Is your organization ready to apply for grants? What makes you "grant-ready?"

You’re excited. You’re a 501c3, you’ve got a great mission and now you’re ready to get some of those grant dollars you’ve heard so much about! Where do you begin? The good news is – it’s true, there are a lot of opportunities to find funders who want to invest in your cause. The bad news is, you may be a ways off from getting their attention. It’s especially difficult for brand new organizations to receive grant funding without 2-3 years of success under their belts to show they’re worth the investment. Hang tight and arm yourself with our list to get you and your team on the path to grant funding success. This article will give you an insider’s track guide to everything you’ll need to gather and have on-hand to begin applying for grants.
 

1. BALANCE YOUR BUDGET
 
Many major funders admit, the first thing they do when they read a grant application is go straight to the budget.
 
9 times out of 10, a grant application will require a copy of your organization’s annual budget.
 
On the budget, funders are looking to see that you’re fiscally solvent, fiscally responsible, and competent. How does a budget show them these things?

• Fiscal solvency: The first indicator is to look and see if your budget “zeroes out.” The income must equal expenses. If you’ve budgeted for the year and you’re still in the hole – then why would someone want to invest in you? They still may but you better have a real good compelling case for why it doesn’t and a great relationship with that funder. Most grantors will just write you off.

 

• Fiscal responsibility: The next thing funders will look at is where you’re putting your money. If they see you’re spending 75% of your budget on rent, they may wonder why you have just an expensive building. If they see your CEO is making triple what other leaders make, they may wonder about ethics. If they see you get 90% of your funding from a single source, that may worry them about sustainability. Your expenses and revenue need to be

 

• Competence: If you slapped your budget together on a sheet of line paper in a hurry then converted it into a PDF for the grant app, you’re not going to look very professional. Similarly, if you submit a budget with some random numbers on a page a no order, you won’t be taken seriously. If you can’t figure it out, then invest in some help to get your budget setup right. You should have a list of revenue buckets and amounts at the top and expense buckets at the bottom, the numbers need to match. A budget is your plan for success.

 


2. COVER YOUR BASES  

99.9999% of grant funders will require that you are 501c3 tax exempt organization. Here’s a list of the all the items the vast majority of grants require.

• 501c3 Tax Exemption w/ IRS Letter
• Mission Statement
• Organization Annual Budget
• Project or Program Level Budget(s)
• Most Recent 990
• Board Member Listing w/ Company Affiliations

 
Many grant funders will also ask for a deeper dive of information that includes:

• Year-to-Date Financials
• Strategic Plan
• Articles of Incorporation
• Recent Audit
• Resumes of Key Staff Members
• Annual Report
• Brochures or Newsletters
• Conflict of Interest Policy
• Diversity and Inclusion Policy
• Board Member Insurance Policy
• Board Member Giving Profiles (100% Giving)
• Staff and Board Member Race/Sex Profiles
• List of Formal Partnerships

 

3. KNOCK 'EM DEAD

Alright, you’ve covered all your bases and now you’re ready to actually fill out the application. What kind of information will you need to fill out the application?
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The vast majority of grant application and letters of inquiry will ask for these four elements for the program or project you’re requesting funding for:

• History
• Narrative
• Goals or Objectives
• Outcomes
• Client or Audience Demographics
• How you’ll sustain the program funding
• How you’ll publicize the program or their support

 
Many times, you’ll also be asked to include one or more (or all!) of the following:

• Logic-model or Theory of Change
• Key Accomplishments in Last 5 Years
• Detailed Program Timeline
• Geography and Other Census Data
• Staffing Plan

 

4. GET IT RIGHT
 
Finally, there are a number of random little red flags that may pop up around your application. Because grants are hugely competitive to win, a red flag might throw your whole application off. If you can get yourself grant-ready starting NOW, you won’t have to worry about that when you’re all set to apply.

• Does your Board of Directors “match” the population you’re serving? For example, if you’re a Latino Community Center, you’ll want to show that Latinos are represented as leaders of the organization.
• Do you have an audited financial statement to submit? If not, they may wonder if you’re hiding it or think that your organization is too green.
• Ultimately, you need to show that you need them. This is tough because you have a fine line of proving that you’re worthy of their investment and will deliver results based on your history, but you also need them to see your work can only continue with the support of generous donors. 

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