Introduction to Grant

WritingELIZABETH PERCH

CFO

THE HUNGARY INITIATIVES FOUNDATION INC.

Foundations – Old Way of Thinking

Foundations have fundamentally changed the way they evaluate grant proposals from 20 years

ago.

OLD WAY – Getting money used to be about:

What you do – education, arts & culture, job training, etc.

History – what your organization has done

Board – who’s on it, act as a intermediary between organization and funder

Repeat Business – have they given to you in the past?

Foundations – Old Way of Thinking

(cont.)

Grant proposals are comprised of:

1. Need statement – why your organization exists

2. Mission – what your organization does

3. Goals – what the organization hopes to achieve

4. Objectives – Numbers that quantify your goals

Foundations – New Way of Doing

Business

Foundations have become more like businesses in the way they evaluate organizations.

Changes in thinking -

1. “What am I getting for my money?”

2. Shopping for outcomes (results) rather than profits.

Changes in structure of grant proposals -

1. Grant Proposals are more like business plans.

2. They want a need statement, mission, goals and objectives – however – they also want to know the outcomes, how you will measure whether it is effective, and evaluating the program to see where improvements could be made.

WHAT DOES THIS MEAN FOR YOU AS A GRANTEE?

Grants Are Competitive

Grants are more difficult to obtain than acceptance into top US Colleges and

Universities.

For example, when examining the #3 Largest Foundation and the #3 on the

Top U.S. College and Universities list -

Yale University had 29,610 applicants with only 6.9% accepted.

The Ford Foundation had over 40,000 applicants with only 3.5% accepted.

SO WHAT’S THE GOOD NEWS?

Developing the Grant Proposal

A Grant Proposal is comprised of 6 parts:

1) The Executive Summary – umbrella statement of your case and summary of

the entire proposal (1 page) – DO THIS LAST!!!

2) The Statement of Need - why this project is necessary (2 pages)

3) The Project Description – nuts and bolts of how the project will be

implemented and evaluated (3 pages)

4) The Budget – financial description of the project plus explanatory notes (1

page)

5) Organizational Information – history and governing structure of the

nonprofit; its primary activities, audiences, and services (1 page)

6) Conclusion – summary of the proposal’s main points (2 paragraphs)

The Statement of Need

The need, problem or situation that readily exists, which your organization or project

seeks to address. This should present facts and evidence that support the need for

the project and establishes that your organization can reasonable address them.

MUST BE PERSUASIVE!!

1) Decide what facts or statistics best support the project;

2) Give the reader hope;

3) Decide if you want to put your project forward as a model;

4) Determine whether it is reasonable to portray the need as acute;

5) Decide whether you can demonstrate that your program addresses the need

differently or better than other projects that preceded it; and

6) Avoid circular reasoning.

The Statement of Need - Examples

What is missing from this statement of need?

“Our youth have limited access to educational resources. They are mostly from

low-income households, and the neighborhood in general is very distressed. We

have one after-school program that is well attended, but we need more

resources to reach more of our students. Please help us educate our youth.”

The Statement of Need - Examples

What is missing from this statement of need?

“According to the National Acme Education Center, 45% of middle school students

across the nation do not have access to after-school programs, and in our state

the figure rises to 58%. The same source also pointed out that our state

education budget is being cut by 12%. These are trends that the students in our

community must be able to overcome.”

The Project Description

The Project Description has five subsections:

1) Objectives

2) Methods

3) Staffing/Administration

4) Evaluation

5) Sustainability

The Project Description - Objectives

Your objectives must be :

Tangible

Specific

Concrete

Measurable

Achievable in a specified time period

The Project Description – Objectives

(cont.)

EXAMPLE

GOAL: Our afterschool program will help children read better.

OBJECTIVE: Our after school remedial education program will assist 50

children in improving their reading scores by one grade level as demonstrated

on standardized reading test administered after participating in the program

for six months.

The Project Description – Objectives

(cont.)

There are at least four types of objectives, they are:

1. Behavioral – A human action is anticipated.

2. Performance – A specific time frame within which a behavior will occur, at an

expected proficiency level, is anticipated.

3. Process – The manner in which something occurs is an end in itself.

4. Product – A tangible item will result.

The Project Description – Objectives

(cont.)

What type of objectives are the following?

We will document the teaching methods utilized, identifying those with the

greatest success.

A manual will be created to be used in teaching swimming to this age and

proficiency group in the future.

Fifty of the 70 children participating will learn to swim.

Fifty of the 70 children will learn to swim within six months and will pass a basic

swimming proficiency test administered by a Red Cross-certified lifeguard.

The Project Description – Methods

(cont.)

The methods section describes the specific activities that will take place to

achieve the objectives. Focus on HOW, WHEN, AND WHY. These methods should

match the objectives.

How: This is the detailed description of what will occur from the time the

project begins until it is completed.

When: The order and timing for the various tasks. This is sometimes called a

project timeline

Why: Defend your chosen methods, especially if they are new or unorthodox.

The Project Description –

Staffing/Administration

In describing the methods, you will have mentioned staffing for the project.

You need to describe the number of staff , their qualifications, and the

specific assignments.

Bios can be added here or added as an appendix.

For a project with a paid staff, be sure to mention how much time each staff

member will work on the project.

The Project Description – Evaluation

How are you going to measure whether the program is a success?

How are you going to measure your own effectiveness?

There are two types of evaluations:

1. Qualitative

2. Quantitative

The Project Description – Evaluation

(cont.)

Qualitative Evaluations methods include:

Interviews

Focus Groups

Questionnaires

Notes complied by object observers

Surveys

EXAMPLE: If you are evaluate a program you might do a formal observation of

the program/event and take written notes regarding the activities and then ask

the participants afterwards their opinion of the program.

The Project Description – Evaluation

(cont.)

Quantitative Evaluations methods are:

Formal in execution

Numerical in Output

Used in generating statistics

EXAMPLE: If you are evaluate a reading program, you might want to look at the

number of children participating and how they scored on reading tests

before/after the program.

The Project Description - Sustainability

Demonstrating to grantmakers the long-term financial viability of the project to

be funded and of the non-profit organization itself.

Ways to do this:

Current and Prospective Donors

990s

Is project finite or capacity building?

The Budget – Direct vs Indirect Costs

A simple one-page statement of projected expenses.

A typical elements of a budget include a list of expenses as well as support and

revenue.

Direct vs. Indirect Costs

Direct Costs are the costs directly related to the project.

Indirect Costs are sometimes called overhead, administrative costs,

supporting services, or shared costs. They typically include: administrative

staff, equipment rental, insurance, legal fees, audit fees, etc.

The Budget - Structure

Review Sample Budget and Narrative provided.

Typical Structure of a budget:

1) Salaries

2) Fringe Benefits

3) Other Direct Costs

4) Indirect Costs

5) Budget Narrative

The Budget – Fringe Benefits

Employee benefits and payroll taxes should be included as part of personnel costs.

To calculate your fringe benefit rate:

Medical Insurance - $25,000

Dental Insurance - $5,000

Long-term disability - $15,000

FICA and other taxes - $15,000

Total Fringe Benefits - $50,000

Total Payroll - $200,000

Divide total fringe benefits by payroll = 25%

Organization Information

This is the resume of your non profit organization.

You should mention:

1. The History of the Organization

2. Milestones Reached

3. Mission Statement

4. Current Programs

Can also talk about your board, volunteers, varying levels of expertise.

Conclusion

Final appeal for your project.

What you what to do and why it is important.

Why you need the funding to accomplish it.

How you might build upon this program – plant seed for next grant.

The Executive Summary

The Executive Summary is the most important section of the entire document.

It should summarize all key information in your grant proposal.

You should include:

1) Problem – a brief statement of the problem or need your organization has

recognized and is prepared to address (one or two paragraphs).

2) Solution – a short description of the project, including what will take place

3) Funding Requirements – an explanation of the amount of grant money required

4) Organization and its expertise – a brief statement of the history

Letter to Accompany Proposal

Components:

Ask for the gift

Describe the need

Explain what you will do

Close

Always provide contact information in closing as well

Problems with THIF Grants

1) Not following the directions

2) Incomplete applications

3) Unrealistic Budgets

4) Mistakes in Calculating the Budget

5) No editing

6) Not spending the money in the description of the project

7) Discussing organization needs not needs of the target population

8) Assuming that we know what the organization does and the impact it has

on the community

QUESTIONS???

Works Cited

Geever, Jane C. The Foundation Center's Guide to Proposal Writing. New York: Foundation Center, 2012. Print.

Mastrodonato, Paul. "Writing Grant Proposals with the Funder in Mind." Home - Nonprofit Works Inc. (Affordable Expertise in Grant Writing, Web Development, Web Design, Web Hosting, Computer Training, Planning). Nonprofit Works, n.d. Web. 24 Sept. 2014. .

"Non-profit Guides- Private Proposal." Non-profit Guides | Private Proposal. Nonprofit Guides, n.d. Web. 24 Sept. 2014. .

Ruhnke, Alice. "Tracks to Success - Common Grant Writing Mistakes You Can Fix Today!" GrantStation.com. Grant Station, n.d. Web. 24 Sept. 2014. .

"Tutorials - Proposal Proposal Budgeting Basics." Tutorials - Proposal Proposal Budgeting Basics. The Foundation Center, n.d. Web. 24 Sept. 2014. .

"Tutorials - Proposal Writing Short Course." Tutorials - Proposal Writing Short Course. The Foundation Center, n.d. Web. 24 Sept. 2014. .