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The Business of Nonprofits: Grant Funding

Updated: Oct 14, 2022


I’ve been in the non-profit space for most of my life and I know first-hand how dependent these organizations are on the financial grace of others and I also acknowledge that grace can be a little inconsistent, in the best of times. When directors of non-profits find out I have had success as a grant writer, they often ask if I will go find money for them as if there’s some sort of grant vending machine in the sky. You just enter the magic code and voila! The money spills out.


Is it really that easy? Nope. Move along. Nothing to see here, folks.


As usual, the reality is a bit grittier but here are some helpful suggestions on this road to funding the good work you are doing.


Be on Mission

Grant-making agencies usually have very specific funding objectives and a grant writer has to understand how to research and discover the agency objective and then how to create a compelling narrative that speaks to that core mission. You must clearly articulate who your organization is and why the work you do matters. And back it up with data.


You know the business concept that “if you want to build a business, identify a pain point and solve it”? Same idea applies here.


Grant-making agencies are often attempting to help solve some sort of societal ill; for example, low literacy rates, poverty, early childhood care, sex trafficking, community health and so on.


The key is to find a funding organization whose mission closely aligns with the work you are already doing.


Be Specific

Grant-making agencies generally (and there are exceptions) prefer to fund specific outcomes rather than cash infusions for your general budget.


For example, they may fund a climbing wall for children to encourage physical activity in youth. Or they may fund a curriculum developed to educate a community about sex trafficking. Or they may fund a financial literacy coach to teach basic financial skills for those people rising out of poverty. All of these are quite narrow in their scope but allow the funding agency to tangibly see the difference they will make with their gift.


Be Patient

You know the old saying “there’s no such thing as free money”? Your grandpa was not wrong. The grant journey is long and arduous, requiring great patience. There may be several rejections before you get that “yes” which can be discouraging after all that fact-gathering and writing.


Even after you receive notice of a grant award, it can take months to see the funds. And then there’s the prerequisite reporting process that will last the entirety of the project. It’s a lot of hoops to jump through, a lot of i’s to dot and t’s to cross and it requires someone on your team who specializes in the details.


Be Amazed

So, no, it’s not magic but it’s pretty amazing nonetheless to witness the partnering of people with capital equity and people with sweat equity as they reimagine a better world together. It is well worth the effort.

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