Grant Writing for New Nonprofits: Building a Fundraising Plan

Grant writing is the process of researching funders and preparing written requests for money to support a specific purpose, such as a program, a piece of equipment or general operations. A grant proposal usually describes the need, the planned work, who will carry it out, and how the money would be used and tracked.

A nonprofit fundraising strategy is the bigger picture. It looks at where an organization's support may come from, such as individual donors, businesses, events, community campaigns and grants. A nonprofit fundraising plan puts that strategy on paper, with goals, audiences, messages, responsibilities and a calendar.

For a new nonprofit, these pieces tend to work together. Many funders want to see a clear mission, a sensible budget and some evidence of community backing. Donor cultivation, the work of building real relationships with supporters over time, often runs alongside grant research rather than after it.

Many new organizations start close to home. Founders often reach out to friends, family, local businesses and neighbors, then look at local community funders, civic groups and government programs that match their cause. Searching public funder directories and reading what a funder has supported before is a common way to see whether there is a fit.

Grant writing has often been handled by a founder, a board member, a volunteer or a part-time staff member. Some organizations hire a freelance grant writer or bring in a consultant for a single application. Others build a small development function over time as the budget allows.

Approaches to fundraising differ widely. Some groups lean on grants, some on individual giving, and many on a mix. Each path has trade-offs in time, predictability and workload, and what suits one organization may not suit another. Funding rules and eligibility, including whether a group has formal tax-exempt status, vary by funder and by state.

The right consultant may help you turn a mission into a realistic fundraising plan, organize your funder research, and shape proposals that are clear and well matched to each funder's stated priorities. Some consultants focus on grant writing. Others focus on donor cultivation or overall strategy. Some work as a fractional executive director who can oversee several of these areas for a growing organization. These are independent business arrangements, and none of them can promise funding.

A first conversation is usually an exploration. A consultant may ask about your mission, your stage, your budget, your board, and what you have already tried. They may ask what materials you have, such as a budget, a program description or a list of supporters. Expect questions about how you track and report on your work, because funders often want to know that.

Good questions to ask include: What experience do you have with organizations at my stage? How do you find and judge funders that fit? How do you handle deadlines, edits and reporting after an award? How will we divide the work? How do you charge, and what is included? Ask for references and be wary of anyone who guarantees results. Also confirm legal and tax questions with a qualified nonprofit attorney and CPA. For sports-related missions, League Assists (leagueassists.com) is a resource worth knowing about in general terms.