Whether your nonprofit is building out its grant programming from scratch or hoping to gain new funders, taking the time to plan is a key first step. Making a comprehensive grant strategy can help move your development team from responsive to proactive, setting your organization up for sustainability in the long term.
How can your nonprofit plan its grant strategy to help build long-lasting funding relationships?
1. Cast a wide net
If you work in fundraising, you know that the first step in finding new grant opportunities is to simply search for them. You can find grants based on your focus area and geography by subscribing to a database like Foundation Directory Online, Foundation Search, or Candid.
While you’re finding relevant grant opportunities, make sure people can find you! Does your organization have a website or social media presence? Have your local media written about your work? Foundation support is a two-way street; make sure that foundations who are interested in supporting work like yours can find you.
2. Take your time with prospect research
Trying to raise money can be stressful, and development teams often feel pressured. It may seem counterintuitive but taking your time to conduct research on potential prospects can pay dividends in the long run. New grant opportunities come up every single day, making it feel like you are constantly trying to chase down new funds, rather than being intentional with your team’s time. We’ve all had the experience of finding grants that, while related to your nonprofit’s subject matter, don’t quite fit. Take your time reviewing grant databases so your team focuses only on grant applications well-suited for your organization. If you don’t have time to do the research, find an intern to help!
Use Taproot’s Grant Prospect Research Template to analyze how well potential future funders are aligned with your nonprofit.
3. Set realistic goals
Grants are a valuable source of funding, but they can be unstable. The funding landscape can be unpredictable; for example, when COVID hit, many funders transitioned to providing emergency funding only.
Make sure you don’t place too much focus on new grant funding while reviewing your organization’s needs. However, after you have established long-term financial ties, you will be able to plan more confidently for future fiscal years.
4. Find your ambassadors
Who are the people in and around your organization ready and willing to go to bat for you? Board members are an excellent resource for finding new funding connections, but they are far from the only ones. Don’t limit yourself by thinking about who has money—think about who is interested in and passionate about your mission.
Taproot volunteers could serve as your biggest ambassadors by helping you write the grant proposal! They can also provide much-needed assistance in marketing, strategy, finance, data, and more, so you can focus on your grants process. Finding people who are excited about your organization’s work will help grow your audience and support.
5. Develop the relationship
Your nonprofit received the grant! Now what?
It may seem like only you, as the grantee, need something, and the foundation exists to fund nonprofit work that is meaningful to them. But when you find a foundation that seems like a good fit, one that seems closely aligned with your program’s priorities, you can begin to develop a mutual relationship; think about how you and the funder can serve each other. Keep in regular contact with your program officer, updating them on your program’s progress. Touchpoints will grow your funding relationship into one that is not just transactional, but mutually beneficial.
Are you ready to get professional assistance to help you increase your fundraising base, identify new grant opportunities, write those grant proposals, and more?
