Before your organization commits themselves to approaching a particular funding source, it is crucial that time is taken to research, identify and create a list of additional foundations, government programs, service clubs, and corporations. All too frequently, organizations become laser focused on applying to the first funding source they encounter. Among the reasons this is problematic are:
There is likely to be a steep level of competition for grants due to a large volume of submissions if the funding source is well-known;
Even quality grant proposals may be rejected if they are evaluated on a curve as many large funders base their decisions;
They may be overlooking other ripened grant-making opportunities, and;
Many government agencies and other major grant-makers do not wish to be the first or the only funder supporting your project.
The biggest problem with targeting a single major funding source is the lack of a Plan B if your proposal is not approved. It is a high stakes form of fundraising where you may receive a 6-digit dollar grant or zero. The important change that your organization’s project hopes to achieve hinges on the success of a solitary major grant application.
Your organization needs a contingency – a back-up plan in case your marquee grant proposal is not successful. Major funders most often are inclined to invest in community projects that are supported by multiple sources and revenue streams for two (2) reasons:
It indicates there is significant “buy in” from other supporters and funders, and;
There is a strong probability that project expenditures and revenues will balance meaning the risk of failure is minimal.
Here are some steps that your organization can follow to put an effective contingency plan in place:
Step One
Devote a few hours to perusing online databases like Grant Connect, iWave or Grant Station to pinpoint additional or alternative granting sources for your organization’s project.
Step Two
Identify and compile a manageable list of different types of potential funders like local service club chapters, donor-advised funds from community foundations, corporate funders, professional and trade associate community involvement programs, private foundations and the like. Be sure your list includes smaller and medium-sized sources that “spread their generosity” by making a substantial number of modest grants to a wide range of organizations multiple times annually.
Step Three
Once your list is gathered, prioritize which funding sources you should approach first. Rather than simply select the sources who can give the largest grants, focus on the highest percentage funders – those who are most likely to give AND with the least amount of time and energy required. The aim is to discover which funding sources will provide the most immediate gift while investing as little “sweat equity” as possible.
Determining the sequence of funders to be solicited based on which are the highest percentage prospects involves factoring in three (3) key variables for each one:
Connection – Does anyone from your organization (ie. staff, board, volunteers, clients, suppliers, supporters, etc.) have any links with the funding source at all? Does your organization have an existing rapport or relationship with the funding source? Has the funding source given to your organization in the past?
Interest – Does the funding source share your organization’s passion for the cause you are pursuing? Has the funding source supported similar projects in the past? Does your support care as deeply as your organization about the lives of the people you serve?
Ability – How capable is the funding source of granting your organization a certain amount of money or more in the near future?
Step Four
Aim to obtain as many early “Yeses” as possible, even if they are a chain of smaller grants from local sources. As indicated above, major grant-makers are most likely to fund projects that have already demonstrated a strong degree of community support. Regardless of the respective sums of each early grant received, a large volume of positive responses is certain to entice nearly all big funders.
As the saying goes, “Never put your eggs in one basket”, we likewise should never place the fate of our projects in a single funding source. Establish some early momentum with a succession of smaller grants and identify some “backup” larger sources that can “fill in the gaps” in case your proposal is declined or only partially approved. Adopting these practices should not only safeguard the delivery of your projects, but they will also position your organization to generate a lasting impact that strengthens the vitality of your community.
You can learn a wealth of great tips on grant proposal writing like this by enrolling in one of our upcoming Virtual Grant Writing Workshops by clicking here.
We also provide Customized Virtual Grant Writing Workshops for charities, non-profit groups and other community organizations. If you would like to learn more about these opportunities, please click here.
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In the meantime, the best of luck with your grant-seeking pursuits and be safe.
