When to Apply for a Grant
Is Foundation Funding Right for Your Non-Profit's Next Project?
Dec 8, 2008
If you raise funds for a non-profit, you know that grants are a major source of income. Grants, though, come with strings attached. Funders expect action - and they want to know that money they provide will make a difference for the long term.
When Grants are the Right Choice
Grants are one-time gifts of money for particular programs or projects. To develop a fundable grant, you need a full description of the program or project you hope to fund, including your reason for wanting to create the program (a solid reason, such as demand or need). You need clear cut goals, and a way to show that you've reached your goals. You’ll also need a budget including costs for staff, equipment, etc. Just as importantly, if you are creating an ongoing program, you need a good idea of how you will continue to fund your project over time.
That means that grants are a terrific way to fund certain types of projects - particularly projects that are not ongoing, and will not require an injection of funds year after year. They're great, for example, for:
- Starting programs that require one-time purchases and/or training, and will then run on their own without the need for additional funding.
- Expanding existing programs through outreach, training, etc.
- Funding special needs such as programs for kids with disabilities, nutrition/diet programs, scholarship/campership programs, etc.
- Creating educational materials, web content, etc. that will serve visitor needs
- Purchasing needed equipment
When Good Grants Cause Bad Problems
But grants can actually create more problems than they solve. Often, non-profits are seduced by the availability of cash into developing programs that create more work than can reasonably be handled. After all, managers reason, a grantmaker is more likely to fund a project that reaches thousands of children, collaborates with other agencies across the United States, and makes a special effort to serve minorities. All this may be true - but if the project requires that same manager to travel all over the country while also taking care of day-to-day issues in the home office, the money could actual do more harm than good.
The lure of grant money can also cause a non-profit to propose projects that fall far outside its actual mission or area of expertise. A daycare grant, for example, may seem like a good source of income to an agency providing education to pregnant teens. But if the agency has no expertise, space, time or resources to manage and maintain a daycare program, there's a good chance the grant will have to be returned. Returning grant money unspent is a sure route to losing credibility with a funder.
When to Apply for a Grant
Bottom line: consider seeking a grant when:
- You have an idea that you can and actively want to implement
- You have the time to work on grant development
- You are confident that you and/or your staff can handle the project once its funded
- You are confident that the project will be successful
- You are confident that you can keep the project alive after funding is used up
Do NOT consider seeking a grant when:
- You’re already overwhelmed with work
- You have the germ of an idea but no details in mind
- You’re not sure you’ll be able to handle the project
- You’ll need additional funding to keep the project going year after year
It's true that grant money is a wonderful resource for non-profits. But before filling out those forms and sending in your next proposal, stop and think. Can you really follow through on all the promises you're about to make? If you're not 100% sure the answer is yes, this grant may not be right for you.
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