Complete Your Grant Readiness Assessment Today

Grants offer substantial and meaningful funding for organizations in need. However, winning a grant is not as easy as throwing your name into a bucket. You must be strategic and deliberate when applying for grants, but most importantly you must be prepared. Before you start applying for grants, GrantWatch recommends that you complete a grant readiness assessment. Do not simply gamble your time and resources away when applying for grants. By using the grant readiness assessment guide included in this article, you will ensure that when you are ready to apply for grants the application process is smooth and hassle-free.

1. Have Your Tax Documents in Place

Ensuring that you have your documents in order is the first step in getting your organization grant ready. Are you applying as a nonprofit or business? While not all grantmakers require a nonprofit designation for their grant recipients, many do so you will want to decide how you will be applying for grants and make sure your paperwork is in order. Organizations offering support to the public, such as educational, literary, and research organizations, are usually eligible for federal tax-exempt status. The application process to become tax-exempt can be sometimes daunting at first. Consult with a lawyer who specializes in nonprofits and businesses to help make sure you have everything you need.

Once you have secured this status, you want to have all the documents organized and where you can get to them easily. This way you can easily note the information on them for the grant application. This will prove your nonprofit status to the funding source and show that you meet the eligibility. These documents typically include:

• A nonprofit tax-exempt status letter from the IRS,
• past 990 forms if available,
• and a W9 form from your organization

2. Create a Well-Defined Mission Statement

Before applying for grants, it is crucial that your organization has a well-defined mission statement. This mission statement should clearly articulate why your organization exists. You want to ensure that your mission statement outlines your goals, along with what kind of product or service is provided. Also, make sure to include your organization’s plan for addressing this particular issue in a way that stands out from other organizations that may have a similar vision. Funders are looking for a mission statement that is unique but also realistic.

Outlining your overall goal can give your nonprofit a voice and also help avoid mismanagement mishaps by setting clear values for your staff. Furthermore, do not modify your mission statement to fit the eligibility requirements for a grant. The whole point of a mission statement is to protect your organization by ensuring that the organization’s goals are not lost as you grow.

If you are looking for some ideas of what a mission statement should look like, GrantWatch provides a number of mission statements for the funding sources that have grants listed on our site. You can see these mission statements, as well as other financial information about these funding sources, by using GrantWatch’s 990 Finder and Foundation Search.

3. Demonstrate Financial Stability

While many organizations are focused on their current year, it is important that your organization not only has plans for the future but also can show how well you are prepared for it. Providing up-to-date financial statements and organizational budgets for the current and previous fiscal years that demonstrate financial responsibility will show potential funders that you will be good stewards of any new funds.

It may be helpful to use an Excel Sheet to organize the various funding sources that have helped your organization, the amounts awarded, and the dates of funding. This will give an accurate picture of your nonprofit’s financials.

4. Show Impact Made in the Community

When you are reviewing your grant readiness assessment, remember that donors and funders tend to give their dollars to organizations that have credibility within their community. It is important to have evidence of prior success in serving your target population. Outline what your nonprofit or business provides for the community. Share specific examples and data points that showcase your reputation and trust in the community.

5. Have Fundable Programs

Before you apply for grants you want to show that your organization can further its mission by expanding successful existing programs or developing new ones. It is important to have an idea of the costs associated with these programs. When applying for grants be prepared to provide an outline of team members and supporters. Founders will want to see that you have the required resources to implement a new or expanded program once funding is awarded. For example, if you are supporting your community by offering hunger relief or educational services you should be able to provide an outline showing your program’s sustainability.

Apply If Eligible

Are you missing something from this list? Start working on the things you need to do to become a grant-ready organization. It may require some time and effort, but this will get your organization off to a great start.

Maybe you have all the items listed above. If so, congratulations! You can consider your organization to be grant-ready and move forward to the next step of searching for grants. Being grant-ready is one thing, but knowing if you’re eligible for grants is another. It is important to also ensure you meet the eligibility criteria to avoid disappointment.

About GrantWatch

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