How to Write a Request for Proposals: 5 Tips for Nonprofits

If your nonprofit has ever tried to revamp its website, acquire a grant, or prepare for an audit, you know there are some roles for which your team simply isn’t prepared. It’s uncommon for nonprofit organizations to have a comprehensive skillset in-house.

For this reason, nonprofits often seek expertise from external consultants and vendors. Whether you currently have a handle on your mission-critical tasks or need to outsource immediately, creating a request for proposals (RFP) sets the stage for finding the right skills at the right price.

An RFP is a formal document that outlines your organization’s needs, expectations, budget, and selection criteria when hiring vendors or consultants for a task. Let’s review the best practices your nonprofit should implement to write an outstanding RFP.

1. Define Your Goals

A well-defined goal is a critical foundation for your RFP, guiding your nonprofit’s questions and qualification criteria. You must clearly articulate this goal to attract the right vendors and avoid unreliable responses, especially for mission-critical tasks. For example, an RFP for nonprofit compliance experts must recruit qualified professionals to ensure your organization remains in good standing and avoids severe penalties, like 501(c)(3) status revocation.

By defining your goals from the start, your organization can ensure proposals align with not just your project but also your broader mission. Your goal should clarify the following:

• Your nonprofit’s problem or need
• The outcome your organization hopes to achieve
• The scope of the work
• Your budget range
• The expected timeline for completion of the project

To put this into context, let’s say your nonprofit seeks professional bookkeeping services. You need expert guidance on financial management to achieve accurate and compliant financial records, improve financial reporting, and tighten your budget.

To accomplish this, you should look for a bookkeeper who will record all financial transactions in your fund accounting system, prepare monthly financial reports, and guide budgetary decisions. You have $10,000 to spend on their services and want the bookkeeper to start immediately, but the engagement will continue on an ongoing basis. This level of specificity will help your nonprofit attract the most qualified proposals.

2. Outline Detailed Proposal Requirements

Along with attracting the attention of qualified candidates, your RFP should clarify what is needed from their bids. Provide basic submission directions, like the format their response should take and how they should send it to you. Also, list the necessary information respondents should include, such as:

• Relevant experience: Description of past projects, testimonials and references from former clients, and samples of previous work
• Proposed approach: Step-by-step plan outlining the tools and methodologies they’ll use to meet your nonprofit’s needs
• Budget breakdown: Detailed pricing structure, including any additional fees the vendor might require

This information allows your nonprofit to effectively compare proposals and find the best candidate. For example, a nonprofit looking for a website designer might receive proposals from several candidates who can address the organization’s needs within the required budget and time frame. However, additional information, like the candidate’s portfolio and references, can help you find the perfect fit.

3. Be Transparent About Selection Criteria

When sorting through proposals, your team must be on the same page about what constitutes a top contender. Establishing clear criteria ahead of time ensures a fair and objective selection process, reducing confusion and possible biases from interfering. Providing these expectations in the RFP can help potential applicants self-assess if it is worth their time to submit a response.

There are two key resources you’ll need to effectively and consistently evaluate proposals:

• A list of criteria: Create a list of must-haves, such as an experience level, a specific approach, adherence to your budget, or any other requirement that makes sense for your project.
• A scoring system: Develop a scoring rubric that assigns weight to the criteria on your list. You might rate each criterion on a scale of one to five, with one indicating the vendor doesn’t meet your expectations and five indicating they fully meet your expectations. The vendor with the highest score is your best candidate.

Also, provide a clear timeline for your decision-making process so that respondents know when to expect a response from your organization. This should include a submission deadline, evaluation period, and decision announcement date. With a transparent schedule, respondents aren’t left waiting for your decision, and your open communication will start the new partnership off on the right foot.

4. Keep It Concise and Accessible

A nonprofit RFP must be concise and well-organized to attract relevant responses that meet your criteria. Respondents may become confused or abandon their response altogether if you provide them with a lengthy and difficult-to-understand RFP.

Here are some general tips for keeping your RFP accessible:

• Limit unnecessary jargon: Avoid using any purely internal jargon, abbreviations, or terminology, and look for respondents who can also communicate with precise language free of jargon.
• Use direct and straightforward language: Specificity is key to attracting viable candidates. Be clear about what you’re looking for, whether it be a financial expert with a tried-and-true approach to bookkeeping for nonprofits or a fundraising consultant with fresh ideas.
• Break up text where possible: Use headings, bullet points, short paragraphs, and other elements to make your RFP easily digestible. While this document won’t be as glamorous as your impact reports or weekly newsletters, it should still be easy for vendors to scan.

If you’re unsure how your RFP might come across to someone with less context about your nonprofit’s needs, ask a staff member or volunteer to review it and provide feedback. For example, ask your nonprofit’s bookkeeper to review your RFP for a website designer.

5. Review Real Examples, Avoid Templates

While there are many free RFP templates online created just for nonprofits, your request will ultimately depend on your organization’s unique goals, operations, and needs.

For example, an RFP template might recommend including your organization’s background information and project goals. However, a nonprofit looking for a professional marketing agency likely needs to include more specific criteria, like examples of deliverables and a proposed approach based on the organization’s branding.

While nonprofits should be wary of over-relying on RFP templates, reviewing examples can give you an idea of what works and what doesn’t. If your nonprofit doesn’t have past RFPs of its own to review, consider asking board members or partners for examples from their previous work.

As your nonprofit grows, so will its need for outsourced expertise. Over time, you’ll have many opportunities to craft an outstanding RFP and optimize your approach to yield the best results. As responses roll in, analyze your approach to identify factors that may have influenced the proposals and adjust your RFP next time as needed.