Why Nonprofit Grant Writing is Important
A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners. A nonprofit is subject to the non-distribution constraint: any revenues that exceed expenses must be committed to the organization’s purpose, not taken by private parties. A wide array of organizations is nonprofit, including most political organizations, schools, business associations, churches, social clubs, and consumer cooperatives. Nonprofit entities generally seek approval from governments to be tax-exempt, and some may also qualify to receive tax-deductible contributions. But an entity may incorporate as a nonprofit entity without securing tax-exempt status.
The key aspects of nonprofits are accountability, trustworthiness, honesty, and openness to every person who has invested time, money, and faith into the organization. Nonprofit organizations are accountable to the donors, founders, volunteers, program recipients, and the public community. For a nonprofit that seeks to finance its operations through donations, public confidence is a factor in the amount of money that a nonprofit organization is able to raise. The more nonprofits focus on their mission, the more public confidence they will have, and as a result, more money for the organization. The activities a nonprofit is partaking in can help build the public’s confidence in nonprofits, as well as how ethical the standards and practices are. https://en.wikipedia.org/wiki/Nonprofit_organization
The Basic Steps of the Nonprofit Grant Writing Process
1. Grant prospect research
This is generally the first step unless your organization can provide me with pre-determined grant opportunities. Otherwise, we’ll spend a few hours searching through the fee-based databases to which we subscribe. We’ll produce a list of great prospects for your organization.
2. First contact
Next, we reach out to foundations that publish their phone number or email address. We discuss whether your nonprofit is a good fit with the grant-maker and clarify any questions we have. Some foundations specifically say, “Don’t contact us,” so of course, we’ll honor that request when necessary.
3. Research and discussion
This is the bulk of the work of a grant writer when it comes to the basic steps of the grant writing process. We’ll interview the key people involved in the project. We’ll ask lots of questions to gain a full understanding of the project, and we’ll do some research about the problem(s) the project solves.
4. Write and submit
Then, we’ll put together the application material the foundation requests. This may be a short letter, an online application, a five-page narrative, etc. We ask our clients to read over this product when we’re finished. They can then make changes and approve it before submission.
5. Follow up
We often follow up with a foundation after a rejection, providing them with more information. If the foundation awards a grant, we’ll work on a grant report that shows how you’re nonprofit spent the grant award money. In each case, we discuss with our clients how to best handle these tasks when they arise. This is the final part of the basic steps of the grant writing process.
I hope that this information has value for you! If you would like to learn more about grants, check out our courses. We have a course dedicated to this subject, All About the Grants.
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