Winning grants step by step pdf

Winning Grants Step by Step The Complete Workbook for Planning, Developing, and Writing Successful Proposals FOURTH EDITION

Tori O’Neal-McElrath

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O’Neal-McElrath, Tori, date. Winning grants step by step : the complete workbook for planning, developing, and writing successful proposals / Tori O’Neal-McElrath. — Fourth edition. pages cm. — (The Jossey-Bass nonprofi t guidebook series) Includes bibliographical references and index. ISBN 978-1-118-37834-2 (paper/website) 1. Proposal writing for grants. 2. Nonprofi t organizations—Finance. I. Carlson, Mim, date. Winning grants. II. Title. HG177.C374 2013 658.15’224—dc23 2013014312

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Other Titles in the Jossey-Bass Guidebook Series How to Write Successful Fundraising Appeals, Third Edition, Mal Warwick

Powered by Pro Bono, Taproot Foundation

Content Marketing for Nonprofi ts: A Communications Map for Engaging Your Community, Becoming a Favorite Cause, and Raising More Money, Kivi Leroux Miller

The Nonprofi t Marketing Guide: High-Impact, Low-Cost Ways to Build Support for Your Good Cause, Kivi Leroux Miller

The Executive Director’s Guide to Thriving as a Nonprofi t Leader, Second Edition, Mim Carlson, Margaret Donohoe

Strategic Communications for Nonprofi ts: A Step-by-Step Guide to Working with the Media, Second Edition, Kathy Bonk, Emily Tynes, Henry Griggs, Phil Sparks

The Budget-Building Book for Nonprofi ts: A Step-by-Step Guide for Managers and Boards, Second Edition, Murray Dropkin, Jim Halpin, Bill La Touche

v

Contents

Website Contents vi

List of Figures, Samples, and Worksheets vii

Acknowledgments ix

The Author xi

How to Use This Workbook xiii

Introduction An Overview of the Grantseeking Process 1

STEP 1 Developing the Proposal Idea 13

STEP 2 Developing Relationships with Funders 21

STEP 3 Writing a Compelling Problem Statement 31

STEP 4 Defi ning Clear Goals and Objectives 39

STEP 5 Developing the Methods 49

STEP 6 Preparing the Evaluation Component 55

STEP 7 Developing Sustainability Strategies 65

STEP 8 Developing the Program Budget 71

STEP 9 Writing the Organization Background Component 85

STEP 10 Writing the Proposal Summary 91

STEP 11 Putting the Package Together 97

STEP 12 Sustaining Relationships with Funders 105

Bibliography 111

Resources A. What Is a Foundation? 113 B. How to Research Funders 117 C. Resources for Grantseekers 121

Index 125

vi

Website Contents

Worksheet 1.1: Proposal Idea Questionnaire Worksheet 2.1: Letter of Inquiry Questionnaire Worksheet 3.1: Statement of Problem Questionnaire Worksheet 4.1A: Goals and Objectives Exercise Worksheet 5.1: Methods Exercise Worksheet 6.1: Evaluation Planning Questionnaire Worksheet 7.1: Future Funding Questionnaire Worksheet 8.1: Revenue and Expense Budget Worksheet 9.1: Organization Background Exercise Worksheet 10.1: Summary Questionnaire Worksheet 11.1: Final Proposal Checklist Budget Template: Multiyear Budget Template: One Year Budget Template: Swim 4 Life Program Sample Proposal: Capacity Building for Museum Consultant Sample Proposal: Common Grant Application for Autism Program Sample Proposal: Electronic Application for Deaf Teen Pregnancy

Prevention Sample Proposal: Electronic Application for Disease Advocacy

Program Sample Letter of Intent: To a New Prospect for Scholarships Sample Letter of Introduction: For a Food Bank’s Expansion Resource A: What Is a Foundation? Resource B: How to Research Funders Resource C: Resources for Grantseekers

vii

List of Figures, Samples, and Worksheets

Introduction Figure I.1: 2011 Contributions: $298.42 Billion by

Source of Contributions (in billions of dollars—all fi gures are rounded) 4

Step 1 Worksheet 1.1: Proposal Idea Questionnaire 16

Step 2 Sample Letter of Inquiry 25 Worksheet 2.1: Letter of Inquiry Questionnaire 27

Step 3 Sample Problem Statement 34 Worksheet 3.1: Statement of Problem Questionnaire 36

Step 4 Worksheet 4.1A: Goals and Objectives Exercise 45 Worksheet 4.1B: Objective Worksheet Completed for

the Swim 4 Life Program 46

Step 5 Sample Timeline (Abbreviated Version) 51 Sample Methods Component 52 Worksheet 5.1: Methods Exercise 53

Step 6 Sample Evaluation Component 60 Worksheet 6.1: Evaluation Planning Questionnaire 61

Step 7 Sample Sustainability Component 67 Worksheet 7.1: Future Funding Questionnaire 69

viii List of Figures, Samples, and Worksheets

Step 8 Sample Budget Justifi cation 80 Worksheet 8.1: Revenue and Expense Budget 83

Step 9 Sample Organization Background Component 88 Worksheet 9.1: Organization Background Exercise 89

Step 10 Sample Summary 92 Worksheet 10.1: Summary Questionnaire 94

Step 11 Sample Cover Letter 98 Worksheet 11.1: Final Proposal Checklist 102

ix

Acknowledgments

THIS WORKBOOK IS a coming together of all aspects of the winning grants process: prospect research, program planning, grantwriting, proposal sub- mission and follow up, and relationship building and stewardship. In this fourth edition, Winning Grants Step by Step will continue to augment the many workshops and clinics and the various forms of consultation avail- able on proposal writing.

Special acknowledgments specifi c to this fourth edition go to three extraordinary individuals, all of whom were also strong devotees of the fi rst three editions of this workbook. Ashyia Johnson is a contributing author to this edition, serving as the primary writer for Step 8 (Budgets). Ashyia brings over fi fteen years of fi nance and budget experience in both public and private sectors. She has spent the past fi ve years in project man- agement and leadership roles in the federal government, where her primary focus is on budgetary and fi nancial matters. She is also an active member of several nonprofi t volunteer organizations, including Delta Sigma Theta, Inc., Jack and Jill of America, Inc., and the Junior League of Washington where she serves in various roles that involve fi nancial and program planning, as well as fundraising. Sheryl Kaplan is back again from the third edition to contribute several sample proposals for successfully funded grants. Sheryl is an eighteen-year veteran as a grantwriting consultant and has her own consulting practice, SKaplan Grants. Patricia Sinay is a second contribut- ing author to this edition, and is the primary writer for Step 4 (Goals and Objectives). She brings more than twenty years of experience working with nonprofi ts and foundations. She now runs Community Investment Strate- gies, a consulting fi rm she founded where she specializes in collaboratives, board development, nonprofi t capacity building, and philanthropic program development. Patricia teaches a class on public service at the University of California, San Diego, and is in frequent demand as a speaker and facilitator at conferences and workshops.

xi

The Author

TORI O’NEAL-McELRATH has more than twenty-fi ve years of experi- ence in the areas of organizational development, fundraising, program design and implementation, and capacity building with a broad range of nonprofi t organizations and foundations. Since 2009, Tori has served as the Director of Institutional Advancement at the Center for Community Change (CCC), a national nonprofi t focused on building the power and capacity of low-income people, especially low-income people of color, to have a signifi cant impact in improving their communities and the policies and institutions that affect their lives. Prior to joining the senior manage- ment team at CCC, she was the founding principal of O’Neal Consulting, a full-service organizational development practice that specialized in multi- funder collaborations, board development, fundraising, strategic planning, and interim executive leadership. She has successfully raised millions of dollars from foundations, corporations, and individuals throughout her years as a consultant, staff person, board member, and volunteer. Over the years, Tori has taught major gifts fundraising while on the faculty of the University of California Los Angeles Extension, and grantsmanship, annual fund campaigns, and nonprofi t management workshops through various volunteer centers. She has served as a presenter and facilitator at numerous local, state, and national conferences, and was most recently a contributing author to Nonprofi t 101: A Complete and Practical Guide for Leaders and Professionals (a Wiley Publication).

xiii

How to Use This Workbook

WINNING GRANTS STEP BY STEP, Fourth Edition will walk the reader, step by step as the title implies, through the basic grantwriting process and will clearly illustrate that conducting thorough research up front, following directions, building relationships, and implementing sound program plan- ning is what best positions organizations to win grants. By employing the strategies as outlined, grantseekers will signifi cantly increase their ability to turn organizational programs, projects, and even general operating needs into proposals worthy of the full consideration of funders.

This is a hands-on, user-friendly workbook that guides the user through the various stages of development that will enable organizations to take an idea or concept and make it come to life in the form of a proposal. Real-life examples, samples of materials, worksheets to support grantseekers as they create materials, and helpful tips can be found throughout the workbook. Guidelines, suggestions, and exercises prepare the reader to tackle proposal development for various organizations in the nonprofi t arena—commu- nity-based agencies, educational institutions, hospitals and clinics, and research organizations. “Reality Checks” and “Helpful Hints” offer brief focused guidance. “Defi nitions,” unless otherwise stated, are provided by the Nonprofi t Good Practice Guide (www.npgoodpractice.org/Glossary), a project of the Johnson Center at Grand Valley State University. One of the new features of Winning Grants Step by Step, Fourth Edition is that it has a companion website, josseybass.com/go/winninggrants. This website contains all of the worksheets found at the end of each chapter, live links to the references provided in Resource C (Resources for Grantseekers), and sample proposals.

Ultimately, the worksheets and other activities are crafted to assist in developing proposals and letters of inquiry to meet the requirements of funding institutions of various types—corporate, private, operating, family, and community.

Winning Grants Step by Step, Fourth Edition is crafted with three kinds of individuals in mind: (1) entry-level grantwriters, (2) other organizational staff and volunteers with limited knowledge or experience of grantwriting, and

http://www.npgoodpractice.org/Glossary
http://josseybass.com/go/winninggrants
How to Use This Workbookxiv

(3) people with some experience who are seeking a refresher in “grantwrit- ing 101.” Though grantwriting basics can be generally applied to all types of grant processes, this workbook focuses primarily on foundation grants, with some limited focus on corporate grants. Several resources on other sorts of grants can be found in the Resources for Grantseekers section on the website.

This workbook is modeled on creating proposals for program funding, and can easily be adapted for general support and other proposals as well. Winning Grants Step by Step, Fourth Edition targets this basic truth: a grant proposal must clearly articulate a well thought out, well-crafted program that both inspires confi dence in the nonprofi t’s ability to successfully implement it and fi ts within the interests of the funders who will receive it. Funders are looking to make strategic investments with their limited grant resources, and they need to see a direct connection between the organization’s program and community need(s) being met—and they need to see how grantseekers will track and measure their success.

Almost every organization out there addressing community needs has good ideas. The key to winning grants is to match those good ideas with funders who are interested in the same actions and outcomes.

Step One of this workbook walks grantseekers through the process of developing a proposal idea.

Step Two provides guidance on introducing a project to possible funders, as well as some helpful ideas about ways to develop relationships with funders, which is a critical component in winning grants.

Steps Three through Ten focus on the specifi c process components that will take ideas from a concept to an effective proposal.

Step Eleven walks grantseekers through the fi nal step in the process, submitting a proposal.

Step Twelve focuses on how to sustain relationships with funders after the grantmaking process has concluded—whether the program was funded or not.

Finally, the Resources for Grantseekers section, which can be found both in the book and on the companion website, addresses key components of the grantseeking process, such as prospect research, and offers a number of direct links to directories, guides, tutorials, portals, and actual foundation websites, as well as other websites deemed potentially helpful to the users of this workbook.

Incorporated throughout Winning Grants Step by Step, Fourth Edition are samples that are intended to highlight what a particular step is addressing. These samples focus on the work of the Swim 4 Life program, whose mis- sion is to empower youth in the underserved communities throughout King County, Any State, through high-quality programs to utilize the discipline

How to Use This Workbook xv

of swimming to improve physical fi tness, nurture self-esteem, and acquire the confi dence to advance their lives. The Swim 4 Life program is fi ctitious, but based on a similar real-life organization.

The best way to use Winning Grants Step by Step, Fourth Edition is to actu- ally go through it step by step, crafting a grant proposal along the way. This workbook is unique in that is structured to follow a process typically used when preparing a proposal; grantseekers can develop a proposal of their own while reading the book and completing the exercises.

Remember, there is no magic to navigating the grantseeking process or to preparing successful proposals. These activities simply take good planning, good writing, good research, and an approach that is geared to a prospec- tive funder with whom the organization has developed a good relationship.

1

Introduction An Overview of the Grantseeking Process

LET’S START WITH THE OBVIOUS: every nonprofi t organization, from start-ups to well-established, local community organizations to national affi li- ate organizations, consider foundation grants both a desirable and essential source of funding support. Compared to other revenue generating options, grants appear to take less effort and yield a larger reward. In many respects, that is true. However, the word “appear” is important: while grant seeking is relatively inexpensive in comparison to other fundraising strategies and can, in fact, yield large award amounts, it does have expenses associated with it, including a signifi cant amount of dedicated staff (and possibly consulting) time for research, program planning, budgeting, and attention to details and various deadlines. A strong proposal—that is, a well-written, well-organized, and concise proposal—can bring in substantial income for organizational programs.

That being said, not every organization is ready to pursue or receive grant funding. So before an organization starts on the path of seeking grant funding, or attempts to move up from smaller grants to grants of larger amounts, the staff and board should ask itself: Is the organization ready for grant funding or a signifi cant increase in grant funding?

Organizational leadership should start by answering these fi ve sets of questions:

1. Are the organization’s mission, purpose, and goals already well- established and articulated? Does the organization have its strategic plan or annual operating plan in place?

2. Does the organization have solid fi nancial procedures and systems in place? Does it have the ability to effectively track, monitor, and report on how it expends both restricted and unrestricted grant funds?

Winning Grants Step by Step2

3. Does the organization have the necessary staff in place to ensure that it can deliver on its stated goals and objectives? Can it do what it promises? If not, does the staff leadership possess the ability to effec- tively get the right staff in place should the organization be awarded a grant?

4. Is the organizational leadership prepared to do what it takes to meet the requirements that come with receiving grant funding? These requirements may vary greatly depending on the amount and source of the funding, and might include some or all of the following: producing quarterly, semiannual, or annual progress reports (including fi nancial updates relative to the grant); conducting ongoing program evaluation; participating in special training; and attending conferences and meetings (particularly if the funding relates to a special initiative of a foundation). Meeting grant expectations might also require the organization to expand its services, increase its offi ce space, and support staff expansion (with human resources efforts, information technology, and training).

5. Does the organization have solid access to—and understanding of—technology? Foundations of all sizes and focus areas are switching to online submission processes, and many conduct nearly all of their communication with their grantees and prospective grantees via email. In addition, does the organization have an online presence in the form of a website? While not a mandatory tool with most foundations, an organization with a website presents as technologically “in step.” An organization needs to honestly assess whether it has the basic technology in place to communicate with funders and access and engage in the grantseeking process online.

If an organization can answer yes to these fi ve groups of questions, it is well positioned to begin the grantseeking process.

In many instances a well-prepared and clearly articulated proposal can build an organization’s credibility with grantmakers, whether the organization is initially successful in securing a grant or not. Nonprofi ts that have the respect of grantmakers are often proactively sought after to work on issues of particular concern to both themselves and the funders. Often this funder solicitation comes in the form of a targeted funder initia- tive. This provides both the grantmaker and the nonprofi t with a unique opportunity to collaborate on a larger scale than they would under an individual grant.

Introduction—an Overview of the Grantseeking Process 3

More funders of all types (public, private, and operating foundations, as well as some government funders) are engaging in community or issue convenings, or both, as a routine part of their work. Participation in these types of convenings is another solid way to engage potential funders.

Grantseeking is, naturally, the most popular way for nonprofi ts to secure funding for programs; however, it is but one of several ways an organization can potentially raise funds. There are many different fundraising campaigns that may increase revenues—and visibility—for an organization, includ- ing (but not limited to) direct mail and email efforts, social media strate- gies involving Facebook, Twitter, and various other social media outlets, mobile strategies, membership drives, work place giving, special events, donor giving clubs, “thons” (as in walk-a-thons, dance-a-thons, and jump- a-thons), and more. These strategies should all be kept in mind in addition to grantseeking as a part of a well-rounded fundraising plan. Not only is a diversifi ed fundraising plan something grantmakers like to see, but it is vital to a nonprofi t’s ongoing work, as gaining support is important to build shared ownership in the nonprofi t by constituents and other supporters, so it remains well grounded. Also, grantseeking is a process that takes time. Some grant cycles take as long as six months from the time a grant proposal is submitted to the time an organization learns whether it has been funded. Then, if an organization is awarded a grant, it might take up to another few weeks before funding is received—which is increasingly being done by wire transfer as opposed to mailing a paper check (once again a reference to the increased need for organizations to have appropriate technology in place). If an organization is in need of immediate funds, writing a grant proposal is not the most effective way to raise it in most cases, although there is always an exception to the rule.

Nonprofi t organizations have seen some fairly signifi cant shifts in the funding climate over the last few years, but one thing remains the same, particularly for larger organizations: the vast majority of the funds raised in the private sector come from individuals, not foundations. The chart in Figure I.1 illustrates this point.

Government funding, delivered through grants from federal, state, and local agencies, adds billions of public dollars that are not factored into the chart in Figure I.1. That said, government funds are typically offered for projects aimed at very narrow target audiences and qualifi cations, so grantseekers should do their homework to ensure that there is indeed a match worth investing the time to produce these typically onerous grant proposals—it will most certainly take time and clear intention, not to mention the fairly signifi cant due diligence to steward this kind of funding once secured.

Winning Grants Step by Step4

FIGURE I.1 2011 Contributions: $298.42 Billion by Source of Contributions (in billions of dollars—all fi gures are rounded)

Individuals $217.79 73%

Foundations $41.67 14%

Bequests $24.41 8%

Corporations $14.55 5%

Source: Giving USA Foundation, Giving USA 2011: The Executive Summary of the Annual Report on Philanthropy for the Year 2011. Glenview, Ill.: Giving USA Foundation, 2012.

Categories of Support Organizations are dynamic and have varied fi nancial needs, which typically fall into one of the following categories:

• Operating (general support or unrestricted income). This is the fund- ing nonprofi ts need to pay rent, utilities, and the other everyday costs associated with running the organization—the basics that allow it to

Reality Check All foundations are not created equal. Many—though by no means all—national foundations are, by and large, directing the lion’s share of their grants to larger organizations (national nonprofi ts, includ- ing those with affi liates throughout the nation, major universities, hospitals, museums, and the like). Yet there are literally thousands of local, regional, and statewide foundations that fund various-sized orga- nizations. Smaller and mid-sized foundations are often located in the very communities of the organiza- tions themselves. Therefore, organizations seeking grants need to be diligent about conducting thor- ough prospect research up front and before the fi rst word is written for any new grant proposals. This is also all the more reason for grantseekers to state their case clearly throughout its proposal.

Introduction—an Overview of the Grantseeking Process 5

fulfi ll its mission. Typically, the sources of general operating funds are individuals (through annual fund campaigns, direct mail campaigns, and special events), earned income, and grants.

• Program (temporarily restricted income). Program or special project funding is of primary interest to most grantmakers, be they founda- tions, corporations, or even government agencies. It is funding that organizations receive to start a new program, continue running or expanding an existing program, or launch a time-limited project.

• Capacity building. This special project funding is used for a targeted effort to increase an organization’s capacity to better support its mission and fulfi ll its particular administrative or fundraising goals. Some foundations are willing to invest in capacity-building grants to organizations doing great work.

• Capital or equipment. Funds for capital support are often raised through a targeted fundraising drive known as a capital campaign or through seeking special equipment grants. These intensive efforts—designed to generate a specifi ed amount of funds within a specifi ed time period for construction, remodeling and renovation, building expansion, or the purchase of land or equipment—typically involve large-scale individual major gift solicitations, followed by substantial support from foundations and corporations. Some govern- ment agencies also provide funds for capital projects.

• Endowments. Funds for endowments are often generated through bequests and planned gifts; that is, through giving by an individual to an organization under the terms of a will or trust. Endowment funds may also be received as part of a capital or endowment campaign, using the methods for raising capital or equipment funds. In some cases, a longtime funder dedicated to an organization over a period of time may be willing to make an endowment grant, which may be a way to solidify their support of said nonprofi t or may be a part of an exit strategy on the part of the grantmaker, particularly if they have been funding the nonprofi t for a while. Generally the endowment principal is held as a long-term investment for the organization, and the interest income is used each year for operating needs.

There are other categories of support that might be considered under one of the categories already outlined or might be stand-alone. These include

• Planning. This is the funding nonprofi ts need to support a continuing process of analyzing program data, making decisions, and formulat- ing plans for action in the future, aimed at achieving program goals.

Winning Grants Step by Step6

• Research. Funds awarded to institutions to cover costs of investigation and clinical trials. Research grants for individuals are usually referred to as fellowships.

The Proposal Process There is no secret or trick to writing a winning grant proposal. The keys to success are

• Documenting an unmet community need, which the grantseeker is in a position to address

• Developing a clear plan for the program (or operations growth or capital work)

• Researching funders thoroughly

• Building strong relationships with funders

• Targeting proposals carefully

• Writing a concise proposal

Whether preparing a proposal for a foundation or a corporation, the process of proposal writing will be essentially the same. Organizations will

• Identify an unmet need that said organization can or should address

• Determine if other organizations within the community they service are currently attempting to address this unmet need

• Develop the plan to meet the need

• Determine whether there are potential partners or collaborators

• Identify potential funders and begin to build relationships with them

• Write the proposals, with each being tailored specifi cally for one potential funder

• Engage in strategic follow-up once the proposal has been submitted

Defi nitions Earned income. “Money received by an organization in return for the sale of a product or rendered service.” Capacity building. “The development of an organization’s core skills and capabilities, such as leadership, management, fi nance and fundraising, programs, and evaluation, in order to build the organization’s eff ectiveness and sustainability.”

Introduction—an Overview of the Grantseeking Process 7

This book covers the proposal process in detail in Steps One through Twelve. The major components of a proposal are as follows:

• Cover letter: a short letter that accompanies the proposal and briefl y describes its signifi cance

• Executive summary (or proposal summary or summary): a very brief (usu- ally one to two pages) overview of the proposal

• Problem statement (or statement of need or need statement): a compelling description of the need to be addressed by the grantseeker

• Organization background (or background statement): a presentation of the nonprofi t’s qualifi cations to carry out the proposed project