  Nonprofit Executive Directors and Development staff understand first-hand how impactful grant funding can be toward supporting the organization’s mission. However, grant writing can often feel overwhelming for beginners. There are some key concepts and processes that can make writing proposals easier.
This blog post will introduce a few fundamentals of grant writing in order to apply for grants to further the nonprofit’s mission successfully. Tip #1: Define the Project It is important to clearly define projects or programs before pursuing grants. This process helps you stay focused on the mission and aligned with the strategic plan in order to avoid mission creep. Mission creep often happens when an organization begins chasing grants and loses focus by taking on new projects or programs that lie slightly outside the core purpose just to get funding. When defining the project, identify the problem to be solved; create a case statement; identify the target audience, define the goals, objectives, outcomes, and how success will be measured. Tip #2: Develop a Budget The budget is one of the most essential components of any grant proposal because it outlines exactly how much money the project needs and how funds will be allocated. Most foundations require detailed budgets with line-item costs; therefore, it may take some research into identifying what vendors will be utilized and determine item costs to create an accurate budget breakdown. Prepare a budget justification to explain how the costs were determined and why they are necessary. If vendor quotes are received, they should be included with the application. Tip #3: Research Research is one of the most critical aspects in pursuing grants. Good research will save time later in the process, helping ensure time is only spent on submitting relevant grants. Ways to determine if a funder aligns with the nonprofit’s needs is through grant research. Research criteria include geography, population served, grant focus area, and funding history. It is important to read eligibility requirements carefully so time is not wasted applying for grants that aren’t a strong match to the nonprofit's mission and goals. The Foundation Directory Online is a wonderful research tool, check out their Funding Information Network to find a location near you. Tip #4: Create a Draft Once the research is completed, and it is close to when the funder’s grant cycle opens, it is time to draft an application. Read and follow the application guidelines closely. Most grant applications have slightly different ways they ask questions. Ensure each question is answered completely. Watch the character count, most applications limit the number of characters used in each section. Once the first draft is complete, have someone unrelated to the project review it for a clear understanding of the request, accuracy, and to provide feedback before submitting the application. Grant writing can be intimidating at first but with a little bit of practice, your organization can get started submitting proposals! Do you have specific questions about the grant writing process? We are here to help. Contact Magic Lamp Consulting for an On-Demand Consulting Session to focus on the specific needs of your organization.
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 GuideStar, a 501(c)3 public charity, is the world’s largest source of information regarding nonprofit organizations. Their mission is to revolutionize philanthropy by providing information that advances transparency, enables users to make better decisions, and encourages charitable giving. GuideStar lists information on every nonprofit registered with the Internal Revenue Service as tax-exempt. They strive to collect and provide access to the most comprehensive, updated, and accurate nonprofit information available. They obtain the information from the federal government, partners in the nonprofit sector, and the nonprofits themselves.
Help Millions of Funders Find Your Nonprofit Guidestar is used by potential funders nationwide as a reliable tool to quickly assess nonprofit organizations. Claiming and completing your nonprofit’s profile helps increase the chances of potential supporters making a favorable decision when requesting funding. Seals of Transparency One crucial component of each nonprofit's GuideStar profile is its Seal of Transparency. The seal helps gain the trust and support of potential funders. The Seal of Transparency levels includes Bronze, Silver, Gold, and Platinum. Each level provides more and more transparency on the nonprofit organization, starting with things as simple as adding your mission statement, leveling up by adding board information, to sharing the metrics of demonstrated performance towards your mission. The more information you provide, the higher your Seal of Transparency becomes. Learn more about the different GuideStar seals and requirements. National Taxonomy of Exempt Entities Code (NTEE) - The GuideStar profile allows nonprofits to add the NTEE codes that align with their nonprofit’s mission. These codes help viewers categorize a search for nonprofits focused on their area of interest. Sometimes profiles that are populated with incorrect NTEE codes or only include one code, note more than one code is permitted. Unfortunately, this leaves the door open for lost funding opportunities since the funder might not find your nonprofit when searching the website. We encourage you to review the National Taxonomy of Exempt Entities (NTEE) Classification System to ensure you are accurately coding your nonprofit. Geographic Service Areas GuideStar provides the ability to highlight the geographic areas your nonprofit services. Note, be careful not to limit the area to where the nonprofit is physically located, but also include the communities served. Funders often focus on specific geographic areas where they want to make a difference. Ensuring your service areas are accurate will help improve your alignment in the funder’s focus areas. We hope the above tips give you a better idea of how to get the maximum benefits from your GuideStar profile. Still have questions? We encourage you to contact us for an On-Demand Strategy Session where together, we can look deeper into your nonprofit profile and offer expert nonprofit advice.   Running a nonprofit is no easy feat; from managing volunteers to putting on events and everything in between, a lot goes into keeping a nonprofit running smoothly. One of the most important aspects of any nonprofit is ensuring there ar enough funds to support the mission.
Diversifying funding sources is critical to sustaining operations and achieving long-term success. Relying on a single funding source can make an organization vulnerable to budget or funding priorities changes. Diversifying funding sources helps insulate organizations from fluctuations in any one area and can provide a steadier stream of income that can be used to support ongoing programs and services. In addition, having a diversified funding base can help an organization attract new donors and supporters. By demonstrating that the organization has a broad range of support, potential donors may be more likely to invest , knowing that their contribution will have a lasting impact. As we get close to another new year, we thought there would be no better time to introduce some proven practical ways to fund a nonprofit. Remember, having a diversified funding stream is essential to ensuring stability and long-term success. 1. Grants One of the most common—and effective—ways to help fund a nonprofit is through grant funding. The most common types are Corporate, Foundation, and Government. While there are many opportunities available, it is essential to thoroughly research and identify funders with a giving focus that closely matches your organization's mission and needs. The next step is to develop a strong application sharing your organization's story and clearly identifying how your request aligns with the grant guidelines. Unsure how to begin to apply for grants? Learn how to get ready in one of our previous blogs, Proactive Ways to Get Your Nonprofit Grant Ready. 2. Individual Donations Individual donations can be a consistent way to raise money for your nonprofit. Soliciting donations can be done in various ways, including adding a donate button on your website and social media pages. We encourage you to make giving easy for your donors by offering multiple ways to donate; this can include venturing into the realm of text messages where donors can simply click to donate. In addition, utilizing the convenience of online payment apps like Venmo can simplify the fundraising process and allows nonprofits to reach a wider audience of supporters, including younger donors. 3. Corporate Sponsorships Corporate Sponsorships provide a way for businesses to align with charitable organizations. It is a form of marketing where each party benefits. The nonprofit promotes, advertises, and highlights its corporate partners in exchange for a financial donation. Therefore, it is essential to select partners who share your values. 4. Fundraising Events Fundraising events are another way to diversify your nonprofit’s revenue stream while cultivating relationships with donors. Creative and fun fundraising events are a great way to excite donors while generating interest and awareness of the nonprofit, gaining new supporters and volunteers, and bringing the community together. Annual Galas provide an opportunity to gather to celebrate the year’s successes while highlighting the need for future donations. Funds are usually raised through ticket sales, auctions, and appeals made during the event. Sporting events, including golf tournaments, walk-a-thons, and 5k races, are fun and easy and can be supported by volunteers. Fundraising events can be a powerful tool for nonprofits to raise money and support their mission. Are you looking to brainstorm ways to diversify your revenue streams? Schedule an On-Demand Strategy Consulting Session - we are here to help! |
AuthorDebbi Mallinson enjoys working in collaboration with nonprofit organizations to develop a grant strategy to support their mission. Archives
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