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For many new nonprofit organizations, their first thought when it comes to funding their organization is to seek grants. Grants are a great way to fund a nonprofit. Many times, they offer a larger lump sum of money than what an individual can give. However, securing a grant takes many preliminary steps.

I spent some time volunteering with a major foundation looking for a qualified nonprofit to receive funding. Notice that I said that the foundation was looking for a qualified nonprofit. There are many foundations who no longer receive solicitations from nonprofits. They do not have a posted grant application process. Many foundations are inundated with grant requests and so at times there are other ways an organization will need to attract a foundation.

While a team of us looked for a qualified organization, we discovered several issues which quickly eliminated some organizations. Two of the major problems were 1) websites that were confusing or did not clearly provide viewers with a clear sense of what the organization did; 2) the organization’s activities were ineffective at solving the problem. This was revealed while we did site visits and realized there was a gap between the problem and the organization’s proposed solution.

So before your organization decides to seek grants, I suggest you get your organization ready first. Below are some questions to consider in preparing your organization to write grants:

1)      Are you a 501 (c) 3?

Most foundations will require your organization to be a 501 (c) 3 organization. They will request your 501 (c) 3 letter as part of the application.

2)      Do you have a website and does it clearly tell the story of your organization?

Websites are crucial to business ownership today. If anyone wants to know more about your organization, they will look for your website to learn more.

Your website needs to actually inform people about your organization. Make the message clear and easy to find.

Key headings to include:

• Home
• About Us
• Programs/Services
• Contact Us
• Donate

Following are some basic questions your website should answer:

• When was the organization established?
• Who are the key players, what are their roles and credentials?
• Why was the organization established?
• What are the key programs/services?
• What is the call to action/how can people help?
• How will donations be used?
• What is a suggested donation and what will it accomplish?
• How can the organization be contacted?

If possible, try to fit the basic information about your organization on a single web page. This will help people have a complete understanding of the organization without having to piece it together visiting different web pages. Succinctly summarize the purpose of the organization, its programs, key people and what a suggested donation is and accomplishes.

3)      If a foundation was to approach you to give you money, are you really ready to receive it?

This may seem like a ridiculous question. However, you really need to think through it. If an organization looked at your website and decided they wanted give you $25,000 do you know what you would do with it? Here is where a strategic plan comes in handy (by the way some foundations will request a strategic plan). Do you need to hire someone first or can volunteers do the work initially? Write out the steps that it will take to get from point A to point B.

4)      When someone calls your organization, how quickly will they get a response?

You may not always be able to answer your phone, especially if you work full time doing something else. Does your voicemail state the organization name? Does it sound professional? How long does it take you to respond to your voicemail? If someone else is answering calls for you, are they friendly? Are they equipped to answer questions regarding the organization? Do they know your schedule or alternative ways to contact you?

5)      Is there evidence that your organization is addressing a real need?

Do your research and provide that research for potential donors. Donors want to address a real problem. Sometimes donors are not aware of certain needs. Your research will show there is a real need and why it needs to be addressed now.

6)      Is there evidence that your organization offers an effective solution?

Donors want to give to organizations that are solving problems effectively. Do you have evidence that your proposed solution is effective? Will it actually solve the problem or help to solve the problem? Does your organization have the capacity to solve the problem?

7)      Are you ready with an evaluation plan or monitoring system to provide a foundation?

Some foundations request an evaluation plan as part of the grant request others want to track your progress and may request periodic reports that detail your progress. Do you have the necessary tools in place to provide them with this information?

8)      Do you have a budget that realistically reflects the organization’s/project’s need?

Do you know how much it costs to run your organization or the specified project? All grant requests ask for a budget. Write out all the necessary costs and think of the various methods you will seek to fund the organizations. Donors do not want you to be solely dependent on their funding.

9)      Have you created a case statement for your organization?

A case statement clearly states the purpose of your organization. It describes the need, your solution, and the call to action for others to get involved. See the following articles about making a case statement:

Making the Case for your Organization Part 1

Making the Case for your Organization Part 2

10)   Do you have a strategic plan?

Some donors will want to see a strategic plan. The plan is actually beneficial for you. Do you know the direction you want to see the organization grow? How do you plan to get the organization there? Donors want to see that you thought about this. It gives them greater hope that you will be around for the long-haul.

11)   Do you have a fundraising plan?

One question that foundations ask is how you plan to fund your project. This is where having a fundraising plan is helpful. Foundations like to know that your organization is not solely relying on their support, that you have other sources of income, that your project is financially sustainable, and that you have a plan.

12)   Do you have externally audited financial reports?

For start-up nonprofits, this part may not be necessary initially. However, you should consider hiring an accountant to review your financial statements annually. I have seen foundations request third-party audited financial reports. You must display to donors that you are a financially responsible and credible organization.

I certainly hope this list of questions is helpful as your organization prepares for to write grants. Please let me know if there are other questions I should to list. I would like to hear from you.