Five Elements of a Strong Grant Proposal

In our last blog post, we introduced the basics of crafting an LOI (letter of intent), a concise yet impactful grant letter. Now, let’s take things a step further. This month, we’re excited to guide you through the process of creating a full-fledged grant proposal. It’s like adding another layer to your grant writing skills!

Because grant requirements can vary greatly in length and complexity, crafting a truly “universal” grant proposal isn’t feasible. One size doesn’t fit all in this context. However, fear not: there are key sections of information that most grant funders commonly seek. And grasping these sections and their construction can genuinely streamline your efforts and make the process of applying for grants much smoother.

Below, we provide a description of how to create five central grant proposal sections: the need statement, project description, goals and objectives, budget/budget narrative, and evaluation plan.

Need/Problem Statement

The need statement is a description of the problem your project aims to solve. For example, if the goal of the project for which you are seeking funding is to provide clinical, Christian-based counseling to low-income children and families in Fresno County, the problem you are trying to solve may be that there is a lack of affordable Christian counseling services in Fresno. 

The need statement should be backed up by research (including statistics) from credible sources. To provide evidence for the problem in our example, it could be helpful to provide statistics that show a disparity between the number of affordable Christian counselors in Fresno and the number of clients in need of those services. 

Information in a Problem Statement can include:

1. Economic/Demographic statistics
2. Relevant, current research
3. Anecdotal stories/information
4. Focus groups
5. Newspaper/media reports
6. Government Agencies—Police, Health Dept., Social Services, Dept. of Justice, HUD, etc.

Project/Program Description

NOTE: The terms “project” and “program” are often used interchangeably in grant writing.

The project description is the description of the actual activities you plan to accomplish using the grant funds. Stated another way, the project description describes how you plan to accomplish your stated goals and objectives- the project description should flow out of the goals and objectives. Activities should be clearly described and justified by an explanation of the underlying rationale.

The project/program description should include the following components:

• Description of program staff (Who will run the project? How are they equipped to make the program successful?)                 
• Plan for participant outreach/selection (How will you identify participants and enroll them in services? Who is eligible for the program?)
• Description of activities/services (What will you actually be doing?)
• Rationale for methods (Why have you chosen to address your stated problem with these activities? Why will these activities be an effective solution? Why will these activities be more effective than alternative solutions?)
• Implementation Plan (When does the project begin? Does it have a set end date? At what junctures in the project do you anticipate completing key milestones?)

PRO TIP: Using illustrations in your project description is a great way to catch the reader’s attention and clearly explain key information. Photos, charts, graphs, tables, and diagrams are all great additions to a project description!

Goals & Objectives

One of the keys to constructing clear goals and objectives for your program is understanding the difference between a goal and an objective. In grant terminology, a goal is a broad, general, long-term projection of what the project will achieve, while an objective is a specific, quantifiable, result that acts as a stepping stone to reach the stated goals(s). 

One way to help you construct objectives is to follow the SMART method:

• S: SPECIFIC: Objectives must be specific rather than vague/general
• M: MEASURABLE: Objectives must be measurable through the identified evaluation plan
• A: ATTAINABLE: Objectives must be realistic (can you “pull it off”?)
• R: RELEVANT: Objectives must support the overall mission and vision of the program
• T: TIME BOUND: Objectives must have a time limit 

Grant projects can have multiple goals and multiple objectives. For example, an after-school program for under-served students might have the following goals and objectives:

1. Goal #1: Improve reading scores of third graders
2. Goal #2: Develop/Improve sports program
3. Goal #3: Involve parents in activities

1. Objective #1: Improve reading scores by an average of 25% for 30 third-graders during the 2023-2024 school year.
2. Objective #2: Develop and implement two new weekly sports activities for students by October 2023.
3. Objective #3: Engage 14 parents through “parent nights” during the 2023-2024 school year.

Evaluation Plan

For many, creating an evaluation plan is the most challenging part of grant writing to understand. The word “evaluate” comes from the Latin, “e” or “ex”, meaning “from”, or “out of”, and “valere”, meaning to be strong or of worth. Funders look for evaluation plans in proposals because a strong evaluation plan indicates that the applicant organization can keep itself accountable for meeting its stated goals. 

Why is evaluation important?

1. To know whether or not you have met your stated objectives
2. To identify what works and what doesn’t
3. To make adjustments for improved results
4. To demonstrate success to others
5. To provide evidence of success to current/future funders

A good evaluation plan should include:

1. A review of the objectives and how you will know/demonstrate they have been met.
2. How the program will be evaluated—quantitatively, qualitatively, or both.
3. Who will collect the information (data), how it will be collected, and when the data will be collected.
4. Who will analyze and interpret the data.
5. Timeline for completing the evaluation.
6. If the evaluation will include a cost/benefit analysis to measure cost-effectiveness.
7. How the evaluation results will be reported.

Get Started!

We’re excited to encourage you to take a shot at crafting your own grant proposal using the outline provided! It’s a wonderful opportunity to put into practice the insights we’ve shared above.

To get started, consider using the content you already have at your disposal. Plug that content into the outline we’ve laid out based on the information you’ve just read. This approach offers a fantastic way to assess what content you’ve already created and identify areas where you might need to create new content or enhance existing parts.

Remember, the length of grant proposals can vary significantly depending on the grant’s specific requirements. When dealing with private funders like foundations and individuals, the proposals tend to be more concise. On the other hand, proposals submitted to government agencies usually demand more depth and detail. Keep in mind that while our grant proposal outline isn’t a one-size-fits-all solution, it serves as an excellent starting point on your grant proposal journey. Happy writing!

Demystifying Grant Writing

How to Earn Grant Money for Your Organization

A grant, defined simply, is a gift of funding (cash, equipment, services, etc.) provided without any expectation of repayment. 

The United States is home to over 86,000 grant making organizations. Each year, charitable organizations submit thousands of grant proposals in hope of securing funding. However, on average only 10%-20% of submitted proposals are funded.  (Source: Instrumentl) The good news is grant writing is a skill that, just like learning to speak a new language or ride a bike, can be practiced, improved, and eventually mastered. 

So, how can you set your organization up for success when seeking grant funding? In the following sections, we provide advice, resources, and wisdom gained from real-world grant writing experience to help increase your chance of succeeding in your grant endeavors. Whether you have written several grants or recently heard the term “grant writing” for the first time, this wisdom will help you and your team improve your skills!

Tips for Effective Grant Writing

1. Maximize efficiency by taking the time to research

Thoroughly researching grant opportunities takes more time initially, but saves time in the long run. To determine if a grant is worth applying for, carefully review the guidelines, including the funding areas, mission, geographical limitations, and grant amount. It’s better to submit one high-quality application than 3 low-quality applications!

When researching a grant opportunity, there are three questions you should answer to help you decide whether or not to apply: 

1. Is my organization eligible for this grant? 
2. Do the funder’s values/priorities align with the values/priorities of my organization/project?
3. How high is the competition for this grant? (i.e., how likely is it that my organization will be awarded?)

2. Use  technical writing

Generally, grant writing is classified as a form of technical writing, not creative writing. Grant writing is technical because it describes the terms and conditions of a potential future contractual relationship between your organization and the funder and because grant writing is data-driven. Your grant proposals can reflect the creative thinking that may have inspired your programming and methodology even though the writing style is more formal or data-driven.

3. Always write for your audience (the funder) 

Ask yourself, “what does the funder/reviewer need and/or want to know about my project/program in order to approve it for funding?” The following graph illustrates the general priorities of different types of funders. (Click here to download the image)

4. Consider the post-award requirements

Grants are commonly perceived as “free money” since they do not require repayment. However, it is important to understand that although they may not involve financial obligations, grants often come with certain conditions, strings, or restrictions. Faith-based organizations, in particular, need to exercise caution when accepting grant funding to ensure the post-award requirements do not compromise their mission.

Post-award grant management can be complex and time-consuming due to various factors. It involves complying with grant requirements, such as reporting and documentation, managing budgets and finances, and coordinating and monitoring the grant projects. Managing these requirements is often very well worth receiving the grant funding, but it’s important to have an understanding of the post-award requirements before accepting the grant.

How to Write a Letter of Intent

In grant writing, a Letter of Intent, commonly referred to as an LOI, is a brief proposal (typically 1-3 pages) submitted to a funder to introduce a project and request permission to submit a full grant proposal. LOIs are typically required by private funders (foundations and corporations), but not by governmental entities. Government agencies have their own, more complex requirements for grant proposals.

To help you get started on writing an LOI to a private funder (or to help you refine your current process!), here’s a description of the basic LOI structure. 

Introductory Paragraph

Try to make a personal connection with the reader at the beginning of the letter. The first paragraph should include:

1. A simple synopsis of your project/program
2. A description of the positive impact your project/program will have on your served population. This impact should align with the funder’s stated mission and priorities. 
3. Demonstrated ownership of the proposed project/program. Use first-person, “we” pronouns (“our program”) instead of third-person, “they” pronouns (“their program” or “the program”).
4. A recitation of the grant terms, including the amount requested and the length of the grant period (e.g., 12 months) 

Body of the Letter

1. Organizational Introduction

• History of your organization
• Vision and mission statements
• Organizational experience and accomplishments. This should be anything of note that makes your organization stand out (e.g., number of people served, awards/recognitions received). 
• Description of leadership, including the qualifications and experience of the executive leadership and board members/elders. 

2. Problem Statement/Needs Statement. Identify the need/problem that your project will address. A good question to ask yourself when creating this section is, “How would our community suffer if our organization did not exist?” Also, show how the problem your organization is addressing relates to the funder’s goals and interests.

    

3. Project Goals and Objectives. List the goals and objectives that your project is seeking to accomplish. As much as possible, provide quantifiable goals/objectives. For example, “Through the proposed project, [Organization Name] will expand our food distribution program to serve 50 more individuals weekly.”

    

4. Description of Project/Program. This section is a more detailed description of the project/program for which you would like the funder to support. It should include a statement of the project timeline (when the project will start and when it is expected to end).

    

5. Statement of Fiscal Responsibility. Two good questions to answer in this statement are, “Why should this funder trust our organization with these funds?” and “Why should this funder trust that our organization has the capacity and the integrity to follow through with the proposed project?”

    

6. Request to Submit Proposal. LOIs are a request to submit a full proposal, and this intention should be stated directly. For example, “[Organization Name] requests to submit a full proposal to [Funder Name] for [Project Name].” 

Attachments

Don’t include any attachments unless specifically requested by the grantor. Conversely, if the grantor does ask for specific attachments, make sure to include them! Funders may not consider your proposal unless they receive all of the requested documents.  Commonly requested attachments include: 

• List of current board of directors, including names, titles, and business affiliations
• Organizational budget for the current fiscal year
• Project budget for the proposed project
• Current W-9
• IRS determination letter verifying your organization’s status as a tax-exempt organization
• List of major funders and their donation amounts for the most recently completed fiscal year

Where to Find Grants

One of the top three challenges charitable organizations face in grant seeking is difficulty finding grant opportunities for which their organization is eligible. (Source: Instrumentl) Knowing where to look can save you a lot of time! The following table shows some of the most-used sources for finding grants and funders. (Click here for a downloadable PDF of the table!)

Investing in Your Ministry’s Future through Legacy Giving 

What is Legacy Giving?

Legacy Giving, also known as Planned Giving, is a donation (of money, assets, property, or stocks) made by an individual to an organization or cause to be distributed during their lifetime or after their death.

“Legacy Giving [or Planned Giving] is a plan people have to fund ministries beyond their own lives,” says Don Eskes.

Legacy or planned giving, is an untapped source of generosity for many ministries.  It contributes to the long-term sustainability of ministries, and taking the time to cultivate planned gifts is an investment in the future of your organization. 

The most common type of legacy or planned giving is a bequest- money left to a charity in a will or trust. In fact, 9 out of every 10 planned gifts are bequests. 

In California, revocable living trusts are often preferred to traditional wills or trusts because they minimize the delays and costs of probate. (For more information on the benefits of revocable living trusts, check out this article)

The Great Wealth Transfer

The Baby Boomer generation (born 1946 to 1964) holds a majority of the wealth in the United States, with Baby Boomers possessing more wealth than the Silent Generation, Gen X, and Millennials combined. As Baby Boomers continue to age, a great wealth transfer through wills and trusts is taking place. This provides ministries like yours with the opportunity to be included as beneficiaries in wills and trusts. 

Bequests provide the opportunity for supporters of churches and faith-based ministries to continue investing in God’s kingdom work even after their life on earth has ended. Bequests provide a deeper sense of vision and impact for donors while also helping carry out your ministry in a sustainable, long-lasting way.

Help your Donors Give Legacy Gifts

1. Educate donors through your current media

The easiest way to start the bequest conversation with your supporters is to include information about giving through bequests in your current media communications. A concise statement in a social media post, newsletter, mailing, etc. informing supporters that they can make a difference through their will/trust can go a long way. 

A tip- using age-inclusive language broadens the focus of your appeal and can help prevent older donors from feeling targeted. For example: 

“Even if you plan to live to 150, you still need a will. Get started today.” 

“Supporters of our organization, from 18 to 98, choose to include us in their will or trust.” 

2. Take advantage of Make-A-Will month

August is national Make-A-Will month, which provides a great opportunity to reach out to your supporters about including your organization in their will/trust! We created a sample email letter to give you ideas for what your Make-A-Will month communications could look like! 

Click here for a sample email on Make-A-Will month

If donors do not already have an attorney or financial advisor to walk them through the process of creating a will or trust, Ten Talents Foundation can refer donors to trustworthy local professionals. 

3. Recognize planned giving donors

Many organizations with planned giving programs offer specific recognition (often called Legacy Societies) to donors who make a bequest or other planned gift. Some ideas for recognizing planned gift donors include:

• Featuring donor names in your annual report, on your website, or in other relevant publications highlighting their commitment to the organization.
• Acknowledging contributions through a personalized thank-you letter or certificate of appreciation for their planned gift. 
• Hosting special events for planned giving donors, including meet-and-greets with clients, tours of new facilities/renovations, or appreciation dinners helping donors see the long-lasting impact of their gifts.

Additional Resources

Here are additional resources to help you develop a deeper understanding of planned giving and bequests. Both of these resources were created by FreeWill. 

How to start a planned giving program: Step-by-step guide

Make-A-Will Month Toolkit

Let’s Talk About Artificial Intelligence & Nonprofits

What is Artificial Intelligence?

Artificial Intelligence or AI is the development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, etc.

There’s been a lot of buzz about Artificial Intelligence (AI) lately with the release of ChatGPT, an AI chatbot developed by OpenAI. In its broadest sense, AI is any machine or application that simulates human intelligence. AI can be used to process  language or analyze data. 

While the topic of AI may elicit images from a thriller movie where a computer-turned-human takes over the world… Artificial Intelligence programs can be leveraged as powerful tools for good. And that’s what we want to talk about today!

As busy nonprofit or church leaders, how could AI help you save time and grow your organization? Could AI help you with fundraising, content creation, or grant writing?  To help you answer this question, we did some research to kick-start your exploration of AI. 

Potential Uses of AI in the Nonprofit World

There are several ways AI can potentially help nonprofits improve their funding strategy. Here are some potential ways you could use AI in your organization: 

1. Automated writing: AI writing tools can create content to use in fundraising letters, grant writing, newsletters, and other donor communications.
2. Image and video creation: AI can create original visual content including infographics, videos, and images. 
3. Personalized fundraising: AI can analyze donor data and create personalized fundraising campaigns tailored to each donor’s giving history and interests. 
4. Donor behavior analysis: AI can analyze donor behavior and identify patterns in giving, allowing nonprofits and churches to better understand how their donors give. 
5. Translation: AI-powered translation tools can help translate content into multiple languages quickly and accurately.

Benefits & Limitations of AI

Benefits:

• Increased efficiency: AI can quickly create easy-to-understand text and illustrations.
• Overcoming writer’s block: AI-powered content can be used as a first draft for written projects.
• Multilingual content creation: AI can empower diversity by allowing easy translation of content into multiple languages. 
• Improved consistency: AI-powered content can help maintain consistency in tone, style, and brand voice across different pieces of content.
• Improved Data Analytics: AI can analyze and come to conclusions very quickly on a broad range of data.

Limitations 

• Lack of authenticity: Content generated by AI may lack the human touch and authenticity that resonates with audiences. It’s important not to rely on AI alone to create content that will make your stakeholders feel connected and valued. 
• Risk of plagiarism: AI is limited in its ability to rephrase content sufficiently enough to avoid plagiarism concerns. If you ask AI to “rewrite” a section of pasted content, make sure to review and edit the results as needed. 
• Credibility concerns: AI models are only as good as the data they are trained on. If the data they are trained on is inaccurate or biased, the AI’s outputs will reflect that inaccuracy or bias. 

AI Platforms You Could Try Today

For those who are interested in learning more about AI that could help your organization, we have researched a few popular platforms. (Note: these are just a few of the many options on the market. This list is not meant to be exhaustive, but rather to provide you with a starting point for your own research.)

Fundwriter.ai: Fundwriter AI is focused on producing written content. The platform provides fundraising-specific templates and writing aid to help you construct letters, email campaigns, annual reports, and grant proposals faster. The AI tracks your writing prompts and adapts to your personal style the more you use it. 

Donor Search: Donor Search is one of the most popular AI tools for nonprofits. The platform analyzes your current donor base and potential new donors to help you construct targeted fundraising campaigns. 

Jasper: While not nonprofit-specific, Jasper is one of the top AIs for content creation, including both written content and illustrations. The platform includes a Chrome extension that allows users to easily write drafts in other word processors. 

ChatGPT: ChatGPT is widely considered the most advanced AI on the market right now, and the basic version is (for now at least) free to use! ChatGPT can provide starter drafts for all kinds of written content, and can serve as a research-starter tool. 

Try typing the following prompts into the chat bar to get a feel for how the AI works:

• “Share tips for writing a good fundraising letter.”
• Share contextual information about the project for which you need funding and the tone and approximate length of the letter, and then type, “Use this information to create a fundraising letter draft.” 
• “Where can I find information about how to complete a Form 990 for my organization?”

Cultivating your Board of Directors or Elder Board

“Healthy boards don’t just happen.”

~ Stephanie Roth

The strength of your board can make or break your organization.

Most nonprofit and church leaders want their organization to have an informed, engaged Board of Directors or Elder Board! However, too often Executive Directors, pastors, existing board members, and other staff are so busy with their daily responsibilities, consistently communicating with and empowering  their board members feels overwhelming. 

Check out the following  resources to help you strategically and intentionally strengthen your existing board members and recruit valuable new members.

How to steward your board’s time & talents more effectively.

Here are 7 ideas to help you steward your board’s time and talents effectively. Consider how you can take a step toward implementing one of these steps this week!

1. Looking for a new board member? Proactively source and recruit board candidates who align with the ministry’s strategic direction and board’s needs.
2. Provide effective orientation and training for new board members to shorten their learning curve and empower them to contribute quickly.
3. Conduct annual performance reviews and assessments for the board members to provide feedback and opportunities for improvement.
4. Encourage active engagement of board members by providing regular financial and volunteer opportunities for them to contribute meaningfully.
5. Develop a clear strategic direction and clear roles and responsibilities for each board member. 
6. Cultivate a culture of responsibility and accountability among board members.
7. Delegate authority and empower others to fulfill their ministry duties to the best of their abilities.

Evaluate your board’s strengths

Check out this article from the Nonprofit Quarterly, “Building an Effective Board of Directors.” The article provides a helpful framework for thinking about board development. One highlight of this article is the importance of evaluating your board’s strengths.

Each board member is an individual with unique skills and experiences. Taking time to assess the strengths of your current board members and identify gaps that need to be filled can help guide future board appointments and inspire board training. One method to help with your assessment is to create a chart like the one below to cross-reference the qualifications of your current board members with your organization’s needs.

This chart provides some examples of qualifications you may want to include in your own chart, and there will likely be many other qualifications you want to add. You can use the following categories to guide you: 

Skills & Expertise = professional or experiential skills the board member can use to aid the organization. (e.g., fundraising/development, grant writing, communications, accounting/financial management) 

Representation = constituencies  represented on your board. (e.g., former clients, racial/ethnic diversity, government leaders, church leadership)

Commitment to Organization = ways in which board members contribute to the organization’s mission and purpose (e.g., assistance with fundraising, volunteer their time, affirmation of mission and values)

Create or refine your board orientation process

Creating an  orientation process helps new board members to integrate and adapt and feel comfortable more quickly in their role. An orientation process can simply include these two steps: 

Create a Board Manual

A Board Manual is an easy way to provide important information to new board members. The Board Manual can include: 

• Organization’s mission statement
• Brief description of programs
• Current budget
• Most recent financial statement
• List of current funding sources
• Organizational chart or description of structure
• List of board members’ names & addresses
• By-laws
• Long range plan (if you have one)

Hold an Orientation Meeting

Orientation for a new board member could be incorporated into the agenda for an already-scheduled board meeting. To reinforce the new board member’s  inclusion and welcome them to the team, orientation should include introductions to other board members and staff if possible. It is also a good time to go over the information provided in the orientation manual and allow the new board member to ask questions.

What your organization believes about money impacts everything.

What guides your organization’s development goals?

We make decisions every day that are driven by our beliefs and values. As leaders of organizations, what we believe about money, donors, development, and generosity (whether we realize it or not!) will weave itself into the DNA of our ministries and non-profits. 

The principles that guide our development decisions can be summarized in a written document called a Theology of Advancement. 

Take a few moments to think about this in the context of your organization. We’ve broken up our recommended resources into three sections based on how much time you have to dedicate to the topic, ranging from 5 minutes to an afternoon without Zoom meetings.

What is a Theology of Advancement?

A Theology of Advancement is a written statement of the values and philosophy that motivate an organization’s development goals. As a Christian organization, a Theology of Advancement should be built on Scripture verses/passages that inform your organization’s values and practices. 

As a leader of a church/nonprofit, you understand the importance of generosity because you see the impact it makes in your organization and the lives of people… both those you serve and those who give. 

However, not everyone who is associated with your organization has a front-row seat to the impact that is made through generosity. Having an established Theology of Advancement statement helps every staff member, donor, and volunteer to write, speak, and live out your organization’s philosophy of generosity with consistency and confidence. A Theology of Advancement:

Why is a Theology of Advancement important?

• It provides a visionary standard for development
• For churches, it serves as a tool for discipling congregants in greater generosity
• It enriches conversations with donors by providing a biblical framework
• It provides accountability to the organization in stewarding resources according to God’s principles
• It increases donor/stakeholder trust in the organization

Questions to answer in a of Theology of Advancement

• What are some key Bible verses/passages that are the foundation of what you do?
• Which verses inspire you to greater generosity?  
• What are the key principles of generosity that emerge from these verses/passages?
• What does your organization believe regarding stewardship and biblical generosity?
• How can you integrate this theology into your fundraising efforts

Create your own Theology of Advancement!

If your organization does not yet have a written statement that expresses your beliefs about generosity, consider meeting with your key leadership and creating one with the examples below.

Take some time during your lunch break this week to check out a sample Theology of Advancement resource from Mortar Stone. This example highlights biblical truths and Scripture references to inspire you as you consider what your own organization’s Theology of Advancement may look like. 

NOTE: This example was crafted specifically with churches in mind, but the principles apply to NPOs as well.