Unit 1 Grantwriting

Chapter 1

Gearing Up for Fundraising

What You Need to Know

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Nonprofit versus Charitable Nonprofit Organizations

• Nonprofit organizations may be eligible for certain benefits such as state property, sales, and income tax exemptions.

• Nonprofit charitable organizations are set up and operated to improve some part of society without a profit motive.


Nonprofit versus Not-for-Profit Organizations

• Not-for-Profit organizations are devoted to some sort of activity, such as a hobby.

• Nonprofit organizations or agencies are founded for purposes other than profit making.


Nonprofit Fundraising Registration

• The Federal Trade Commission is the government’s chief consumer protection agency. Laws may vary state to state.

• Applicants must submit determination letters, audit paperwork, bylaws, fundraising contracts, IRS 990 forms, notarized signatures, and fees.


Unified Registration System, 1997

• The URS was developed to merge the information and date requirements of those states that require registration of nonprofit organizations, which solicit for funds within their jurisdictions.

• As of August 2010, 37 states accepted the URS.


Three Stages of the URS

1. Assembling an inventory of registration information requirements from all states.

2. Constructing a form which includes all (or most) of these requirements.

3. Persuading states to agree to this “standardized” format as a replacement for their own forms.


Unrestricted versus Restricted Funds

• Unrestricted funds are available for the agency to use toward any purpose.

• Restricted funds are limited to a designated purpose as per the donor’s request or are raised for a specific purpose or project.


Temporarily or Permanently Restricted Funds

• Temporarily restricted funds have donor-imposed restrictions; either by time or purpose.

• Permanently restricted funds are also restricted by the donor and never expire.


Understanding the Ethics of Fundraising

• Agencies may be tempted to seek funding wherever they can find it.

• The leaders of the organization must embrace ethical decision-making and recognize the importance of values and ensure that no one individual is to profit from the organization.


Some Fundraising Pitfalls

• Failing to have a solid team in place.

• Failing to motivate the team.

• Failing to have a mission statement and set of goals.

• Failing to plan, develop evaluation, and seek consultation.

• Failing to choose the best fundraisers.

Chapter 8

Setting the Stage

Grant Writing Considerations


Grant Writing: A Collaborative Effort?

• Collaboration can enhance or complicate the grant writing process.

• Agencies must look at both the benefits and complications associated with the collaborative efforts.


Collaborating With Colleagues

• Putting together a team of qualified members can be very time consuming.

• Choose team members who are compatible and self-motivated.

• Assign roles that suit the team members’ talents, skills, interests, and abilities.


Teaming Up With Other Organizations

• Collaboration provides organizations the opportunity to pool their efforts and allow for higher grant amounts.

• Partnerships among community agencies, schools, citizens, government, and others allow more complex problems to be addressed.


Timing Is Everything

• Timelines vary from proposal to proposal.

• Agencies must plan for anything and everything to go wrong.

• Timelines include three phases:– Planning Phase– Writing Phase– Submission Phase


The Planning Phase

• Typically begins 6 – 12 months before submission deadline.

• Identify needs and resources.

• Brainstorm and research ideas.

• Assess funding goals and resources.

• Identify prior work accomplished by others.

• Create a budget.


The Writing Phase

• Typically begins 2 – 6 months before submission deadline.

• Outline the structure of the application.

• Complete the required forms.

• Plan and develop first draft.

• Proof the draft.

• Write all sections of the proposal.


The Submission Phase

• Typically takes place 1 – 2 months before submission deadline.

• Proofread and make all revisions.

• Submit the final copy to a proposal review office.

• Submit the final grant at least 2 days before the deadline.


Quality Trumps Deadlines

• Producing a top-notch proposal is more important than meeting a deadline.

• Throwing a proposal together at the last minute is a certain denial.

• Submitting a proposal the following year or to a similar funder once it has been redone is a better idea.


Contracting With a Professional Grant Writer

• Agencies may not have the time and staff available to dedicate to grant writing.

• If discretionary funds are available, a professional grant writer may be the best decision.

• Agencies should weigh the pros and cons of hiring a professional grant writer.


Pros of Hiring a Professional Grant Writer

• Have the time to devote to the project.

• Have the knowledge and expertise.

• Have exposure to current trends.

• More likely to complete the grant on time.

• Can teach the basics of grant writing to the agency’s staff.


Cons of Hiring a Professional Grant Writer

• Grants may lack the passion.

• Writers do not know the grant history of the agency.

• Choosing a grant writer can be a difficult task.

• Hiring a grant writer can be very costly.


The Grant Writer Selection Process

• Begin the process early.

• Ask for referrals from other agencies.

• Contact grant writer associations for referrals.

• Determine the length of the grant writer’s position; temporary or permanent.

• Advertise the position.


Assisting Nonprofits in Connecting With Grant Writers

• Several associations provide resources, services, and directories to assist nonprofits in connecting with grant writers.– American Grant Writers’ Association– Association of Fundraising Professionals– Charity Channel– Grant Professionals Association