Notes

Grant Writing - Lesson 1

The grant writer's credo is this: People Give to People. When people are involved in projects they feel passionate about, they're likely to become involved donors.

Remember, the more funder application guidelines you read and study, the more you will understand how funders present themselves, their mission, their goals, and their programs. You'll also see what they require from you when you submit a proposal package—this is known as the application guidelines. Finally, you'll need a team of funders to support your program, because no single funder will provide 100% of what you need.

As a nonprofit organization, you have at least 12 types of grants available to you. Let's take a look at what they are and how they can be used.

General fund, general operating, or unrestricted grant: A funder gives this type of grant to further the general purpose or work of an organization, rather than focusing on one specific purpose or project. These types of grants cover the regular personnel, administrative, and miscellaneous expenses of an organization as they work on an existing program or project.
With unrestricted funds, an organization can spend the money in any way it sees fit. In contrast, with restricted funds you must spend according to the grant agreement. For example, you would target restricted funds to cover the cost of an outside evaluator who assesses program accomplishments, the purchase of equipment needed to fulfill the program's goals, or for salaries of personnel directly working on the program.

Building or renovation: A funder provides these types of grants for constructing, renovating, remodeling, or rehabilitating property. Funders generally give these grants to organizations they've given to previously. When you ask for building funds, the complete proposal package should include other sources of support, including in-kind donations of materials and supplies and capital support grants from other funding sources.
Continuing support: These grants can be renewed on an annual basis. You would submit your request to funders who have supported your organization in the past.
Curriculum development grants: These awards go to schools, colleges, universities, and educational support organizations to develop general or discipline-specific curricula.
Emergency funds: As you can imagine, these one-time grants cover immediate, short-term funding needs on an emergency basis. Funders award them to organizations that they already have a relationship with and that have proven their fiscal and administrative capability.
Employee matching gifts: Corporate foundations usually grant these to match gifts made by corporate employees. You can find information regarding employee matching gift opportunities on the corporation's Web site.
Endowment funds: These donations will be kept permanently and invested to provide interest income for continued support to the organization. Funders provide endowment funds to organizations that they have previously funded and that have proven their fiscal and administrative capability.
Restricted or special project grants: These are awarded for specific items or special projects only. They're called restricted because the organization is only welcome to spend these types of funds on agreed-on project costs and items.
In-kind gifts: These are contributions of services, equipment, and supplies. For example, a treasurer of the board of directors who volunteers as a financial officer for that organization is making an in-kind gift. Or a printer who gives a 40% cost cut for an organization's brochure and annual report makes an in-kind gift. Other examples would be a local car dealership donating a vehicle for transportation, and 20 volunteers providing over 1,000 hours in services for your organization in the coming fiscal year.
Matching or challenge support: Funders give grants of this type to match funds provided by another donor. They will pay only if the grantee is able to raise additional funds from another source, has in-kind support, or has funds awarded by another funder. For example, you may request a grant of $5,000 and match that gift with $5,000 in donated services and products from local businesses and partners. Or you may match it with a $5,000 cash award from another funder (corporate, foundation, or government funds).
Program development: This type of grant provides organizations with support for specific projects or programs, as opposed to general operating grants. Program development may include the planning process or program expansion.
Seed money: These grants are used to start, establish, or initiate new projects or organizations (they're also called start-up funds). In order to find and obtain seed funds, I recommend that organizations go to local or regional foundations, corporations, and businesses—especially organizations that will be affected by your proposed program.

Staff salaries and benefits, as well as organizational general overhead expenses, are called administrative support, general operating support, or general funds requests. You must be sure to research specifically for the funders that provide this type of support.

Funding sources have specific policies regarding what percentage of the total proposed program budget can be used for administrative costs. Generally, when you develop a budget, you should keep administrative costs under 20% of the total budget. So if your total program budget is $100,000, you would have $80,000 (80%) for program expenses and $20,000 (20%) for administrative costs. Generally, the term grant writer does not appear in the budget. Instead, you would use "administrative associate," "administrative support staff member," or "resource associate." The grant writer, also known as the development officer, becomes a member of the staff administrative team.