How To Find and Win Grants for Your Nonprofit Business

By Josh Seides

The quintessential source of funding for nonprofits -- global and local alike -- comes from grants. Grants provide nonprofits with large amounts of capital to work on specific projects, and thus can be the catalyst for driving an organization further in its mission.

Without a current stream of revenue that for-profit businesses have access to, nonprofits must take more time to find the capital they need to support all their needs. In an average year, nonprofits garner a total of $1.65 trillion, yet only 21 percent of this revenue comes from contributions and gifts. Grants, therefore, provide a lucrative outlet to power social change.

Scouring the Internet to locate sources that will fund your social initiative can be quite challenging. And then, once you identify the perfect funding source, you may not know what do next. The following are best tips on where to locate grants for your nonprofit and how to present your organization in the best light to get the funding you need.

Look for Businesses in Your Nonprofit's Related Sector of Impact -- Often, there will be a greater chance of success if you try to connect with businesses that focus on the same industry as your organization. Companies are always looking to improve their public image and consumer perception through social responsibility initiatives. For instance, if you are based in the IT field, look for corporate funding in companies like BestBuy and Dell. Also, there are more “general” corporate foundations, such as Walmart, Target, and Bank of America, that will provide grants for all types of initiatives. A well-timed, well-addressed request will allow you the chance to tap into this corporate funding.

Take Advantage of Grant-Searching Technology -- There are many resources out there that will automatically search and recommend grant-giving foundations and programs that could potentially be a match for your organization. For instance, the Foundation Center has a great database that allows for quick searches based on area of impact, geographic location, and keywords.

Create a Grant Proposal -- Sometimes, the smaller, more personal family foundations are the way to go. These family foundations devote more time assessing the impact of where their money goes and thus will take a closer look into your organization. Unlike the large corporate organizations that require less formal forms, these foundations usually ask for a more in-depth grant proposal detailing the amount of money you are requesting, budgeting specifics, an expected calendar of events, and programs of impact.

As Joanne Fritz, a nonprofit and charitable orgs expert at About.com explains, “To achieve optimal success your grant proposals should be part of your overall fundraising plan." There are many great sources on how to write a grant proposal, but an especially helpful one can be found at here. Proposals are usually multiple pages and should thoroughly describe your organization and what you plan to do with the money -- in a way, proposals are like business plans.

Have a Clear Goal and Execution Strategy -- Potential donors want to feel assured that your organization knows what it is doing and is ready to pounce the moment the money is received. Projecting an image of readiness, eagerness, and sensibleness is crucial to attracting money. In your pitches, present a detailed strategy in a clear, organized fashion, and explain how the funding will make an impact and detail every source that the money will go into. Having a strategy that's planned out in advance will impress donors and lead to more confidence and trust in your organization.