There’s a misconception about nonprofit organizations and grant funding. While all 501(c)(3) nonprofits are grant eligible, many are not grant-ready. A grant-ready nonprofit understands the ins and outs of the grant funding process and can make a competitive and compelling funding case.
Grant funding is not easily acquired
Of the estimated $488 billion given to nonprofit organizations in 2021, only about 19% ($90 billion) came from foundation grants. The hard truth is that most nonprofit organizations are not ready to compete for grant funding.
Grant funding is not a quick process
The grant proposal and review process can often take a very long time. Depending on the size of the grant, expect the process to take upwards of a year. Then, the distribution of funds may take longer and be spread out over the course of several years.
Grant funding is not a long-term solution
If your budget depends on more than 20% in grants, the likelihood of your grant acceptance decreases significantly. Additionally, grants are typically for a short-term injection of funds to help launch or expand a program. The foundation doesn’t want you to depend on them forever.
Grant funding is not the key to nonprofit funding
Grant readiness requires diversified revenue. Organizations with significant community donations, program service revenue, and corporate partners are far more appealing. Remember, foundations don’t want to depend on them. They want to help you and then move on to the next organization so the foundation’s mission is achieved.
Understanding the misconceptions about grant funding puts your organization in a better position to build grant proposals. Ensuring your organization is fully prepared to begin the grant-seeking process gives you a leg up on every misinformed and ill-prepared nonprofit.
BryteBridge’s nonprofit experts can help determine your organization’s grant readiness and prepare competitive and compelling funding proposals. Reach out to our team to learn more. Be sure to also check out our awesome reviews!