Grant Writing: What\’s typical anyway?
I was recently working with a client who had a newly formed nonprofit. She started the session by asking “How much money will I have to invest in grant writing before I start seeing returns?” For a new nonprofit, I began to explain, it’s going to be really hard to count on grant funding to support your mission. “Okay” she replied, “then what’s typical?”
Like many fundraisers and grant writers, I am only human. Along with tags in my clothing, being asked what’s “typical” when it comes to winning grants makes me itch. Nothing is typical! I certainly don’t believe your mission and impact are typical, what makes you think your funding will be?
Funding For Good has some benchmark numbers for experienced grant writers:
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An established program applying to previously won grants has an approximate win rate of 80%
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An established program applying to new grant sources has a win rate of about 50%
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A new program applying for fundraising has a 10%-15% win rate
These numbers are averages, they don’t detail the sector, mission, funder, or circumstances of the grant request. If you’re blindly applying for funds, this will likely be a good ballpark win rate. But if you’re a new Executive Director already spread thin, or a grant writer working with a brand new nonprofit there are a few key things you can do to fall into the “typical” win rate trap.
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Do your research.
Did you know a foundation’s 990 will include all the recipients and amounts of funds they’ve issued? If they don’t have an active website, a 990 is also a great tool to learn about board members and key staff. If the foundation is giving grants to the tune of $500,00 to the American Heart Association, and you’re a hyperlocal, farm-to-table initiative looking for $1,500, your proposal will likely fall on deaf ears, even if you know half the board.
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Ask questions.
A Program Manager or Grants Administrator is the best tool in your pocket. They exist to answer every question you may have, including the dumb ones! Much like asking your best friend to ask your crush out, you can rely on a Program Manager to give you all the crucial details about your proposal. They can let you know if your program is compatible with the foundation’s values, tell you what impacts their decision, and can ultimately guide you through the grant questions. Best of all? They aren’t part of the decision making committee, so your embarrassing questions won’t make it to the board room.
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Set realistic expectations.
Your first few grants should support other streams of revenue, and not fully fund your operation. If you need $10,000 to launch your afterschool program, ask several organizations for $3,000. Rarely do we see funding supporting 100% of a new initiative; community buy-in and a diverse source of funders look great! Your community wants you to succeed, and people want to be a part of that. Even if you’re only awarded $1,500, you’re taking the first steps at a relationship with a new funder and that is a win.
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A foundation is a friend.
Even if you don’t win your first grant, it’s important for foundations to get to know you personally and see how your organization grows especially in the first 3-5 years. Some grants you must write knowing you won’t win simply for the fact that you’re beginning a relationship with the foundation. This should go beyond applying for grants annually. Do they receive a copy of your annual report? How about your newsletter?
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Write smarter, not harder.
So you’ve asked the Grant Administrator how frequently brand new nonprofits are funded. She says rarely, but it happens on occasion. You could burn the midnight oil, bend your mission to fit the values of the foundation, plead, beg, and cry your way through the proposal, or you could use a well-defined logic model and previous narratives to answer the questions quickly and accurately knowing this is an opportunity to begin a relationship. Your time and energy are better served fundraising, but when you apply again in two years’ time you will have an established history and a record of growth to illustrate the impact of your nonprofit.
As with all aspects of fundraising, grant writing works best when you have a good system in place. There is nothing worse than scrambling last minute to meet a grant deadline, bending your programs to meet the values of the funder, or re-inventing the wheel every time you put pen to paper. Setting up for success means having clear goals, firm boundaries, realistic expectations, and a great organizational system.
