Write Winning Community Developments Grants in 2024: The Three Elements Your Proposal Must Have
Question: What is one of the key misconceptions about grant writing, especially in the early stages of pursuing funds?
Answer: Because grants are funds that do not need to be repaid, being awarded a grant is just a matter of applying.
Reality: There is no correlation between the fact that grants do not need to be repaid and the chances of winning. Once awarded, grants have reporting and compliance requirements around performance.
Grants are highly competitive and have grown increasingly more so in the 2024 economy. Grants are a vital source of revenue for non-profits and can be a good source of supplemental funding for small businesses and a few additional organizational structures.
If you are a leader considering accelerating your organization’s grant application strategy in 2025, you must have the following three elements to create a strong application. Whether your organization is applying for grants through a volunteer, hiring an external grant writer, or having an existing employee do the work; success will depend on having these keys in place.
- Track Record: Your organization must provide evidence that it will succeed with a new funding source. A track record can include a proof of concept/pilot program, an expansion or vertical strategy, or a history of successfully delivering on prior grants. It is difficult to get funded for a project before your organization can show engagement with the problem it is trying to solve.
- Financial Management: Most funders require a minimum of two years of operational history, with audits and tax returns to demonstrate financial management. They want to know if your organization has continuity. Start-up non-profits can shortcut this requirement with a fiscal sponsor (subject to funder requirements) who can show fiscal responsibility for the new organization. Good governance through strong financial management and a well-positioned, sustainable balance sheet will set your organization apart.
- Project Planning: Your organization needs a solid, clear strategy. Funders want to see
organizations with clear, achievable goals that meet the metrics the grant is intended to
achieve. Your plan for using funds needs to be solid, demonstrating a knowledge of the
problem and the process to solve it. Your application should demonstrate an awareness of
organizational capacity, physical resources, internal needs, and how additional funding can help address barriers and support the project objectives.
What do all three of these elements have in common? TRUST.
At the core, each of these criteria demonstrates that your organization can be trusted to do what it stated in the application. Trust is applicable no matter what your stage of organizational sophistication. Funders look for trustworthiness from small emerging organizations and complex, multi-billion-dollar organizations alike (the
difference between the two is that the latter demonstrates capacity through its history and
infrastructure more quickly).
Bonus tip: Relationships with funders can help build trust more quickly. Whenever possible, work to build a relationship before applying for a new grant. Just like with response rates for cold sales outreach, winning an award through a cold grant application takes a lot more effort than with a referral or relationship in place.
A good grant should be well-written and follow the funder’s application format, with straightforward responses to the application questions. An experienced grant writer should be able to help your organization save time, provide insight on strategy, respond to the application requirements, and position your story well.
However, no grant writer – either internally or externally – will overcome a lack of trust, especially when positioned against well-prepared competitors. Before your next grant application, assess your organization’s stand on these three elements. If you are missing one, return to the board room and work to get all three in place.
PHI supports community development organizations with strategy and planning to ensure they are well-prepared for their next application.
