A Beginner’s Guide to Grants

The process of finding a grant can be overwhelming for beginners, which is why GrantWatch has put together a guide to grants for anybody new to the grant world who needs some extra help. In this guide, GrantWatch will give you step-by-step directions you can follow, as well as some tools and resources that you can take note of for the future.

What Are Grants?

Grants are non-repayable funds or products that a grant funder awards to an applicant of their choice. A grant seeker may be a nonprofit, a business, or sometimes an individual. For example, pursuing grants is a great choice for cash-strapped nonprofits looking to fund a new community project, or maybe an artist looking for funding for their next piece of artwork.

While grant funding is a good idea, no organization should rely 100% on grant funding. Grants should be an additional source of funding along with donations, sponsors, and other avenues. Grants come from a variety of different funding sources. The main types of grant funding sources include government grants (federal, state, or local), foundation grants, or corporation grants. All grants have different application guidelines, as well as different eligibility requirements.

Are You Grant Ready?

How does an organization become “grant ready” you may ask? The first and most important step toward being grant-ready is to have a clear project in mind that you want the grant to fund. Grant funders will not just give out money without knowing what it will go toward and what impact it will have on the community or those in need.

After you have a project in mind it is important that you have the proper status to apply for the grants that would be most relevant for you. For a nonprofit, this might mean registering as an official 501(c)(3) nonprofit with the state and the IRS. This official status is often a requirement for many nonprofit-specific grants. Whereas, if you are a business, you more than likely will need to register as an LLC before applying for business grants. Regardless if you are a business, a nonprofit, or an individual, you usually will need to build a comprehensive budget for the specific project you are requesting the grant for. This budget will include all costs associated with the project, such as equipment, building costs, or additional training.

Along with a clear budget, you want to stay organized. This includes having all the documents you need before applying for the grant. Most grants will want to see past financial records, an organization background or written history, as well as a mission statement of sorts. You can also refer to this grant-ready assessment for more information.

Searching for Grants

Now that you are grant-ready, the next step is to find a grant that will fit your needs. When searching for grants, you will need to narrow down the search as best as possible, so you don’t have to search through thousands of results. GrantWatch has its own search engine that allows you to search effectively. This SMART Advanced Search Filter allows you to search by recipient type, location, category interests, funding source type, and deadline date. You can use this in conjunction with the Boolean keyword search to further refine your search and locate the most relevant grants for your specific interests.

It is also helpful to be familiar with the funding source’s background. By using GrantWatch’s 990 Finder and Foundation Search, you can read the funder’s past financial information, including what type of organizations the funder has donated to before.

Eligibility

If you see a grant that you think might be a fit, it is always in your best interest to review the full RFP (Request for Proposal) and eligibility requirements. With GrantWatch’s proprietary grant detail page, grant seekers can gain access to comprehensive information on grant requirements, eligibility, the application process, the funder’s contact details, and deadlines,

Grant eligibility varies by program. Before you focus on a grant proposal, you should be certain that your organization is a good match with the funder’s interests. Read the guidelines carefully to ensure your organization would be a competitive applicant. In addition to the specific requirements, obtaining grant funding can be extremely competitive because there is always a higher number of requests than funds available. This is why it is essential to make sure you align with the funder’s mission.

Grant Writing

For most grant applications, you’ll need to draft the proposal and do several revisions before submitting it. Your application should be clearly written and have no blatant grammatical issues. Explain how the requested funding will solve a problem. You also want to ensure that your application is correctly formatted, which means following the funder’s instructions to a tee. The last thing you want is for your application to be rejected because you made a simple oversight.

Never stop applying for grants. Don’t give up if you do not win the first few grants you apply to. Furthermore, re-applying with new data shows your accountability and track record. If grant writing is overwhelming for you or you do not have the time, your organization may want to consider hiring a grant writer. You can do this by visiting GrantWriterTeam and posting a paid classified ad looking for a professional grant writer. Once you have found a grant writer, you will then work with them directly off GrantWriterTeam’s site. Make sure you vet them extensively and have a written contract that you both have agreed to.

Grant Management

Now that you have read our guide and your organization has won a grant, you must use the funds correctly. A complete grant lifecycle includes researching the funding opportunity, applying, AND responsibly managing the grant funds. Be sure that you follow all instructions given to you by the grant maker on funding management. Also, be sure to abide by the promises that you outlined in your application. Your organization should be prepared for any audits that might occur. Keep all grant-related materials in an accessible folder confirming you are in compliance with post-award management instructions. Keep in mind, if the funds are used incorrectly it can lead to repayment of the grant or worse.

GrantNews Notes

With close to 8,000 grants currently available, GrantWatch.com is the leading grant listing directory. Upgrade to a MemberPlus+ subscription to view the full grant details, including eligibility criteria and application information. For more information, you can also visit the GrantWatch FAQ page. To see the great value of all 20 of the top GrantWatch features, click here.