Researching Your Grantmaker: 3 Questions to Consider

Let’s be honest: Not all grants are a good fit for your nonprofit.

It can be easy to get caught up in writing a winning grant proposal without being picky about your applications. You start throwing proposals at the wall just to see what sticks, but you haven’t considered whether each grant is really worth pursuing.

Smart grantees know that careful grant research and selection are the keys to improving their odds of success. For nonprofits in need of funding, grant quality outranks quantity almost every time.

Fortunately, you don’t need to be a detective to weed out the unlikely opportunities. Just ask the following simple questions when researching your grantmaker.

1. What Problem Is The Grantmaker Trying To Solve?

Imagine you’re applying for a job as a nonprofit marketer. Your application explains that you have no experience in marketing, but you’re excited to provide advice regarding the organization’s financial activities.

In the above example, your application likely wouldn’t be considered because you aren’t offering the skills the organization is looking for. This same principle applies to grant proposals. If your nonprofit’s work doesn’t support the funder’s priorities, then you likely won’t be a good fit for the grant.

Here are some indicators you can look for to determine whether you and the grantmaker are working toward the same solution:

• Form 990. IRS Form 990 provides a publicly available, detailed description of a private foundation’s funding activities. Searching a funder’s Form 990 can reveal how much money they awarded in grants and the purpose of awarding this funding. Use these details to determine whether you and the grantmaker have similar priorities.
• Mission statement. A funder’s mission statement gets to the “why” behind their grantmaking activities. It reveals the reason they exist and the goals they hope to achieve. This statement can provide insight into a funder’s motivations and help you determine whether you’re on the same page.
• Annual reports or impact statements. Find more details about a funder’s activities and progress toward their goals in annual reports or impact statements. Use the data in these records to analyze which solutions the grantmaker actively supports and how they measure success.

While these resources are a great starting point, some funders won’t make it so easy to understand their drive. They may have broad focus areas, leaving you to investigate to learn more.

Pick apart the funder’s website, read between the lines in their mission statement, and really get familiar with the passion behind their purpose. And, don’t forget to browse grant databases for opportunities that best align with your priorities.

2. What Is The Grantmaker Asking For?

Every grant proposal comes with costs. Knowing what the grantmaker is asking for ahead of time can help you weigh the costs associated with submitting a proposal and decide whether it’s worthwhile.

For example, is the funder asking for a detailed budget? Letters of support? A lengthy narrative? Consider all angles of the grantmaker’s expectations and identify any dealbreakers or requirements you don’t want to meet.

To analyze this using real numbers, calculate the cost of preparation by following these steps:

1. Write down your hourly rate.
2. Add 20-30% to account for any benefits you receive (healthcare, retirement savings, etc.).
3. Multiply that amount by the estimated time you’d spend applying for and managing the grant.
4. Use steps 1-3 to calculate the cost for all other staff members involved.
5. Compare the cost to the amount of the grant.

So, let’s say the grant is for $5,000. If the cost of preparing for and managing the grant exceeds $5,000, you’d actually spend more trying to acquire those funds than you’d receive if you won them.

Consider this cost in light of your other fundraising campaigns, too. The time and effort required by some grantmakers may not be feasible considering your organization’s other activities. In this case, you may need to hire a freelance grant writer to handle the funder’s requirements for you, or simply walk away from the opportunity.

3. Do They Fund Projects Like Yours?

Even more concrete than a funder’s declared priorities is their track record. Who were their past grantees? What similarities, if any, do you share with these organizations?

Deciding whether the funder’s grantmaking approach aligns with your organization’s needs and values can be a quick way to determine whether the proposal will be worthwhile. If the grantmaker has funded similar projects in the past, take it as a green light!

However, it’s also important to consider the grantmaker’s stipulations for using the funding. Even if they do fund projects like yours, they may enforce restrictions that make the proposal not worth the effort. That’s why you should always ask:

• Does the funder make multi-year or one-time grant payments?
• Do they offer unrestricted or restricted fund use?
• What are their expectations for measuring impact and grant reporting?
• How involved will the grantmaker be in the programmatic process?

Keep in mind that all grants come with strings attached. Don’t waste your (and the grant reviewer’s) time if you’re not ready to accept the funding and any terms that come along with it.

Consider these stipulations in light of competition for the grant. If the grant would be difficult to manage and competition is high, your time may be better spent applying for other grants.

A good rule of thumb is to pursue opportunities for which you have more than a 20% chance of getting funded. To calculate this, divide the total number of applicants by the number of awards made for the last funding cycle.

With a full understanding of the funder’s priorities, you can narrow down the opportunities your organization is best suited for and successfully demonstrate how you’ll use grant funding effectively. Do your homework, ask the right questions, and know when to move on to the next opportunity.