the time I finished my tenure with them 3 years later, I was submitting 60 grants/year and the grant revenue had risen to $373,166!
That’s an increase of $272,166 in 3 years (an average of $90,722/year)! I also raised $300,000 to replace their roof, created a Buy A Bed campaign (which is still going!) and established a 5K to help attract younger supporters.
Moving From Deficit to $2M Surplus With Grants
Jeremiah’s Inn is a nonprofit that provides substance abuse recovery services to men 18+ from across MA. They also operate a food pantry.
When they hired me in March 2013, they were running a small deficit. By December 31, 2013 — 9 months later — they had a surplus of $113,000. As of December 31, 2021, they have a net surplus of $2,965,082!
We’ve also raised funds to renovate their building, top to bottom, and to purchase and furnish a Sober House.
These are two of many examples I could give you that grants are worth pursuing!
Not all of these fundraising increases came from grant funding, but it sure was a big chunk of it!
The good news: grants are clearly worth the effort.
The bad news: the industry rejection rate is about 80%!
To increase your chances of getting a check instead of a rejection letter, make sure you’re not making one or more of these 5 mistakes:
1. Writing Too Much
Attention spans these days are short (and getting shorter)! The foundation trustees who review your grant applications are no exception.
Also, let’s remember that they’ve probably put in a full day at work, just ate some pizza or pasta, and might be slipping into a Carb Coma!
You’ll notice that many foundations are implementing restrictive word or character limits, precisely for this reason.
Even if you are not restricted in how much you can write, always aim to keep your language concise and to the point. At the end of the day, foundations want to know who you are, why you exist (commonly called the grant narrative), why your programs and services matter (statement of need), and what transformation your clients are experiencing.
So cut the fluff and get down to it!
2. Not Giving Them What They Asked For
Grant writing can be hard, repetitive, and tedious.
Sometimes in our efforts to do everything we need to do to submit a grant proposal — sometimes several in the same week! — we forget that each foundation has its own specific purpose (mission), geographic territory, and focus area. Here’s a guide to understanding what a foundation wants.
It’s important to remember that when we submit a grant application, a group of humans will read what we wrote.
Our proposal must resonate clearly with what the foundation Trustees care about. Making a clear connection between your organization’s mission and services and the goals of the foundation to which you’re applying is CRITICAL.
It’s crucial to do your homework to identify foundations that give grants to similar organizations and share a vision and goals. Making the case for partnership should be seamless, easy, and repeated throughout your request. If it feels like a stretch when you’re writing it, then it probably is one, and – in that case – you’re probably best served seeking funding elsewhere.
3. Writing Like a Robot
So often, we think we have to write grants in formal language or treat them like an academic treatise.
Please don’t!
When we lose our “voice,” the energy we bring to the work is sucked dry. This comes across clearly to the people reading our proposals! (the same goes for using AI to write your grants).
If you rush the grant writing process, you can end up with a hollow narrative that won’t move the readers’ hearts.
Even when you’re being concise, be sure to tell the story of your organization and the impact it’s having.
- Why are you passionate about the work your organization is doing?
- When do you feel most connected to the work you do?
Inject the narrative with soul! Your honesty, your own unique voice, and perspective are what will draw the reader in and allow them see the work through your eyes.
If you show you care, the reader will care too! You’re not in the room to share your passion, so your words have to for you!
4. Cutting the Budget (literally!)
Budgets are a vital part of any grant proposal, yet most of us neglect them.
Why?
Because foundations usually have a very specific idea of what they want to see in a proposal budget, yet rarely share these with applicants.
This leaves us groping in the dark and MSU-ing! And that’s not good for anyone!
(MSU = Making Stuff Up)
DO NOT CUT YOUR BUDGET with the idea that it’ll make you more attractive to funders. It may actually backfire on you!
Take time to build an accurate, inclusive budget with expenses consistent with the day-to-day realities of your program and organization.
Then, demonstrate that you’ve got a solid revenue plan in place and show how you will spend (oh so wisely!) the dollars of the foundation. You will be their favorite child, for sure!
Related: For more on writing grant budgets, see Margit Brazda Poirier — Founder of Grants4Good’s workshop on the dos and don’ts of budgets.
5. We Don’t Acknowledge Funders as Changemakers
Foundations view themselves as changemakers. With the right investments in the right organizations at the right time, foundations seek to be the levers that move the world.
Sure, their grant may not actually get you very far down the road, but:
- they gave you the money (instead of someone else), and
- it DOES actually help you move the needle, even if just a tiny bit.
One of the most common mistakes I see in grant writing is when applicants neglect to explain what will change if a grant is awarded.
Some foundations ask this outright, others don’t. Both your proposal and budget tell a story – make sure it’s focused on IMPACT and TRANSFORMATION for the people you serve!
The proposal tells them what will be different in the world if they give your organization money and the budget tells them how that money will be spent.
A single foundation grant may be only one small piece to an overall revenue puzzle for your nonprofit, but it’s your job to make the case for the importance of their piece.
Phrases like,
- “your support will ensure…” or
- “with your grant, we will be able to expand/improve …” work wonders!
There’s more to say here about outputs, outcomes, and evaluation – all of which have an important role in your proposal!
From the 10,000-foot perspective, it’s imperative to help the foundation understand that their support is changing the world (no matter how small the change).
Grants are worth the time and effort, provided you adopt the correct approach. Avoiding these 5 common mistakes will help you raise more money, so you can do more good!
.svg)
%201.png)
