Tips for Writing Federal Grant Proposals

In the course of my career, I've written dozens of federal grant proposals for different departments and agencies. Each time I finish one, I am convinced that, NEXT TIME, the process will be smoother!

While federal grants are far less intimidating to me these days, the process is never very smooth. I can count on one hand the times I have submitted the grant before the last day - typically my clients and I are still scrambling around the deadline day making final changes and edits. But they are typically just small things and we are able to submit several hours before the cut-off.

Yes, there can be an effective method to the madness of preparing a federal grant proposal. But, no matter what your method, I believe there are some traits that will help you succeed:

• Time Management - Putting together a federal proposal takes a great deal of time and you MUST block that time in your schedule in order to get it done. How much time depends on the proposal, and each one is different. As a rule of thumb, I base estimates on the page limit of the narrative. For clients I've worked with a long time, I estimate a base of thirty hours, then an additional half-hour for each narrative page (double spaced). For new clients, it is one to 1.5 hours per page.
• Organizational skills - I have put together proposals with more than 300 pages of documentation. You must be able to organize and manage these elements in order to be successful.You've also got to develop and manage an effective set of tasks and internal deadlines for your team.
• Detail Oriented - Information must match across several documents. If you change one element in the budget, you will have to make the same change in several others. You must be detailed enough not to miss those - or have a team member who is really good at spotting those details.
• Patience - Federal Opportunity Announcements are often 90+ pages long. Federal grant webinars are how I envision the 7th ring of hell. But participating in these is vital to success. You must have enough patience to slog through them.
• Grace - After submitting a grant, I often find several things I wish I had done differently. When the review comes back one of those as a stated weakness, I want to kick myself. However, it's important to offer grace for those things. I've written some fairly flawless grants, with great reviewer comments, that DIDN'T get funding and I've written some last-minute, cobbled together proposals that DID get funding. Offering yourself and your team some grace is vital to surviving.
• Management Skills/People Skills - Federal grants typically take teamwork from several departments (finance, personnel, programming, executive) to complete. You must be able to manage each team member's expectations and time.
• Writing Skills - Notice how that's last? As a writer, I always think good writing is the most important element, but Shakespeare himself would not be able to write a good federal grant proposal if he didn't have the other traits listed here.

In my next entry, I will list the process I use for tackling the federal proposal.

Writing Federal Grants - A Practical Strategy

Writing Federal Grants - A Practical Strategy

Step One: Consuming the FOA

In my last post, I described traits needed to effectively write federal grants. These included:

• Time Management - Creating a timeline and sticking to it.
• Organizational skills - Organizing hundreds of pages of documents
• Detail Oriented - Paying attention to all the tiny bits of information needed
• Patience - Being able to read through 100-page instructions or sit through two-hour webinars
• Grace - Forgiving yourself (and others) for the inevitable errors or weaknesses
• Management Skills/People Skills - Getting all the information you need from people without making them hate you
• Writing Skills - Oh, sure...it helps if you can write well, too.

So...how EXACTLY are you supposed to use these skills to write a federal grant? If you are like me, you prefer to learn step-by-step how to accomplish something, rather than be expected to translate general concepts into reality.

NOTE: In this entry, I am assuming that your organization is registered with the System for Award Management (SAM) and has a DUNS number, etc. If you do not currently have these items, please click here to learn more.  You must be registered to apply for a grant, so do that first!

When we start tackling a federal grant, clients will often wonder "how are we going to do all this?" I tell them it's the same way you eat an elephant - just one bite after another until it's done. So...let's chow down!

Over the next few blogs (remember, I promised to keep these short), I will outline the steps I have developed for completing a federal proposal. This includes 8 general steps:

1. Consuming the FOA
2. Creating a proposal outline
3. Creating a timeline for completion
4. Pulling together the first draft
5. Reviewing the first draft
6. Putting together the second draft
7. Reviewing the second draft
8. The final draft and submission

STEP ONE: CONSUMING THE FOA

Consuming (purposefully and carefully reading) the funding opportunity announcement (FOA) is the first step. You will find FOAs at www.grants.gov. I will assume you have already found and downloaded the FOA and scanned it to ensure you are eligible and interested in the grant (if you can't figure out how, please make a comment below and I'll help!).

1. Print the entire FOA. I want to save trees - really. I actually print very little. But the FOA is different for me. I need to hold this in my hand and have it physically handy at all times. If you can, print it in draft mode (to save ink) and double-sided (to save paper). 
2. Scan the FOA for this key information. Highlight the following items in the FOA (I also use sticky tabs to mark the pages for ease later):
• Reference Numbers. The Funding Opportunity Number (FON) and the Catalog of Federal Domestic Assistance Number (CFDA). You will need these later.
• Key Dates: These are usually in the first couple of pages. Look for:
• LOI due date (if applicable)
• Proposal due date
• Any webinars scheduled - put these on your calendar
• Anticipated announcement date (if they provide it)
• Award date
• Grant period (may be one year, may be multiple years)
• Award Amounts: These are also usually in the front. Look for:
• Maximum amount
• Minimum amount
• Note the average expected award amount. Find the total amount available for funding (this is usually listed), divide by the number of awards they expect to make and make note of the average expected award. I find this very helpful in deciding how much to ask for. For instance, if the average award is expected to be $2.4 million and I am working with a small nonprofit with revenues less than $1 million per year, the grant is probably not a good fit for them.
• Key components of the application. Depending on the agency, this will be in different places. I typically open the pdf or Word version of the FOA and search for the word "narrative." That seems to pull up the section listing all the key documents required. Highlight each main document as well as the page limits for each (this will tell you how long it will take to write the grant). For most grants I write, this may include:
• Typical Grant Forms - SF-424, SF-424A (budget) and other forms.
• An LOI - often optional
• Table of Contents
• Project Abstract
• Project Narrative - which also includes many sections (don't worry about it right now)
• Work Plan/Logic Model or other document
• Budget Narrative
• Attachments - may include:
• Letters of support
• Resumes of key personnel
• Organizational chart
• 501c3 letter or other proof of nonprofit status
• Any other documentation required.
3. Read the FOA. Block off at least an hour (preferably two), find a quiet place, and carefully read through the FOA, highlighter in hand. Read every word carefully, as you will often find "Easter eggs" in the instructions (important pieces of information seemingly hidden in the middle of a paragraph).  The only section I skip reading is the section on applying for a DUNS number and registering with SAM.

In my next entry, we will move on to Step #2: Creating a proposal outline; and Step #3: Creating a timeline for completion. 

Raising FAST Money for Your Nonprofit

In my last blog, I tried to dispel the myth that grant-seeking could provide quick money for a nonprofit. In truth, grant-seeking works best when your organization is already solid but needs funding to expand its capacity in some way (new program, expanded program, etc.)*

*(There are, of course, exceptions to this statement: many foundations are beginning to see the value of providing funds for general operations as well - but they STILL want to ensure that you are a solid organization - no foundation wants to be the LAST donor to a failing organization).

So, if you need money quickly; if you aren't solid; if you are aren't established...how do you raise money?

Of course, there are excellent ways of raising funds more quickly. Here are some ideas:

• Fees for services. According to the Urban Institute, the majority of funding for nonprofits comes from fees charged for services. For example:
• Housing programs typically charge rent. This is often paid by a third party (Section 8 or other program) or by the client. 
• Reduced fees: Many organizations provide services (such as health care) at a low cost or on a sliding scale. It isn't enough to fully fund the program but it goes a long way.
• Perceived value fee: This is a small fee charged for services designed to increase the perceived value of the service. For example: I once coordinated a program that provided free training for daycare employees. Our attendance hovered near 5-10 students per class. When we started charging $10 for each class, our attendance jumped to 25-40 per class! Why? The audience perceived that the service was more valuable because they had to pay for it. 
• Other fees: There may be hundreds of appropriate fees you can charge clients. Remember, you exist to SERVE those clients, not drain their pockets, so the fee will need to be appropriate for that audience.
• Corporate Donors: Many corporate giving programs operate more like grants - you must provide a written application and wait. But check with your board of directors - perhaps their employer has funding they can steer your way. By the way, if you don't have any board members who are members of large local corporations - get some! Many corporations only donate to organizations their employees are involved with. In fact, many corporations will actually HELP you find one of their employees to be on your board!
• Individual Donors: Individual donors have far more funds available to donate than foundations. They can just be harder to cultivate. However, they are more likely to make a donation for emotional reasons; they probably won't require that you fill out a form and apply by a certain deadline; and they probably won't make you write formal reports, etc. once they give you money.
• Stakeholders:  Make a heartfelt appeal to the people related to your organization - your stakeholders. Your board, volunteers, etc. and let them know you need financial assistance. Ask then to donate themselves as well as solicit donations on your behalf.
• Luncheon: I recently attended a luncheon put on by a local nonprofit organization. It lasted less than an hour but they were able to have several speakers, videos, etc. in that time and - of course - the last item was an invitation to write a check to the organization. Beyond raising money, they also built many relationships with prospects.
• Gala: There is an entire industry around nonprofit galas. If you are going to do a large-scale gala, hire a professional coordinator or make certain you know what you are doing. A lame gala not only doesn't raise much money, it also makes your organization look bad.
• Direct Mail/Social Media Campaign: Again, there is a science to raising these funds and it is worth hiring a consultant to help you do it effectively. 
• Event: Luncheons and galas are great fundraising events but, with some creativity, you can come up with lots of other ideas for events - races, community garage sale, contests, volunteer days, etc. are all great ways of connecting with future donors and raising funds quickly.

In short, grant-seeking is just ONE way to raise money. There are actually many ways of raising funds and many of them are less time consuming and more "profitable" than grants. For instance, I met with a nonprofit executive director once and, in the course of our conversation, he said he could raise $20,000 at a luncheon very easily. Based on the model of his nonprofit and his ability to raise that kind of money on the basis of his own charisma and connections, I advised him to not even bother with grants! 

How to Raise Money FAST for Your Nonprofit!

...but not with grants

In honor of the "important" testing going on in schools around the nation right now, here is a multiple-choice question for you.

The best time to begin a grant-seeking strategy for your nonprofit is:
A. During the summer, to ensure you are "in the black" by December
B. When your organization is already solid but needs support to build capacity or fund a new initiative
C. To get some operating capital as quickly as possible before you have to shut your doors
D. The same day you file as a brand-new 501(c)(3) organization

Correct Answer: B. When your organization is already solid but needs support to build capacity or fund a new initiative.

So...the time to seek grants is when you don't really need them to survive? That doesn't seem fair, does it?

But that's generally the case. Whether you are seeking funds from a government agency, corporate giving program or private foundation, the investor wants to know you have experience with success, are not in financial despair and have an historic and reasonable operating strategy that works.

Plus, a grant-seeking strategy takes months to begin paying off. First you have to develop a relationship with funders, perhaps submit a letter of intent and wait for a response, submit a proposal, have a site visit and wait weeks or months for a response (which is likely to be "not this time.") It's a strategy that won't work if you are worried about making payroll at the end of the month!

Where does that leave your organization is in a situation described in A, C or D?
Don't lose hope! 

In my next blog entry, I will offer some suggestions for ways to raise funds a bit more quickly.

Developing Relationships with Grant Funders

Cardinal Rule: Never submit a "cold" proposal to a potential funder.

Cardinal Question: So...how do I warm them up?

A couple of years ago, I noticed a trend among my clients: those clients who were good at creating relationships with funders had a significantly higher grant approval rate than those clients who preferred to sit in their offices and not talk to anyone. No duh...right?

Personally, I'd almost rather have oral surgery than try to develop a relationship with someone I hope to get something from someday. I'm an introvert - schmoozing is not my thing. Thus, I completely understand when a client says they aren't sure the best way to develop a relationship that could lead to a grant.

Here is a list of ways you can break that ice and begin to establish a relationship in advance of seeking a grant or other support:

• Don't think about building the relationship as "schmoozing." If you are going, hat in hand, feeling that your position is weak, remember these facts:
• Charitable foundations are REQUIRED BY LAW to give money for the public good. They would not exist without organizations like yours. You are helping them be better aware of the different opportunities in their community.
• By the same token, corporate donation programs exist SOLELY for the purpose of donating (money, time, gifts-in-kind, etc.) to worthy causes. Again, they would not exist without you and you are helping them do their job better.
• Determine which foundations, corporations and/or government agencies should have a natural interest in your organization. For instance: 
• If you provide health services, you should get to know officials in the health department. 
• If you have several volunteers from a large local corporation, you should get to know their corporate donor staff. 
• Find out which charitable foundations support work like yours and target them for relationships.
• Begin building relationships in a way that makes sense for your organization. Some activities could include:
• Offering tours of your facilities and programs can be very effective. I have a client who does this on a regular basis - they invite board members, volunteers, funders, potential funders and other stakeholders to tour their programs. They hire a bus to visit various locations and offer a box lunch to participants. Nearly every tour is full. 
• Put them on your mailing list for any newsletters or other publications. Be strategic in what information you mail them. You don't want to send them your annual campaign letter (that would be a "cold" request) or an invitation to your gala. Until you have a relationship, stick to simple information-sharing pieces. Just don't overload them with junk mail!
• Call a potential funder and ask if you can schedule a meeting with them to share information. Some smaller funders may not be interested in doing this but large foundations with professional staff are almost always interested in learning more about your organization.The more they know about nonprofits like yours in the community, they better they look to their bosses!
• Use your board! If you are an executive director or employee, you should not be the only person trying to create these relationships. Your board members should be comfortable making calls and going to meetings as well. 
• Use your connections wisely - if you have identified some potential funders with whom you want to develop relationships, ask around to see if there are any natural connections. Maybe your board chair goes to church with a foundation trustee. Maybe an employee went to high school with the director of corporate relations. It's a small world - use it to your advantage and allow your "team members" to open some doors for you.

Most of these folks are not naive. They know you are working to develop a relationship because, sooner or later, you are going to ask for something. If they ask about that, don't pretend you aren't. Maybe you have a project or proposal ready to hand them. If not, tell them you just want to get to know them right now so that, when a perfect funding opportunity comes up, you will be ready to present it to them. 

So, when does this relationship become fruitful? Each relationship will be different. As the grant seeker, you will (hopefully) develop a sense of when the time is right.

It won't guarantee that every proposal will be funded. But once you are on the radar for these potential funders, things WILL begin to happen.

Grants for Small Business Start-Ups

Do they really exist? The best source for information.

[Phone ringing]
Me: Good morning, this is Dana.
[Static and mumbling]
Me: Hello?
Voice: Yep!
Me: Good morning!
Voice: Hey, my wife was looking for some grant, uh, grant writer people, people who get grants like and saw your website.  Is that what you do?
Me: Oh, how exciting - I'm flattered that you called me. Yes, I'm at grant writer, how --
Voice: Hang on, my dog got out the derned truck. [shuffling, muffled yelling and truck door slamming.]
Me: Hello?
Voice: Yeah, sorry. I'm back on the road now. 
Me: Great! Is your dog okay? [silently glad I'm not sharing that road at the moment...]
Voice: So anyway, I got some roofing business. Well, sort of. There are roofing equipment (mumble) and this guy I met Saturday said there's grants I can get on business. Roofing. Hail.. (mumble) ...asphalt ...shingle...(mumble).
Me: Oh, you are a business man and you are looking for a grant to help you?
Voice: Well, yeah, I mean, I just wondered...'cuz this guy I was talking to said I could get money that  I didn't have to pay back or only had to pay some back or....aw, heck, I'll have to call you back, my dog just run off again.

This is my reconstruction of an actual phone call I got not too long ago. Mr. Voice never called back (I hope the dog is okay) and I suspect he never got his roofing business off the ground (sorry for the pun.)

I get phone calls along this vein quite often.

Inevitably, the caller has seen a commercial that described business grants, talked to "some guy" who told them they were available, or went to a "seminar" where someone talked about government grant programs to help small businesses (I am perplexed that these seminars talk about grant programs but apparently give NO information about them...)

Here's what I know about grants for businesses: There aren't too many. At least not in the U.S. And they aren't very easy to get.

That doesn't mean there aren't resources for people who have a certain expertise and want to begin an enterprise.

If this is you, here's where I recommend you start:
The United States Small Business Administration. http://www.sba.gov/home

If you are an American tax payer, you've already paid for SBA service, so you might as well use it! The website offers all kinds of resources. In fact, it would take days to read all the articles, use the tools, etc. available there. But there's more!

Just in Oklahoma, where I am based, there are 24 SBA offices around the state whose sole purpose is to provide resources and advice to people who own or are considering opening a small business. Free mentoring, free help writing a business plan, free advice - it's all there! You just need to call them.

Guess what? In all likelihood, the people at the SBA will also know about any random business grant programs out there for people who are interested. There's probably no need to hire a professional grant writer.

Although I loved my experience talking to Mr. Voice and I truly hope his derned dog is okay, I also hope he stopped listening to the guy he met while pumping gas at the Nick'n'Run store and gets some really good, free advice from real experts.

Part II: Starting a Nonprofit?

Please allow me to crush your dreams.

In my last post, I began trying to crush the dreams of people wanting to start a new nonprofit. Sounds harsh, doesn't it?

Truthfully - I don't want to crush anyone's dreams. I would rather see those dreams succeed beyond their wildest imaginations! That kind of success, however, might be better achieved by NOT starting a new 501(c)(3) organization.

According to the National Center for Charitable Statistics:

• In 1999,  there were 631,902 nonprofit organizations in the U.S. 
• In 2009, there were 1,006,670 of them - a 59% increase. 
• In 2012, there were 1.4 million. That's about a 120% increase in 13 years!

Even more amazing is this: in 1999, only 32% of nonprofits had receipts less than $25,000 a year. By 2009, 79.4% of them were that small.

Thus: only 18% of the new nonprofits started in 13 years have enough revenue to hire even ONE full-time employee. The rest of them - all 691,008 of them - are tiny.

In my mind's eye, I see all those 691,008 nonprofits scrambling like ants - working hard for every little crumb they can get. And more ants are arriving on the scene daily to compete for those crumbs.

Is your dream crushed yet? 

I hope not. 

If you are truly committed to making the world a better place through charitable work - please do it! In fact, we should all be doing that anyway. But if you think a NEW nonprofit is the BEST way to do that, please answer these questions first:

• Are there other, already-established organizations doing related work, even if it isn't exactly the same as what you are envisioning? In your community? In your state? Anywhere? You can do a Google search to find them or go to Guidestar and do some research there (it's free).
• If yes, can you offer your time and passion to help them achieve their mission? If there isn't a local group, is there a regional or national group you could encourage to come to your community? Could you ask them to adjust their programming to meet the need you've identified? There is TRULY no reason to re-invent the wheel. If another group is working to meet the need - don't duplicate them; help them!
• If no, check again. Of all those 1.4 million nonprofits, I seriously doubt that there isn't one addressing that issue in some way.
• Still want to start your own nonprofit? Okay, then keep going.
• Do you realize that, if you start a nonprofit, it will not truly be "yours?" You will have to establish a board of directors, who will become your boss. They can even fire you (it happens all the time). Are you okay with that?
• Do you have sources of funding up-front? Lottery money or rich uncle? A circle of friends with deep pockets?  Nonprofits take money and grant-makers are seldom interested in start-ups.
• Do you have the skill set needed to run a nonprofit? Business acumen? Bookkeeping knowledge? Organizational skills? Vision? Communication skills? If you have deep pockets, you can hire people with these skills but, in all likelihood, you will be doing them all.
• Finally, answer this question as honestly as possible: WHY do you want to do this? I often get some version of one of these answers:
• To honor someone I love;
• Because I need a job;
• I don't have anything else to do;
• I used to volunteer for another organization but they made me mad and I knew I could do it better;
• I don't really know why - but I just know that I want to.
• None of these answers - by itself - is a good enough reason to start a new nonprofit.