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Team-Based Fundraising Step by Step, Mim Carlson with Cheryl Clark

Conducting a Successful Capital Campaign, Second Edition,Kent E. Dove

The Grantwriter’s Start-Up Kit, Successful Images, Inc.

Secrets of Successful Grantsmanship, Susan L. Golden

The Insider’s Guide to Grantmaking, Joel J. Orosz

Hidden Assets, Diane L. Hodiak, John S. Ryan

How to Write Successful Fundraising Letters, Mal Warwick

The Five Strategies for Fundraising Success, Mal Warwick

Transforming Fundraising, Judith E. Nichols

Achieving Excellence in Fund Raising, Henry A. Rossoand Associates

Fund Raisers: Their Careers, Stories, Concerns, andAccomplishments, Margaret A. Duronio, Eugene R. Tempel

The Fundraising Planner, Terry and Doug Schaff

W I N N I N GG R A N T S

STEP BY STEP

The first edition of this workbook was developed by the Support Centersof America and published in 1995. Since that time, the Support

Centers undertook a successful merger with the Nonprofit ManagementAssociation (NMA) and the Technical Resource Consortium (TRC), form-ing the Alliance for Nonprofit Management. The Alliance is pleased to pre-sent this second edition of Winning Grants Step by Step to help nonprofit staffand volunteers prepare better, more powerful, and more convincing grantproposals.

The Alliance for Nonprofit Management is a professional association ofindividuals and organizations devoted to improving the management andgovernance capacity of nonprofits in order to help build their powerand impact.

Alliance members include management support organizations (MSOs),individual professionals, and a range of national and regional, umbrella,research and academic, publishing, and philanthropic organizations thatprovide technical assistance (training and consulting) to nonprofits. By“raising the bar” on quality among its members and its members’ clients,the Alliance provides leadership in the enhancement of a broader vision—one of stronger, healthier communities, civil engagement, and civil society.

iv

About the Alliancefor NonprofitManagement

W I N N I N GG R A N T S

STEP BY STEPSecond Edition

T H E C O M P L E T E

W O R K B O O K F O R

P L A N N I N G ✔

D E V E L O P I N G ✔

W R I T I N G ✔

S U C C E S S F U L P R O P O S A L S

M I M C A R L S O N

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Library of Congress Cataloging-in-Publication Data

Carlson, Mim, date.Winning grants step by step / Mim Carlson.—2nd ed.

p. cm. — (Jossey-Bass nonprofit and public management series)Includes bibliographical references and index.

ISBN 0-7879-5876-X (alk. paper)1. Proposal writing for grants. 2. Nonprofit organizations—Finance.

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The Jossey-BassNonprofit and Public Management Series

Contents

Acknowledgments xi

How to Use This Workbook xv

Introduction: An Overview of the Grantseeking Process 1

Developing the Proposal Idea 7

Developing Relationships with Funders 12

Writing a Compelling Need Statement 19

Defining Clear Goals and Objectives 26

Developing Your Methods 33

Preparing the Evaluation Component 39

Developing Sustainability Strategies 47

Preparing the Program Budget 53

Writing the Organization Background Component 62

Writing the Proposal Summary 69

Putting the Package Together 74

Sustaining Relationships with Funders 79

Special Resource Section 83

A. How to Research Funders 85B. Learning More About Funders 89C. How to Evaluate a Proposal Through a Funder’s Eyes 96D. Bibliography 104E. Helpful Web Sites for Grantseekers 106

How to Use the CD-ROM 109

S T E P 1 2

S T E P 1 1

S T E P 1 0

S T E P 9

S T E P 8

S T E P 7

S T E P 6

S T E P 5

S T E P 4

S T E P 3

S T E P 2

S T E P 1

ix

Acknowledgments

This workbook is a product of working with nonprofit staff andvolunteers in the area of fundraising and, more specifically, grantseek-

ing. Winning Grants Step by Step augments the wide variety of workshops,clinics, and consultation available on the art of proposal writing. We believeit is a useful tool that can offer assistance and insight to both the novice andexperienced grantseeker. Thanks are due to the many people who con-tributed directly and indirectly to this second edition, both those involvedprimarily with grantseeking and those who are grantmakers.

About the Individuals Who MadeThis Book Possible

Several individuals deserve special mention. The primary author of thiseffort is Mim Carlson, a nonprofit management consultant who has writtenand reviewed hundreds of proposals in her twenty-five years of workingin the sector. She has also taught proposal writing in nonprofit certificatecourses at universities throughout the San Francisco Bay Area. We areindebted to Mim for agreeing to lead this project.

Three other individuals made significant contributions to the firstedition, and their ideas continue to be valid in this new workbook. Theydeserve special thanks for their time and energy: Jan Masaoka, executivedirector of CompassPoint Nonprofit Services (formerly the Support Centerfor Nonprofit Management), contributed much to the budgeting section;Jane Arsenault, executive director of the Support Center of Rhode Island,developed and wrote the section on evaluation; and Rick Smith, formerly

xi

xii Acknowledgments

the national executive director of the Support Centers of America,contributed his knowledge of proposal writing and offered regular editorialguidance to the first edition.

This second edition contains more examples of proposals than the orig-inal. On the accompanying CD are examples of general support, capacitybuilding, staff salary, and special project proposals and also examples ofletters of intent. Debbie Wu, Kathy Lim Ko, and Emily Goldfarb are the tal-ented authors of these proposals and are generously sharing them so futuregrantseekers can use them as models.

Several grantmakers were interviewed for the second edition, and weare grateful to Judi MacMurray for her work in conducting the interviewsand seeking out excellent information.

Hundreds of nonprofit grantseekers, through their participation inproposal-writing workshops, have helped inform us about the many facetsof grantwriting and the diverse needs of grantseekers. To all of them weowe special thanks.

And finally, we wish to acknowledge the Grantsmanship Center for itspioneering work in the development of a widely accepted grant proposalframework for nonprofit organizations and grantmakers. This work hasserved the sector well for over two decades and remains a strong founda-tion for the universe of current and future grantseekers.

About the Grantmakers InterviewedIncluded in this second edition is the wisdom of grantmakers from a widevariety of foundations. It made sense to us to go to the source for informa-tion to help grantseekers prepare a winning proposal. We are indebted tothe following grantmakers for their valuable insights that will helpnonprofits develop strong and successful proposals: Tom David of theCalifornia Wellness Foundation, Margie Fine of the Unitarian UniversalistVeatch, Ellen Friedman of the Tides Foundation, Elan Garonzik of theCharles Stewart Mott Foundation, Paula Morris of the Horizons Founda-tion, Lina Paredes of the Liberty Hill Foundation, and Frank Sanchez of theNeedmor Foundation.

We purposely chose a variety of funders with differing missions andprogram staff who would give us a range of opinions. These foundationshave varied giving patterns and interests and provide grants that rangefrom $500 for donor-advised funds to over $250,000 for internationalgroups.

xiii

We spent several hours talking with these grantmakers and found themall genuinely interested in helping grantseekers create strong proposals inorder to be successful in fulfilling their nonprofits’ missions.

Throughout Winning Grants, you will find the wisdom of thesegrantmakers. They are quoted directly, and their ideas also inform the mainthemes of the workbook. We suggest you pay careful attention to what theyhave to say.

Acknowledgments

How to Use This Workbook

Winning Grants Step by Step will improve your ability to turn anidea that requires funding into a proposal that merits funding. It is

a workbook with a step-by-step approach to successful proposaldevelopment, whether for a community nonprofit organization, an educa-tional institution, a hospital, or a research facility—or for yourself. Its exer-cises are designed to help you develop your proposal planning and writingskills and meet the requirements of both government agencies and privatefunders.

Winning Grants Step by Step is designed for those with limited experi-ence in preparing proposals, whether they are staff or volunteer membersof nonprofit organizations, people aiming to enter the nonprofit world, orindividuals seeking funding for their own creative projects. The processused in this workbook is specific to program and project funding, althoughyou can easily adapt it to seek general support and other types of funding.

The basic idea behind Winning Grants Step by Step is that your proposalmust reflect a well-planned project and that grant resources given to youshould be used wisely. Funders should see that your project is meeting agenuine community need and that it is doing so at a reasonable cost. Oneof the most common flaws grantmakers find in proposals is lack of clarityabout what the nonprofit group is trying to achieve, the importance of theneed, and the plan for meeting that need cost effectively.

Prior to actually writing the proposal, you must have a good idea thatis of interest to funders. Step One of this workbook helps you determinewhat ideas may be fundable. After the proposal idea is identified and deter-mined to be fundable, a plan should be developed for implementing theidea. For the purposes of this workbook, you will plan the project as youdevelop various proposal components.

xv

xvi How to Use This Workbook

Step Two helps you introduce your project to possible funders and alsohelps you develop a long and friendly relationship with them. Althoughthe primary purpose of this book is to help you write a winning proposal,building funder relationships is also a critical step in getting a grant.

You will develop your idea into an effective proposal using Steps Threethrough Eleven. The final action of submitting your proposal and continu-ing a relationship with the funders receiving it is covered in Step Twelve.

Resources A, B, and C, at the end of the workbook, will help you iden-tify interested funders and secure funding by targeting your proposal tomeet their priorities. Resource C, for example, evaluates a sample proposalthrough the funder’s eyes, giving you an idea of what happens to your pro-posal once a funder receives it. Resource D is a bibliography of guides,directories, and Web sites.

Throughout this workbook you will find examples that show how thedifferent steps might be carried out by an organization. The proposal usedin these examples concerns a project of a Meals on Wheels consortium serv-ing meals to frail elders. The consortium is similar to an existing one, andthe project is representative of one the real organization has discussedimplementing.

Additional sample proposals are included on the CD-ROM that accom-panies this book. You will find examples of general support, capacity build-ing, and technology equipment proposals. All these proposals were funded.The CD-ROM also contains the worksheets from the book displaying theCD-ROM icon identifier. The worksheet files may be filled out electronicallyor used as templates to be customized as needed. Further information onhow to run the CD-ROM is located at the end of the book.

The best way to use Winning Grants Step by Step is to go through it frombeginning to end. This workbook is unique because it is structured to followthe process normally used when preparing a proposal; you can—andshould—develop a proposal of your own as you read the book and com-plete the exercises. Remember, there is no real mystery to preparing suc-cessful proposals. They simply take good planning, good writing, goodresearch, and an approach that is geared to your prospective funder withwhom you have developed a good relationship.

I n t r o d u c t i o n

An Overview of theGrantseeking Process

There is no such thing as the perfect proposal, so let that idea

go. Write a proposal that is true to who you are, that is a gen-

uine reflection of what you do, and realistically identifies what

you need in order to do that even better.

TOM DAVID, California Wellness Foundation

Presentation and readability is important, particularly for grant

review committees. It is important to keep proposals in the

order asked for. This makes it easier for reviewers who do not

want to have to search for information needed when they are

making comparisons with other proposals.

PAULA MORRIS, The Horizons Foundation

Grants are a key source of support for many nonprofit organizations,particularly new organizations or those starting new programs. Writ-

ing proposals for grants is an inexpensive way to raise funds, because thewriting and research do not cost much money. A strong proposal—that is,a well-written, well-organized proposal—can bring in substantial incomefor your organization.

A well-prepared proposal can also build an organization’s credibilitywith funders. Organizations that have the respect of funders are often calledon to work on particular issues of concern to both themselves and their fun-ders. This gives them an opportunity to help make community changes ona larger scale than they may be capable of accomplishing alone.

Although proposal writing is a popular and effective way to fund non-profits, it is only one way to increase revenues. Several different techniquescan be used to raise funds, and success requires using the right techniqueat the right time for the right purpose. For instance, some grant cycles takeas much as six months from the time you submit a proposal to the time youlearn whether it has been funded or not. If your organization is in dire needof immediate funds, writing a proposal may not be the best way to raise themoney.

1

2 Introduction

Most funds raised in the private sector come from individuals.As shown in Figure I.1, $203.45 billion was raised in 2000; approximately83 percent came from individuals, either in the form of direct gifts orbequests.

In addition to private sources of funds, government sources add billionsof grant dollars that are available to nonprofits. Government funds maycome directly from a federal agency, such as Health and Human Services,or through a state or local agency. Government funds are usually targetedfor very specific purposes, so having a good idea is especially importantwhen seeking this funding source.

Categories of SupportOne reason an organization needs to use several different fundraising tech-niques is that there are generally several areas of financial need in an orga-nization. Usually, an organization seeks support in one or more of thefollowing categories:

• Operating (general support or unrestricted income). Funds for operations areused to cover the costs of running an organization to meet communityneeds. These funds can come from earned income, corporate or foun-dation grants, interest from an endowment, direct mail campaigns andspecial events, and such ongoing efforts as an annual fund.

• Special projects. Funds for special projects are monies restricted bythe funder to starting a new program, expanding an existing one, or

$24.50Foundations

(12.0%)

$16.02Bequests

(7.8%)

$152.07Individuals

(75.0%)

$10.86Corporations

(5.3%)

FIGURE I.1

2000 Contributions: $203.45 Billion, by Sourceof Contribution

Source: AAFRC Trust for Philanthropy, Giving USA 2001 (New York: American

Association of Fundraising Counsel, 2001). Reprinted with permission.

3

undertaking a project with a limited time frame. Foundations, corpora-tions, some individuals, and government agencies are interested insupporting special projects.

• Capacity building. This is a particular type of special project that enablesnonprofits to increase their administrative or fundraising capacity tobetter support program growth. Foundation funders and individualshave a strong interest in capacity building opportunities.

• Capital or equipment. Funds for capital support are often raised througha capital campaign or through seeking special equipment grants. Theseintensive efforts to generate a specified amount of funds for construc-tion, remodeling and renovation, building expansion, or the purchaseof land or equipment may involve individual major gift solicitation andproposal writing to corporations and foundations. Some governmentagencies also have funds for capital projects.

• Endowments. Funds for endowments are sometimes generated throughplanned gifts, which are given by an individual to an organization aspart of a will or trust. They may also be received as part of a capital orendowment campaign, using the methods for raising capital or equip-ment funds. Generally the principal of the endowment is held as a long-term investment for the organization, and the income is used each yearfor operating needs.

The Proposal ProcessThere is no mystery to writing a successful proposal. The keys to successare

• Developing a clear program plan

• Researching funders thoroughly

• Building a strong relationship with funders

• Targeting your proposals carefully

• Writing a concise proposal

Whether you are preparing a proposal for a foundation, a corporation,or a government funder, the process of proposal development will be essen-tially the same. Traditionally, it begins with developing a plan, then moveson to identifying and building relationships with funders and writing pro-posals, and ends with taking the necessary steps to follow up with fundersafter the proposal has been submitted. This book covers the process in detailin Steps One through Twelve.

Introduction

4 Introduction

The major components of a proposal are as follows:

Cover letter: a short letter that accompanies the proposal and brieflydescribes its significance

Summary: a very brief (usually one-page) overview of the proposal

Need statement: a compelling description of the need to be addressed bythe applicant organization

Goals and objectives: a description of what the organization ultimatelyhopes to accomplish with a project (goal) and a spelling out of the spe-cific results or outcomes to be accomplished (objective)

Methods: a description of the programs and services that will achievethe desired results

Evaluation: a plan for assessing program accomplishments

Project sustainability: a presentation of the agency’s strategies for devel-oping additional funding to continue the project after the initial grantfunding is over

Organization background: a presentation of the organization’s qualifica-tions to carry out the proposed project

Budget: a line-item summary of program revenues and expenses

Your proposal format will vary depending on the funder. However, mostproposals contain the same key components to help funders understand thatyou have a sound plan that meets an important need and will make a posi-tive impact on whomever you serve. Although the format given in this bookis commonly used among funders, including many government agencies, it isby no means the only format. The step-by-step process used in this book is anorderly way to develop your thoughts and to present your project. If you havefollowed these steps, it is easy to put the resulting components into whateverorder your funder requests. Remember that it is always important to followthe funder’s specific instructions on proposal development and packaging.Proposals included on the CD-ROM show some of the different formatsrequired by different funders. The CD also contains a standard grant appli-cation, available on-line, that is used by several foundations in the UnitedStates. Some grantmakers are also using a common statewide or regionalapplication form, thereby making the process of grantseeking easier.

Types of ProposalsBroadly speaking, there are three types of proposals.

A letter of intent is a two- or three-page summary mailed when the fun-der wishes to see a brief description of the project before deciding whether

5

to ask for a longer, more detailed proposal. A letter of intent must focus onhow the proposed project fits the priorities of the funder. It should alsoclearly describe the need and outline the plan to meet it.

A letter proposal is the type most often requested by corporations. It is athree- or four-page description of the project plan, the organization request-ing the funds, and the actual request. The letter proposal and letter of intentare often confused by grantseekers. Remember that in the letter proposalyou are actually requesting funds. In the letter of intent, you are only intro-ducing your idea to the funder and determining whether there is an interestin receiving a more detailed proposal.

The long proposal, a format that includes a cover letter and proposal sum-mary, is the type most often requested by foundation and government fun-ders. Corporations should not receive this format unless they specificallyrequest it. Long proposals range from five to twenty-five pages, with mostfunders interested in receiving about seven to ten pages plus appendixes.The grantseeker has an opportunity in the longer proposal to give manydetails about the project and its importance to the community. When usingthis longer format, you should make sure the funding request is not hid-den. It should appear both in the cover letter and in the summary as wellas in the body of the proposal.

Tips for Writing ProposalsTake the approach of having one writer and a review team of several peo-ple. Everyone has a different writing style, and using too many writersmight make the proposal read poorly. The person writing the proposal,obviously, must have excellent writing skills. The writer may also be one ofthe individuals participating in the project-planning phase. The proposalwill suffer if the writer does not have an understanding of what the projectis, why it is important to the community, and why the organization seekingfunding is the best qualified to undertake the project.

Adhere to the following principles when preparing the proposal:

• First and foremost, a good proposal should flow and build from one componentsection to the next. A proposal is really nothing more than a business planfor implementing a nonprofit’s ideas. The proposal components dis-cussed previously outline the body of the plan. Together, the compo-nents of a proposal make a case for the need to do something about acommunity need.

• Use a positive writing style, but present a well-reasoned, thoughtful presenta-tion. A grant proposal should contain some elements of emotional

Introduction

6 Introduction

appeal yet also be realistic and factual. Typically, readers are professionalgrantmakers who review your proposal to determine whether there isa compelling reason to invest in your idea. They need to understand thecause and effect you present in your case. Whenever possible, explainassumptions and present evidence that supports your major assertionsabout the scope of a problem or the efficacy of a particular method.

• Avoid jargon and don’t overwrite. Make it easy for someone who proba-bly is not an expert in your particular field to read your entire proposal.Jargon (words that only people in a specialized field will understand)acts as a barrier to understanding, and people cannot be sympathetic tothings they cannot comprehend. Also remember that grantmakers haveto do a lot of reading; you will be doing yourself and them a favorby keeping your proposal brief and focused on the main points. Bethrifty with your words, but don’t sacrifice important points to achievebrevity.

• Don’t use a shotgun approach with your proposal. After you have developeda proposal, tailor it to the specific instructions of each funder. Althoughit is true that most grantmakers want the same basic information, it isalso true that they request it in different formats. This will mean reorder-ing sections, cutting and pasting, and possibly relabeling some sections(for instance, the needs statement may become the problem statement).Occasionally, you will have to add or subtract material from your orig-inal version. By tailoring your proposal for each grantmaker, you willbe giving each proposal reviewer confidence that the proposal isresponding to the funder’s concerns.

• Plan to send your proposals four to six months in advance of the time you needyour funding. Most funders have specific deadlines for receiving pro-posals and then spend several weeks reviewing them before making adecision. It’s important to find out funders’ deadlines for receiving pro-posals and the dates when they make their decisions.

• Get some honest feedback on your proposal before you send it to a funder. Askone or two people (maybe a staff or board member or even someoneoutside your organization) to review the proposal carefully. Does every-thing make sense? Is the need clear? Do the proposed methods andobjectives seem like an appropriate response to the need? Use theanswers to questions like these to strengthen the final proposal.

• Make the proposal visually attractive, but don’t overdo it. Whenever possi-ble, break up the written page. Use reasonable margins, and use bulletedlists and other formatting tools to make each page a little more inviting.

S T E P

Now that you have had an introduction to the process of preparing aproposal, it’s time to take the first step. In this section of the work-

book you will begin to develop your proposal idea by answering some keyquestions. Before actually writing a proposal, you should determine whichprojects in your organization are most likely to be funded through a grant.Most funders prefer to give grants for new and expanding programs or insupport of special projects and new ideas rather than for the general oper-ating expenses of an organization or the ongoing costs of established pro-grams. Special projects may include new programs or the expansion ofcurrent programs in new directions, capacity building ideas, technologyimprovements, and technical assistance.

Because funders have these preferences, this workbook uses the idea ofcreating a new program as the basis for developing a proposal. There arefunders, though, who are interested in operating and ongoing program sup-port, so the CD that accompanies this workbook includes sample propos-als to help the grantseeker in approaching sources for these funds.

Whenever possible, organizations should use a team approach to plannew projects, involving staff, clients, and volunteers. The planning teamdevelops a project plan first and then uses it when writing the componentsof the proposal. Because winning a grant usually means a change will takeplace in the organization, it is important to involve people in the organiza-tion with the planning—not only so they can make the project design bet-ter but also so they will be more enthusiastic about implementing thechange.

When preparing a proposal, many writers start with the planning sec-tions (need statement, objectives, methods, evaluation, program sustain-ability, and budget), because these are the core of the proposal. Then they

Developing theProposal Idea

1

7

8 Winning Grants Step by Step

write the organization background section, finishing with the summary andcover letter. This workbook follows that format.

The planning sections of the proposal are often written first becausethey are the core of the proposal and deserve careful attention; without aclearly articulated project plan, it is very difficult to get funding. As one fun-der we talked to told us, “One of the key criteria we use in evaluating themerits of a proposal is there must be a clear presentation of the project planand how it integrates into the overall organization.”

Generally, organizations will spend approximately 80 percent of theirtime planning a project and only 20 percent of their time writing and pack-aging the proposal. Although it is ideal to plan in advance of writing a pro-posal, it is also not uncommon to fine-tune the plan as the proposal is beingdeveloped.

To get started on developing a fundable proposal idea, answer the sixquestions in Worksheet 1.1. After answering these questions, you and yourorganization should use those answers in choosing a specific idea todevelop using the exercises in this book. Then follow Steps Two throughTwelve to create your own well-planned proposal. Throughout these steps,this workbook provides examples and worksheets to assist you.

9Developing the Proposal Idea

W O R K S H E E T 1 . 1 . Proposal Idea Questionnaire.

1. What new projects is your organization planning for the next two to three years?

Project A:

Project B:

Project C:

Project D:

2. Which of these projects are compatible with your organization’s current mission and purpose? (When a

project falls outside your mission, considerable justification will be necessary to convince a funder to

support it.) (Check the category that applies to each project.)

Project Compatible with Mission Not Compatible

A

B

C

D

3. What is unique about your organization’s project?

Project Uniqueness

A

B

C

D

4. Who else is doing this project? Is there duplication of effort? Can a partnership be formed that will benefit

all organizations concerned with this project?

Project Duplicate Project Possible Collaboration

(with whom) (with whom)

A

B

C

D

(Continued)


W O R K S H E E T 1 . 1 . Proposal Idea Questionnaire. (Continued)

5. What community need does each of your organization’s projects address?

Project Need Addressed

A

B

C

D

6. What members of your community—including civic leaders, political figures, the media, and your

organization’s clients—support each project?

Project Supporters

A

B

C

D

7. Does your organization currently have the expertise to undertake each project? If new staff are necessary,

can the organization manage growth in personnel effectively? (Check the category that applies to each

project.)

Project Expertise Effective Growth Management

A

B

C

D

8. Is there internal support for the project? External support? (Check the category that applies to each

project.)

Project Internal Support External Support

A

B

C

D

11Developing the Proposal Idea

H E L P F U L H I N T

To develop a project idea into a plan, you need to answer the following six questions:

1. What community need does the plan address? (Answering this question develops the need

statement component of a proposal.)

2. What would an improved community situation look like? (Answering this question develops the

goals and objectives component of a proposal.)

3. What can this organization do to improve the situation? (Answering this question develops

the methods component of a proposal.)

4. How will it be determined that the project has succeeded? (Answering this question develops the

evaluation component of a proposal.)

5. How much will the project cost? (Answering this question develops the budget component of a

proposal.)

6. How will the project be funded in the future? (Answering this question develops the sustaina-

bility component of a proposal.)

Once you have identified your fundable ideas, it is time to identifyfunders with an interest in your organization and the work it pro-

poses to do, and to begin the relationship building process. Resource A tellsyou how to go about researching and identifying possible funders. Step Twodiscusses how you can initially approach prospective funders and developa relationship with them prior to submitting a proposal.

Initial ApproachMost foundation and government funders are relatively clear about whatthey wish to fund. Every so often they establish their funding priorities andpublish them in some form (such as an annual report or grant guidelines).Most funders also make this information easily available on their Web sites.However, some funders may be less clear. To learn more about prospectivefunders, gather some general information from their Web sites, and thencall the contact person you identified when doing your research and ask for

DevelopingRelationshipswith Funders

Be who you are. Approach us as colleagues in this work. Be

straightforward and treat us as peers. We respect the work you

are doing. Respect the work we are doing.

FRANK SANCHEZ, The Needmor Foundation

Lots of nonprofits try to fit our foundation’s mission into their

own organization. It’s a better idea to be honest, and to

celebrate who you are. If your mission doesn’t fit the funder’s,

then move on.

ELLEN FRIEDMAN, The Tides Foundation

2S T E P

12

13

the following materials (if they not available on the funder’s Web site):

• An annual report or a list of recent grants awarded

• Grant guidelines

• An application form (if appropriate)

• Deadlines for receiving proposals

Sometimes this conversation can lead into a brief discussion of the projectneeding funding, so be prepared to talk about it. This may be the beginningof a great new relationship.

After you have reviewed a grantmaker’s Web site and reviewed anypublications sent to you, it is very important to make sure there really is agood match between your organization’s mission and this funder’s mission.All the grantmakers interviewed for this workbook indicated it is a wasteof both the grantseeker’s and grantmaker’s time to send a proposal if thereis no fit. If in doubt about the match, call the funder and get clarification.

A common mistake grantseekers make is to assume the funders willknow the idea being presented is a priority. Consequently, grantseekers takeinsufficient time to define the idea in terms that help the grantmakers seethe fit. If the proposal is presented in a manner that assures a funder thatgiving a grant to the nonprofit enhances the funder’s values, it stands a bet-ter chance of being funded. Grantseekers should develop a list of the fun-der’s priorities that seem applicable to the proposal, and while writing theproposal, they should clearly spell out the parts of the project that fit thosepriorities.

Developing the RelationshipAfter you establish that there is a good fit, then relationship buildingbecomes a continuous process that begins before you write your proposaland spans many years. Good communication with your funders never ends,even though you may stop receiving grants from them. Once a relationshipexists, funders like to hear progress reports about how the organization orprogram they funded is doing. They may also take an interest in other fund-able ideas that your organization has developed.

Here are a few ways to approach a funder to begin building arelationship:

• Send a letter of intent to the funder

• Call the funder to discuss the proposal

• Have meetings with the funder

Developing Relationships with Funders


How you make your first approach depends partially on the funder andpartially on the contacts you have who can open doors for an initial meetingor phone conversation.

The Letter of IntentMany funders are requesting that nonprofits send them a letter of intentbefore they will consider a proposal. Although this is a less personalapproach to relationship building than a conversation, funders often preferit because of their busy schedules. It is very important to view your letterof intent as both a relationship builder and a source of background infor-mation on your proposed idea.

If you are asked to send a letter of intent, it should include the follow-ing information:

• Your organization’s mission and related programs

• The need your organization wishes to meet

• The outcome you expect from your organization’s project

• General details of how your organization will conduct the project

• The fit you see between the funder and your organization

Answer the questions in Worksheet 2.1 as clearly as you can. This exercisewill help you develop a strong letter of intent for funders. You may find youdo not have the answers, and this means you need to gather more infor-mation before you can write a letter of intent.

The letter of intent on page 16 concerns the Meals Consortium, whichwas introduced earlier and will be used as an example throughout thisworkbook. This is the letter the consortium would mail to learn whether afunder is interested in receiving the full proposal.

15Developing Relationships with Funders

W O R K S H E E T 2 . 1 . Letter of Intent Questionnaire.

1. What is the purpose of this letter of intent? Whom is it being sent to, and what is the fit?

2. What year was our organization founded? What year was it incorporated?

3. What is the mission of our organization?

4. What are our long-term goals for our organization?

5. What programs do we provide that support these goals?

6. What is the need in our community that we seek funding to address?

7. How in our view is the need related to our programs, long-term goals, and mission?

8. What do we propose to do about this need?

9. What outcome do we anticipate after the first year of funding?

10. What is the total cost of our proposed idea for the first year (or multiple years if we plan to request

multiple-year funding)? How much do we want from this funder?

11. Who will be contacting the funder to determine its interest and when? Whom should the funder contact

for more information?

Now that you have finished answering the questions, you can take the information and build a letter of

intent. The ideal way to write the letter is to follow this format: opening, background, problem statement, pro-

posed solution, closing. Note that the questions you answered followed this format.


Lynn Goodperson, Ph.D.

Executive Director

Community Foundation

1234 Main Street

Anytown, XY 99999

Dear Dr. Goodperson:

The Meals Consortium is submitting this letter of

intent to the Community Foundation to determine

your interest in providing seed funding for our new

social services referral program.We are a consortium

of the five major Meals on Wheels programs serving

the frail elderly in your county. The mission of the

Meals Consortium is to develop and coordinate

resources for support services to homebound per-

sons, primarily those aged sixty or older. In our

research for possible funding sources, we discov-

ered your foundation also has a strong interest in

frail elders and ensuring they receive comprehen-

sive social services. Our proposed project will help

you achieve your own goals for elders in your

county.

The board of directors of the organization com-

prises primarily Meals on Wheels program directors

who meet monthly to report on individual organi-

zation efforts and discuss ways of coordinating

limited resources to efficiently assist the member

organizations and the populations they serve.

In 2000, the consortium served 255,000 meals to

more than one thousand frail men and women

throughout the county. Nearly two-thirds of the

meals went to persons seventy-five years of age or

older. Half had incomes under $1,000 a month, and

more than half of the individuals lived alone. By

providing nutritious meals to homebound indi-

viduals, the Meals on Wheels programs are helping

to ensure a healthier lifestyle for each person and

providing an alternative to institutionalization.

Our primary goal is to coordinate services for the

member Meals on Wheels programs. One need fre-

quently identified by those individuals we serve

and by other service providers in the county is for

a social worker to ensure the homebound receive

the comprehensive care they need to remain in

their homes. There currently are no funds available

within the separate Meals on Wheels programs for

each to hire a social worker to conduct and coor-

dinate this care. Developing a consortium model

social services referral program will ensure that

each program is served by a coordinated team of

professionals who can assess the needs of the

homebound elderly and arrange appropriate

services.

Our proposal to the Community Foundation would

be for start-up funds for our proposed social ser-

vices referral program serving the frail elders of our

county. One hundred percent of the funds received

would directly benefit older individuals who need

these well-coordinated social services to help them

live with dignity and in good health in their own

homes. If you request a proposal from us, we will be

asking for $30,000 to assist in starting this new

program.

We look forward to further discussions about our

project and this letter of intent. We will contact you

in the next few weeks to see if you need more infor-

mation. If you have any questions about the Meals

Consortium, please do not hesitate to contact me at

(000) 666-1212 or our treasurer, Joe Smith, at (000)

821-4432. Thank you for your consideration.

Sincerely,

Susan Grantseeker

President, Board of Directors

Sample Letter of Intent

17

Contacting a Funder by PhoneBefore you call a funder to describe your idea, think through what youare going to say. You can use Worksheet 2.1 to prepare for a phone con-versation, just as you used it to develop your letter of intent. The personyou talk with may have only a short time for a phone conversation, soprepare yourself to give a presentation in ten to fifteen minutes, includ-ing the time it may take the person to ask for clarifications on your points.Remember that you are doing much more than just selling your idea to afunder. You are also building a long-term relationship with the funder andthis particular representative of the funder, so listening carefully to thefunder’s needs and providing information the funder wants is extremelyimportant.

Meeting with a FunderThe dream of many grantseekers is to have a face-to-face meeting witha prospective funder prior to submitting a proposal. Unfortunately, fewfunders are open to this because of their busy schedules. Another reasongiven by one of the grantmakers interviewed for this workbook is thatmeeting with a funder raises the grantseeker’s expectations that theproposal she intends to develop will get funded. Moderating expectationsof grantseekers is one of the most difficult aspects of this particular grant-makers job.

However, if you know someone who already has a strong relationshipwith a funder, this individual may be able to help you set up a meeting.After doing your research, think about whom you know who may knowyour organization’s prospective funders. Understand also that this meetingwith the grantmaker is very preliminary and in no way ensures that yournonprofit will receive funds.

If you are fortunate enough to schedule a meeting, take materials thatdescribe your organization and, if possible, your proposed project. In yourmeeting you should cover the following topics:

• Credibility of your organization

• Project description, need for the proposed project

• Community interest in the project, proposed outcomes

• Your ability to measure the success

Developing Relationships with Funders


• Costs and projected revenue sources

• Why you chose this funder for the project

Your time with the funder may be short, so be prepared to hit thehighlights. Listen carefully to the funder’s questions and any concernsexpressed, and make sure you answer them fully. These questions and con-cerns should also be addressed in the proposal that you will mail after yourmeeting, assuming you have found a good fit.

19

In this step, you will learn the key elements of a need statement, includingthe four requirements of a successful statement. Then an exercise and

some samples will guide you in preparing a statement of need for yourorganization’s proposal.

Purpose of the Need StatementA good place to begin writing a proposal is the statement of need. A needstatement describes a critical condition or set of conditions or a socialneed affecting certain people or things in a specific place at a specific time.This component of your proposal answers the question, What is the needto be addressed?

Preparing this statement is a critical part of the proposal, because fun-ders must agree with your organization that its project meets an importantneed. It is often a compelling need statement that motivates a funder tohelp. The need statement is the heart of your entire case for support. If thereader does not understand and agree with your presentation of the need(or problem), he will have no reason to pay close attention to the rest of yourproposal. In other words, your need statement is the proverbial hook.

Content of the Need StatementThere are several major points to keep in mind when developing your needstatement. First, the need to be addressed should have a clear relationship toyour organization’s mission and purpose. Second, your need statementshould not emphasize organizational needs but rather focus on a need ofthose your organization serves. Third, any assertions about the need shouldbe well supported with evidence (statistical facts, expert testimony, and

Writing a CompellingNeed Statement

3S T E P


so on). Fourth, the need you describe in the proposal should be consistentwith your organization’s ability to respond to that need (which will bedescribed in a subsequent section of the proposal). Finally, make the needstatement easy to read by eliminating any jargon that might be a commu-nication barrier.

The need your organization is addressing may be specific to your orga-nization’s geographic area or it may be found in many communities. If theneed occurs in an area larger than that served by your organization, it isimportant to focus only on what your organization can reasonably accom-plish. However, the work it does can become a model for other organiza-tions in other locations. By taking a model approach, an organization broadensthe base of potential funders to include those concerned with the need inother areas.

If you want to take the model approach, you should mention in theneed section that your organization is addressing the need on a larger levelthrough development of a program that can be a model for others. Thenin the methods component (discussed in Step Five), you should discuss howthe program information will be disseminated to other organizations.

Grantseekers from arts organizations sometimes believe that this sec-tion of the proposal is the most difficult because their organizations are notmeeting a compelling community need. In fact, arts organizations do meetimportant needs. Without these nonprofits, certain cultures and traditionswould be lost, lives would not be enriched, and young people would notlearn new and different ways of expressing themselves.

Likewise, nonprofits seeking general support grants struggle with thestatement of need because their proposal is centered on the general workof the organization. These grantseekers should remember to describe thecentral need their nonprofit meets. That is, the reason the organization existsis to meet a specific need—what is it?

Tips for Writing the Need Statement

• State the need using hard-core statistics, not assumptions or undocu-mented assertions parading as facts.

• Use statistics that are clear and that support your argument.

• Use comparative statistics and research when possible.

• Quote authorities who have spoken on your topic.

• Make sure all data collection is well documented.

• Use touching stories of people as examples.

21Writing a Compelling Need Statement

• Focus your explanation of the need on the geographic area you canserve.

• Give a clear sense of the urgency of your request. Funders need tounderstand why the funding is important now.

Answering the questions in Worksheet 3.1A will help you clearly definethe need your organization is addressing. Worksheet 3.1B is a sample com-pleted questionnaire for the Meals Consortium. A sample need statementfor the consortium is also displayed. After completing the questionnaire andreading the sample statement of need, write your own statement of needbased on the information you have developed. Then, using the Need State-ment Review Questions at the end of this step, make sure you have writtenyour statement well. Rewrite your need statement until you feel you haveaddressed all the questions.


W O R K S H E E T 3 . 1 A . Statement of Need Questionnaire.

Use the filled-out Worksheet 3.1B as an example as you complete this questionnaire.

Who? Where? When?

Who is in need?

(Maybe people,

animals, plants, and

so on.)

Where are they?

When is the need

evident?

What? Why?

What is the need?

Why does this need

occur?

Evidence of Problem

What evidence do you

have to support your

claim?

Impact If Problem

Is Resolved?

What are the

consequences of

meeting the need?

How is the need linked

to your organization?


W O R K S H E E T 3 . 1 B . Statement of Need Questionnaire.

Use this filled-out worksheet as an example as you complete Worksheet 3.1A.

Who? Where? When?

Who is in need?

(Maybe people,

animals, plants, and

so on.)

• Frail homebound

seniors over sixty years

old, living at home,

usually alone.

Where are they?

• Throughout Main

County.

When is the need

evident?

• When illness or

institutionalization

occurs due to an

absence of social

services.

What? Why?

What is the need?

• No comprehensive

assessment of

nutritional and social

service needs happens

on a regular basis for

homebound elders. They

may not be getting the

services that best sup-

port their staying in

their homes.

• The lack of need

identification and refer-

ral for services results in

deteriorating health for

frail elders and fre-

quently results in costly

institutionalization that

could be prevented.

Why does this need

occur?

• No organization in the

Consortium has social

workers working with

nutritionists to assess

the health and social

services needs of the

homebound elderly.

• Funding is not available

at each organization to

hire social workers.

Evidence of Problem

What evidence do you

have to support your

claim?

• More than 13,000 indi-

viduals in the county

over age sixty live below

the poverty line.

• Social workers are not

available to visit the

homebound elderly.

• Many Meals on Wheels

recipients must leave

their homes because of

the lack of coordinated

care.

Impact If Problem

Is Resolved?

What are the

consequences of

meeting the need?

• Frail elders will be

able to remain in

their home longer.

• Frail elders will

remain healthier with

good coordination

between social services

and nutrition programs.

• Expensive

institutionalization

will be avoided through

cost-effective preven-

tive services.

How is the need linked

to your organization?

• The Meals Consortium

mission is to find

cost-effective ways to

serve the county’s

frail elders. The social

services program will

provide a coordinated

system of social services

and nutritional care to

serve the target

population.


Twenty percent of the population of Main County

are seniors sixty-five and older. The fastest growing

sector of this demographic group is the frail elderly

population, described as persons eighty-five and

older. The Department on Aging recently con-

ducted a survey among frail elders to find out what

they needed most to stay in their homes.Their high-

est priority according to the survey was information

about services to seniors in the county and assis-

tance in accessing them.

Within this county there are a growing number

of social services available for the rapidly expanding

population of elderly individuals. Seniors can have

errands run for them through an errand service,

obtain door-to-door transportation to doctor’s

appointments, receive a daily checkup phone call,

obtain legal or financial-planning assistance, and

have someone make safety repairs on their homes.

Unfortunately, as services for seniors are flour-

ishing, the homebound person’s ability to access

these services is diminishing because of the loss of

county funding for social workers. There has been a

25 percent reduction in social workers in this

county in the past two years. Each remaining social

worker has a minimum caseload of 150 individuals,

which makes regular home visits virtually impossi-

ble. Additionally, there are no longer any social

workers who specialize in gerontology; the workers

who are active have limited effectiveness with the

homebound elderly.

None of the frail older adults served by the

Meals Consortium members have regular social

workers to help them with services that will allow

them to stay in their homes. The result is that an

older person’s daily nutrition needs are being met

by our programs, but equally important social ser-

vice needs are not. Without a coordinated system

that serves the health and social service needs of

this population, an elderly person’s risk of being

institutionalized is high.

As an example,“Mrs. Smith” has been receiving

Meals on Wheels for three years. She is eighty-two

years old and is unable to walk for more than a few

steps due to severe arthritis. She has other medical

problems as well. Her family lives in another state

and visits only during the holidays. Mrs. Smith

receives her daily meal from Meals on Wheels, but

she relies on the goodwill of her neighbors to pick

up some groceries for her and take her to the doc-

tor. The neighbors are not always available to help

her, and Mrs. Smith has missed important appoint-

ments and gone hungry because she is home-

bound. Mrs. Smith was not aware of the errand

program or transportation service for homebound

older adults until a Meals on Wheels volunteer

mentioned them to her. If social workers had been

available to assess Mrs. Smith’s needs and make

referrals, she would have more quickly received the

help she requires.

This example is representative of the difficulties

faced by many homebound individuals and of the

frustrations faced by staff who want to help frail

elders stay in their homes. Having social workers

available to focus on the needs of this population

with appropriate referrals and follow-up would

make a valuable difference in the quality of life of all

persons served.

The solution of coordinating nutrition and

social services for the homebound elderly is crucial.

A recent report from the county’s Department on

Aging indicated that intervention with comprehen-

sive dietary and social services will prolong older

people’s ability to stay at home, thus giving them

the independence they seek and helping to hold

down the high costs of institutionalization.

The member organizations of the Meals

Consortium have been providing quality nutrition

services to frail older individuals for many years.

No other organization in the county provides

direct services to this special population, making

the Meals Consortium the most likely nonprofit

to fill this important gap in services. The addition of

a social services referral program, coordinated

by the Consortium, is seen as a cost-effective way

to provide more comprehensive care to the

homebound.

Sample Need Statement


Need Statement Review Questions

Have you discussed the need in terms of your project’s or program’sbenefit to the individuals in the community who will be its customers(and not in terms of benefit to your organization)?

Does the described need have a clear relationship to your organiza-tion’s mission and goals?

Given your organization’s size and resources, can it meet the need in ameaningful way?

Does your statement include solid evidence supporting your claimsabout the nature, size, and scope of the need to be addressed?

Have you eliminated jargon and acronyms from the narrative?

Is your need statement persuasive without being overly wordy?

Chapter STEP 4:

Defining Clear Goals and Objectives

Mim Carlson

Copyright 2002 John Wiley & Sons, Inc. All rights reserved.

26

At the Liberty Hill Foundation one of the key criteria we use in evaluating proposals isimpact. Because we fund social change (and not services),we understand that it takes sometime to achieve long-term goals and impact. So we look for clearly defined benchmarks andprogress towards their achievement in the short term.

LINA PAREDES, The Liberty Hill Foundation

In this step, you will learn how to write clear goals and objectives. You will also focuson the important differences between goals and objectives and between outcome objectivesand process objectives. Using a worksheet and following the examples, you will write a set ofobjectives for your own proposal.

STEP 4.1 Purpose of the Goals and Objectives Component

Once the need to be met has been decided and written into a need statement for yourorganization, you must develop goals and objectives that give a clear picture of the anticip-ated results of implementing your organization s project. The goals and objectives are the out-comes of the plan, and they answer the question, How would the situation look if it werechanged? Almost all the funders interviewed indicated that it is important for them to under-stand the impact of a grantseeker s proposed project. It is this section of the proposal thathelps them see clearly the changes your nonprofit can make with their support.

STEP 4.2 Content of the Goals and Objectives Component

Definition A goal is a broad based statement of the ulti-mate result of the change being undertaken (aresult that is sometimes unreachable in theshort term).

Example: The homebound elderly in MainCounty will live with dignity and independ-ence in their own homes.

Organization goals, including program and operations goals, are often written as part of anonprofit s strategic planning process. Your organization s goals may already be developedand therefore ready for you to use. Afunder will want to know what the goals are that relate tothe stated need, so they should be included in this section of the proposal.

Definition Objectives are much more narrowly definedthan goals. An objective is a measurable,time specific result that the organizationexpects to accomplish as part of the grant.More specifically, this is known as an out-come objective. Outcome objectives are yourfocus in this step. A process objective quanti-fies a method for achieving the goal. Like thegoal, an objective is tied to the need state-ment.

27

Example: Outcome objective: there will be a5 percent decrease in the number of frailolder adults going into convalescent homesduring the first year of the social servicesreferral program. (This demonstrates animpact or result.)

Example: Process objective: there will be anincrease in social services referrals and fol-low up for 75 percent of the individualsserved by the Meals Consortium during2000 2001. (This demonstrates a process toachieve the impact.)

As you prepare the objectives component of the proposal, keep the following in mind:

a. Objectives should be stated in quantifiable terms.b. Your objectives should be stated in terms of outcomes, not methods and inputs; that is,

they should specify the result of an activity as opposed to just describing program meth-ods or processes.

c. Objectives should clearly identify the population group being served.d. Objectives should be realistic and capable of being accomplished within the time frame

indicated.

If you look at the writing of outcome objectives from an ends and means perspective,these objectives are the ends, whereas the methods are the means of reaching those ends.(Methods are discussed in Step Five; they indicate what will be done to start the new pro-gram, increase social services referrals, and lead to the accomplishment of the outcomeobjective.)

When developing each outcome objective, answering the following five questions willhelp you clearly articulate the result your organization expects to accomplish:

1. What is/are the key area(s) your organization is seeking to change?2. What segment of the population will be involved in the change?3. What is the direction of the change (increase/improvement or decrease/reduction) you

will be looking for?4. What is the degree or amount of change you will be looking for?5. What is the deadline for reaching that degree of change?

BOX type=''HelpfulHint

One easy way to ensure you are writing a good objective is to start your objective with aphrase, such as one of the following, that suggests a purpose:

a. To reduceb. To increasec. To decreased. To expand

28

BOX END

STEP 4.3 Tips for Writing Good Goals and Objectives

a. Make sure goals and objectives tie directly to the need statement.b. Include all relevant parties in the target population.c. Allow plenty of time for the objectives to be accomplished; things always take longer

than planned.d. Remember that outcome objectives do not describe methods. Opening a new spay/neuter

clinic is a method. Reducing pet overpopulation by 10 percent in 2000 is an outcomeobjective, because it describes a result of a method.

e. Determine how you are going to measure the change projected in each objective. If youfind you have no way to measure change, you probably need to rethink the objective(more on this in Step Five).

f. Always try to write at least one outcome objective into your plan and determine how youwill measure it. Remember to budget for evaluation if measuring the objective(s) iscostly.

Use Worksheet 4.1A to prepare to write your objectives by focusing on outcomes. Startby writing down the goal of the program. Then describe the objectives that tie to that goal.Use the filled out Worksheet 4.1B as an guide.

If your organization has more than one goal for its project, use a separate copy of theworksheet for each goal. Limit the objectives to one to four per goal. Then write your goalsand objectives component, following the standard formula at the end of the worksheet, andusing the Sample Goals and Objectives as a guide. When you are finished, go through theGoals and Objectives Review Questions, in the same way you did for your statement of need.Remember, you want to be able to answer yes to each question in the Goals and ObjectivesReview Questions.

BOX type=''

Goals and Objectives Exercise

1. Use the filled out Worksheet 4.1B as an example as you complete this exercise.

GOAL:

Objective1

Objective2

Objective3

Objective4

Direction ofchange

Area of

29

GOAL:

Objective1

Objective2

Objective3

Objective4

change

Target pop-ulation

Degree ofchange

Time frame

BOX END

BOX type=''

Goals and Objectives Exercise

GOAL: Increase the quality of life for the elderly at risk of institutionalization.

Objective 1 Objective 2 Objective 3 Objective 4

Direction ofchange

Reduce Expand Increase Increase

Area ofchange

Individualsleaving theConsortiumfor institu-tions

Individualsremainingin theirhomes

Social ser-vices refer-rals and fol-low up ser-vices

Social ser-vices directcare

Target pop-ulation

Personsserved bythe MealsConsortiumwho are atrisk of insti-tutionaliza-tion

Individualsserved bythe MealsConsortium

Individualsserved bythe MealsConsortium

Individualsserved bythe MealsConsortiumwho aremost vulner-able

Degree ofchange

5 percent 80 percent 75 percent 90 percent

Time frame 2 months 12 months 12 months 12 months

BOX END

30

BOX type=''Sample Goals andObjectives

The primary goal of the Meal Consortium is to enable homebound frail elders to livewith independence and dignity in their own homes. Without the daily nutritional meals, thehomebound would risk malnourishment and deteriorating health since they are unable to pre-pare their own meals. The alternative for most of the individuals served is costly institutional-ization. A secondary goal of the Meal Consortium is to prevent the cost burden of institution-alization for the homebound and for the community.

The project being proposed will help meet the Consortium s goals. The following object-ives are specific to the proposed social services referral program.

Outcome Objectives

1. Reduce by 5 percent the number of individuals leaving the Meals Consortium to be insti-tutionalized due to lack of social services.

2. Ensure that 80 percent of the population served by the Meals Consortium remain in theirhomes during 2000 2001.

Process Objectives

1. Increase social services referrals and follow up for 75 percent of the individuals servedby the Meals Consortium during 2000 2001.

2. Increase social services direct care to 90 percent of the most vulnerable homebound eld-ers served by the Meals Consortium.

BOX END

STEP 4.4 Goals and Objectives Review Questions

a. Are your goals stated as results?b. Are your outcome objectives stated as specific results that relate to a program goal?c. Can progress in meeting your objectives be quantified and assessed?d. Do your objectives describe the client population and a specific time frame for change?

31

32

In this step you will determine the methods your organization will use toreach its objectives. You will look at the elements of the methods compo-

nent of a proposal and see how to use a timeline so that you and prospec-tive funders can more easily outline what will happen when. Using aworksheet and following examples, you will write your methods for theobjectives you developed in Step Four.

Purpose of the Methods ComponentWhen the goals and objectives for the project your organization is under-taking have been determined, it is time to plan how your organization willachieve its anticipated results. The methods component of the proposal tellsfunders how your organization will accomplish its objectives and answersthe question, What can the organization do to change the situation?

Content of the Methods ComponentA method is a detailed description of the activities an organization willimplement to achieve the ends specified in its objectives. Methods are alsofrequently referred to as activities or strategies. Regardless of what you callthem, this section of your proposal should clearly describe the methods tobe used and give good reasons for choosing these methods. The sectionshould also describe program staffing and identify the client populationsto be served along with a justification of why they were selected.

To develop the methods component, answer the following questions:

• What are the givens that are inflexible (such as date of completion,dollars available, staff available)?

• What activities need to be carried out in order to meet the objective?

Developing Your Methods

5S T E P

33


• What are the starting and ending dates of these activities?

• Who has responsibility for completing each activity?

• How will participants be selected? (This question is not applicable tosome projects.)

• How was this methodology determined to be the correct one to solvethe problem presented? Does it build on models already in existence, oris it a different approach? If it is different, why is it different?

The methods section should be reasonable in that your organizationshould be able to accomplish the activities within the time frame stated inthe proposal and with the resources available. For proposals with numer-ous objectives and methods, it is a good idea to include a timeline showingwhen methods will start and finish. Here is an example of one way to chartyour activities on a timeline:

ACTIVITY MONTH 1 2 3 4 5 6 7 8 9 10 11 12

1. Hire staff needed

for the program.

2. Develop three- and

six-month objectives

for the program, with

specific tasks.

3. Identify elders with

priority needs to

be addressed.

4. Design outreach

strategies to

acquaint the

targeted elders

with the program.

5. Begin implementation (ongoing)

with persons needing

immediate assistance.

6. Develop individual

service plans to meet

needs of each

homebound person.

7. Evaluate progress at

three-, six-, and

twelve-month intervals.

Sample Timeline

35

Tips for Writing the Methods Component

• Tie the methods to your organization’s objectives and to its needstatement.

• Ensure that methods are congruent with the resources requested in thebudget.

• Explain the rationale for choosing these methods; talk in terms ofresearch findings, expert opinion, and your organization’s or yourpersonal past experience with similar programs.

• State what facilities and capital equipment will be available for theproject.

• Build various activity phases on one another to move the effort towardthe desired results. Include a timeline.

• Be sure to discuss who will be served and how they will be chosen.

• Don’t assume the reviewer knows more than she is reasonably likely toknow about your organization or what you propose.

Develop your organization’s methods by completing Worksheet 5.1A,listing the key elements of your organization’s planned program. ConsultWorksheet 5.1B as necessary. Then use the Sample Methods Component asa guide as you write your own methods section for your proposal. (Thissample shows the methods for one objective. Additional objectives wouldbe handled the same way.) Finally, use the Methods Review Questions toreview your methods, just as you did for your need statement and goalsand objectives.

Developing Your Methods


The length of the methods section of a proposal varies depending on the size and complexity of the

program or project being undertaken. A general rule is to give the funder a clear picture of all the

important steps your organization will take to accomplish each objective listed in the goals and

objectives section. Government agencies often expect considerably more information than other

funders do for this part of the proposal.


W O R K S H E E T 5 . 1 A . Methods Exercise.

Use the filled-out Worksheet 5.1B as an example as you complete this exercise.

Tasks and Subtasks Person(s) Responsible Resources Needed Start and Finish Dates

37Developing Your Methods

W O R K S H E E T 5 . 1 B . Methods Exercise.


Tasks and Subtasks Person(s) Responsible Resources Needed Start and Finish Dates

Hire staff. Consortium members Funds for salary, Within three months

hire the program benefits; pool of of program start-up.

coordinator who hires candidates; job

other staff. descriptions.

Develop three- and Everyone. Within three months

six-month objectives of program start-up.

for the program with

specific tasks.

Identify elders with Social workers. Consortium members’ Within three months

priority social services assessments of Meals of program start-up.

referral needs, and on Wheels recipients;

begin referrals. establishment of

priorities.

Design outreach Program coordinator. Funds for outreach. Within five months of

strategies to acquaint program start-up.

targeted elders with

the new program.

Begin implementation Coordinator and social Equipment and At six months.

with persons needing workers. supplies to carry out

immediate assistance. the activities.

Develop individual Social workers. Background data At six months

service plans to on the elders in and ongoing.

meet needs of each the program.

homebound person.

Evaluate progress at Program coordinator. Information from data Data collection is

three, six, and twelve collected; possible ongoing; evaluation at

months. funding to support described intervals.

evaluation.


This workbook separates goals and objectives from methods to illustrate the differences between

them. Many grantseekers, however, choose to put all three components together in one section of the

proposal, to give potential funders a complete work plan.


Methods Review Questions

Do the methods discussed in your organization’s proposal derive log-ically from the need statement and the goals and objectives?

Do your organization’s methods present the program activities to beundertaken?

Have you explained why your organization selected specific methodsor activities?

Have you explained the timing and order of the specific activities?

Is it clear who will perform specific activities?

Given your organization’s projected resources, are the proposed activ-ities feasible?

To accomplish the objectives stated in the previous

section, the Meals Consortium will use the following

methods. It was decided to follow this course of

action because of the success of model social ser-

vices and nutrition programs that were developed

using these same strategies. A timeline is in the

appendixes; it gives expected starting and ending

dates for each activity.

Objective OneIncrease social services referrals and follow-up for

75 percent of the individuals served by the Meals

Consortium.

MethodsConsortium members will hire a Program

Coordinator who will have responsibility for

hiring social workers and additional support

staff during the first three months.

Staff will develop three- and six-month objec-

tives for the program, with specific tasks, prior

to the sixth month.

Social workers and consortium members will

identify elders with priority social services

referral needs and begin referrals.

The Program Coordinator will design outreach

strategies to acquaint targeted elders with the

new program within the first three months of

the program.

Social workers will begin implementation with

persons needing immediate assistance within

the first six months.

Social workers will develop individual service

plans to meet needs of each homebound per-

son within the first six months.

The Program Coordinator will evaluate prog-

ress at three, six, and twelve months.

Sample Methods Component

As you are preparing the goals, objectives, and methods, it is alsoimportant to plan how your organization will evaluate what it pro-

poses to do. In this step you will learn how to write an evaluation plan sothat you can effectively demonstrate the success of your program. An exer-cise will help you think about what your evaluation plan should contain.

Purpose of the Evaluation ComponentAn evaluation is a process that determines the effectiveness and efficiencyof a project. Decisions made during this process help an organization planfor the project’s future and reassure funders that their financial commitmentis being well spent.

How a program or project will be evaluated must be determined priorto implementation. Bear in mind that funders expect to know the ways anorganization defines and measures the success of a project.

There is much your organization, or any nonprofit, can gain fromputting thought and effort into an effective evaluation design.

The first benefit is that your organization strengthens its proposal in theeyes of the reviewers. Each time you ask a funder to invest in your organi-zation, you are asking her to place a bet that the world as your organizationsees it will be improved in some specific way because of the organization’sefforts. Essentially, each time your organization devises a program, it is test-ing a hypothesis—”if we do this, then that will happen.” A solid evaluationcomponent in a proposal reassures a funder that your organization is inter-ested, as the funder is, in learning whether this hypothesis is correct.

The second benefit that accrues to your organization is that it learnswhat is going well and what is not. The process of thinking through anevaluation design can strengthen programs and projects before they are

Preparingthe EvaluationComponent

6S T E P

39


implemented. Then the knowledge gained through an actual evaluation canbe shared by organization staff and volunteers to improve programs as theyare implemented. This knowledge may also be shared with the outsideworld so others can learn from your organization’s work.

The third benefit is to the public. Every time your organization asks forand receives funding, it is the recipient of public trust. It has an obligationto ensure that its program is having the effect intended. Evaluation is oneof the strongest tools any nonprofit has to make sure it is meeting thisobligation.

Content of the Evaluation ComponentFiguring out how to evaluate the program or project you have proposed isa thinking exercise. The first step is to think about your organization’s def-inition of success for what it is proposing to do. Then determine the rela-tionship between the expected outcomes and the activities described in theproposal. Then think about what is important to evaluate and why it isimportant.

Organizations conduct evaluations in order to do six things:

1. Find out whether what was originally proposed did what was expected.

2. Determine if the methods specified were used and the objectives met.

3. Determine if an impact was made on the need identified.

4. Obtain feedback from the target group and others.

5. Maintain some control over the project.

6. Make adjustments during a program to increase its success.

When preparing the evaluation section of your proposal, ask yourselfthe following questions to help frame what you will say:

• What is the purpose of your organization’s evaluation?

• How will the findings be used?

• What will you know after the evaluation that you do not know now?

• What will you do after the evaluation that you cannot do now for lackof information?

• How will you know if the program or project has succeeded?

It is not possible within the framework of this workbook to providedetailed information on program evaluation methods. However, a briefoverview should help you determine the methods that are most appropriatefor the evaluation you conduct.

41

There are two general approaches you can take to collecting data. Youcan use quantitative methods or qualitative methods.

Quantitative methods translate experience into units that can be counted,compared, measured, and manipulated statistically. Analysis techniques forquantitative data employ descriptive statistics (averages, means, percentiles,and frequency distributions) and inferential statistics (sign tests, simple lin-ear regressions, and chi-square). These analyses allow you to make state-ments about cause-and-effect relationships.

Quantitative methods are most appropriate when your questionsinvolve

• Understanding the quantities or frequency of particular aspects of a pro-gram (for example, number of enrollees or number of dropouts)

• Determining whether a cause-and-effect relationship is present

• Comparing two different methods seeking to achieve the same out-comes

• Establishing numerical baselines (through such means as pretests,posttests, and six-month or one-year follow-ups).

Qualitative methods are rooted in direct contact with the people involvedin a program and consist of three kinds of data collection: interviews (groupor individual), direct or field observation, and review of certain documents.

Qualitative methods are most appropriate when your questions involve

• Understanding feelings or opinions about a program among partici-pants, staff, or community members

• Gaining insight into how patterns of relationships in the programunfold

• Gathering multiple perspectives to understand the whole

• Identifying approximate indicators that clients are moving in the rightdirection

Both qualitative and quantitative methods have value. The most impor-tant thing to remember is to find the right fit between the method youchoose, the questions you want answered, and the information needs ofthose asking the question. Often a mix of both quantitative and qualitativemethods yields the best results. For example, classroom evaluators mightconduct a pretest and a posttest in a classroom to determine changes in stu-dents’ knowledge (quantitative method). In addition, they might passivelyobserve the class and the facility in which the curriculum is taught to bet-ter understand the students’ experience (qualitative method).

Preparing the Evaluation Component


The evaluation component of the proposal should include a briefsummary of the data collection methods being used for the project. Theevaluation component must tie to the objectives and methods previouslydescribed in the proposal. If objectives are measurable and methods timespecific, it will be easier to prepare a good data collection plan and to writea strong evaluation component for the proposal.

Answer the questions in Worksheet 6.1A to begin planning your pro-posal’s evaluation section. The sample answers in Worksheet 6.1B will helpyou get started. Afterward, refer to the Sample Evaluation before writingyour own evaluation component. When you finish writing your evaluationsection, review it with the Evaluation Review Questions.

43Preparing the Evaluation Component

W O R K S H E E T 6 . 1 A . Evaluation Planning Questionnaire.


1. What questions will your organization’s evaluation activities seek to answer?

2. What are the specific evaluation plans and time frames?

a. What kinds of data will be collected?

b. At what points?

c. Using what strategies or instruments?

d. Using what comparison group or baseline, if any?

3. If you intend to study a sample of participants, how will this sample be constructed?

(Continued)


W O R K S H E E T 6 . 1 A . Evaluation Planning Questionnaire. (Continued)

4. What procedures will you use to determine whether the program was implemented as planned?

5. Who will conduct the evaluation?

6. Who will receive the reports?

7. How are you defining success for this program or project?

45Preparing the Evaluation Component

W O R K S H E E T 6 . 1 B . Evaluation Planning Questionnaire.


1. What questions will your organization’s evaluation activities seek to answer?

Are the objectives of the program being met?

Is the program meeting seniors’ needs in a cost-effective way?

2. What are the specific evaluation plans and time frames?

a. What kinds of data will be collected?

The number of people leaving a Meals on Wheels program and where they went.

The number of referrals made to each senior and the type of referral.

Increase in satisfaction of seniors living at home.

b. At what points?

Daily for quantitative data; quarterly for qualitative data.

c. Using what strategies or instruments?

Computer database tracking system; interviews.

d. Using what comparison group or baseline, if any?

Last year’s population of persons served.

3. If you intend to study a sample of participants, how will this sample be constructed?

N/A

4. What procedures will you use to determine whether the program was implemented as planned?

A quarterly review of the methods outlined in the proposal, to determine if these methods are being carried

out in a timely manner.

5. Who will conduct the evaluation?

Program director.

6. Who will receive the reports?

Funders, board members, executive director, other interested individuals and agencies.

7. How are you defining success for this program or project?

If we meet our objectives for the first year, we will consider the new social services program to be successful.

In the longer term, the Consortium defines success as a noticeable decrease in the number of frail elders

leaving their homes for institutions.


Evaluation Review Questions

Does your evaluation section focus on assessing the project results?

Does it describe how the evaluation will assess the efficiency of pro-gram methods?

Does it describe who will be evaluated and what will be measured?

Does it state what information will be collected in the evaluationprocess?

Does it state who will be responsible for making the assessments?

Does it discuss how the information and conclusions will be used toimprove the program?

Does it provide your organization’s definition of success?

At every three-month interval, the Program

Coordinator will measure the new social services

referral program’s progress toward meeting the

three objectives identified in the goals and objec-

tives section of this proposal. Data on each of the

individuals needing social services referrals will be

collected daily by the social workers and support

staff. This data will indicate what referral was

made, the reason for the referral, and what changes

a one-week follow-up phone call after the referral

indicated. Individuals at greatest risk for institution-

alization will receive additional follow-up calls and

personal visits by the social workers to ensure that

the services needed are being provided. The

number of individuals leaving a Meals on Wheels

program will be tracked monthly to show how

many were institutionalized and why.

Each funder of the social services referral pro-

gram will receive quarterly reports during the first

year of the project, as will board members, the

executive director, and other interested individuals.

If we meet our objectives for the first year, we will

consider the new social services program to be suc-

cessful. In the longer term, the Consortium defines

success as a noticeable decrease in the number of

frail elders leaving their homes for institutions.

Sample Evaluation Component

In this step you will learn ways to find future funding to sustain yourproject after the initial funding has finished. There are many resources

available to your organization to keep its program running, and you willidentify, through exercises and examples, the sources of ongoing supportthat are best for you.

Purpose of the Sustainability ComponentWhen organizations are doing program planning, they generally do notmake decisions about future funding until the budget is determined for thecurrent program. In proposal writing, however, the section on finding futurefunding to sustain the project often appears as part of the narrative andcomes before the budget, so we will discuss it now.

Although this is the last narrative section of the proposal, it is definitelynot the least important. If your organization expects the project it is plan-ning to continue beyond the years of the initial grant, it also needs to deter-mine how that project will be funded in the future.

Content of the Sustainability ComponentThe content of this section will depend on whether your proposal is for pro-gram or project funding or for capital or equipment funding.

In the proposal describing a new or continuing program or special proj-ect, there are two main reasons for having a future funding section. First,when a program is terminated due to inadequate continuation funding, itoften fails to achieve important goals. Thus the original grant is notleveraged for long-term success. Second, most funders give considerable

DevelopingSustainabilityStrategies

7S T E P

47


attention to this section, because like you, they don’t want your organiza-tion’s project to fail once the initial grant is used up. Therefore this sectionshould give some details on the ways the organization’s fundraising willbe expanded to include the new program or project and who will assumeresponsibility.

In a capital or equipment proposal—that is, a proposal to obtain fundingfor major equipment purchases or building renovations and expansions—grantmakers need to know what costs your organization will incur in oper-ating the new equipment, maintaining the new building, or increasingservices if building expansion results in program expansion, and whatsources your organization has for meeting these costs.

Future funding can come from the following sources:

• Continuation grants from foundations and corporations. Your organizationcan seek continuing support from those foundations and corporationsthat fund ongoing programs.

• Annual campaigns. Your organization can derive donation revenuesfrom such yearly efforts as membership drives, special events, and giftclubs.

• Fees for service. If your organization plans to ask clients to pay fees, thefee scale and a revenue plan should be shown in the proposal. Thereare two approaches to planning a fee structure for a program: (1) deter-mine a reasonable fee, then determine the donations needed in addi-tion to those fees to reach the revenue target; or (2) determine theexpected donations to the program, then determine the fees thatmust be charged to generate the remaining revenue necessary for theproject.

• Sales of items or activities. Your organization might be able to set up aprofitable sales program, such as a gift shop or thrift store. In addition,it might be able to sell publications, concert recordings, or educationalactivities. Profits from these sales might help cover the costs of theproject. If this route is taken, a clear expense and revenue projectionshould be part of the proposal.

If your organization has had previous successes in funding programsor projects after the life of the initial grant, you should describe these accom-plishments and demonstrate how they can continue.

A common error in writing the sustainability section is to be too gen-eral, indicating only that future funds will come from “a variety of sourcessuch as individuals and corporations.” Most funders regard such broadstatements with considerable suspicion.

49

Tips for Writing the Sustainability Component

• Even though funders do not always ask for this proposal section, it isimportant to include some information on sources of money for theproject’s future.

• A one-line sentence explaining that future funding will be sought is notenough information for funders.

• The more specific you are in this section, the more confidence you willinspire in your potential funders that the project will continue after theygo away.

Completing the outline in Worksheet 7.1A will get you started on devel-oping the future funding component of your proposal. Worksheet 7.1B con-tinues the Meals Consortium example. Then write your own future fundinginformation, referring to the Sample Sustainability Component. Reviewyour work by asking the Sustainability Review Questions.

Developing Sustainability Strategies


W O R K S H E E T 7 . 1 A . Future Funding Questionnaire.

Use the filled-out Worksheet 7.1B as an example as you complete this outline.

Risks and Opportunities

Do we intend to continue this

project?

For how long?

What resources (direct and

indirect) are needed?

Sources of Future Financial

Resources

What sources can we use?

Internal Requirements

What internal plans relate to

future funding?

51Developing Sustainability Strategies

W O R K S H E E T 7 . 1 B . Future Funding Questionnaire.


Risks and Opportunities

Do we intend to continue this

project?

• Yes.

For how long?

• Until no longer needed.

What resources (direct and

indirect) are needed?

• Staffing.

• Equipment.

• Social services availability.

• Clients.

Sources of Future Financial

Resources

What sources can we use?

• County government.

• Unrestricted funds from direct

mail.

• Business contributions.

Internal Requirements

What internal plans relate to

future funding?

• Collaborate with existing social

services agencies to provide

follow-up and direct services

to the homebound elderly.

• Use funds from unrestricted

monies raised through the

ongoing Consortium

development program. These

are primarily raised by direct

mail.

• Obtain funds and in-kind gifts

from businesses that provide

products used by older individ-

uals.


Sustainability Review Questions

Do you hope to see the program continue after the initial funding hasbeen exhausted?

If so, does this section present a plan for securing future funding forthe program?

Does it discuss future funding strategies or earned-income strategies?

If you are requesting a multiyear grant, have you shown that yourorganization will have a decreasing reliance on grant support?

The Meals Consortium has a strong history of

obtaining ongoing funding for Meals on Wheels

programs. The social services referral program is

expected to have the support of foundations inter-

ested in start-up projects for the first two years. In

addition to these monies, the Development Director

will increase the amount of unrestricted funds for

the Consortium through direct mail requests and

the annual special event. During 2000 the growth

rate of our individual donor base was 20 percent,

and the special event doubled its previous net

income. Efforts are being made to continue this

growth in order to use unrestricted funds for the

new program.

Sample Sustainability Component

This step helps you estimate how much your program idea will cost andintroduces you to the key elements of a budget. Examples aid you

in defining budget elements, and guidelines for budget preparation areprovided.

Purpose of the Project or Program BudgetKey to any proposal is the budget for the project or the organization seek-ing support. The budget is the plan you have for the project or for yourorganization, expressed in the language of dollars. The best budgets “trans-late” the methods section of the proposal into dollars. For example, a bud-get often shows how many staff and volunteers at what cost are needed toimplement the plan that has been described earlier in the proposal. Remem-ber too that your organization’s budget is an estimate; it’s your best guessof the income and expenses you anticipate will occur.

Content of the BudgetIf your organization is seeking operating, or general, support, you shouldsubmit the budget for the whole agency along with a request for unrestrictedfunds. If your organization is seeking funding for a special project, youneed to develop a budget that shows the expenses and revenue you antic-ipate for that project. Depending on the funding source, you may be askedeither for a very detailed budget or for a general outline of income andexpenses.

Preparing theProgram Budget

When evaluating proposals, we ask ourselves if the budget

makes sense . . . we look at how the money will be deployed to

address the need. We also review overhead costs to make sure

they are not excessive.

ELAN GARONZIK, The Charles Stewart Mott Foundation

8S T E P

53


Usually, government funding sources require considerable detail andprovide instructions and budget forms that you must use. Foundationsand corporations typically require less detail, but they still rely on yourbudget to help them evaluate the merit of your proposal.

If a funder’s guidelines specify a format for the proposal budget, be sureto follow those guidelines. By talking with the funder, you may be able togain additional information. For example, a funder might exclude equip-ment purchases from consideration but permit equipment leasing, orit might fund only a certain percentage of overhead.

A budget may include various components:

• Project or program budget: the income and expenses associated with thespecial project for which your organization is seeking funding

• Agency budget: the income and expenses projected for the wholeorganization

• Detailed or justified budget: a high level of detail on certain income andexpense items

• In-kind contribution budget: the donated goods and services thatare expected and that will be used on the project or in the organization

Not all proposals require all these components, and as we mentionedearlier, the level of detail will vary from funder to funder and from proj-ect to project. In a very few cases, a budget may not be required if the costis included in the main body of the proposal, perhaps as a request to buya specific piece of equipment or to buy twenty-five tickets to a ball game.

Steps in the Budgeting ProcessTo develop the budget component of a proposal for a specific project, followthese steps:

1. Establish the budget period, the length of time the budget covers.

2. Estimate expenses, obtaining cost estimates as necessary.

3. Decide whether and how to include overhead costs.

4. Estimate the donated goods and services that will be used.

5. Estimate anticipated revenues for the project.

6. Check that the budget as a whole makes sense and conveys the rightmessage to the funder.

55

Establish the Budget PeriodDecide how long a period of time your organization’s proposal covers,and develop a budget for that length of time. If your proposal is for a six-month project, the budget should show income and expenses for asix-month period. If your proposal is for a two-year project, the budget mustshow two years’ worth of income and expenses.

If project implementation depends on obtaining funding, you may notknow whether the project will start in May or in November. In such cases,prepare a budget for the time period, not specific months. Remember thatthe period for the project budget does not need to match your organiza-tion’s fiscal year. However, if you are also submitting an agencywide bud-get, provide the budget for the current or the upcoming fiscal year.

Estimate Expenses and Obtain Cost EstimatesBegin by estimating direct costs: expenses that are directly related to the pro-ject and indispensable to it. Direct expenses include

• Program staff salaries and benefits

• Supplies

• Equipment

• Program-related travel

• Program-related rent

• Printing

If you developed a worksheet on methods and a timeline as suggestedin Step 5, you have already done most of the work for estimating thesedirect expenses. You may need to obtain some cost estimates for unfamiliaror expensive items, such as equipment. At this stage, don’t try to determineeach item down to the last penny; make your best guess of how much it willcost, say, to hire a good intake worker or to design and print a programbrochure.

Decide Whether to Include Overhead CostsIndirect costs, often called overhead, are costs shared by all an organization’sactivities and programs, such as the cost of the audit, the Executive Direc-tor’s salary, general liability insurance, and the copier lease. Indirect costsare the ones that are essential to all agency programs but difficult to assignin specific amounts to any one program.

Because special projects and programs benefit from agency functionsclassified as overhead costs, it is important to include a portion of these

Preparing the Program Budget


costs in the request for funding. There are several approaches to this recoveryof indirect costs, and the guidelines of the funder are your most importantcriteria for choosing an approach.

Some funders, such as government agencies, set a maximum allowablepercentage for indirect costs. After you have estimated your total directexpenses, you may be able to add a line item such as “indirect costs at 15 per-cent of direct costs.” In these cases, you are also usually asked to indicatewhich items are included under indirect costs. Then, if you have included,for example, telephone charges as part of your agency’s overhead or indi-rect costs, you cannot also include telephone charges as a direct expense.

Most foundations understand that overhead costs are legitimate costsof a project, but they don’t want to pay for more than the project’s fair share.Foundations typically don’t have formal guidelines for a maximum indi-rect cost rate, but some will allow an amount that seems reasonable. Yourresearch on the funder and conversations with her should tell you what youcan include.


In some cases it may be easiest to take certain overhead costs and assign a percentage of each to the

project as a direct expense. For example, in addition to the expenses that are immediately necessary to

the program, you might add 5 percent of the executive director’s time, 15 percent of the copier lease,

and 10 percent of the audit cost. If each of your projects and programs includes similar items, each will

be contributing toward its share of the agency’s overall costs. (This approach is often workable only for

smaller organizations.)

Estimate Donated Goods and ServicesYou may not have to pay for all costs of your organization’s project in cash.Donated goods and volunteer time are important to many nonprofit ven-tures. If, for example, you receive a donated computer or have a volunteerreceptionist, the costs of the program will be reduced.

Including in-kind contributions in your budget is helpful in severalways. First, it allows the full scope and cost of the project to be seen by thefunder. Second, it demonstrates community support for your project andagency. Third, it reminds you and the donors and volunteers of the value oftheir contributions.

In-kind contributions are usually shown as both income and expense,at the same levels. If, for example, your program receives $3,000 worth ofdonated food from local merchants, your budget should also show an

57

“expenditure,” or use, of $3,000 worth of donated food. If a volunteerteacher contributes $5,000 worth of her time, you also pay out $5,000 inteaching expense.

Estimate Anticipated RevenuesThe project your organization is proposing may be funded by more thanone source, and many funders feel more comfortable funding projects withseveral funding partners. Some projects will generate income through feesthat can help pay project expenses. Other income may include individualcontributions, a special event, or grants from more than one source. Eachpossible source of revenue for the project should be estimated and includedin the budget.

Generally, funders expect to see a balanced budget for a project: one inwhich income and expenses are equal or approximately equal. Most fun-ders are reluctant to support programs that will end the funding periodwith either a large deficit or a major surplus of cash. In this connection,remember that in-kind contributions should appear in your budget as bothrevenue and expense (as you can see in Worksheet 8.1B).



If you are sending requests to several foundations at once, it’s usually a good idea to let them know

you’re doing so. You might say, for example, “In addition to your foundation, this proposal is being

submitted to the ABC Foundation and the XYZ Foundation,” or, “This project has already received a

commitment of $25,000 from the LMN Foundation. Consequently, we are asking your foundation for

a grant of $35,000, the balance of the foundation grants needed for the project.”

Check for SenseAfter preparing the initial budget, take a close look to make sure it makessense and corresponds to the methods discussed earlier in your proposal.Make adjustments in income and expense as appropriate. Remember thatthe budget should not raise any red flags. Review the budget through theeyes of the individuals who will be reading your proposal. What might notbe clear to you? What would raise your eyebrows?

Use Worksheet 8.1A to prepare a budget for your project. Enteryour projected revenues and expenses, and add categories if necessary.Worksheet 8.1B contains a completed budget, showing you both how toproceed and what the budget for the Meals Consortium looks like. Askingthe Budget Review Questions at the end of this step will point up yourbudget areas that need more work.


W O R K S H E E T 8 . 1 A . Revenue and Expense Budget.

Use the filled-out Worksheet 8.1B as an example as you complete this budget.

IN-KIND

CASH REQUIRED CONTRIBUTIONS TOTAL BUDGET

REVENUE

Foundations

Government

Corporations

Individual contributions

Donated printing and supplies

Volunteer services

Other (specify):

Total revenue

EXPENSES

Salaries (prorated if less

than full time)

______________

______________

______________

______________

______________

______________

Payroll taxes and benefits

(percentage of salaries)

Bookkeeping contractor

Other (specify):

Total personnel

Office rent

Supplies

Printing

Utilities

Telephone

Copy services

Postage

Travel

Membership dues

Other (specify):

Total nonpersonnel

Total expenses

59Preparing the Program Budget

W O R K S H E E T 8 . 1 B . Revenue and Expense Budget.


IN-KIND


EXPECTED REVENUE

Grants

Foundations $130,000 $130,000

Government 83,000 83,000

Corporations 25,000 25,000

Individual contributions 50,000 50,000

Special events (net) 20,000 20,000

In-kind donations $22,000 22,000

Total revenue $308,000 $22,000 $330,000

EXPECTED EXPENSES

Salariesa

Program Coordinator 45,000 45,000

Social Worker I 40,000 40,000

Social Worker II 40,000 40,000

Administrative Assistant 30,000 30,000

Executive Director

(part-time: $65,000 � 20 %) 13,000 13,000

Benefitsb (20% of salaries) 33,600 33,600

Contract personnel 30,000 5,000 35,000

Program services 9,000 9,000

Total personnel $231,600 $14,000 $245,600

Office rentc 10,000 10,000

Insurance 4,000 4,000

Printing 12,000 3,000 15,000

Equipment 20,000 5,000 25,000

Office supplies 4,000 4,000

Utilities 3,000 3,000

Telephone 2,000 2,000

Copy services 8,000 8,000

Postage 9,000 9,000

Traveld 4,000 4,000

(Continued )


W O R K S H E E T 8 . 1 B . Revenue and Expense Budget. (Continued)


IN-KIND


Membership dues 500 500

Total nonpersonnel $76,500 $8,000 $84,500

Total expenses $308,100 $22,000 $330,100

a A program coordinator is necessary to manage the program and ensure effective delivery of services. The salary is based on the county

salary survey, which indicates that comparable positions are paid an average of $40,000 to $50,000 full-time equivalent (FTE) annually plus

benefits. The social workers’ salaries assume that each person has an M.S.W. degree and experience working with elders. The county salary

survey indicates that comparable positions are paid $35,000 to $45,000 FTE annually plus benefits.

b Benefits includes employer-paid taxes, health insurance, dental insurance, and long-term disability insurance.

c Office rent is calculated as 30% of total rent.

d Two staff members attend the conference of the National Association of Social Workers in Minneapolis.

61

Budget Review Questions

Is the budget consistent with the proposal’s program plan (methods)?

Is there a budget narrative that explains items that may not be imme-diately clear?

Does the budget include in-kind revenues and expenses?

Does the budget address the question of how overhead costs will berecovered?

Can your organization accomplish the intended objectives with theproposed budget?

Have you kept your budget worksheet, so you have a record of howyou determined costs for your expenses?


62

In addition to the planning sections of the proposal, you should write asection describing your nonprofit. This step explains what an organiza-

tion background section should contain to establish your organization’s cred-ibility. Using examples and a worksheet, you will learn how to present yourorganization’s strengths to a funder. Please note that the organization back-ground section of a proposal may appear as one of the first sections of theproposal or may appear after the planning sections (but before the budget).Where it appears in a proposal is often dependent on funder guidelines.

Purpose of the OrganizationBackground Component

The organization background component of the proposal is often lengthy,because it must describe the organization well enough to assure prospectivefunders that the nonprofit can undertake the proposed program or project.This section also often introduces the proposed project.

Writing theOrganizationBackgroundComponent

We don’t fund a piece of paper. We fund the people that stand

behind it and the leadership that we believe can deliver a

project.

ELAN GARONZIK, The Charles Stewart Mott Foundation

The process of how a group is organized is as important to us

as the issues being dealt with.

FRANK SANCHEZ, The Needmor Foundation

9S T E P

63

Prospective funders may refer to this section as the “Introduction” orthe “Applicant Description.” Essentially the same information will beexpected regardless of the title of the component.

This section of a proposal should tell the reviewer that the organization

• Is fiscally secure

• Is well managed

• Provides important community services

• Has the respect of the community

Content of the OrganizationBackground Component

Because the main purpose of this section of a proposal is to establish credi-bility with your funder, generally you can make use of a lot of differentkinds of information, from organization history to future plans. You needto use your judgment about what is appropriate for a specific proposal. Theguiding question should be: Will this information help build the case for myorganization’s qualifications to undertake the proposed program? For exam-ple, when seeking funds for a project with an innovative approach to work-ing with the homeless, it would be helpful to discuss the organization’shistory and experience with the homeless and also its experience with inno-vative approaches to problems. Similarly, when requesting funding for ahighly technical project that makes use of new ways to access the Internet,information about past organizational experience in telecommunicationsand the qualifications of specific staff members would be very supportiveof your organization’s capability to undertake the proposed project suc-cessfully. If you are proposing a collaborative project, you might give exam-ples of other collaborative projects that your agency has participated in.

You can supply testimonials and statistics relating to the work of yourorganization, although these should play a minor role in this section of theproposal. The organization background component should primarily be anarrative describing the qualifications of your organization. It also needs tobe interesting. A detailed account of your organization’s ten-year historymay have interest for you, but the funder would probably prefer a summaryof the highlights of that history relating to the project needing funding.

Spending considerable space discussing organizational structure andstaff and board qualifications is also not necessary. Supporting documentssuch as an organization chart and résumés of key staff can provide thisinformation and add credibility to your proposal, and they should be pro-vided in the proposal’s appendixes (see Step Eleven).

Writing the Organization Background Component


Tips for Writing the OrganizationBackground Component

• Begin by explaining when and why your organization was founded. Putyour mission statement in the first or second paragraph to give theprospective funder a good idea of the organization’s reason for existing.Then move away from the philosophy of the organization and beginexplaining what the organization does.

• Note that this section of the proposal can be the same for most funders(it can be boilerplate). However, you may need to make slight changes tohighlight items of special interest to a particular funder.

• Write this section of the proposal after the program planning is finished.

• Use appropriate testimonials and data to increase your organization’scredibility.

Using Worksheet 9.1A, gather the information for this section of yourproposal. Worksheet 9.1B offers an example. Then write your narrativeusing the Sample Organization Background Component as a guide. Finally,review your work using the Organization Background Review Questions.You should be able to answer yes to each question.

65Writing the Organization Background Component

W O R K S H E E T 9 . 1 A . Organization Background Exercise.

Use the filled-out Worksheet 9.1B as an example as you complete this exercise.

Name Accomplishments Personnel

Location

Legal status

Date of founding

Mission

Target population

Programs

Summary of need statement


W O R K S H E E T 9 . 1 B . Organization Background Exercise.


The Meals Consortium

Location

• Main County, U.S.A.

Legal status

• Private, nonprofit corporation

501(c) (3).

Date of founding

• 1989.

Mission

• Ensure frail seniors can main-

tain their independence and

live with dignity in their own

homes.

Target population

• Persons 55 and over who are

homebound.

Programs

• Five consortium members

provide home-delivered meals.

Summary of need statement

• The strategic planning process

identified that the area of

greatest need among the frail

individuals served is to be

linked up with social services in

the county to help them live in

their homes.

Accomplishments

• Served more than 255,000

meals in 2000 to over 1,000

frail individuals.

• Increased the number of

persons served in 2000 by

more than 5 percent.

• First Meals on Wheels program

consortium in the state.

• Strategic planning process

completed in 2000.

Personnel

• Governing board made up of

Meals Consortium members

and interested community

members.

• Part-time staff skilled in

leadership and fundraising.

• Volunteers provide help with

office work and special events.

67Writing the Organization Background Component

The Meals Consortium was formed six years ago as

a 501(c) (3) nonprofit, creating a consortium of the

five major Meals on Wheels programs in Main

County. The intent of this cooperative venture of

the five agencies is to establish a more coordinated

system of meeting the nutritional needs of frail

older individuals in the county.

The five agencies that form the consortium are

City Meals on Wheels, Older Adults Services, Seniors

Ending Hunger, Valley Meals on Wheels, and the

Hunger Program for Seniors. The County Area

Agency on Aging provides office and meeting space;

telephone, photocopying, and mailing services; and

limited administrative support.

The Meals Consortium was created to avoid

duplication of effort and maximize the effective use

of scarce resources among the five major Meals on

Wheels programs in this county. The consortium

model has resulted in significant cost savings for

participating organizations. One example of these

savings is that the smaller agencies do not need

to pay the high costs of hiring a fundraising staff

person to ensure program growth. Instead, these

organizations now rely on the Meals Consortium

fundraising efforts to assist their programs.

Considerable cost savings are also realized through

group purchases of items that all the programs use.

The board of directors of the Meals Consortium

includes primarily Meals on Wheels program direc-

tors, staff members of the County Area Agency on

Aging, and interested community members. The

current board past president is a former client of

Meals on Wheels and an active community volun-

teer. The board meets monthly to review individual

organization efforts and discuss ways of coordinat-

ing limited resources to effectively serve the Meals

on Wheels populations.

Two part-time staff manage the fundraising

efforts of the Meals Consortium. Administrative

support is donated by the County Area Agency on

Aging.

The operating budget of the consortium is

small to ensure that funds raised go to the five con-

sortium members’ Meals on Wheels programs.

Finances are managed by the board treasurer, cur-

rently a staff person from the County Area Agency

on Aging. Overhead expenses are minimal because

the County Area Agency on Aging provides office

space, equipment, and mailing services at no cost

to the program. The fiscal agent for the consortium

is the county government. (Please see the attached

detailed budget for more financial information.)

The effectiveness of the Meals Consortium has

resulted in considerable interest from other coun-

ties who have more than one Meals on Wheels pro-

gram. Information is shared and presentations are

given to help other groups interested in joining

together.

The Meals Consortium agencies serve more

than 500 frail elders each day, providing them with

hot meals and a friendly visit from a volunteer. In

2000, the consortium members served 255,000

meals to more than 1,200 different elderly men and

women. Nearly two-thirds of the meals went to

persons seventy-five years of age or older. Half had

incomes under $1,000 a month. Nearly six out of ten

lived alone.

In addition to bringing hot, home-delivered

daily meals to seniors, the volunteers who deliver

the meals provide friendly visits to these sometimes

isolated older individuals. These volunteers are an

important link to the outside world for the home-

bound elderly.

By providing home-delivered meals and a

friendly visit, the consortium organizations are

working to help older individuals retain their inde-

pendence and live out their lives with dignity in

their own homes.

Sample Organization Background Component

Organization Background Review Questions

Does your organization background section give your organizationcredibility by stating its purpose, programs, target population, andmajor accomplishments?

Does the background suggest sources of community support for theproposed program?

Will the background give readers a sense that the organization is wellmanaged and fiscally secure?


The proposal is now complete, except for your summary. This compo-nent literally summarizes your proposal. In this step you will learn

which parts of your proposal are key to the summary. Using a worksheetand following an example, you will also write a summary for your ownproposal.

Purpose and Content of the SummaryAll proposals of more than five pages in length should contain a summary.Most foundation and government funding sources request one. The sum-mary is a clear, one-page abstract of the proposal. It appears at the begin-ning of the document but is written last.

A proposal summary usually contains the following elements:

• Identification of the applicant

• The specific purpose of the grant

• Qualifications to carry out this purpose (the project)

• The anticipated end result

• The amount of money requested

• The total project budget

Each of these elements should be explained in one short paragraph. It iscustomary to follow the order given here when writing the summary.

A well-written summary will help the reviewer understand the need forthe project and the results expected. A poorly written summary will leave thereviewer asking why the project is important, which will hurt its chances of

Writing the Proposal Summary

10S T E P

69


being funded. A poorly written summary may also be set aside until thereviewer has more time to read through it.

Some writers like to begin the summary section with a statement of thecompelling need that the program is addressing. This catches the funder’seye and gives a clear indication of the importance of the program.

The summary is perhaps the most difficult section to write, because itis an exercise in being brief. Writers must catch the essential points of theproposal, set the tone of the proposal, and present the project in a mannerthat will interest potential funders.

Tips for Writing the Summary

• Decide what the key points are in each section of the proposal you havebeen writing throughout this workbook. Include only those key pointsin the summary.

• Stress the key points that you know are important to the funder. Makesure the summary highlights the potential funder’s priorities.

Complete Worksheet 10.1A to pull together the material for your sum-mary, using Worksheet 10.1B as a guide. Then write the summary for yourown proposal. Studying the Sample Summary for the Meals Consortiumwill help you. Then review your work by asking the Summary ReviewQuestions. You should be able to answer yes to each question.

71Writing the Proposal Summary

W O R K S H E E T 1 0 . 1 A . Summary Questionnaire.


1. Who is your organization, and what is its mission?

2. What is the proposed project (title, purpose, target population)?

3. Why is the proposed project important?

4. What will be accomplished by this project during the time period of the grant?

5. Why should your organization do the project (credibility statement)?

6. How much will the project cost during the grant time period? How much is being requested from this

funder?


W O R K S H E E T 1 0 . 1 B . Summary Questionnaire.


1. Who is your organization, and what is its mission?

The Meals Consortium is a consortium of Meals on Wheels programs serving frail older adults in Main County.

The mission of the Meals Consortium is to deliver a coordinated system of home-delivered meals to meet the

nutritional needs of homebound seniors.

2. What is the proposed project (title, purpose, target population)?

Recognizing that the target population of homebound older adults needs more than just a hot meal

and friendly visit each day, the Meals Consortium is proposing to begin a social services referral program, with

skilled social workers assessing the nonnutritional needs of the individuals served and making appropriate

referrals. The purpose of this new program is to ensure that homebound older adults receive the services they

need to maintain their independence and remain in their own homes.

3. Why is the proposed project important?

Costly institutionalization is about the only alternative to living at home for most of the individuals served by

Meals Consortium members. Few individuals have a desire to move to a convalescent home, and most will

struggle to maintain their independence and dignity in their own homes. With appropriate social services

referrals in addition to a good, nutritionally sound diet, frail older adults are able to remain in their homes.

4. What will be accomplished by this project during the time period of the grant?

The social services referral program has three objectives: (1) to increase social services referrals and follow-up

for individuals served by the Meals Consortium, (2) to increase social services direct care for the most vulnerable

older adults served by the Meals Consortium, and (3) to reduce the number of individuals being institu-

tionalized.

5. Why should your organization do the project (credibility statement)?

Meals Consortium members have served the target population for many years, providing frail older adults with

nutritional meals. By forming a consortium six years ago, the Meals on Wheels programs have increased their

cost effectiveness and efficiency. The social services referral program is another step in the Consortium’s efforts

to help individuals maintain their independence.

6. How much will the project cost during the grant time period? How much is being requested from this

funder?

First-year program costs are expected to be $330,000. This proposal is for $30,000. Remaining funds for the new

program will come from a grant from the County Area Agency on Aging, from other foundation sources, and

from the Meals Consortium annual event.

73

Summary Review Questions

Does your summary clearly identify the applicant(s)?

Does it describe the specific need to be addressed and the specificobjectives to be achieved?

Does it mention the total program or project cost and the amount offunding requested?

Is it brief (no more than one page)?

Writing the Proposal Summary

The Meals Consortium is a consortium of Meals on

Wheels programs serving frail older adults in Main

County. The mission of the Meals Consortium is to

deliver a coordinated system of home-delivered

meals to meet the nutritional needs of homebound

seniors.

Recognizing that the target population of home-

bound older adults needs more than just a hot meal

and friendly visit each day, the Meals Consortium is

proposing to begin a social services referral program,

with skilled social workers assessing the nonnutri-

tional needs of the individuals served and making

appropriate referrals. The purpose of this new pro-

gram is to ensure that homebound older adults

receive the services they need to maintain their inde-

pendence and remain in their own homes.

Costly institutionalization is about the only

alternative to living at home for most of the individ-

uals served by Meals Consortium members. Few

individuals have a desire to move to a convalescent

home, and most will struggle to maintain their inde-

pendence and dignity in their own homes. With

appropriate social services referrals in addition to a

good, nutritionally sound diet, frail older adults are

able to remain in their homes.

The social services referral program has three

objectives: (1) to increase social services referrals

and follow-up for individuals served by the Meals

Consortium, (2) to increase social services direct

care for the most vulnerable older adults served by

the Meals Consortium, and (3) to reduce the num-

ber of individuals being institutionalized.

Meals Consortium members have served the

target population for many years, providing frail

older adults with nutritional meals. By forming a

consortium six years ago, the Meals on Wheels pro-

grams have increased their cost effectiveness and

efficiency. The social services referral program is

another step in the Consortium’s efforts to help

individuals maintain their independence.

First-year program costs are expected to be

$330,000. This proposal is for $30,000. Remaining

funds for the new program will come from a grant

from the County Area Agency on Aging, from

other foundation sources, and from the Meals

Consortium annual event.

Sample Summary

Putting the Package Together

74

In this step you will learn the importance of accompanying your proposalwith a clear but brief cover letter and any attachments that funders may

request from you.

Purpose and Content of the Cover LetterThe cover letter is important because it is the first piece of information aboutyour proposal read by a funder. However, it is usually the last piece of theproposal that is written. It should talk about the following:

• The organization making the request

• The support of the board of directors for the project

• The specific financial request being made

The cover letter is usually no longer than one page. The best way tobegin the letter is to tell the funder the amount of the request and its pur-pose. The middle section of the letter explains the proposal’s highlights. Theend should thank the funder for considering the request and indicate whowill be calling to follow up on the request and when. This is also the placeto suggest a meeting between the prospective funder and your organiza-tion to answer questions and provide more information. The person whocalls to follow up on the funder’s receipt of the proposal can offer this invi-tation again. Because the person signing the cover letter may not be the per-son following up on the request, the organization’s contact person shouldalso be named in the letter.

The cover letter should be addressed to the contact person listed in theresearch materials on the funder, and it should be signed by the executivedirector or the president of the board of directors or both.

11S T E P

75Putting the Package Together

Purpose and Content of the AppendixesIn addition to the proposal’s written narrative, it is also important to includeappendixes. The appendixes are not part of the proposal, but they are animportant part of the package. Most government and foundation funderssupply a list of what they wish to receive in the appendixes. Most corpora-tions do not.

Even when no list of expected attachments is supplied, the followingshould always be included:

• The organization’s IRS 501(c)(3) nonprofit determination letter or fiscalagent’s letter, if there is a sponsor

• A list of board members and their work affiliations

• The organization’s overall budget for the latest fiscal year

• An organization brochure

• The organization’s most current newsletter

• The organization’s latest annual report (if it prepares an annual report)

• The organization’s long-range plan (if no long-range plan has been pre-pared, then a list of the annual goals)

• A list of any other funding sources receiving proposals for the project,and the amount of these requests

• Letters of support

Lynn Goodperson, Ph.D.

Executive Director

Community Foundation

1234 Main Street

Anytown, XY 99999

Dear Dr. Goodperson:

The Meals Consortium is submitting this proposal

to the Community Foundation for a $30,000 grant

to implement a new social services referral pro-

gram. This new program will enable frail seniors to

obtain important social services to help them

remain in their own homes.

The board of directors of the Consortium believes

the social services referral program will provide the

five hundred people we serve daily with important

services to help them maintain their independence

and dignity. They sincerely hope you will respond

favorably to our request for funds.

Our executive director, Ms. Theresa White, will con-

tact you in the next two weeks to see if you have

any questions about our proposal. Thank you for

your consideration.

Sincerely,

Susan Grantseeker

President, Board of Directors

Sample Cover Letter


In addition to these items, a foundation might request profiles of the keystaff who will be implementing the proposed project, a list of current fun-ders, and a copy of the latest audit. Corporations are less inclined to wanta large appendixes section, but if they have an interest in public relationsexposure for their support, a copy of the organization’s marketing plan orcopies of media coverage will enhance the proposal.

An appendixes section is also included with a letter proposal. Many ofthe items just listed are generally included with these shorter proposals. Let-ters of intent should have a reduced appendixes section that includes theIRS determination letter, a list of members of the board of directors, the lat-est annual report and newsletter, and an organization budget.

Packaging the ProposalA clean-looking, neatly packaged proposal gives the impression of a well-organized, successful organization, whereas an envelope full of pieces ofpaper with no sense of order gives just the opposite impression.

Take the time to make sure the proposal is paginated and that appen-dixes are clearly marked. Proposals with more than twenty pages shouldhave a table of contents identifying proposal sections. It’s also a good ideato place a list of the appendixes just before the appendixes themselves.

Only one proposal should be mailed to the potential funder unless moreare requested. The original is always sent to the funding source, and if addi-tional copies must be mailed, the original should be clearly marked.

Proposals (other than letter proposals with few appendixes) should beneatly arranged in pocket folders. The pages of the proposal text shouldbe paper-clipped together (never stapled) and placed in the right-handpocket. The appendixes go in the left-hand pocket. The cover letter remainsoutside this proposal package folder.

Although neatness is important to foundations and corporations, ashowy, expensive look will not help the success of the proposal. Avoidthree-ring notebooks, spiral binders, colored charts and graphs, and lami-nated or embossed folders.

Use the exercise in Worksheet 11.1 to make sure your proposal iscomplete and ready to mail.

77Putting the Package Together

W O R K S H E E T 1 1 . 1 . Final Proposal Checklist.

Place a check mark next to each step after it is completed.

______ Determine which project ideas have the best chance of being funded.

______ Form a planning team that includes clients affected by the project, community leaders, key staff and

volunteers, and other organizations with similar or complementary projects.

______ Design a program or project plan.

______ Conduct thorough research to determine funding sources interested in the project.

______ Telephone the targeted funding source to request information helpful in preparing the proposal

(annual report, grant guidelines, and so on).

______ Read all funding source materials to ensure the proposal follows their directions.

______ Prepare the proposal core components by stating the need or problem to be addressed, the objec-

tives and methods for meeting the need, the ways the project will be evaluated and funded in the

future, and the budget.

______ Prepare the final proposal components: the introduction, summary, and cover letter.

______ Determine those features in the project that may set it apart from other projects and will appeal to

the funder.

______ Make sure those features are highlighted for the funder.

______ Ensure the proposal is clear and well written by having at least one person review it and provide

feedback.

______ Include the appendixes requested by the funder.

______ Check funder deadlines and the number of proposal copies to be submitted in order to meet the

requirements.

______ Give copies of the proposal to the planning team and other individuals or groups who should be

aware of the project.

______ Telephone the funder within two weeks after mailing the proposal.


Sending the Proposal

Congratulations! You have just developed a great proposal based on thekeys to success discussed in this workbook’s Introduction. For a proposalto be successful, it must start with a good idea, which is developed intoa good plan. Then it is written clearly and concisely for a targeted funderwho has been researched carefully and with whom a relationship has beenestablished.

Now, using the Special Resource Section at the end of the workbook,you can find out more on how to research funders and learn more abouttheir preferences and values. When the proposal has been packaged andmailed out to your prospective funders, go through Step Twelve (the nextstep in this workbook) to review the best way to maintain contact withthose funders and help move your proposal through their systems.

Once the proposal is mailed, some follow-up must be done to ensurethe funder received the package and to continue the good relationship

between organization and grantmaker.

Follow Up on Your Organization’s ProposalUnless grantmakers request that you not contact them after your proposalis submitted, it is always a good idea to call after a couple of weeks to makesure the proposal arrived safely and to discuss the process the funder willuse for reviewing it. This is also an opportunity to extend an invitation tothe grantmaker to pay a site visit to see your nonprofit at work. There is agrowing trend among funders to pay site visits, and this is a good trend.

Managing a Site VisitAlmost all the funders interviewed for this workbook said they conduct sitevisits once they determine that a proposed program or project fits the

SustainingRelationshipswith Funders

Don’t surprise the funder. If bad things happen, inform us.

Funders realize things don’t always go as intended, and we will

work with a group for at least a year before considering cutting

off funding. Surprises can seriously jeopardize future funding

with other foundations because funders regularly share infor-

mation and experience with one another.

MARJORIE FINE, Unitarian Universalist Veatch Program

at Shelter Rock

Don’t convey a sense of entitlement in your proposal simply

because you have received previous grants from a funder.

PAULA MORRIS, The Horizons Foundation

12S T E P

79


mission of the grantmaker. Although a site visit is not an assurance thatyour proposal will be funded, it does mean that there is a match and thepossibility of funding.

When a site visit is requested, the staff members who were instrumentalin planning the project and who will be implementing the activities shouldbe available to meet with funding source representatives. Usually it is alsoimportant to have the person who manages finances available to answerany questions regarding the budget or overall organization sustainability.

Keeping Funders InformedBecause most organizations send out more than one proposal for the sameproject, funding sources should be kept informed of changes in the status ofother requests for funds. When grants are received, other foundations andcorporations receiving proposals should be informed, and they should alsobe informed when a proposal is denied. As new requests go out for the proj-ect, each funding source should receive an update on pending proposals.

Some foundations ask that you do not telephone their offices. In thesecases, do not make follow-up calls. Most corporations and government fun-ders encourage communication about proposals and expect follow-upphone calls.

Responding to the Funder’s DecisionEventually, a decision will be made, and you will hear either that the pro-posal has been funded or that it has been declined for funding. Relation-ship building happens regardless of the grantmaker’s decision.

When the Proposal Is FundedThe first order of business after the good news has been received is to pickup the phone and call the funder to say thank you. A more formal lettershould also be written and sent, but that initial call is crucial to demonstrateyour nonprofit’s appreciation. Every funder interviewed said that the bestthing a nonprofit could do is acknowledge the grant and stay in touch withprogress reports and personal communication. The worst thing a nonprofitcould do is “take the money and run,” never to be heard from again untilthe next proposal arrives on the funder’s desk.

Most funders also expect some public recognition for their grant. A fun-der that desires anonymity will make that clear at the time the grant isawarded. Let funders know what recognition you plan to give them. Onefunder interviewed said that a “worst practice” of nonprofits is to surprisethe grantmaker with public recognition.

81

The level of recognition, of course, should be proportionate to theamount of funds received. All that may be needed for smaller grants isacknowledgment in your newsletter or brochure. Larger grants may call fora press release to the local media, a ceremony of some kind, or special recog-nition at your annual event. Every nonprofit has its own way of sayingthank you to its funders, and the key point, again, is to ensure that there isrecognition.

Send regular updates to your funders as well. Some grantmakers havea special report format they expect you to complete and deadlines forreceiving the reports. Others are more informal. Funders want to know theirgrant is being well spent and that it is making a difference. Of course, if yourun into problems with the project, this needs to be communicated as well.It is generally much better to bring a funder’s attention to any difficultiesyou are having early on, so the funder is aware and possibly can be helpfulin getting the project back on track.

When the Proposal Is Not FundedAll too often, a letter arrives saying your organization’s proposal has beendenied. There is tremendous competition for grants, with some fundersreporting that only 10 percent of the proposals they receive are funded.Grantseekers should not be overly concerned when a grantmaker says noto their proposal.

Generally, the letter gives only vague reasons for the denial, so the firstthing to do is to call your contact person and find out more specific answers.Your questions to the funder should include the following:

• What information did the funder need to make the proposal more com-petitive?

• Where did the proposal lack clarity or raise questions for the funder?What were some of the questions the funder had while reviewing theproposal?

• If the proposal is going to be submitted again in the future, whatelements in the proposal should be given greater emphasis?

If the feedback is that the proposal does not meet funder guidelines,then it is important to clarify what those guidelines are. During yourresearch, you have probably identified this funder as a good match (or youwould not have sent the proposal), so check to see whether the guidelineshave changed or whether the funder has an interpretation of them that isdifferent from yours.

Sustaining Relationships with Funders


Also find out the earliest date you can resubmit the proposal after it hasbeen reworked to make it stronger. Some funders want grantseekers to waitone year before resubmitting, but others have shorter time frames.

It is important to remember that a denial from a funder is not a kissof death for your proposal. There are many reasons why a funder mightdeny a proposal, so continuing to search out prospective funders as youalso build relationships with funders who are currently awardingand denying your proposals is a good idea. Keep even those funderswho have denied your proposal on your organization’s mailing list, andsend them periodic updates about your nonprofit and its programs. Alsoinvite them to events and other social occasions where there is an oppor-tunity to connect with them and build that relationship.

Special ResourceSectionA. How to Research Funders

B. Learning More About Funders

C. How to Evaluate a ProposalThrough a Funder’s Eyes

D. Bibliography

E. Helpful Web Sites for Grantseekers

A. How to Research Funders

After the project idea has been determined and the planning phase isunder way, research to determine the best funder possibilities can

begin. There are several types of private funders to choose from and a vari-ety of government sources available. This section of the workbook will helpyou conduct research to find those funders most likely to give you a grant.

Internet ResearchIf you are a grantseeker with access to the Internet, your research shouldbegin with a visit to the Foundation Center Web site [www.fdncenter.org].This site has a wealth of material that will make your search productive andenjoyable. The Foundation Center offers contact information for hundredsof foundations and direct links to their Web sites; grantseeker tools, includ-ing common applications that can be used in some areas of the UnitedStates; IRS Form 990-PF search capabilities; a learning lab for creating pro-posals; and links to many other grant-related resources. It is also possible,for a small monthly fee, to access the Foundation Directory on-line, whichallows you to carry out the whole task of research from the convenience ofyour office. Different levels of information searches are available throughthe directory, ranging from basic to “platinum,” depending on how muchyou can afford and how detailed you want your search to be. Instructionsfor conducting research in the on-line directory are available and very userfriendly.

Grantseekers interested in government grants can access the Catalog ofFederal Domestic Assistance and other government resources on-line. Thisdirectory contains a listing of all the U.S. government programs, with back-ground information about their interests and funds available. It’s the placeto begin government grant research. Many government agencies no longer

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publish print copies of their giving guidelines, so visiting these agencies on-line is imperative.

Visit corporate Web sites for information about company products.Some corporations also provide key information about contact individuals,which makes the grantseeker’s research easier.

Library ResearchThere is no need to despair if your nonprofit is not yet linked to the Inter-net. Most major metropolitan areas in the United States have a FoundationCenter library. These libraries offer comprehensive collections of researchmaterials on foundations and corporations. They also carry some informa-tion on obtaining support from the federal government. Off-line research-ing of federal government grant opportunities is generally done byreviewing the print version of the Catalog of Federal Domestic Assistance, pub-lished by the General Services Administration. This large book lists morethan a thousand federal grant programs. Another research tool, the FederalRegister, also helps the grantseeker keep current on federal grant possibili-ties. This useful tool has been computerized as well. It is possible to obtainabstracts of any Federal Register entry via the DIALOG system, which isavailable at most large libraries.

Find out where your closest foundation research library is located. Forgrantseekers not located close to a Foundation Center library, publiclibraries and college libraries in most towns usually have some resourcesfor researching funders.

Whether you use the Internet or a printed directory, at the end of yourresearch you should know which foundations, corporations, or govern-ment sources of funds will have the most interest in receiving your orga-nization’s proposal; what the specific interests of each of these grantmakersare so that the grantseeker can target the proposal to those interests;and whether anyone at your nonprofit knows someone at the prospectivefoundation.

Here is a good seven-step process for researching potential fundingsources using library resources:

1. Determine which funding directories are available in your FoundationCenter library or local library for your research.

2. Determine all the subject areas that your organization’s project addresses.For instance, a proposal seeking funds to begin a senior citizens’ mealprogram falls into the subject areas of both aging and social services.

3. Using the subject index of each directory, look up the subject areas iden-tified for the project, and find the foundations and corporations that are

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both interested in the subject and located in your organization’s generalgeographic area. Then check the type-of-support indexes for the cate-gory of support you seek (continuing, capital, project, and so on). Com-pare the foundations and corporations you find in the subject index andtype-of-support index to determine the ones that appear in bothindexes—these are likely to be your best possible matches. You want tofind as many potential funders as possible that are nearby, and moveprogressively farther away only as local resources diminish. Write downall the potential funding sources you find that are also in geographicproximity to your organization.

4. Read the directory entry on each funding source on your list to learn allyou can about the source. This preliminary research gives you an indi-cation of which funders may have an interest in the project and also thepotential to give funding at the level needed and within the time framerequired.

5. Once you have identified those funding sources that best match theproject’s funding needs, call for copies of their annual reports and othermaterials that will be helpful in preparing your proposal. Foundationand corporation annual reports are important because they generallystate the giving interests of the funding sources and list organizationsthat have obtained grants previously. If you are doing your research ata Foundation Center library, you can also obtain information on a foun-dation funding source from its IRS Form 990, usually available onmicrofiche.

6. With the information obtained from annual reports, Form 990s, andother materials, you can determine how to target the proposal to theinterests of the funding source and obtain an idea of how much fund-ing can reasonably be requested.

7. Your organization’s board of directors, volunteers, and staff should bemade aware of potential funders to determine whether they know adecision maker at one of these organizations. If they do, a letter in sup-port of the program can be sent to that person, separately from the pro-posal. Although a nonprofit does not have to have a personal contactwith the individual who makes the funding decision, it is frequentlyhelpful if a good relationship is established.

Additional Research OptionsNonprofits that have no library resources available for research or access tothe Internet must take a more creative approach. Here are some additional

A. How to Research Funders


ideas for building a database of potential funders:

• Call other nonprofits in the community with similar programs to findout what foundations and corporations are funding them. Get thenames of contact people and phone numbers and call the fundingsources to obtain copies of their annual reports and funding guidelines.

• Find the names of nearby companies in the local phone book, and con-tact them to determine their giving practices. In this case you will do allyour research over the phone, but the information gathered should besimilar to that from library research.

• Become active in chambers of commerce and in civic clubs where mostmembers are business professionals and can help you identify thosecompanies and foundations in the community that are interested inreceiving proposals.

Step Two describes the initial approach to take in building a strongrelationship with potential funders. This section tells you more about

the philosophy of relationship building and offers ideas for targeting yourproposal to funders.

Preparing a high-quality proposal that describes a clear plan to meet awell-identified need is important as the first step to ensuring funding, butjust as important is understanding the philanthropic values of foundations,corporations, and government funding sources. Foundations, corporations,and government sources expect some exchange of value (that is, they givefunds that are valuable to nonprofits, and they desire something of valuein return). Organizations should determine what is of value to each grant-maker they approach. In addition, organizations must be aware of differ-ences among foundations, corporations, and government sources when itcomes to building relationships with them.

For example, foundations are very clear about their interests, and a copyof any foundation’s guidelines will indicate its priorities and what it expectsto receive from the grantseeker. Corporations are sometimes less clear. Gen-erally, they value an excellent relationship between corporate officials and anonprofit or an opportunity to give a grant to a nonprofit for the purposeof building a stronger community.

Government funders state their priorities and often have communityadvisory groups who help set the priorities and recommend funding. Thepolitical relationship plays an important part in who is and is not given agrant.

Each of these funding groups is discussed in greater detail in the fol-lowing sections to help you identify the exchange of value between yourorganization and your prospective funder upon which you can build astrong, long-lasting relationship.

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B. Learning MoreAbout Funders


FoundationsFoundations come in many different sizes and exist for a variety ofpurposes, and when a foundation decides to fund a nonprofit, these are thecriteria that usually apply:

• The foundation is interested in supporting organizations in the non-profit’s geographic area.

• The foundation is interested in the nonprofit’s mission and the subjectarea covered in its proposal.

• The foundation believes investing in the nonprofit will further themission and goals of the foundation.

There are four types of foundations: independent, community, operat-ing, and company-sponsored or corporate.

Independent foundations (referred to as private foundations by the IRS) areestablished by individuals or families and are usually funded with eitherinherited wealth or wealth accumulated through a business activity. Thereare three major types of independent foundations:

• Large, multipurpose foundations often have sizable staffs whose purposeis to assist organizations in preparing proposals, to review incomingproposals, and usually, to make recommendations to the foundationboard of trustees, which generally comprises family members and otherindividuals. These foundations generally have broad discretionary giv-ing policies, but they also usually have specific guidelines that non-profits must follow when approaching them.

• Special purpose foundations have defined specific problems that they willaddress. For example, a family foundation created to combat AIDS is aspecial purpose foundation.

• Small family foundations generally serve the needs of their local area andmay have a broad or narrow giving approach. These small independentfoundations may have no staff; instead, the family who established thefoundation handles the duties of both staff and trustee.

Community foundations represent the interests and resources of a largenumber of donors. They limit their funding to nonprofits in a narrowlydefined geographic area, such as a city or region.

In order to make grants, a community foundation must acquire dona-tions. These contributions come from a broad base of wealth within thecommunity. The trustees of a community foundation also usually representa broad sector of the community. This helps to ensure that their fundingdecisions will address many areas of community need.

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Operating foundations are private foundations that use their resources toconduct research or provide a direct service. Although they are frequentlylisted in research guides, they do not make grants to the general nonprofitcommunity.

Company-sponsored (or corporate) foundations are established by corpora-tions but tend to operate separately from the company and to have theirown staff. The members of their boards of trustees are generally membersof the corporation. These foundations give grants to nonprofits within thegeographic sphere of company operations, and they sometimes limit theirgiving to nonprofits in which company employees are actively involved.

Corporate foundations tend to give to a broad spectrum of organiza-tions, although some establish giving policies that reflect a parent companyinterest. For instance, computer companies tend to give to nonprofit orga-nizations requesting funds for projects that use computers, and corpora-tions with products for children will be supportive of community programsthat assist children.

Foundations are established to provide philanthropic support to thecommunity. By law, they must give away a certain percentage of their assetsannually. This is one of the major factors that distinguishes foundation atti-tudes toward giving from corporate attitudes. Both corporations and foun-dations want to meet needs in the community, but foundations are morepurposively philanthropic. Foundation representatives in a communitysometimes get together to talk about the needs of the area and to determineways they can meet them through funding targeted to one nonprofit or toa coalition of nonprofits.

Corporate Giving ProgramsCorporate giving programs are set up within a company, generally as partof the human resource, public affairs, marketing, or community relationsdepartments. One or more company employees provide administrative sup-port, and funding decisions are generally made by the CEO or the vice pres-ident in charge of the department administering the program. In some casesa committee of key corporate officials is formed to make grant decisionsfor the company. These individuals may determine both the monetary andin-kind grants given.

Most corporate giving falls into the following categories of support:

• Outright gift

• Corporate matching gift

• Use of facilities



• Technical assistance

• Employee volunteers

• In-kind gifts of equipment and materials

In recent years, corporate giving programs have been cutting back ontheir cash grants and looking at the other ways to support charitable orga-nizations. For example, they have supplied nonprofits with

• Equipment and furniture

• Company professionals who volunteer to provide expertise in theirfields or to serve on a nonprofit’s board

• Company products

• Free or low-cost publicity services

Because noncash gifts play an important role in most nonprofits, grantseekersshould not overlook this way to obtain corporate support.

In addition, corporate giving programs will sometimes work withnonprofits to develop incentives for consumers to purchase the goods of thecorporation and at the same time help the nonprofit, an arrangementgenerally referred to as cause-related marketing. An example of cause-relatedmarketing is offering consumers the opportunity to purchase checks orcredit cards from a bank that gives a portion of the proceeds to a nonprofit.The checks and credit cards are generally imprinted with the name of theorganization being assisted.

Foundations have to give away some of their assets. Corporations donot, because their primary purposes are to supply goods and services andto make a profit, which in turn helps maintain a healthy economy. Gener-ally speaking, corporation giving programs award grants for the followingreasons:

• To create community goodwill. Corporations like to be seen as interestedin and supportive of the communities where they operate. For this rea-son, they usually give grants only in communities where they haveheadquarters and subsidiaries.

• To support organizations with which the company has a strong relationship.Corporate personnel enjoy feeling personally involved in the nonprofitsthey support. They may sit on a nonprofit’s board of directors or vol-unteer in some other way, or they may simply be kept informed of thenonprofit’s activities.

• To support company employees. Corporations will tend to give donationsto organizations where employees are volunteers or where employees’families use the services (as they do at a school or a hospital).

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• To support quid pro quo interests. Corporations often give to organizationsthat promote the importance of a product made by the corporation.Corporations generally like to see some return on their investments inthe nonprofit sector. Examples of corporate gain in return for givinginclude

Identification with a respectable nonprofit

Increased market share for company products

Increased community visibility

These factors heavily influence corporate giving, and it is important tobear them in mind when preparing grant proposals aimed at corporations.Other ways to enhance your organization’s proposal include

• Mentioning linkages that answer the question, What’s in it for them?

• Mentioning in the cover letter company employees who are volunteersin your nonprofit

• Describing the ways your organization enhances the quality of life forcompany employees

Companies rarely want a proposal that exceeds three pages in length.You should make an initial phone call to determine the corporation’s cur-rent giving interests and to request an annual report and any available giv-ing program guidelines.

Unlike a foundation, which has a clearly identified contact person, a cor-poration can have several areas that engage in giving. It is essential to iden-tify the appropriate person to approach for your particular project. Keep inmind the following general guidelines:

• The contact person for a corporate giving program may be found in thecompany’s annual report. It is generally the CEO or the vice presidentfor human resources, public affairs, or community relations.

• Some corporations don’t have an official giving program; they prefer togive grants at the discretion of the CEO and other senior managers.These are generally smaller grants than a giving program would make,and the CEO usually knows or is personally involved with the nonprofitreceiving the grant.

One of the best ways to ensure the success of your proposal is to estab-lish a good linkage with individuals at corporations you have targeted forsolicitation. Ways to develop this linkage include

• Meeting the appropriate contact person and establishing a relationshipprior to asking for funds



• Sending contact persons your organization’s newsletter and brochures aswell as press releases announcing new programs and accomplishments

• Sending invitations to contacts or company officials to attend lun-cheons or dinners or to participate in special events

• Inviting appropriate company officials to visit your nonprofit organi-zation and meet key staff

• Asking corporations to encourage their top employees to serve on yourboard of directors or a corporate advisory board

Timing your proposal’s arrival at a corporation is also important. Whenplanning your proposal writing schedule, contact each targeted corporationto find out

• When its fiscal year begins

• When it plans its grant-giving budgets for the following year

• When its application deadlines occur

• When it makes funding decisions

Sometimes the best first approach to a corporation is to ask for anin-kind gift rather than a cash grant. Receiving equipment, furniture, ortechnical assistance can be a good start to building the important rela-tionship that will facilitate your future attempts to obtain funds.

Once a relationship has been established between your nonprofitorganization and a corporation, continuation grants are likely as long as theproject and the relationship are important to the corporation. The challengefor nonprofit managers is to build and maintain good relationships andto present their project on a continuing basis as one that is valuable to thecorporation and to the community.

Government SourcesGovernment sources for funding of nonprofits vary widely, from federalagencies to local city agencies. Federal grants are usually given in the formof special project funds or categorical grants, which normally go to a stategovernment agency to be distributed to nonprofits in the state. For instance,the U.S. Department of Health and Human Services has special projectfunds for AIDS prevention that are given to state governments that canshow a state need. The appropriate state agency passes the funds on to thelocal or regional nonprofits that actually perform the services.

In addition to categorical grants, there is federal block grant money,which is given to cities to distribute to nonprofits for capital projects andprograms considered of major importance to the cities making the funding

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decisions. Cities and, in some areas, counties may also have general rev-enue sharing and discretionary funds to give to nonprofits. Organizationsapply for these funds through a lengthy grant process of proposal writing,visits to the local decision makers, and an appearance before the decision-making body to justify the need for the funding.

State and local government grant funds are declining as the federalappropriations become smaller. There are still some funds availablethough, and these sources should not be overlooked. Among the majorsources of local grant funding are Community Development Block Grants(CDBG), administered by your city government. You can usually findthe staff person in charge of CDBG funds by calling the mayor’s office inyour city.

The Government Assistance Almanac and Catalog of Federal Domestic Assis-tance classify federal program assistance as follows:

• Advisory services and counseling

• Direct loans

• Direct payments (grants)

• Project grants

• Sale, exchange, or donation of property and goods

• Use of property, facilities, and equipment

Getting to know influential people in the government agency provid-ing the funds you are seeking is important. The first step to making thesecontacts is some careful research to decide which government agencieswould be interested in funding you. Once you have identified one or moreagencies, request information from them about application forms, dead-lines, estimated sums for new grantees, and a list of past grants. Ask for aninformational interview to discuss your project and the agency’s potentialinterest in it. As you develop your proposal, call frequently to ask questionsand clarify what the funder is looking for. By the time the application is sub-mitted, the agency should be familiar with your organization.

It is also possible to sit on the citizen review panels that the governmentuses to help decide who is funded and who is not. Let the agency know ofyour interest in doing this and your particular area of expertise. By sittingon one of these panels, you can learn what the agency’s interests are andsee how decisions are made.

Also stay in close contact with key government officials. Your applica-tion to a government agency for funding should always include letters ofsupport from members of Congress, the state legislature, and your localgovernment.


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What is it like to decide on funding a proposal? This section of theworkbook gives you an idea of that process. As a board member of

the We Care Foundation, you will be asked to review the proposal thatfollows and make a decision regarding its funding. You can take one ofthe following actions:

• Award a grant in the amount requested

• Award a grant in a different amount from that requested

• Decline to make a grant

• Defer a decision until you have received more information from theapplicant

The We Care Foundation is a real foundation that has been given afictitious name here. The foundation agreed to share its guidelines, itsboard critique sheet, and a proposal from its files for this section of theworkbook.

Because your staff have done the preliminary screening of proposals,you may assume that the proposal you are reviewing was submitted ontime and met other basic requirements.

You will need to consider the following:

• How well the grant request meets your interests and guidelines

• Whether you think the applicant is a credible organization with acompetent board, staff, and volunteers

• Whether the applicant’s plans are feasible, considering the problem ordemand to be addressed; the objectives, methods, and evaluationproposed; the amount of money requested; and the total project budget

C. How to Evaluate aProposal Through aFunder’s Eyes

97C. How to Evaluate a Proposal Through a Funder’s Eyes

• How important or compelling the proposed project seems

• Any other biases you or your fellow board members bring to the table

Background on the We Care FoundationThe We Care Foundation is a nonprofit grantmaking corporation of a com-munity of religious women in the United States that set aside an endow-ment to be used to fund projects assisting needy people anywhere in theworld. The purpose of the We Care Foundation is to empower people inministry with the needy to carry on works that improve the quality of life,effect positive changes in attitudes, and change structures that perpetuateinhumane and unjust conditions.

Once a year, the board of directors awards grants to organizations forshort-term projects and long-term programs that address

• The food, clothing, and shelter needs of the poor

• The health care needs of the sick

• The education needs of the uneducated

• The survival needs of the displaced

• The advocacy needs of the oppressed

• The conversion needs of the oppressor

• The psychological needs of the suffering

• The spiritual needs of all people

Grants are made only to charitable, nonprofit, nongovernment organi-zations with proof of tax-exempt status as 501(c)(3) organizations under theInternal Revenue Code.

Only one request from an organization is accepted each year. Requestsexceeding $15,000 are not accepted.

Grants are awarded for a one-year period. Grantees may reapply, butthe board will not fund the same project or program beyond two consecu-tive years.

Requests are not accepted for capital expenditures, tuition, scholarships,fundraising drives, emergency relief, or endowments.

Proposals are limited to six pages (single-spaced), with no cover letteror attachments.


Critique Sheet Used by Board Members of the We Care Foundation

Credibility Component_____ Establishes credibility of agency as a good investment

_____ Establishes role of contact person

_____ Establishes qualifications of agency and staff in areas of activities for which funds are requested

Need Component_____ States a problem of reasonable dimension

_____ Supports a client need with relevant data

_____ Establishes the project/program’s current need for funds

Objectives Component_____ Describes measurable outcomes to be achieved

_____ Appears feasible in light of agency resources

_____ Is achievable within time frame of grant

Methods Component_____ Describes how objectives will be achieved

_____ Includes staffing, timelines, and client selection

_____ Appears cost-effective

Evaluation Component_____ Tells process for evaluating accomplishment of objectives

_____ Tells process for evaluating and modifying methods

_____ Tells who will be doing the evaluation

_____ Tells how data will be gathered, analyzed, and reported

Future Funding Component_____ Tells plan for solvency after grant

_____ Seems probable work will continue beyond grant period

Budget Component_____ Is complete and accurate

_____ Seems sufficient to cover cost of methods and achieve objectives

_____ Indicates how our funds will be used

_____ Provides information on other sources of income

_____ Will be balanced with addition of our grant

Individual Response:I support funding: ______ fully ______ partially _____not at all _____not sure

Group Response:$ Requested ________ $ Granted ____________ Conditions: Yes ______ No ______

Comments


Sample ProposalHere is an actual proposal submitted to the We Care Foundation. The onlychanges made were in the name of the funding source and the names of theagency and personnel submitting the proposal.

SummaryThe Cebola Early Childhood Center is a project that

attempts to moderate the negative impact of isola-

tion and poverty on a population of Hispanic

preschool children in the mountain village of

Cebola, in northern New Mexico.The project, imple-

mented by a well-trained indigenous staff, provides

a family-oriented child development program giv-

ing these children needed early intervention, sup-

porting the development of self-confidence and

high self-esteem, and providing a basic, thorough

foundation for future success in school.

Community empowerment and self-determi-

nation have always been strong components of this

project. Initiated as a cooperative venture among

the women in this village, the project was con-

ceived and organized to address the educational

needs and the futures of their children, to counter-

act school failure, and to assist in the successful

transition to life in the world outside their village.

The women in this village were instrumental in

organizing, establishing, and staffing the center, and

a local board of women is now directing its opera-

tion. The staff have been so deeply committed to

obtaining excellence in the early childhood field

that they recently extended their education and

obtained college-level certification in child devel-

opment. (Funding permitted the financial support

for this training.)

The staff provide an educational program in

which their Hispanic traditions and cultural values

play a significant part, accomplished by stimulating

activities and materials that are organized around a

well-developed early childhood curriculum.

Ongoing evaluation assures the progress of the

children. A close working relationship with the local

school district also provides feedback regarding the

adjustment and the performance of these children

once they enter public schools.

The project is funded mainly through private

monies. Fundraising is a continuous, ongoing effort.

A grant from We Care will assist in the survival of

this project. We are requesting $5,000. This funding

will be used for costs related to personnel, nonper-

sonnel, and further staff training.

IntroductionThis grass-roots program attempts to moderate the

negative impact of combined isolation and poverty

on rural Hispanic children of preschool age in the

village of Cebola, New Mexico. The Cebola Early

Childhood Center (CECC) is in its sixth year of

operation. It began as a parent-organized coopera-

tive to answer the educational needs of young

children in this remote village. In 1994, CECC was

given endorsement by the award of CDBG

(Community Development Block Grant) monies,

through which an early childhood facility was

constructed and equipped and local women

were employed and trained as early childhood

workers. The project has survived on private fund-

ing since the termination of the (single year) CDBG

grant. It has created services where there were none

and provided training and employment to individu-

als (both women and the elderly) who would other-

wise have remained unemployed.

CECC provides family-oriented educational ser-

vices to preschool children and their parents. The

program provides a stimulating environment for

children that addresses their intellectual, physical,

and social-emotional growth and assures the in-

depth mastery of early development stages. The

goal of this project is to prepare these children for

the future, fostering their self-confidence and high

Sample Proposal


self-esteem as well as providing a basic, thorough

foundation for future success in school.

The children who attend the center and partic-

ipate in a child development program are super-

vised by trained paraprofessionals. Training for

these women, who are indigenous to the village of

Cebola, has been extensive. Recently they were

awarded their CDA degrees. (The CDA is a nation-

ally recognized credential in child development.) A

foster grandparent program is also a thriving com-

ponent of our project, with half of the teaching staff

being senior citizens of the village who are available

to the children. The program has been licensed and

has been used as a model site, demonstrating excel-

lence both in educational programming and as an

early childhood facility. In addition to providing

high-quality early childhood education services, the

project has been accepted into the State of New

Mexico’s Child Care Food Program, which provides

funding for daily nutritious lunches.

The project director, Becky Smith, is well quali-

fied for her position. She is a lifelong resident of the

Cebola community and related to every member of

the CECC clientele through both familial and histor-

ical ties. She has been trained extensively in child

development and has recently earned her CDA

degree. Throughout her life she has demonstrated

community leadership as well as strong organiza-

tional and administrative skills. The contact person,

Katherine Jones, is the chairperson of the CECC

board of directors and is the key community person

governing the project.

Problem StatementCebola is a remote village located in Rio Arriba

County in northern New Mexico. High unemploy-

ment, substandard housing, and low per capita

income are characteristic of this region.The popultion

of the area is predominantly Hispanic. Prior to imple-

mentation of the CECC program, the community had

no educational resources for young children.Through

the cooperative efforts of the mothers of this village,

CECC emerged as an answer to these needs.

It continues to be a grass-roots venture—that is, all

staff are members of the community and a parent

board is active in directing the center’s operation.

The principal problem that this addresses is

described best as a problem attendant to isolation

and poverty. Isolation and poverty in this rural and

predominantly Hispanic region combine to pro-

duce a situation for children that is exceedingly dif-

ficult to master. Because of the poverty, isolation,

and other drawbacks associated with being of a

minority group, speaking a different language, and

growing up in a rural area, these children will con-

tinually face increasingly difficult obstacles

throughout their development. School failure has

often been the tragic result of this constellation.The

CECC program provides a strong educational foun-

dation for these children and an opportunity to

deeply master their earliest developmental stages.

They are given an “early win,” thus setting the stage

for self-confidence and future success in school.

CECC exists on a very small and efficient bud-

get. As indicated in the budget, the anticipated

financial need for each program year is estimated

to be approximately $100,000. However, because of

its geographical isolation, there are few resources

available to maintain a program such as this one.

We Care funding is needed to assist in this project’s

survival.

ObjectivesThe primary objective is to continue to serve an

estimated twenty-five children during the coming

months with the same high quality we have pro-

vided in preceding years. As stated above, the goal

of this project is to prepare these children for the

future, fostering their self-confidence and high self-

esteem as well as providing a basic, thorough foun-

dation for future success in school.

The secondary objective is to continue to serve

the parents and/or other family members most

responsible for the care of these children with useful

types of education, training, and related services

that will best serve them in fulfilling their parenting

roles.

MethodsCECC serves a population of preschool Hispanic

children who reside in the remote mountain village

of Cebola, in northern New Mexico. These children


begin attending the center very early in their lives,

often visiting with their mothers when they are

infants and toddlers. Parent involvement is an

important component of the program. As the

parents attend the center with their child, observe

the trained staff interacting with their children,

and participate in the child development program,

the parents absorb child development concepts in

a natural way. An observation room is available for

parent use. The staff are also available to consult

with parents regarding educational and develop-

mental issues pertaining to their children. An esti-

mated twenty-five children and their families are

served each year.

The objectives of this program are realized

through the activities of the early childhood pro-

gram. The center addresses the educational needs

of the whole child: the emotional, social, intellec-

tual, physical, and creative aspects of each child’s

development. The early childhood environment is

organized into learning centers, which include

(1) the gross motor (large muscle) center, (2) the

dramatic play center, (3) the cognitive development

center, (4) the constructive play center, (5) the

art center, and (6) the book corner. When a child

arrives at the program he or she is encouraged to

explore and use the different areas according to his

or her individual interests. During the course of the

day, children also participate in a routine that

includes clean-up activities, group activities such as

reading and singing together, a nourishing lunch,

and outdoor play. Activities are selected to meet

the full range of the child’s educational needs.

Providing a stimulating, well-equipped setting

complemented by the skills of a well-trained staff

is the key to achieving the project’s objectives.

The CECC program is staffed by two early child-

hood workers. These paraprofessionals are trained

in child development and are indigenous to the vil-

lage of Cebola.They have both recently earned CDA

degrees. (The CDA is a nationally recognized cre-

dential in child development.) Additional staff sup-

port is provided by two senior citizens from the

community who function as foster grandparents.

The strong Hispanic cultural elements of the

program create an educational climate that

enhances each child’s self-worth. The indigenous

staff are able to provide a bilingual program in

which Spanish and English are both spoken, and

in which Hispanic traditions and cultural values are

important components. The child’s first school

experience is, then, one in which his own culture is

valued and functions as a prominent axis of the

educational program.

The center operates on a school-year calendar,

with one exception. During the coldest winter

months, when roads are often impassable, the par-

ents decided that the center would close. This

means, essentially, that the center operates each fall

from September 1 until Christmas, and each spring

from March 1 through early June.

EvaluationTwo forms of evaluation will be conducted for the

program. The first form consists of an ongoing eval-

uation in which the staff meet on a regular basis

with a supervisor. The supervisor observes the pro-

gram and reviews the children’s records. Progress

notes, assessment forms, and skill charts are used to

document and record the educational progress of

each child. Meetings between supervisor and staff

provide an opportunity for discussion and making

decisions regarding needed method modifications.

The supervisor is an individual who served as

staff trainer during previous program years. Her

selection for evaluation is based on her in-depth

familiarity with the program and on her extensive

training and experience in the fields of child devel-

opment and education.

The second form of evaluation is an annual

process of comparing accomplishments with stated

objectives. The El Rito Mountain School District is

asked to conduct the annual evaluation. A profes-

sional evaluator from the local school district is

requested each year because of the school’s interest

in the program and also because the children

attending CECC eventually become students in this

district.

Future FundingAs indicated in our budget, our anticipated financial

need for each program year is estimated to be


approximately $100,000. Our project survives from

year to year through our financial efficiency with the

funding we are able to obtain. Each year local orga-

nizations within the northern New Mexico territory

are approached for support, as are many out-of-

state agencies. We plan to continue funding our

organization in this manner as long as it is necessary.

In the past we have brought our need to the atten-

tion of area legislators, and we will continue to do so

in the future in hopes that eventually a permanent

funding source for this type of activity will be estab-

lished through state or county government.

Budget

CEBOLA EARLY CHILDHOOD CENTER

July 1, 2000 Through June 30, 2001

LINE ITEMS BUDGET REVENUE SECURED OTHER REQUESTS REQUEST FROM WE CARE

Personnel

Salaries $60,000 $57,500 $2,500

Fringe benefits 12,000 11,700 300

Consultant 8,000 7,500 500

Contract services 3,000 3,000

Nonpersonnel

Telephone 700 600 100

Travel 2,000 1,700 300

Office supplies 1,000 1,000

Xeroxing/duplicating 300 250 50

Postage 300 300

Maintenance supplies 100 100

Consumable supplies 500 350 150

Educational equipment 4,000 4,000

Licensing fee 250 250

Insurance 4,000 3,600 400

Utilities 1,200 1,000 200

Nutrition 8,000 $8,000

Training

3 conf. & 1 class 2,000 1,500 500

Totals $107,350 $8,000 $94,350 $5,000

Percentages 100 percent 7 percent 88 percent 5 percent

PENDING SOURCES PROJECTED DATE OF NOTIFICATION

Public Welfare Foundation 2/01

Sullivan Foundation 2/01

Save the Children 8/01

Rio Arriba County 6/01


Now evaluate this proposal by completing the We Care Foundationcritique sheet.

After completing your evaluation of the Cebola Early Childhood Cen-ter proposal, you may want to conduct the same kind of review of your ownproposal. You should assume your proposal meets the basic guidelines ofthe funder.

104

GuidesBrowning, B. Grantwriting for Dummies. New York: Hungry Minds, 2001.

Burns, M. The Proposal Writer’s Guide. New Haven, Conn.: D.A.T.A., 1993.

The Foundation Center. Guide to Proposal Writing. New York: The FoundationCenter, 2000.

Golden, S. Successful Grantsmanship. San Francisco: Jossey-Bass, 1997.

Hall, M. Getting Funded: A Complete Guide to Proposal Writing. Portland, Oreg.:Continuing Education Publications, 1986.

Kiritz, N. Program Planning and Proposal Writing. Los Angeles: The GrantsmanshipCenter, 1980.

Kiritz, N. Proposal Checklist and Evaluation Form. Los Angeles: The GrantsmanshipCenter, 1980.

New, C. C., and Quick, J. A. Grantseeker’s Toolkit. New York: John Wiley & Sons,2001.

Read, P. Foundation Fundamentals: A Guide for Grantseekers. New York: TheFoundation Center, 1986.

DirectoriesThe following listing is by no means comprehensive. Its purpose is to getyou started in your research.

Corporate DirectoriesCorporate 500: The Directory of Corporate Philanthropy. San Francisco: Public

Management Institute.

Corporate Foundation Profiles. New York: The Foundation Center.

D. Bibliography

105D. Bibliography

National Directory of Corporate Contributions. New York: The Foundation Center.

The Taft Corporate Giving Information System. Washington, D.C.: The Taft Group.

Foundation DirectoriesAmerica’s Newest Foundations. Washington, D.C.: The Taft Group.

COMSEARCH. New York: The Foundation Center. Computer database.

Foundation Directory. New York: The Foundation Center.

Foundation Directory Supplement. New York: The Foundation Center. Publishedannually.

Source Book Profiles. New York: The Foundation Center.

In many states a directory is available that lists the foundation funders in the state.

Government DirectoriesCatalog of Federal Domestic Assistance. (9th ed.) General Services Administration.

Washington, D.C.: U.S. Government Printing Office.

Federal Access Programs Retrieval System (FAPRS). Washington, D.C.: GeneralServices Administration. Computer database.

Federal Register. Washington, D.C.: U.S. Government Printing Office. Publisheddaily.

106

E. Helpful Web Sitesfor Grantseekers

Alliance for Nonprofit Management: allianceonline.orgThe professional association of individuals and organizations devotedto improving the management and governance capacity of nonprofitsto assist them in fulfilling their mission.

Board Match Plus: boardmatchplus.orgOffers an on-line matching process to organizations seeking boardmembers and to individuals seeking board positions.

Compasspoint: compasspoint.orgA nonprofit consulting and training organization that provides non-profits with concepts and management tools to facilitate excellence incommunity service.

Council on Foundations: cof.orgAddresses important issues and challenges facing foundation and cor-porate funders.

European Foundation Centre: efc.beAn international not-for-profit association promoting and supportingthe work of active European foundations.

The Foundation Center: fdncenter.orgAn independent, nonprofit informational clearinghouse for peopleseeking nongovernment funding; comprehensive in scope and easyto use.

Foundations: foundations.orgA directory of foundation Web sites and other fundraising links.

Fundsnet Online Services: fundsnetservices.comA privately owned site providing nonprofits, colleges, and universitieswith information about current funding and scholarship opportu-nities.

107

Grantsmanship Center: tgci.comA national resource for training in grantsmanship and proposalwriting.

Idealist: idealist.orgA project of Action Without Borders, active in 153 countries, providingan extensive offering of services related to all aspects of nonprofitdevelopment, organization, and management; offers an extensive net-work of worldwide links to organizations supporting nonprofit andcommunity efforts.

National Network of Grantmakers: nng.orgResources for nonprofits, funders, and grantseekers focusing on socialand economic change.

E. Helpful Web Sites for Grantseekers

108

This page constitutes a continuation of the copyright page.

Epigraphs in the Introduction are by Tom David, California WellnessFoundation, and Paula Morris, The Horizons Foundation. Reprintedwith permission.

Epigraphs in Chapter Two are by Frank Sanchez, The NeedmorFoundation, and Ellen Friedman, The Tides Foundation. Reprintedwith permission.

Epigraph in Chapter Four is by Lina Paredes, The Liberty HillFoundation. Reprinted with permission.

Epigraph in Chapter Eight is by Elan Garonzik, the Charles StewartMott Foundation. Reprinted with permission.

Epigraphs in Chapter Nine are by Elan Garonzik, The Charles StewartMott Foundation, and Frank Sanchez, The Needmor Foundation.Reprinted with permission.

Epigraphs in Chapter Twelve are by Marjorie Fine, UnitarianUniversalist Veatch Program at Shelter Rock, and Paula Morris,The Horizons Foundation. Reprinted with permission.

109

How to Use the CD-ROM

System RequirementsWindows PC

• 486 or Pentium processor-based personal computer

• Microsoft Windows 95 or Windows NT 3.51 or later

• Minimum RAM: 8 MB for Windows 95 and NT

• Available space on hard disk: 8 MB Windows 95 and NT

• 2X speed CD-ROM drive or faster

• Netscape 3.0 or higher browser or MS Internet Explorer 3.0 or higher

• Microsoft Word 97 or higher

Macintosh

• Macintosh with a 68020 or higher processor or Power Macintosh

• Apple OS version 7.0 or later

• Minimum RAM: 12 MB for Macintosh

• Available space on hard disk: 6MB Macintosh

• 2X speed CD-ROM drive or faster

• Netscape 3.0 or higher browser or MS Internet Explorer 3.0 or higher

• Microsoft Word 98 or higher

NOTE: This CD-ROM also requires the free Acrobat Reader. You can down-load the browsers and Reader using the links on the CD-ROM Help Page.

Getting StartedInsert the CD-ROM into your drive. The CD-ROM will usually launch auto-matically. If it does not, click on the CD-ROM drive on your computer tolaunch. You will see an opening page. You can click on this page or wait forit to fade to the Copyright Page. After you click to agree to the terms of theCopyright Page, the Home Page will appear.

Moving AroundUse the buttons at the left of each screen or the text at the bottom of eachscreen to move among the menu pages. To view a document listed on one

110 How to Use the CD-ROM

of the menu pages, simply click on the name of the document. Use thescrollbar at the right of the screen to scroll up and down each page. To quita document at any time, click the box at the upper right-hand corner of thescreen.

To quit the CD-ROM, you can click the Quit button on the left of eachmenu page or hit Control-Q if you are a PC user and Command-Q if youare a Mac user.

To Download DocumentsOpen the document you wish to download. Under the File pulldown menu,choose Save As. Save the document onto your hard drive with a differentname. It is important to use a different name; otherwise the document mayremain a read-only file.

You may also click on your CD drive in Windows Explorer and select adocument to copy to your hard drive and rename it.

In Case of TroubleIf you experience difficulty using the Winning Grants Step by Step CD-ROM,please follow these steps:

1. Make sure your hardware and systems configurations conform to the sys-tems requirements noted under “System Requirements” above.

2. Review the installation procedure for your type of hardware and oper-ating system. It is possible to reinstall the software if necessary.

3. You may call Jossey-Bass Customer Care at (800) 956-7739 between thehours of 8 A.M. and 4 P.M. Eastern Standard Time, and ask for Jossey-Bass Product Support. It is also possible to contact Product Support bye-mail at [email protected].

Please have the following information available:

• Type of computer and operating system

• Version of Windows or Mac OS being used

• Any error messages displayed

Complete description of the problem.

(It is best if you are sitting at your computer when making the call.)