7 Common Grant Application Mistakes (And How to Avoid Them)

By Denisha Ferguson

We live in a world where the more money you have, the greater the impact you can make—especially when it comes to nonprofit organizations. If you are seeking funding for a nonprofit, make sure to avoid these common mistakes in your grant application.

The most common grant application mistakes

1. Trying to get in where you don’t fit in

One common mistake when it comes to applying for funding is trying to get in where you don’t fit in (i.e., attempting to apply for a grant that is not totally aligned with your organization and its programs). The issue with trying to twist and turn a grant to suit you and your organization is that grants come with conditions. In other words, it’s not free money for you to spend as you please.

When you apply for a grant, if you say you plan to use the funds for supplies or a particular event, that is exactly what the funders expect you to spend the money on. Not only that, they typically want a report of how the funds were dispersed at the end of the funding period. Not complying with these conditions can either result in penalties or you having to send the money back.

2. Thinking you can spend the money when you please

Another of the most common grant application mistakes is thinking you can spend the money when you please. For example, my nonprofit received a grant that was funded in November. Although there were upcoming projects in the following year that it would have been useful for, we had to spend all the money by December 30. This means that applying for funding is not always a one-time deal. For most nonprofits, including mine, it is a continuous cycle and way of life.

3. Thinking a grant will be a quick fix

It's a big mistake to think that applying for grants is some kind of quick fix. One reason it’s not is because application processes can be very long and, depending on the grant, it can take months to hear whether you've received funding or not.

For example, I applied for a grant in January that I will not hear back from until June. Even so, applications can still be refused if the funder feels like you did not meet their criteria or simply because there are more applications than funding.

4. Not having a plan B

Grant writing can be a rollercoaster in that sometimes you think you've met every single criterion, but still don't receive funding. This is why it's important not to be overconfident and/or “count your eggs before they've hatched." Doing so is another of the most common grant application mistakes that must be avoided at all costs so that your organization doesn't incur any unplanned debts or have to break commitments, thereby breaching trust with the community it serves.

This all can be avoided by having a plan B (through to Z, if necessary!) for raising funds. In other words, you must be able to pivot and adapt, whether the outcome goes in your favor or not. In fact, I would go so far as to say grant writing should not be the only income stream of a nonprofit organization. Similar to other businesses, there should be multiple income streams.

For example, you could sell merchandise, such as mugs and T-shirts. You could also have offer memberships; put on (virtual or in-person) events; take advantage of Facebook Fundraisers and/or national days that tie in with your nonprofit's mission, message, or themes. Use the money to serve the community in the same way you would have used grant funding.

More articles from AllBusiness.com:

• How to Find and Win Grants for Your Nonprofit Business
• What Lenders Look for Before Granting a Small Business Loan
• Grants and Incentives Available for U.S. Small Businesses and Startups
• What the Most Successful Nonprofits Have Learned From Salespeople
• An Insider’s Guide to Grants and Fundraising: Interview With Entrepreneur Valerie Grant

5. Giving up

The potential for refusal is exactly why you must have a strong "why" with regards to the mission and vision of your organization. Too often, the mistake of not having a "why" causes people to give up, rather than innovate, when things don't go their way with funding.

Perhaps a lack of funding means that you can only help three children, rather than the 25 you had hoped for. Helping three children is better than helping zero children. Or maybe lack of funding means hosting a virtual event to cut the overhead costs of a venue and food. A virtual event is better than doing nothing at all for the community.

If you do a good job of collecting evidence of impact and data, you can use this information to make a stronger application next time. It essentially allows you to say, “If this is what we did with the limited resources that we have now, imagine what more we can do, and how much more impact we could make with your funding!”

6. Having no data

Speaking of data, not having any as evidence of your nonprofit’s impact is another of the most common grant application mistakes. You need to be able to demonstrate to funders how your nonprofit makes an impact that so they can see exactly where their money will be going and whom it will help.

Examples of evidence and data include:

• The demographics of the people you serve (this can be obtained with surveys)
• Case studies
• Testimonials regarding how the event impacted people within the community (both written and video format)
• Footage (photographs and videos of the event)

7.  Not being prepared

When I first started out grant writing, I would sometimes find out about an opportunity that had a deadline just a few days away. I wish I would have known to prepare in advance for common questions that tend to come up in applications.

Don’t make the mistake of disorganization. Prepare for common questions such as:

• What’s your organization’s mission statement?
• Whom does your organization serve?
• How do you innovate?
• What demographics do you serve?
• How are you inclusive/diverse?

Have pre-written responses that are easily accessible for when you need them at short notice.

RELATED: How Nonprofits Can Use Social Media to Increase Donations and Boost Visibility