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.