The grant-seeking landscape has become increasingly competitive in recent years, as fewer foundations accept unsolicited proposals and the number of nonprofits vying for grants has grown.
To help you focus on grant makers that are more likely to support your work, this guide describes the different types of foundations that provide grants to nonprofits. It also includes an explanation of the most common forms of grant proposals.
Types of Grant Makers
From private foundations to family funds to community foundations, the variety of grant makers can be confusing. Here is a quick overview of the different types.
Private foundations. Broadly defined, private foundations receive endowments and regular contributions from a single donor or a limited number of donors. The most popular type of private foundations are those that are large (that is, having more assets) and respond to project ideas without restriction to a specific area of interest. Other private foundations only accept proposals for programs that match their specific areas of interest, such as the arts, the environment, or education, or that respond to their program initiatives. Lastly, some foundations do not accept applications and make funding decisions internally, or only support specific predetermined organizations.
Family foundations. Family foundations are private foundations that tend to have fewer proposal requirements and fewer assets. Typically, family foundations will focus on a geographic region or specific causes. The process of working with a family foundation is often similar to building a relationship with a major donor.
Corporate foundations. Corporations give to charities to raise their profile, promote a brand, and enhance their reputation with consumers. Although these grants are charitable, it’s important to ensure that your mission aligns with the business interests of the company you approach for support. Corporations usually give small grants to causes that relate to or align with their business goals, or in regions where they have offices, stores, factories, or other operations. Companies also may give through their corporate social-responsibility departments, which often have less formal application processes.
Government agencies. Many nonprofits seek government grants as well as foundation funding, but the process is quite different. Most government agencies that provide grants, whether federal or local, will issue Requests for Proposals (RFPs), which are announcements to solicit proposals from organizations qualified to conduct specific work. An RFP typically outlines detailed submission requirements and has a strict application procedure.
Consult A Grant Seeker’s Guide to Understanding Foundations for legal definitions of different types of foundations.
Types of Grant Proposals
Here are the most common forms of grant proposals and the usual requirements for each. Remember that each grant maker has different proposal requirements that you should research, and you should always plan your proposal before you begin writing.
Full proposals, the classic type of grant proposals, respond to a specific request and range anywhere from five to 50 pages in length. This format is highly detailed and requires a clear path of intent and work plan. Note that the proposal format and length depend directly upon the subject matter and the grant-making organization. A full proposal is usually required by major foundations and most government agencies making grants. However, they are becoming less common as funders move to online applications.
Letter proposals include most elements of a full proposal, but in much less space, which actually makes them more difficult to write. Ranging from two to three pages, the letter proposal describes the project and the amount of funding needed. Some grant makers have specific guidelines for the format and submission of the proposal, while others leave it solely up to you. Be sure to know which type of grant maker you are dealing with.
Letters of inquiry (LOIs) are a prerequisite to a full application and similar to a short proposal letter, with a limited amount of space (two to three pages). LOIs quickly allow a grant maker to learn about the grant seeker’s organization and project. See an example of a letter of inquiry.
Short proposals with application form are usually about four to eight pages, and they sometimes require a budget outline, too. Note that the response space is always limited, which leads to concise proposals, but these can be more challenging to draft because the writer has to distill a project down to its essence.
Government grant proposals respond to a Request for Proposal (RFP) from a government agency rather than seeking support for a preconceived project. The proposal is evaluated by recruited subject-matter experts who rely upon a rigid scoring system. You should write text that will earn more points by using the RFP questions as headers and by responding directly to all questions.
Online applications are becoming more common, especially with federal agencies and large foundations. The online application is most similar to a full proposal and includes a high level of detail and a budget. Often grant seekers can either write a full proposal and convert it to a PDF file to upload, or enter all the information into the online form for submission. Keep in mind that an online application leads to a cleaner and more direct proposal, but it limits one’s opportunity to share anecdotes or compelling stories.
Michael Wells is the author of Strategic Grantsmanship: It’s Time to Raise Your Game.