Skip to main content

Elements of a Grant Proposal

When writing a proposal, remember that your grant application is about the community, not about you. While different funders require different components, here are some sections in a proposal that you may see requested.

Cover Letter

Generally only needed if applying to a private funder. It should be addressed to the Board Chairperson or anyone you have had contact with and maintained a relationship with. Summarize request of your grant and tie in key words. Most experts suggest that your cover letter be limited to one page with three or four paragraphs maximum. Since the reader has an entire proposal to plow through, you don't want to make him or her impatient by having to read a long cover letter. The tone and specifics of your cover letter may vary depending on whether you've been invited to submit a full proposal after submitting a Letter of Inquiry, or if this proposal is your organization's first approach to this particular foundation.

  • The cover letter should provide the first glimpse of how well you understand the funder. Avoid repeating the information in your grant request.
  • Writing the Cover Letter
    • Be brief and to the point.
    • Use your organization’s letterhead.
    • Use the same date that you’ll send the complete grant application to the funding source.
    • For the inside address (goes at top of letter) use the foundation or corporate contact person's name and title, followed by the funding source's name, address, city, state, and zip code. Double check this information with a telephone call or an email. Such information changes frequently, so make sure you have the current name and address.
    • Greet the contact person with "Dear" plus the personal title (as in Mr., Ms., Mrs.) followed by the last name. It is very important that the letter be to a particular person. Call the foundation or corporate office to make sure you have the right person and the right personal title. These things may seem like minutiae, but success can turn on attention to such details.
    • Your first paragraph should be short and focused. Introduce your organization (its legal name) and tell the funder how much money you are requesting and why. Include a sentence or two about what your organization does, and then include one research-based point that shows there is a need for what your organization does. There should be no more than three sentences stating your organization’s corporate structure status and the date it was founded. Then tell the funder your organization’s purpose and how it aligns with the funder’s mission or funding priority.
    • Write one or two more paragraphs that are very brief and succinct. State your organization's purpose and how it fits with the funder's mission or funding priorities. Include the fact that your board of directors is in full support of the project.
    • End your letter with a final, summarizing paragraph. Include a thought about what this funding partnership can mean for your project's target audience.
    • Use a closing such as "Sincerely."
    • The letter should be signed by the executive director or the board president, or both. Below the signature, type the signer's first name, middle initial, last name, and job title. Although the director or board president should sign the letter, the contact person's name and contact information can be included at the end of the last paragraph.
    • At the bottom of the letter, include the note "ATTACHMENTS" or "ENCLOSURES."
  • Sample Cover Letter

Abstract/Summary

The project summary/abstract should briefly describe the needs that will be addressed, the proposed services, and the client population group(s) to be served. It should not refer to other parts of the application. It describes who you are, the scope of your project, and the cost. This may be all some reviewers read, so be concise, clear and specific! It helps to write this piece after the rest of the proposal so you can easily draw from the finished portions.

  • Should briefly describe:
    • The needs that will be addressed
    • The proposed services
    • The client population group(s) to be served
  • Demographic information
    Applicants should provide a brief summary of the target population with whom they will be working. The project summary/abstract should also include detailed demographic information such as poverty, literacy, and unemployment rates to give reviewers a better sense of the community.
  • How project will overcome one or more community barriers -The project summary/abstract should explain how the applicant’s project will work to overcome one or more current community barriers. For example, if the abstract states that the target area has a high unemployment rate, it should also describe how the proposed project will create employment opportunities.
  • Feasibility of project – The applicant should demonstrate that it can feasibly implement the scope of work described in the project abstract using the funds requested along with leveraged funds as appropriate. The abstract, however, should not include a detailed financial analysis of the project. This more detailed description should be included in the financial viability narrative.
  • Sample Abstract

Project Narrative

Need or Problem Statement
The need or problem statement analyzes the situation using the best data you have available and cite where possible. It provides an analysis of the problem and how you plan on addressing it as well as outlines strengths and weaknesses of current situation. It should establish the community need, not your organization’s need. The lack of a program is not the problem.

The need or problem statement should be people centered. Can use anecdotes or stories to illustrate the problem and add a human face to information and claims. This works well if it is a powerful incident or example that can appeal to the emotions while colorfully showing the need in concrete terms. Can also use quotes from recipients of programs.

  • Things to consider:
    • Nature and Extent of the Problem: What is happening? To Whom? How Much? Who says? (cite your sources) Paint a picture of the population you propose to serve. Clearly define the nature and extent of the situation you propose to change. Quantify your information, because the funder could ask "so what?"
    • Reasons or Cause for the Problem: Why is the problem or situation occurring? How do you know? (cite your sources) There may be more than one reason for the problem. Narrow it down to the reasons your organization can address, based on your mission and capacity.
    • Make sure that the problem you identify and the project you propose match. Avoid identifying a problem of very general scope, then introducing a project that will address a limited part of the problem.
  • Need Statement Example

Project Description/Objectives
This should be described in a narrative form and, if requested, in a workplan format. Objectives should specify a result rather than an activity. Objectives lead to your goal attainment.

  • Objectives – Use SMART objectives that show results and actions.
    • SMART Objectives:
      • Specific
      • Measurable
      • Attainable
      • Realistic
      • Timebound
    • Examples of SMART objective verbs include: increase, decrease, improve, reduce, maintain, establish, develop, provide, train, educate, improve access, build, demonstrate, increase numbers of people, services.
  • Sample Objective – Within 30 days of completion of the XYZ Training Program, 75% of the 190 participating Medicaid recipients will have access to results within 48 hours and will maintain semi-annual follow-up consults for a minimum of 2 years.
  • Describe activities that will take place to achieve desired outcomes/results. These tell who is doing what, to whom, where, when and why it is being done that way.
    • What combination of activities and strategy will you use?
    • Why have you selected this particular approach, out of all the possible approaches out there? Discussing alternative methods shows you are aware of different programs in the field and builds credibility that you can defend why you chose this one.
  • The funder should be easily able to see how things will work, what the facility looks like, jobs staff will do, how clients are dealt with, how the volunteers will be recruited, etc.
  • Workplan Example

Evaluation
Holds you accountable to the funder with timely reports and helps you maintain accurate records to see if project/program is successful. These records can also be used to build credibility for future grants.

  • Outcome Evaluation Plan (summary) – How effective were you in reaching objectives? This measures the results of the program at the end. Include what data you will collect, when, by whom and how it will be used and analyzed.
  • Process Evaluation Plan (formative) – Tells how you can make appropriate adjustments to your program as it goes along. Doesn't measure anything, but shows you are assessing how everything’s going and how you will know to change it if needed.
  • Data Collection Tools – Surveys, pre-post tests, client assessments, focus groups, observation by trained personnel, documentation of activity, anecdotes, physical measurements, logs, control/comparison groups.
  • Performance Measures – They compare actual performance with expected performance and shows whether objectives are being met. They can be an actual number or degree or change, or things like quality of life, field observations or even photos.

Sustainability
Present plan to show funder how your program will continue and thrive after their money is gone. Who else is supporting the program? Where will the funding come from after the grant? The main aim of social enterprise is to generate profit to further their social goals. Can you incorporate this idea? Many non-profit organizations see social enterprise as a way to reduce their dependence on charitable donations and grants while others view the business itself as the vehicle for social change (i.e. creating a business needed by the community that employs gang members, ex-convicts, homeless, etc.) How will the project continue after the grant is gone? Some common sources are volunteers, in-kind/cash leverage, local organizations who pledge support or expanded fundraising activities. You should be able to demonstrate sustainability for 2 years beyond grant, but different grants may specify different terms.

The sustainability plan should address:

  • Building awareness and support – this project is more than just funding
  • Benefit of the program to the community – clearly show why this project is important and should continue
  • Importance of evaluation to sustainability – data and evidence of success make a case to continue to sustain this project
  • Building relationships with the community, key stakeholders, partners, and others so that they are willing to support this project and find a way to make it continue
  • Community exposure – use civic group meetings, newspaper articles, and marketing to promote the success and need for the project to continue so that they are willing to support this project and find a way to fund it going forward
  • Communication plan and function should have a sustainability focus.

Any of the options listed below, or others you might think of, may be effective strategies for raising funds to cover your agency's activities. In your grant proposal, describe in detail which strategies you will use. Include information about hiring additional staff or independent contractors if that is part of your plan. Possible options for funding strategies include:

  • Fee for service. Can you charge clients a fee for the services provided? This can be a flat fee or a sliding fee based on individual income.
  • Entrepreneurial business ventures. Consider revenue from thrift shops, retail stores, coffee stands, the sale of greeting cards, or other merchandise.
  • Membership program or annual fund campaign. Is there a way to create a membership program that charges dues? Or an annual fund campaign to reach donors interested in this kind of charitable program?
  • Major-gifts program. Can you identify, cultivate, and solicit donors that have the potential to make significant gifts?
  • New donor acquisition program. Consider starting a direct-mail campaign to add new donors and thus increase your income.
  • A healthy online giving program that includes monthly giving.
  • Corporate sponsorships. Can you partner with corporate and business sponsors, especially for fundraising events such as galas, golf tournaments, or charity runs?
  • Cause Marketing. One of the fastest growing ways to fundraise, cause marketing can be successful even for small nonprofits.
  • Tap employer-based fundraising. Can your agency participate in employer-based fundraising campaigns such as the United Way or other federated campaigns?
  • Government funding. Do some research to find out if local, state, or federal agencies provide funding for the programs you are setting up.

Budget
A well-defined budget defines all costs related to project implementation including the funding source contribution and other contributors (in-kind support, matching funds). The Budget Narrative must describe and justify the cost assumptions for each category and line item in the Budget Spreadsheet. The Budget Spreadsheet must include all costs associated with the project's activities.

A budget must be able to stand on its own and answer questions about your grant proposal (not raise questions). Direct costs refer to materials, labor and expenses related to the production of a product. Other costs, such as depreciation or administrative expenses, are more difficult to assign to a specific product, and therefore are considered indirect costs.

When putting together your budget, consider the following:

  • Income: Your income sources statement will tell the funder just how you expect to carry out the project. Will there be service fees charged to clients? In addition to the funder for whom you’re preparing this budget, what other funders do you expect to support your project? Which have already made a commitment and which are pending? Will you have any in-kind income, that is, will anyone, such as your volunteers, donate goods or services to the project? List everything here. The more sources supporting your project, the better it will look to the funder.
  • List all your direct expenses—supplies, postage, mailing, shipping, special-space rentals, service fees, equipment, transportation, and other direct costs.— that you must have to do the project. Don’t leave out the value of supplies you have on hand; you’ll have to replace them after the project has consumed them, so these should be counted too. Some of these expenses may be…
    • Personnel/Salary – consider number of months in grant period and % of time employed doing grant; FICA/benefits; Insurance; and Consultant/contract service. Staff, consultants, and volunteers all have a place in your budget. In thinking about the staff, don’t forget support and supervisory staff. They may spend only a fraction of their time on a project, but some portion of their salaries usually should be included. And think about what you’d have to pay people to do the work of your volunteers. If you include volunteers in your staffing, list them on a separate line, and put a corresponding line for the same amount in the income section of the budget as "donated services."
    • Non-Personnel Space Costs – also consider rented/donated facilities, utilities, maintenance/renovations, insurance, telephones, internet; Equipment – rental, lease or purchase.
    • Supplies – paper, pens, stationary, postage, subscriptions. Use $125/year/staff member unless starting new program.
    • Travel – per diem rates, ground transportation, taxi, mileage reimbursement
    • Consultant services and/or subcontracts
    • Other – catch-all. Tuition, professional association dues, printing, etc.
  • You may need a line for indirect expenses. These are expenses that you can’t justify as part of the project but that you must incur to operate your organization. Examples are rent, utilities, insurance, and accounting and banking fees. Of course if your budget is for your entire operations, everything is a direct expense.
    • Indirect Costs: Other – optional and negotiable, some grants don’t allow this to be included.
  • Matching funds: Participation by the grantee in the cost of a program on a dollar-for-dollar basis or other predetermined ratio or basis, such as 10% or 20%. For example, a grant may require that for every $1 funded through the grant, the grantee provide $2 in matching funds. Not all grants require this.
  • Budget Spreadsheet & Budget Narrative Example

Appendices
May or may not be needed. Don’t just include random attachments, your grant application should reference anything included here. Examples include:

  • Resumes – Make sure they are up to date and include the staff member’s current position and accomplishments at your organization
  • Letters of Support – Letters from elected officials, other organizations and individuals who benefit from your programs, addressed to your organization (Exec. Director, Chairperson). Don’t have 5 people submit the same letter, make sure they are meaningful and honest.
  • Articles – Any relevant information from your credibility file.
  • Charts, Graphs & Map