Nonprofits often rely on grants to fund programs, and grant writing can be difficult. Here, we outline some common pitfalls to avoid, strategies for crafting compelling proposals, and tips for building lasting relationships with funders. Plus, learn how to effectively follow up on applications and tackle post-award requirements to maximize your nonprofit's success.

Grants: the basics

Sometimes called a fundraising grant, a nonprofit grant is a financial donation given to an organization by a corporation, foundation or government agency. Nonprofits can be partially or entirely funded by grants received throughout the year.

To secure grant funding, nonprofits use state, general, and online resources to research opportunities aligned with their target audience, services, and most importantly—their mission. At that point, a staff member or outside writer must submit a grant proposal on behalf of the organization, outlining the organization’s needs and plans for the funds. The grant writer must ensure that it adheres to specific guidelines and requirements outlined by the funder. Once submitted, the funder will review the proposal and decide whether to approve (funds delivered) or deny the application.

Avoid common pitfalls

Successful grant proposals depend on thorough planning and attention to detail. Funders will be looking for any inconsistencies—glaring mistakes make funders question the reliability of your proposal, and moreover the dependability of your nonprofit organization as a whole.

Here are some common pitfalls to avoid:

• Not effectively communicating the organization’s goals- Make sure you are clear and specific when communicating your goals, and it’s always wise to include data and examples to back up your points.
• Being too wordy or technical- Your proposal should be clear, easy to understand, and straight to the point. Funders likely have multiple proposals to review, so their time is limited. Cut technical language wherever possible. Make sure you include direct information about your organization, your proposal and how you will be using the funds.
• Not following guidelines- Follow the funder’s instructions carefully, even the requests that might seem trivial like formatting or word count. You reduce your chances of securing funding if you do not follow guidelines directly.
• Not indicating long term strategy- Funders are looking for more than just short-term goals. Make sure you showcase your strategy for long term sustainability and how you plan to achieve success after the grant funding period.

You were awarded the grant: now what?

Congrats! Receiving a grant marks the beginning of a meaningful relationship with the funder. To ensure success, follow these critical next steps:

• Sign the grant agreement:
  • Carefully review the terms, including fund usage, reporting obligations, and disbursement timelines.
  • Ensure you fully understand and agree to all conditions before signing.
• Provide additional documentation:
  • Be prepared to submit financial statements, project updates, or other requested materials.
  • Deliver these promptly and accurately to maintain transparency and accountability.
• Report on project progress:
  • Submit thorough and timely updates to track the impact of the funds.
  • Highlight how the grant is being used to achieve its intended outcomes.

Failure to meet these obligations can harm your reputation and future funding opportunities. By staying diligent, professional, and committed to fulfilling these requirements, your organization can build strong relationships with funders and secure continued support for advancing its mission.

If you were not awarded the grant, seek feedback from the funder as this can help strengthen your proposals in the future.