Grant Writing for Nonprofits — A Complete Step-by-Step Guide
Nonprofits that build systematic grant programs — not just scramble for individual grants — raise more money with less effort. Here's how to build that system.
Skip the research. Find your grants now.
GrantCrafter delivers a personalized grant report in 2 minutes.
Building Your Grant Calendar
Successful grant programs run on calendars, not emergencies. A well-maintained grant calendar tracks every funding opportunity, deadline, and reporting requirement across your entire portfolio.
What your grant calendar should include: - Every funder's application deadline - When to start each application (work backward from deadline: 6-8 weeks for major grants, 2-3 weeks for smaller ones) - Decision notification dates - Report due dates for active grants - Meeting and site visit dates - Renewal application windows
Most funders accept applications on the same cycle every year. Once you know a funder's typical deadline, add it to future years automatically.
Tools: Google Calendar works fine for small organizations. Larger programs benefit from dedicated grant management software (Submittable, Instrumentl, Fluxx) that centralizes applications, deadlines, and relationships.
Prospect Research — Finding the Right Funders
The best grant writers don't apply to every grant they find — they identify the small number of funders most likely to say yes and focus there.
What makes a funder a strong prospect: - Mission alignment: Their stated priorities match your organization's work - Geographic match: They fund in your service area - Eligibility: Your organization type (nonprofit, size, age) fits their criteria - History: They've funded organizations similar to yours - Award size: Their typical grants match your need
Research tools: - Candid/Foundation Directory: Most comprehensive, available at many public libraries - 990 Finder (ProPublica): Free access to foundation tax returns showing past grantees - Your peers: Ask organizations similar to yours who their funders are - Funder websites: Most list current grantees and strategic priorities
Maintain a prospect list with notes on fit, contact information, cycle dates, and your relationship history.
Cultivating Funder Relationships
Grants are often relationship-driven, particularly with private foundations. Organizations with established funder relationships have higher acceptance rates and get more feedback on rejected proposals.
How to build relationships: - Attend funders' informational sessions and webinars - Introduce your organization before you need funding — send your annual report, invite them to a program event - If a program officer reaches out, respond promptly and thoroughly - When funded, keep funders informed of progress with brief updates (not just at report time) - Acknowledge funders appropriately in public communications
Letters of Inquiry (LOIs): Many foundations require an LOI before a full proposal. Treat LOIs seriously — they're your first impression and often determine whether you're invited to submit a full proposal.
What program officers want: They want to fund organizations they trust to execute and report accurately. Every interaction is an opportunity to build that trust.
Writing the Full Proposal
Nonprofit grant proposals typically include these core sections:
Executive Summary (1 page): What you're requesting, what it will fund, and what outcomes it will produce. This is often the only section a busy board member reads — make it compelling.
Organizational Background (1-2 pages): Your mission, history, programs, and qualifications. Connect your track record directly to the proposed project.
Statement of Need (1-2 pages): The problem your project addresses, supported by data. Make the case that the need is real, significant, and your organization is positioned to address it.
Project Description (2-4 pages): What you'll do, how, when, and with what resources. Include a timeline. Be specific about activities, not vague about intentions.
Evaluation Plan: How you'll measure success. Funders increasingly require logic models that connect activities to outputs to outcomes.
Budget: Personnel, direct costs, overhead. Include a narrative justifying each line item.
Attachments: IRS determination letter, audited financials, board list, resumes of key staff, letters of support.
Reporting and Stewardship
Getting the grant is not the finish line — it's the starting line. How you manage and report on grants determines whether funders renew and whether they refer you to other funders.
Reporting best practices: - Submit reports on time, every time. Late reports are a relationship-damaging red flag. - Be honest about challenges. Funders expect problems; they don't expect perfection. What they don't expect is discovering problems from someone other than you. - Include qualitative stories alongside quantitative data. Numbers show impact; stories make it real. - Connect outcomes to the funder's stated priorities — remind them why this grant mattered.
Budget management: - Track grant expenses separately and in detail - Alert funders immediately if you need to modify your budget (most require prior approval) - Return unused funds promptly and with a brief explanation
Renewal strategy: The best time to start preparing a renewal application is while you're executing the current grant. Document outcomes as you go — don't reconstruct them at reporting time.
Building a Sustainable Grants Program
Organizations that depend on one or two grants are vulnerable. Sustainable programs diversify across funder types, award sizes, and geographic sources.
Diversification targets: - No single grant should represent more than 20-25% of total revenue - Mix federal, state, foundation, and corporate grants - Combine multi-year grants with annual ones - Include some flexible/unrestricted funding
Staffing the grants function: - Under $500K in grants: Executive director or program director with grant writing responsibility - $500K-$2M: Dedicated grants manager (full or part-time) - Over $2M: Grants team with dedicated writer, manager, and researcher
Grant writing skills to develop: - Persuasive writing - Data analysis and presentation - Budget development - Project planning and logic model development - Relationship building
When to hire a consultant: Early-stage organizations often benefit from a grant writing consultant to build infrastructure, write initial proposals, and train internal staff.
Frequently Asked Questions
How many grants should a nonprofit apply for each year?
Most grant experts recommend submitting 15-20 applications annually and expecting a 10-20% success rate. New organizations should start with 5-10 applications while building relationships and track records.
Can a nonprofit hire a grant writer on commission?
No — the Association of Fundraising Professionals (AFP) prohibits commission-based compensation for fundraisers, and most foundations consider it unethical. Grant writers should be compensated with salary or hourly fees.
How long does it take to build a successful grants program?
Typically 2-3 years to establish relationships, refine applications, and build a diversified portfolio. Year one is mostly prospecting and first applications; years two and three see renewal revenue and referrals from established funders.
What's the difference between a grant and a contract?
Grants fund activities you design to achieve your mission. Contracts pay you to perform specific services the government or organization specifies. Both involve written agreements and reporting, but grants give you more programmatic control.
Ready to find your grants?
GrantCrafter delivers a personalized grant report for your business in 2 minutes. $24.99 — no subscription.
Get My Grant Report — $24.99 →