Grant writing for beginners
Most people who write grants at small nonprofits were not hired to do it and were not trained for it. This covers what is realistic to pursue, where to look without paying for a database, and the terms you will run into.
What is realistic in your first year
The realistic target for an organization new to grant seeking is local. Community foundations, local family foundations, and corporate giving programs based in your area fund smaller amounts, typically between $2,500 and $25,000, and they prioritize organizations in their own geography. Your odds are far better there than with a national funder receiving thousands of applications.
Expect to be declined more often than funded. A success rate somewhere between one in four and one in six is normal, and declines frequently reflect a funder's budget being committed rather than a judgment on your work. Organizations that stop after two declines are stopping at the point where most people are still learning the funder's expectations.
Federal grants are usually not the place to start. They carry registration requirements, heavier reporting, and audit exposure that a small organization without dedicated finance staff will find costly relative to the award.
Where to find funders without paying for a database
Every private foundation files a Form 990-PF with the IRS, and those filings are public. They list the grants a foundation made, to whom, and for how much. Reading the 990-PF filings of foundations in your area tells you their real giving range and whether they fund organizations like yours, which is more reliable than a mission statement.
Grants.gov lists federal opportunities and is free to search. Your state nonprofit association often maintains a member funder list, and many community foundations publish their grant recipients annually on their own websites.
The most underused source is the annual report of a nonprofit similar to yours in your area. Their donor and funder lists are usually printed in full, and a funder already supporting comparable work in your community is a stronger prospect than anything a keyword search will surface.
The vocabulary
A letter of inquiry, often shortened to LOI, is a one page summary sent before a full proposal, which many funders require as a screening step.
Restricted funding must be spent on the specific project you proposed. Unrestricted or general operating support can be spent on any organizational cost, including rent and salaries, and is considerably more useful and harder to get.
Indirect costs are shared organizational expenses such as rent, accounting, and insurance. Many funders cap these at 10 to 15 percent of the request.
A program officer is the foundation staff member who manages your application. Where a funder invites contact before applying, taking that invitation is worth more than any improvement you could make to the draft.
Capacity building refers to grants that fund the organization's own infrastructure, such as technology, staff training, or strategic planning, rather than direct program delivery.
Common questions
How do I start grant writing with no experience?
Begin with local funders: community foundations, local family foundations, and corporate giving programs in your area, typically awarding between $2,500 and $25,000. Their expectations are more accessible and they prioritize organizations in their own geography.
How do I find grants for free?
Read the Form 990-PF filings that private foundations file with the IRS, which list every grant they made and to whom. Search Grants.gov for federal opportunities, check your state nonprofit association's funder list, and read the annual reports of similar nonprofits in your area for their funder lists.
What percentage of grant applications get funded?
For a small nonprofit applying to well-matched local funders, one in four to one in six is a normal range. Declines often reflect a funder's budget already being committed rather than a judgment on the quality of the work.
Should a new nonprofit apply for federal grants?
Usually not at first. Federal awards carry registration requirements, substantially heavier reporting, and audit exposure that is costly for an organization without dedicated finance staff. Local foundations are a better starting point.
What is the difference between restricted and unrestricted funding?
Restricted funding must be spent on the specific project proposed. Unrestricted or general operating support can cover any organizational cost including rent and salaries. Unrestricted funding is more useful and considerably harder to obtain.
What is a letter of inquiry?
A one page summary sent before a full proposal, which many foundations require as a screening step. Its only purpose is to earn an invitation to submit the full application.
Should I contact a funder before applying?
Where the funder invites it, yes. A short conversation with a program officer about fit is worth more than any improvement you could make to the draft, and it sometimes saves you from applying when you are ineligible.