Unit 4: Researching, Approaching, and Maintaining a Relationship with a Grant-Funding Source
Now that you understand the elements that go into a grant proposal, you need to conduct some research to find a funding source. You are charged with finding a funding agency that best matches the mission of your project, initiative, or organization so you can convince them that you are the most qualified candidate to address their needs. Your proposal should build a case and tell a compelling story about your organization and the project.
Good deductive skills are essential to locating the information you need to support your grant writing efforts. As you conduct your research, keep the following three elements in mind.
- Focus on opportunities that match your organization's goals and objectives with those of the funder.
- Never try to create a program to fit the goals of the funding organization just to obtain money; think about what you want to accomplish with the funds. However, depending on the circumstances, it may be reasonable to tailor your project to align with the funders' goals.
- Only write grants for projects you attempt, regardless of whether you receive external funding.
Completing this unit should take you approximately 2 hours.
Upon successful completion of this unit, you will be able to:
- describe strategies for finding grant opportunities;
- differentiate between the various possible sources of grants; and
- describe best practices for approaching and maintaining a relationship with a funding organization.
4.1: Funding from Individual Donors
Individual donors provide a large share of potential grant funding: for example, the Foundation Center reported that individual donors gave 72 percent of the $303.1 billion awarded through private funding in 2012. In addition, individuals also donated eight percent of total private funding as part of a bequest (a person's will or legacy).
Read this overview of funding data from foundations in the United States. Useful infographics present data on different types of foundations, which issue areas receive the most money, and funding by geographical location.
As part of your search, consider cultivating a relationship with an individual in your community who might help fund your project or organization. It is worth looking for someone with appropriate financial resources who knows or can relate to the people who will benefit from your project. Watch this seminar, which describes a systematic process for engaging individual donors and building lasting relationships.
4.2: Funding from Government
Keep in mind that grants from the U.S. government often require a great deal of organizational capacity for grant seekers – to obtain, operate, and manage grant funds – because these programs are often extremely competitive.
As mentioned in Unit 2, grant administrators who apply for funding from the U.S. federal government should be familiar with the Federal Register and Grants.gov, which offer daily listings of proposal requests with descriptions, guidelines, and deadlines for upcoming federal grant opportunities. Take a look at their Grants Learning Center and their federal grant funding search tool.
It is important to understand the requirements before you pursue these opportunities since your organization may need to expand its operations to comply with them. For example, recipients of federal grants may need to hire or contract external grant reviewers or perform an annual external financial audit. Read all of the materials carefully, and be sure to build any additional costs into your budget when you write your proposal.
Read this article for an additional overview of federal grant opportunities in the United States. Notice the different types of grants, such as block and earmark grants.
A list of funding sources, including government agencies, foundations, associations, and research centers, is at the bottom of this page.
How do you and your organization maintain contact with your elected federal, state, and local government representatives? Their staff can provide invaluable guidance on navigating the government funding process and alert you to available grant funding opportunities.
Your government representatives may be able to introduce you to those who work at grant funding organizations or help monitor the progress of your proposal. As we mentioned in Unit 2, these local politicians may write a letter on your behalf, describe the good services your organization provides their constituents, or otherwise support your grant application.While the U.S. Internal Revenue Service (IRS) prohibits nonprofit 501(c)(3) organizations from getting involved in political campaigns, you can "educate" your political representatives about your activities and describe how you help their constituents and contribute to your community.
Read this notice from the IRS, which outlines the restrictions on nonprofit organizations' lobbying activities.
Funding from State and Local Government Agencies
Most state and local governments offer grant programs to nonprofit organizations within their jurisdictions. These grants can support projects at local K-12 schools, higher education institutions, arts agencies, and other local endeavors.
State and local governments derive grant funds from tax revenue and federal funding appropriated to them as block grants, which they are authorized to disperse at their discretion. A great deal of funding could be available.
Obtaining grant funding from state and local agencies is similar to working with other government agencies. Start by researching the grant opportunities listed on their website. Ask questions and seek out organizations that have received this type of funding. Create an ongoing relationship with your state and local representatives – it is always easier to approach them when they know what you do for their constituents.
4.3: Funding from Foundations
A foundation is a non-governmental, nonprofit, or charitable organization whose main purpose is to offer grant funding to unrelated individuals, organizations, or institutions, such as to support scientific, educational, cultural, humanitarian, religious, and other charitable purposes. The founders and administrators usually guide the direction, priorities, and goals of grant funding opportunities.
Read this listing for more details about the definition, goals, and types of philanthropic foundations, along with several examples of prominent foundations.
Popular Foundations
Some popular foundations demonstrate a wide range of philanthropic and charitable goals.
- The Bill and Melinda Gates Foundation is a family foundation that partners with international organizations to tackle the challenges of "extreme poverty and poor health in developing countries, and the failures of America's education system".
- The Ford Foundation is a corporate foundation created by Edsel Ford, the president of Ford Motor Company, which aims to "reduce poverty and injustice, strengthen democratic values, promote international cooperation, and advance human achievement".
- The Knight Foundation is a corporate foundation that the founders of Knight Newspapers created to promote excellence in journalism and foster "informed and engaged communities".
- The Lilly Endowment is a state-based foundation that donates funds to support Indiana's religious causes, educational institutions, and community development.
- The Sinclair Foundation is an academic foundation that makes scholarships available to the students who attend their community college.
- The Watertown Community Foundation is a small community-based foundation in the town of Watertown.
Watch this video, which describes four different types of foundations: an independent foundation, a company-sponsored foundation, an operating foundation, and a community foundation. It also discusses the special requirements, foundation giving trends, and the benefits of establishing a foundation (to the donor).
Read this article for tips on researching foundations and other types of organizations that offer grant funding. The article lists several tools for both grant research and management.
4.4: Building a Relationship with a Grant-Funding Organization
Think about how you appeal to others to act on your behalf and how they react to your requests. How should you approach this relationship? Put yourself in the position of the person or committee that will review your application and think about what you would like to see from someone who makes a similar request for financial support.
You may begin creating a relationship with a grant funding organization by introducing your organization, initiative, or project to them and speaking at casual business meetings with the individuals who administer their grant program. You could also introduce your concept through a more formal letter of inquiry (LOI) or concept paper. An LOI may be required as a first step to accessing a foundation before you are allowed to submit a proposal. Many larger cities also have networking events for local nonprofit organizations, which can help put you in contact with potential donors.
This article presents a brief overview of what a letter of introduction to a grantmaker should include.
Read this article for a list of the necessary components of a letter of inquiry. It can be used as a template for an LOI.
This article gives five basic steps in establishing a relationship with grantmakers. It also offers advice on maintaining that relationship after the initial contact.
Maintain Contact with the Grant Funding Agency
Do not hesitate to contact the program administrators or officers who will review and administer your grant proposal. You can ask specific questions about the proposal submission or selection process or get feedback on what they think about your grant proposal.
For example, you might ask if they think your work is the type of project the funding agency would consider supporting. Email your questions to the program officer so they have time to respond, and you will have a record of the exchange to share with your colleagues.
Before you make contact, make sure the answers to your questions are not in the RFP guidelines or frequently asked questions (FAQ) section of the grant website. Begin by providing a clear, succinct summary of your proposal. Outline its main objectives, provide a list of outcomes, and describe how your project is unique and deserves consideration. You might ask what you could do to improve your chances of a favorable review. How many proposals were chosen compared to the number submitted in past grand rounds? What are some common reasons for rejection? Follow up with a thank you note to be polite and keep the lines of communication open.
Staff members at most grant-funding organizations want to ensure you are on the right track. They want to attract capable, interesting projects that will succeed to further their organization's goals. They can provide helpful advice to steer you in the right direction and help you present a winning proposal.