Strategies to Build A Grants-Ready Nonprofit

We’ve all been there: you’re busy with the day-to-day work of running your programs and keeping your nonprofit functioning, when all of a sudden, a grant opportunity pops up that is perfect for your organization! 

But then you look at the proposal requirements… yikes. Do you have all of the documents and information they’re asking for? And if you do, when was the last time they were updated? As you look at the quickly-approaching proposal deadline, you wonder if it’s worth it to drop everything and scramble to put together a proposal, or if you should just let this golden opportunity pass you by. 

The good news is that you can avoid this unnecessary stress and exhaustion by making small and consistent improvements that will help you always be ready to apply for grants, even if your nonprofit is busy or if the deadline is short. 

Here are 5 strategies to build a grants-ready nonprofit:

#1 Keep your past grant proposals organized

If you’ve applied for grants in the past, you know that a lot of funders ask for similar information in their applications. So if you have written previous grant proposals, make sure to store them all in the same location (like a folder on your computer or in a shared drive) so that you can access them easily when a new grant opportunity pops up. It’s much easier to copy and paste a program description, staff biographies, or a board list from a previous grant application than to write them over again for each grant! 

Pro Tip: If you haven’t applied for a grant yet, don’t worry! That means that you can start the habit of organizing your grant proposals from the very beginning. 

#2 Maintain up-to-date financial records 

Most funders want to see financial documents such as annual operating budgets, program budgets, statements of financial position, statements of activities, 990 tax return, etc. If you are required to have audited financial statements, funders will definitely want to see them (you generally only need audited financials after your organization surpasses a budget of $250,000). Work with your nonprofit accountant to make sure that these records are updated so that you aren’t stuck trying to frantically calculate an operating budget to meet a grant deadline. 

Pro Tip: Make sure that your accountant is specifically trained in nonprofit accounting! Nonprofit accounting and for-profit corporate accounting have very different regulations and terminology (Hello, Balance Sheet! Your new nonprofit name is Statement of Financial Position). If you are submitting financial records that look like corporate financial records, that could hurt your chances of winning grants.

#3 Use a grants calendar 

A grants calendar is a calendar that helps you keep track of the important dates and deadlines for the grants that you are interested in applying to. Depending on the size of your organization, the number of grants you want to apply to, and your nonprofit needs, your grants calendar can be as simple or as detailed as you need it to be. Use the grants calendar to help you have a bird’s eye view of your grants load for the year. You’ll feel more prepared, and it will be less likely for a grant deadline to sneak up on you. 

Pro Tip: Make sure that your grants calendar stays active! It’s easy to forget about the events in your grants calendar if you don’t remind yourself about them. Some people like to keep a physical copy of their grants calendar at their desk to look at often; others like to upload deadlines to their digital calendars and set reminders for themselves. 

#4 Keep commonly-requested information and documents updated and accessible

Most funders will ask for things such as your IRS 501(c)3 tax letter, mission statement, organizational history/background, program descriptions, board of directors list, 990 federal tax return, and needs statement. Keep these documents and information in an accessible location (for example, in the same folder or shared drive as your past grant proposals) so that they can be copied and pasted into your grant application. Take a few minutes every month or two to review these documents and make sure they’re up-to-date. It’s easier to make a habit of updating them consistently than waiting until a grant deadline to realize that they’re entirely out of date and need major revisions.

Pro Tip: Depending on what kinds of grants you are applying for, there might be different info and documents that are commonly requested. If you aren’t sure what these are, read through the grant applications from several funders that you are interested in applying to and write down what they ask for. This will help you generate a list of information to keep on hand. 

#5 Automate program data and impact evaluations 

This might seem like a no-brainer, but it’s easy to get so focused on the services and resources your nonprofit offers that you forget to record your impact and program data. Make sure you have a system in place that makes it easy to record data and results as they happen and to share this data with others. When it comes to reporting data in a grant proposal, foundations expect exact numbers–you don’t want to be stuck trying to guesstimate your data or reconstruct it based on memory.

Pro Tip: There’s a lot of databases, CRMs, and other software that are specifically designed to help nonprofits keep track of their data. If you want help with selecting one that fits your nonprofit and your budget, let us know. We can help you find your perfect fit and set it up for you!

The key to a Grants-Ready Nonprofit is to consistently maintain the elements of a quality grant proposal throughout the year–not just when a deadline is looming! So even if you don’t have a grant due in the next few weeks or months, there is a lot of planning, updating, and maintenance that you can do in the meantime to prepare your organization for the next grant. 

Training your nonprofit to be grants-ready is very similar to an athlete training themselves to be competition-ready: you’ll get much better results if you are consistently preparing yourself and maintaining your “grants fitness,” than if you wait until crunch time and exhaust yourself trying to pull everything together at the last minute.

It might take a little extra work to consistently keep your nonprofit grants-ready, but you will thank yourself later when that perfect-fit grant pops up, and you already have most of the proposal prepared, updated, and ready to go!

Need assistance with preparing your organization to apply for grants? Want more guidance in making your nonprofit a grants-ready nonprofit? Contact us today for help with grants!

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