A grant proposal asks a funder to join the organization as a partner to achieve particular goals. It is a request for financial assistance (a grant) addressed to a for-profit or non-profit grant-making institution. Many corporations, organizations, and government agencies award billions of dollars in grants to businesses each year to solve issues that these organizations care about. A grant proposal should be a persuasive and well-supported argument for change at its best.
Grants of Various Types
Grants can help your organization with a variety of things.
Consider the following scenario:
- A grant for day-to-day operations costs is known as operating support or unrestricted money. It is used to support an organization’s overall operations and is not allocated to a specific purpose or project.
- The most typical type of capital support is for specific capital campaigns. Building construction or acquisition, land purchase, renovations, remodeling, or property rehabilitation are all examples of these.
- Grants for program development or restricted financing are used to fund a specific purpose or project. The most typical sort of grant money is this.
- Technology Grants for NGOs, for example, can assist nonprofits in leveraging technology to further their goal.
Recommendation: grant-based funding isn’t enough to keep a business afloat. It must be part of a well-rounded fundraising strategy. Grants should account for no more than 20% of your total funding, according to many fundraising gurus. If you go above that, you risk sinking your organization if a critical grant goes through.
What factors should I consider when deciding whether or not to apply for a grant? And where do I look for them?
Grants aren’t the best option for acquiring finances fast or in a pinch.
They are, nevertheless, an excellent option for NGOs seeking to raise funding for well-planned projects.
The most common myths about nonprofit grants
1. Corporations and foundations are similar to Santa Claus
While there is a lot of money out there for NGOs, over 50 billion dollars to be exact, it isn’t just sitting there waiting for you to ask for it. You’ll have to put in the effort, and the requirements can be difficult to meet.
2. Only large nonprofits are eligible to apply.
There are grants available for NGOs of all types and sizes. Furthermore, while many grants are project-specific, there are lots of unrestricted awards that might help you pay some of your running costs or capital campaigns.
3. Grant writing is a fascinating and enigmatic art
While there is a lot to learn about writing good, winning grant proposals, it isn’t impossible. Developing a great nonprofit grant proposal is simple once you understand the fundamentals.