Pursuing grants is not “rocket science” (no offense to our non-astrophysicist friends) but it does require a fair amount of organization and a healthy dose of determination. It should be a deliberate and coordinated effort that you and your organization make, so be sure that you are ready before you spend the time and resources needed to identify and submit grant proposals. The following list of questions should be used as a guide to help you determine your “readiness.”

1. Are you established as a 501(c)3, nonprofit organization with the IRS?

   Some funding organizations will require you to be established as a nonprofit for at least 3 years before they will accept grant proposals. A few may not require 501(c)3 status designated by the Internal Revenue Service at all. Keep in mind that most grantmaking organizations will require 501(c)3 tax-exempt status. So if you haven’t obtained it yet, and your organization has decided to make to pursue grants on a regular basis, you should initiate the process.

2. Do you have a Board of Directors and could you provide a list with their affiliations?

   If you have a board in place, chances are that you have this information already. Put the information together in writing and keep it on hand because most, if not all, grantmakers will ask for this information.

3. Can you demonstrate a proven need that your organization uniquely addresses?

   Foundations are aware of the needs in a community and the solutions that are being applied. Many like to see new programs that offer a new approach to the situation. Some funding organizations will even encourage creativity. If your project idea is not the most innovative out there, perhaps another way to think about it is: Is anyone else providing the same service/activities? Or you can also ask yourselves: Why is it necessary for your organization to provide these services? In some communities, the solution may be the same, but there is no provider for the service. This would make you unique!

4. If appropriate, have you built relationships or collaborations with other relevant organizations to share resources and avoid duplication of services?

   Many funding organizations like to see collaborations or alliances that share resources for the benefit of a community. You and your organizations may already have informal partnerships set up – all you will need to do is gather letters of support from your partners in the community.

5. Can you demonstrate success?
   Foundations like to see that they are investing their funds in programs that are successful and make a difference. They want to see that by donating to your project, they can reach their own goals. For startups, you can show how similar programs have been successful in other communities. Use hard data to support the similarities.
6. Do you have an approved Organizational Budget?

   Getting your ducks in a row, financially speaking, goes a long way in showing a potential sponsor how serious you are about your program or organization, and also shows how much you have thought out how you will implement your plans. Most proposals will require you to include at least a project budget; many will also ask for a copy of your organizational budget.

7. Have you filed a Form 990 and/or do you have a current financial audit?

   If you have not filed your 990 yet, you can ask your CPA or bookkeeping professional to do your financial audit.

8. Do you know what you want funding for and exactly how it will be utilized?

   Foundations and other funding sponsors want to see that you have an exact plan for what you want to accomplish. After all, if they are going to donate hundreds or thousands of dollars, they want to know that it will be spent to implement programs that align with their mission.

9. Have you considered whether community events, service fees, membership fees or other fundraising activities would be more appropriate to fulfill your funding needs?

   Many sponsors will not fund for ongoing support or operational expenses. If your request will include these activities, make sure that the sponsor will consider them before you even put pen to paper (or fingers to keyboard).

10. Are you and/or your staff prepared to allocate time to participate in the grant development process, such as providing necessary organizational and program information to the grant writer?

    Obtaining revenue or funding from grants is a process with specific steps. Pulling together all of the resources and requirements needed for a grant proposal will take some work, especially if your project involves collaboration with other community partners. The idea of “free money” can be exciting and even quixotic to some organizations. Just remember all it takes is a little honest effort, and maybe a little song and dance.

11. Are you aware that preparing a government grant will take significant time and resources, and may require the expertise of a trained Evaluator?

    Preparing a proposal for a federal or state grant can be an involved process, requiring lots of documentation and coordination. Additionally, for these types of grants you will have a lot of competition in general since the eligibility is open to organizations all throughout the country or state. A trained evaluator can help you to ensure that you have included all the requirements for the proposal and you have clearly stated your case. It is a great way to get some feedback on your proposal before you actually submit it.

12. Does your organization have the capacity to implement the proposed project or activities if funding is awarded?

    Lofty ideas are simply that – lofty and out of reach. Make sure that your goals and outcomes can be realistically accomplished. Understandably, organizations apply for funding so that they can get the resources they need in order to accomplish those goals. Just remember that foundations can recognize when you have bitten off more than you can chew.