Going after grants is like going on safari. You spot your target, cross your fingers, and hope to hit the sweet spot and get a good photo. There is more to it than you may think. A lot of planning goes into getting things together before you embark on a safari trip--and that is the same preparation for requesting a grant.
Grants, which are sizable donations given to support your organization, originate crucial funds for an organization. You should include them in your yearly fundraising plan. Some experts suggest planning for 20% of your fundraising to come from grants. This plan should document your fundraising activities over the year, and include events and dates, management of donors and donations, and a communication schedule. This plan should include a strategy for funding during the year. It should align with your mission statement, and focus on how funds will help you promote your cause.
1. Know how and where your organization is going to use the grant money. Be specific. Let the grantee know how the money will help with your cause and positively impact the good of the community. Grant monies are seldom given for an undetermined purpose. Identify your project and exactly how much money it will take to achieve the desired outcome. Explain how this project is essential to the continuation of your efforts.
Underneath the excitement of a grant lies pages of paperwork and hours of preparation. The whole request process often requires a full-time staff member to be a “grant writer”. This person coordinates the application details with your financial advisor.
2. Know the rules. Constructing a grant application includes adhering to strict laws and IRS instructions. Philanthropic funds are available to you, yet you have to go after them in the right way. Rules and laws change. Those preparing a grant request must be aware of these changes. Foundations and not-for-profit organizations must follow the regulations regarding such things as storing documents, accumulating reports, conducting audits, and disclosing information on the governing board.
3. Realize that charitable giving is increasing rapidly. Groups that fund grants are growing and they are making their decision more quickly than in the past. Technology and attitudes have allowed grantees to move quickly in their due diligence practices and offers administrative officers more time to review and consider grant requests.
4. Remember that technology is a BIG player in the grant seeking process. Electronic processing reduces /eliminates paperwork and lessens the time to gather and file documents for a grant application.
Accelerate your grant application by posting pertinent information on your organization’s website. Grantee can read and obtain the following information:
Audited financial statements
Budget for the organization
IRS Letter of Determination
List of Board of Directors for the current year
Most recent 990
Keep your organization in good standing with GuideStar. Make your GuideStar profile complete and up-to-date. Grantor’s rely on the data in GuideStar to evaluate the organization. From this profile the grantor can learn the organization’s mission statement, cause, ruling year, main address, name of president and leaders, website address, and view 990s.
Keep technology working for you. Use the Internet to identify funding groups that match the needs and purpose of your organization. Grants available for nonprofits range from religious groups, to poverty relief, to animal rescue. Search for private and corporate foundations and Federal, State, or Local grantees.
Become familiar with GrantWatch and Grants.gov. Study these listings and their grant requirements. Make sure your needs match the requirements.
5. Know your grantor. The kind of funding you need determines which grantors will be interested in your application. Requirements for government grants differ from those from private foundations.
Grants may be for the following needs:
Funding to cover operations
Matching grants equivalent to your organization’s fundraising results
Money to cover program costs
Research costs for academic projects and research
Grants to help your organization are out there. Get ready to go after your grant--just like you prepare to go on safari. Do your research. Identify the best grantee for your needs. Prepare records and coordinate with your accountant to create the best application package.
Grants are great and help your organization move forward. When you have questions about preparing your grant request or need help organizing your application, we have ideas to share and solutions to management and organizational questions. Keep in touch with our blog. If you have questions about any other not-for-profit industry topics, contact our not-for-profit team leader at trent@tbfosteraccounting.com.