The Grant Process

The grant process is not a formula demanding rigid adherence. This is only a suggested approach that may be adapted to fit the needs of any nonprofit organization, depending on the intricacies of each situation. Fundraising is an art as well as a science. Remain flexible and use your God-given creativity!

The grant process consists primarily of drafting the grant proposal. However, prior to putting pen to paper, it is necessary to gather background information. First, gather all information relevant to the PURPOSE of the grant. How does the grant project further the mission and vision or your organization? Why is this project important? How is it beneficial? Your goal is to persuade the funding organization by clearly articulating compelling reasons for the grant.

Second, gather all information that will enable you to fully describe the program. This includes: (1) the nature of the project; (2) how the project will be executed; (3) the timetable for the project; (4) the anticipated or desired outcome; (5) the evaluation procedures; and (6) staffing needs and provisions therefore.

Third, to the extent possible, you should gather information about expenses. Even if the details have not been worked out, it is important to have a budget estimate before drafting the proposal. You should be fairly certain that the cost will not be prohibitive. If the proposal is too expensive for the outcome you plan to achieve, you need to tailor the proposal. It is better to make changes before writing the proposal! After writing the proposal, you may want to revisit the section on expenses, and provide more detailed information.

How to Write a Grant

1. Summary: In one or two paragraphs, summarize your proposal. What is your request, what do you plan to accomplish, and how? This is very important, because it may determine whether your proposal is read.
2. Organization Information: In about three paragraphs, you should describe your organization. What activities do you engage in? Who is your audience? This is your opportunity to build credibility. Show that your organization is competent, has a good reputation, and is successful. Include information that the grant-maker will view favorably.
3. Description of the Problem/Situation: This is an important part of the grant. You must persuasively convey the scope of the problem (or situation) you wish to remedy. This should be done in each of two ways, if possible. First, you should describe the problem in terms of human interest. For example: "Many children grow up in homes where their basic needs are not met. This leads to physical and spiritual problems that often last a life-time." Second, you should use factual terms derived from research. For example: "80% of children have never heard the gospel." Be careful to select the information that will be most persuasive-do not overwhelm the reader with information. Other things to remember: Phrase the problem in a local context (rather than state or national, if possible). Also, do not propose to solve a problem that is greater or lesser than your proposal (such as ending poverty). Your solution should fit the problem! Be realistic about the problem; do not dramatize it as something worse than it is. Finally, do not state that the lack of your program is the problem. Your program is the solution to the problem.
4. Specific Plan: This is your plan of action! Describe how you will solve the aforementioned problem. First, describe the overall goal(s) of the program. A goal may be broad or non-specific. For instance: "Our goal is to teach children to read the Bible." Next, develop specific, measurable objectives you plan to meet in order to accomplish the goal. For example: "Our first objective is to teach 100 children between the ages of 12 and 14 to read the Bible within 3 months." Give details of the specific actions you plan to take to accomplish the objectives. Also, explain any preparations you have made. This enhances the credibility of your proposal. It is imperative to describe who will be executing the plan, and what credentials they have. Describe the location where the funds will be used as specifically as possible. Finally, give a timeframe for both the beginning and the conclusion of the program. The example above is behavioral in nature: the children will learn to read the Bible. Other programs may be based on performance (the children will read the Bible with a certain level of proficiency), a process (children will learn to memorize scripture using a specific technique), or a product (we will design a manual that teaches children to read the Bible).
5. Results and Evaluation: Describe the impact the program will have. Be as specific as possible about your projections. Describe how you will measure the results, if possible. Will you be measuring a process and/or a product? What information will you gather? Who will gather the data, and how? How will the information be used? To whom will it be published?
6. Budget: As specifically as possible, describe the costs of your proposed program. In some cases this may be a one-paragraph explanation with a one- or two-page attachment of anticipated expenses and income. Are you asking for a one-time payment, or ongoing support? Make sure to disclose other sources of funding you may have, or if another source will be helping in the future. Projected expenditures may be divided into three categories: Personnel Expenses, Direct Program Expenses, and Administrative Expenses.
1. Personnel Expenses include the expenses of all the people who work on the project. This includes employees and independent contractors. List each employee's title, pay rate, and amount of time dedicated to the project. For example, if your organization's president must spend 5% of her time supervising the program, take her annual salary, multiplied by 5%, multiplied by the length of the project: President ($80,000 x 5% x 2.3 years) = $9,200.
2. For employees, remember to add payroll taxes (FICA, Medicare, unemployment and workers' compensation) and fringe benefits (insurance, 401(k) matching funds) at the appropriate percentage. For independent contractors, list either the flat fee you will pay ($1,500 to design a website) or the hourly rate (for a consultant, $30/hour x 20 hours).
3. Direct Project Expenses are non-personnel expenses you would not incur but for the grant program. These include almost anything: travel costs, printing, a property lease, equipment rental, supplies, insurance, phone lines, or food. Be careful! You will not likely be able to return to the grant maker and ask for more money because you forgot something. Take the time to get accurate estimates. If you will be purchasing multiple airline tickets, do not guess at the cost. Check ticket prices for a rough estimate. If even a rough estimate is not possible, note this in the budget.
4. Administrative Expenses are expenses (usually non-personnel) incurred regardless of whether or not you do the project. By doing the project, these resources can not be used for anything else. For example, if you rent an office with space for five employees, you will continue to rent the office even without the project. But with the project, one-fifth of the office space will be occupied by the project director. Therefore, you can charge for 20% of your office rent, utilities, and administrative costs (phone, copying, postage, office supplies, etc). Note: Some grant makers do not cover administrative expenses. Carefully read the rules provided. Be sure to add up all your expenses carefully. Addition mistakes on budgets are one of the most common errors in grant proposals.
7. Supplementary Materials: Grant makers may ask for a variety of materials along with the proposal itself. Most grantmakers request:
   1. A copy of your IRS letter declaring your organization tax exempt. If your organization is not tax exempt, you may need to apply through a fiscal agent. In that case, send a copy of your fiscal agent's IRS letter.
   2. The most recent financial statement, including a statement of income and expenses and a balance sheet showing assets and liabilities at the end of the year. Some funders ask for an audited statement. If you are too small to be audited, call and ask whether an audited statement is mandatory or just preferred.
   3. A list of board members with their work descriptions and contact information.
   4. A budget for the current fiscal year. If you are several months into the fiscal year, show actual year-to-date income and expenses next to the budget projections. Include a budget for the next fiscal year if you are within three or four months of a new fiscal year.

   Note:If you are a small part of a very large institution, you may be better off only submitting supplementary materials for your own program. Ask the funder what you should do. Grant makers may ask for other materials, such as a copy of your most recent IRS Form 990. If for some reason you cannot provide a requested document, attach an explanatory note. It is appropriate to attach resumes of your key personnel, as well as general information about your organization (newsletters, brochures, or annual reports). If you have a lot of supplementary materials, use a table of contents.

8. Variations on the Standard Outline: The proposal format described above is most appropriate for a problem-based project costing $5,000 or more. At times you will need to alter this format to suit other circumstances. Here are two examples: Small request: When requesting a small sum, the entire proposal may be done in a two- or three-page letter, plus required attachments. Non-problem-based project: Some projects provide a desirable good or service, rather than a solution to a problem. A performance of Handel's "Messiah" is one example. In such cases, alter the outline by deleting the problem/situation description. After describing your project, insert a section discussing the benefits of the project.