Nonprofit founders: Win funding by focusing on what funders really care about

Headshot of Rebecca Brit, a “nonprofit interventionist” and host of For Purpose Live
By Rebecca Britt

Many nonprofits are stuck in a “waiting for funding” purgatory, and with that comes waiting to fund a good grantwriter to get more funding. Yet nonprofit founders are themselves well positioned to secure funding, because they are the ones with the vision, they understand the unique value their programs and services offer, and they know how that value can have a greater impact on society. Founders have everything they need to write winning funding proposals; they just need to speak to what funders really care about. So, what do funders care about, and how can founders structure their funding proposals accordingly?

Purpose

Whether it’s a program, initiative, convening of thought leaders, support group, pilot research, or any other funding-worthy idea, the purpose must be clear. Too often nonprofit leaders start with the what and jump right into the how without explaining the why. Funders care most about the why. A purpose statement should include a desired result for a population.

A really specific purpose statement will enable the funder to immediately understand what the proposed project will accomplish—that is, what their money will help accomplish. A clearly stated why-based purpose will also help when you get to the approach section, as your desired result should drive exactly how you will execute.

For example, if you know your purpose is to build a support network and increase access to resources for parents with children in the NICU, then your approach will much more specifically speak to methods that foster belonging and networking as well as a good resource library. This looks much more intentional to a funder and also helps you create metrics that matter.

Background

Nonprofit founders know the most about the background of the issue and why they need the solution they’re proposing. In the background section of a funding proposal, you need to address these questions:

  • What is the problem you are addressing?
  • What is the evidence of this problem (cite sources)?
  • What are the root causes of the problem?
  • What is the problem’s impact on society at large?
  • Why should a funder care to be part of the solution?
  • What is your solution?
  • What’s the evidence that this solution works (cite sources)?

And before you get overwhelmed, pretend a volunteer or a friend is asking you these questions. These are things you are passionate about and likely talk about all the time. Write your answers in a way that your passion comes through to the funder.

For additional help, use these questions as prompts in ChatGPT!

Approach

Funders will want a clear approach to the project. One successful way to do this is to break your approach into phases. For example, “[Nonprofit] plans to implement a three-phased approach to assess the communication needs of birthing people.” This brings your approach back to your overarching purpose and breaks it down into digestible chunks. Phasing can also help you propose a sufficient timeline and budget, because it really helps you focus on what the project will require from start to finish. So, what are your three phases?

Phase 1: Information gathering

The information-gathering phase may include researching best practices, posting job descriptions, finding evidence-based tools, getting quotes, hiring, developing an advisory council, creating strategic partnerships, and purchasing supplies.

Phase 2: Build out

This may be where you build the structure, get marketing materials, recruit participants, develop evaluation tools, set up systems and processes, create the curriculum, or build the actual structure.

Phase 3: Launch and monitor

It is important that funders know you care about monitoring your project’s progress and evaluating for success. The launch and monitor phase is where you actually start implementing the program and collect data on an ongoing basis to report back to the funder.

Once you block out your approach into phases, you may realize you need to ask for more time and money. That is a good thing. You want to under-promise and over-deliver to position yourself for continued funding and a positive funder relationship.

Reporting

Working reporting into a funding proposal on the front end not only allows you to show the funder you care about outcomes, but also to propose metrics and a reporting schedule that works for you. You should include a few metrics that speak to the outcomes of your programs and not just outputs. Every funding proposal should include metrics that speaks to how much you did (e.g., the number of people enrolled in the support group), how well you did it (average attendance rate for each group), and its impact (percentage of participants reporting less isolation).

You can simply start your reporting section off with “[Nonprofit] is prepared to collect and report on the following metrics....” You can also offer monthly progress calls with the funder if appropriate.

Once you have developed your metrics, make sure you are prepared to collect the necessary data. For example, you don’t want to say you’ll report on how many program participants were able to obtain employment if you have no way to follow up with participants.

What sets you apart

Finally, spend some time thinking about what sets your organization apart from others seeking funding. Funders are likely inundated with proposals, so you need to stick out. Think about:

  • What experience does your team have?
  • How long have you been in operation?
  • What previous support have you received?
  • Do you already have a wait list of or good community connections with those you wish to serve?
  • Why should someone fund you?
  • Why should they trust you will deliver?

As you can see, most of this information doesn’t require a grantwriter. As a founder and leader of a nonprofit organization, you should be able to answer these questions.

Building your grantwriting and funding proposal muscle not only helps nonprofit founders win grants faster but also builds your confidence in a skill that is essential to the sustainability of your nonprofit and accomplishing its mission.

Rebecca Britt internationally scaled her nonprofit program, Stable Moments, and is now a “nonprofit interventionist” and host of For Purpose Live.

The sustainable nonprofit

December 12, 2023