Is your nonprofit grant ready?
The grantmaking landscape of 2025 and beyond is shaping up to look very different than it has looked in years past. The onslaught of changes to Federal grant priorities is responsible for a seismic shift in the way that nonprofits will need to think about using grants to augment their income stream. For one thing, as many nonprofits move away from Federal grant applications and toward corporate, foundation and state grants, this means that the grant application process will be much more competitive.
In normal times, the odds of winning any particular grant ranges from 10 - 30%. These times are anything but normal, though.
This is not necessarily reason for concern. Grants aren’t going anywhere. They will continue to be available as funders continue or even expand their programming to respond to the gaps left where Federal funding has pulled out.
However, it does mean that nonprofits will need to rethink and refine their grant application strategy in order to be prepared to navigate this new landscape. Sharpening their tools in their toolkits should be part of this strategy – and grant readiness is an essential strategic element.
What is grant readiness?
Put simply, grant readiness is having the structures, processes, documentation and personnel in place to ensure that a nonprofit is healthy and functional enough to keep its programs running smoothly and without interruption.
The basics of grant readiness boil down to two things:
Making sure you’re eligible to apply for grants. Eligibility requirements can vary from one grant to another. Most funders require that you have 501(c)3 status, but they will also have criteria for the geographic area, specific target audiences that you serve – or even for a nonprofit’s size. This is why it’s crucial to perform grant research to find funding opportunities that match your organization’s mission and vision. Having access to a grant database will make this process much easier.
Ensuring that your team has the right culture in place to approach the challenges of applying for, managing, and reporting on grant funding. Are your team members:
Adaptable enough to adjust programs in light of funder requirements?
Collaborative enough to work closely with funders and other nonprofit partners?
Data-driven enough to be able to collect the necessary data to show the concrete impact of your programs?
Resilient enough to deal with (inevitable) rejection and keep on plugging away at new funding opportunities?
Willing to build capacity to scale programs and services to align with funders’ expectations?
However, these are just the first steps on the bottom rung of the ladder.
Getting organized and getting clear
In addition, it’s important to check these other boxes.
Does your organization have bylaws and articles of incorporation, and how solid are these?
Are you accounting for your entire income stream? There may be items you are overlooking because you aren’t counting them as income – but you should be.
How is your board organized? Do you have the right board members in place, and how well do they understand their roles? A strong board is absolutely key to your organization’s overall health and its ability to conduct effective fundraising.
Do you have a clear mission and vision statement and how well do your board members know them (without googling)? Being able to clearly define the work of your organization helps convey to funders that you know where you are going and have a clear picture of the path to that goal.
Do you have your financial ducks in a row – including annual budget planning? This piece is essential for demonstrating to potential funders that you have the capability to manage the funds you are asking them to give you. Overlooking this part is akin to outfitting a boat with expensive gear while ignoring the leaks in the hull and the inexperience of the crew.
Do you have a solid basis for your program design? You need to think this through well ahead of the grant application process. Don’t assume you can just get the grant – and then figure out the program later. Understand that grants aren’t just about funding: they are an investment in a solution. If your program isn’t well-structured, community-driven, and built for sustainability, funders will be reluctant to invest in you.
One way you can avoid most of these pitfalls is by having a Master Grant Template. Essentially a business plan for your nonprofit, the MGT is a goldmine for busy nonprofit leaders and small organizations that are pressed for cash and time, helping you get clear about your mission, goals, and objectives, keeping you focused on your funding priorities, setting up a sustainable funding structure, and so much more!
When you are ready to apply for grants, your airplane is fully built with a clearly defined program, an active and engaged board, and a strong foundation for financial management – and you’re ready to take off.
The Grant Muse can help you get ready to apply for grant funding. Get in touch and let’s get started.
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