The ABC's of Grant Funding
by Johanna Townsend
The afterschool tutoring ministry at Central Community Church has successfully operated for 10 years, but now faces financial difficulties. The local schools have seen their literacy scores improve over the past decade, which can be directly attributed to the assistance of this tutoring program, but the church has exhausted every effort to find more local donors. There just isn’t enough money to keep the tutoring program going. Is it time to dismantle the ministry?
This scenario is not uncommon. The recent economic recession has left local and national philanthropists and philanthropic organizations unable to fund as they have previously, so fundraising has become increasingly difficult.
However, there is hope for financially struggling ministries. Funds are available for those willing to do the research and properly prepare the documents required to obtain them. For the last 10 years I have run a foundation that provides funding for ministries just like this afterschool tutoring program. I am intimately familiar with the grant-funding process and, as someone who receives and reviews around one hundred grant proposals every year; I’d like to share some insight into the process of writing a successful grant.
Preparing the way
Before beginning the grant writing process, make sure that your organization has a mission-statement that accurately and succinctly defines the purpose of your ministry. With that in place, be prepared to clearly develop a 5-10 year ministry vision which includes specific, measurable and attainable goals.
There are a number of documents you will be required to send along with your completed grant. Most important is an IRS determination letter, called a 501(c)(3), which provides your ministry’s tax exemption status and gives an accompanying ID number. This number must be listed on any IRS tax reports made by giving organizations. Your ministry may be covered under the 501(c) (3) umbrella of a national organization or a local church, but if this status is unclear check with a lawyer or a CPA to determine if your ministry has the appropriate tax status to qualify for funds.
The other important documents you will need to include are an organizational brochure, an annual report, audited financial statements, an operational budget, a detailed budget proposal, press clippings, 1-2 letters of reference, a list of donors, a list of the board of directors (which should includes their profession, job title, and civic affiliations), a sample of ministry curriculum used and a sample schedule of daily events. Assemble all these documents and hold them until completion of the grant writing process.
Seeking and Finding
Doing research to discover the best funding match for your ministry is the most time consuming step of the entire process. No foundation (mine included) will accept an application that has not followed the guidelines indicating what they will or will not fund. Please read those qualifications thoroughly and follow them explicitly or you will find yourself disqualified without any notification or explanation. (Trust me, our foundation discards such proposals because they failed to follow the application guidelines.)
Never waste time preparing a grant for an organization if its goals and mission do not match yours. Tailor every grant proposal, including the budget request, after having done extensive research into the donating foundation’s priorities and exclusions.
The research step can be time consuming, but doing extensive research and finding foundations with similar mission priorities will make your efforts to obtain funding far more successful.
If you have no idea how to properly research these foundations, don’t despair. There are several resources designed to assist you in this endeavor. Be aware, however, that the three sources I am referencing here do charge yearly fees.
Christian Grants is a directory of foundations that have a history of giving to Christian organizations. You can subscribe to it online at: www.christiangrants.com.
Christian Foundation Grants is a web-based directory of over 4,400 funders. For an annual fee of $129, they will give you access to their online database and their other services. You can find them at: www.christianfoundationgrants.com/Signup.
Christian Funding Directory is the largest online directory of funding sources for Christian ministries. For an annual fee of $249, you get access to over 7,200 funding sources, complete with the most up-to-date information on each organization available. You can find out more at: www.npfunds.com/Christian-funding-directory.
Remember, it’s far easier to write a successful grant when all of the foundation’s priorities and restrictions have been assessed. Once a good match has been established, then and only then are you ready to write the grant.
Ask and it may be given
As you begin to write the grant, make sure that you follow all the application guidelines explicitly (I cannot emphasize this enough). Give clear and concise answers to every application question, while avoiding the words if, could, and might. Boldly declare how the grant funding will benefit your ministry goals and vision. Foundation reviewers are swamped with grants to review, so make your proposal concise and easy to read. I have found that a short grant proposal is usually better than a long one.
Begin the grant by identifying the ministry need. Explain your project. Why are you seeking funding? Next, identify the focus of the project. Be prepared to answer the following questions:
What does your ministry provide for the local community?
Why is the ministry seeking funds?
How will this grant funding benefit the “at risk” children, their families, and the community you serve?
Make sure you document the need in your community and provide tangible evidence that supports your claim (statistics for instance). What has caused this need and how is your organization addressing it? How many people is your ministry currently helping and how many more you are planning to help with any future expansion.
While it is important to point a picture of the needs, don’t dwell on the problems; Instead, focus on the ways that your organization is uniquely situated to meet these needs. Give statistics which document the goals you have already met, and current goals which you hope to accomplish in the future.
Most foundations have grant reviewers with knowledge of the program areas defined in your grant proposal, so assume you will be addressing someone knowledgeable who needs more specific details about the unique make-up of your ministry.
The way your grant is written will tell the reviewers a lot about your organization: your leadership and administration style, your Christian values, your compassion and commitment to ministry, whether your ministry is creative and relevant, and if you are capable of executing the proposed project. Final decisions regarding funding often come down to whether the proposal convinces the readers that the project is well planned and feasible, and whether they feel the ministry leadership is capable of accomplishing the task.
Most reviewers are looking for information which successfully answers these three questions:
Does the information provided in the proposal tell enough about the past history and the future goals of the organization to make a sound decision?
Why is this project worth funding?
How will ministry success be measured?
In addition to answering these questions, every grant proposal should provide a clear and concise project budget. This is often the weakest component of the document. Develop it by listing each budgeted item as a separate line item accompanied with an explanation (budget narrative). Do not include “miscellaneous” as a line item. Small expenses should be separated into individual line items such as supplies, transportation, photocopying etc.
Before entering final budget estimates, make sure you have done cost comparisons and that the numbers you are using are reasonable. Finally, check the budget for consistency between the overall project description, the budgeted line items, and the budget narration. Remember, the readers will scrutinize this section so make sure your budget details leave no questions unanswered when the description of your project is checked against the guidelines and priorities of their foundation.
Most proposal reviewers do not respond well to a poorly organized, poorly written or confusing proposal, so make sure your grant proposal is clear, concise and compelling. Prior to sending the grant, have it reviewed by someone other than the writer to determine that you have accomplished the following:
- Presented a compelling case
- Identified realistic goals that make accountability and success attainable
- Answered all the application questions
- Provided all the documents required.
Before sending the document check the delivery deadline and ensure it will arrive on time, because if it doesn’t it will likely be automatically disqualified. As a policy, my foundation disqualifies any late grants and notifies the senders that the proposal is eligible for our next grant season.
Waiting and Hoping
The waiting period can last between two to six months. During this time, the reviewers are actively reading all of the grant proposals (often as many as a hundred) and then conducting phone interviews or on-site visits as they deem necessary. Finally, the foundations will hold a board-meeting in which they go over all of the grants, accept or deny them, and then determine funding. A few weeks later the letters of denial or acceptance will be sent along with the funding checks.
Regardless of whether your grant is accepted or denied, you should always follow up with a letter of thanks for being considered. Trust me, this seldom happens and it is appreciated.
Web site links:
Christiangrants.com is the most comprehensive and specialized listing of funding opportunities available for Christian programs. Their directory is constantly updated with the latest information and offers much more than just a database, including: links to foundation websites, keyword search capability, sample grant proposals, and grant writing tips.
www.christianfoundationgrants.com
Christian Foundation Grants (CFG), was developed because of the need among Christian nonprofit organizations for a comprehensive and user-friendly database through which to search for grant funding. There is an annual fee for the service, though there are a variety of relevant tips for free on the site.
The Free Management Library offers resources on many topics including fundraising, leadership development, finances and marketing. They include a great section covering evaluations.
Fundsnet Services offers a variety of resources for both grant funding and other fundraising information. There are links for a variety of different opportunities.
Non-profit Guides is a free Web-based grant-writing tool for non-profit organizations, charitable, educational, public organizations, and other community-minded groups. Their guides are designed to assist established US-based non-profits through the grant-writing process.
Catalogue of Federal Domestic Assistance This web site gives you access to a database of all Federal programs available to State and local governments, private profit and nonprofit organizations and institutions; specialized groups; and individuals. Search this database to find assistance programs and how to apply. Also available on this site are several aids to guide you in the writing of a proposal to apply for assistance.
The Foundation Center is the nation's leading authority on philanthropy, connecting nonprofits and the grantmakers supporting them to tools they can use and information they can trust. The Center maintains the most comprehensive database on U.S. grantmakers and their grants.
The Non Profit Good Practice Guide contains a variety of links and resources to help build a non profit to its greatest potential. Their site has many helpful links concerning fundraising, evaluation and management.
TechSoup.org offers nonprofits a one-stop resource for technology needs by providing free information, resources, and support. In addition to online information and resources, we offer a product philanthropy service called TechSoup Stock. Here, nonprofits can access donated and discounted technology products, generously provided by corporate and nonprofit technology partners.
www.christiangrantsdirectory.org
Comprehensive site including grant funding opportunities, jobs and other information to assist organizations and ministries in succeeding.
The Grantsmanship Center has a variety of relevant information for grant seeking. Also houses the GrantDomain database, which helps to find federal, foundation and corporate funding for an annual fee.
Book Recommendations
for Grant Seekers
The Only Grant-Writing Book
You'll Ever Need
2nd Edition
By Ellen Karsh and Arlen Sue Fox
Basic Books
Written by two authors who have won millions of dollars in grants – and updated to include vital information and advice accumulated since The Only Grant-Writing Book You’ll Ever Need first appeared – this new edition provides a comprehensive, step-by-step guide for grant writers, demystifying the process while offering indispensable advice from funders and grant recipients.
The Complete Idiot's Guide
to Grant Writing
2nd Edition
By Waddy Thompson
Penguin Group
The Complete Idiot’s Guide to Grant Writing second edition will show you exactly how to create fund-winning proposals – and where to submit them. In this revised and updated Complete Idiot’s Guide you get:
*Advice on how to find government, corporate, and foundation donors.
* Research tips and tricks for attracting the right donor.
* Budget plans to draft in advance to your funders know where their money is going.
Includes a CD-ROM.
Planning and Implementing
Your Major Gifts Campaign
by Suzanne Irwin-Wells
Most organizations with strong missions, appealing cases, and well-thought-out plans can raise major gifts.” Suzanne Irwin-Wells has designed this book specifically for small and medium-sized non-profit groups planning their first major-gifts campaign. It is filed with worksheets and samples designed to help them outline, carry out, and monitor such a campaign. Chapters cover basic elements, such as understanding how major-gifts campaigns work and how to sent fund-raising goals, as well as more advanced steps like cultivating relationships with major donors and budgeting for a campaign.
www.grantsandfunding.com
