Is Grant Writing Still Viable in a Down Economy?

Christian ministries and churches have asked this question. How will this turmoil affect the sources of funding given to my ministry? Is grant writing still viable in this economy? The answer is yes, grant writing is still viable, EVEN in this economy.

This does not mean that any of us can continue with business as usual. We will have to adapt our strategies, but we certainly won’t have to discard them. The adaptation is nothing new to concede to the writers. Conversely, those of us who have written grant proposals adapt with each inquiry letter, with each proposal, with each funding source… adaptation is only one part of the grant writing process. If the economy were to start growing tomorrow, we would have to adapt to that change as well.

So what works? How do you recognize economic turmoil and at the same time seek funding? Here are six ways you can tailor your grant development strategy for today’s market:

Think locally:

This is always true. The closer a funding source is to your organization geographically, the more likely they are to fund your ministry. Furthermore, in this environment, funding sources are likely to remain even closer to home.

Understand that there are real people behind these foundations who drive through your community every day. They read the local newspaper. They watch the local news. Worship in a local church. This naturally compels them to want to alleviate the suffering they see. The sufferings and struggles they see are more tangible to them. If you can concretely show how your ministry is meeting needs they are already aware of, you are more likely to get funding.

Make it personal:

Many funding sources discourage personal contact with a foundation. It will read “no phone calls” or “initial contact by letter only.” This serves as a control function of funding sources.

If they require a little more work to make contact, they will eliminate many of the organizations that are less serious, less qualified and less prepared.

However, it is now more critical than ever to make personal contact with the foundation BEFORE sending a letter of inquiry (LOI). Changes in the market and the economy may have changed your giving habits. Foundations that were giving 6 months ago may not be giving today.

Some funding sources are just existing funding grants. Others are reducing prize amounts or changing their approach. The only way to know this is through personal contact with the funding source.

Focus on people:

Focus on the issues that will have an impact on people. During tough times, a stronger focus on programs and services makes financing more compelling than a new building or capital improvement.

Discuss how your particular program will have an immediate impact on the people you serve. It is often helpful to give a brief example of a current client served by your ministry and how his services directly benefited him, changing his life or personal situation.

Of course, it may seem that a greater focus on programs and services means you’ll be less focused on operating expenses and current and future construction projects. Not necessarily. Those interested in donating for operating expenses or capital projects can be harder to find, but they are there if you spend enough time doing your research.

However, for funding sources that are interested in both programming and capital projects… lean toward a programming application.

Keep doing what you do:

Now is probably not the time to try some new and innovative idea that you have to see if it will work or not. A program with a track record of success will be less risky and more bankable than a new, unproven program.

Build on your current programs. Expanding a program to serve more people and fill a community need will be attractive to the right funding source for two reasons: it accurately portrays its past effectiveness, and it projects the greater benefits of expanding an already successful program.

If you launch a new project, make a strong case showing how your past success predicts a high expectation of success for this company. Discuss why you are starting a new program instead of developing existing programs. A discussion of how this fills a need in the community or target population will also be important.

Order the correct amount:

This is always important! Don’t ask too much or too little.

Applying for a small grant from a very large funding source may seem like a good idea. You think, “They won’t even notice the $10,000 grant in the billions they give away.” But even these smaller grants require an administrative process that is sometimes quite cumbersome in very large foundations. Managing and administering funds of only $10,000 may require too much administration for the perceived benefits.

Of course, asking for too much money can also be a problem. This is especially true if the funding source has a set limit on grant applications. Requesting more than the established limit means that you did not do your research and are not following the guidelines established by the funding source.

Some funding sources conduct a technical review of proposals to see if the guidelines were followed before reviewing the actual content and merits of the program and organization.

The correct amount of money is based on the amount you need to properly run the program or provide the service. Don’t try to increase your budget if you get less than you ask for, and don’t ask for less than you need because you just want the funds. You will also want to finance the program through multiple funding sources. A good rule of thumb is to have no more than 25% of a program funded by any one source.

Application for the appropriate funding source:

You can write the best proposal ever written. Have the most pressing need. Having a great program in a superbly run organization in a service community. But if you keep submitting this proposal to the wrong funding sources, the proposal will NEVER receive funding.

Grant writing is really a misnomer as most good grant writers spend most of their time researching and only a small percentage actually writing. How much does it cost? A successful grant writer will likely spend about 85% of his time researching funding sources and matching them to her organization. The remaining 15% of the time will be devoted to writing. Of this, rewriting, proofreading, and editing take up most of the actual “writing” time.

The secret to great grant writing is actually doing great grant research. Better research will lead to better writing because you will have a better understanding of the funding source.

Better research will lead to better results when funding sources know that you are writing directly to them. Like each of us, a grants administrator can tell when he has sent you a general form letter that he is going to send to all the other foundations in the city.

Remember, most organizations don’t need 100 foundation grants every year. Most ministries need 5-10 foundation grants to increase the support they receive from individual donors, special events, service fees, and other funding sources.

Grant writing is difficult, demanding, and… well worth the effort. Ministries that are willing to implement a consistent, persistent and organized grant development strategy will see results and find the effort profitable. These 6 keys to success will help guide that strategy and make grant writing profitable for your ministry, even during these turbulent times.

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