“Seeing an organization thoughtfully gathering feedback and adapting strategy….this is a strong indicator for us, especially in an uncertain moment.” –Josh Stearns from the Democracy Fund
For any non-profit organization, the grant application process can be complicated and intimidating. Funding is a crucial part of getting results out their mission statements and focusing on the development of certain projects. It’s also no secret that it can be difficult to know what the funders are looking for when assembling resources and deliverables. Whether it’s a start up foundation or a long running non-profit, funders want to be sure that the organization has what it takes to success and is considered low risk. There are a few key components that make a significant difference when approaching funders with budget plans and evidence.
Data
In a community that evolves around technology and science, funders are looking for enough supporting data and evidence in their grant applications. Being able to prove that a non-profit is not a high-risk investment opportunity is becoming more and more of necessity in the eyes of funders and investors.
Impact
What will be different (in the world) as a result of the project or initiative? Funders take organizations into more consideration when the data that is presented to them supports some sort of impact they are reaching for. This not only proves that their grant will be used to make a positive change but also provide them with the information they need to see the bigger picture. Educating funders on what kind of goals have already been accomplished is the type of data that persuades them take an organization into a higher regard. Everyone loves to be part of a movement or participate in ethical business decisions. The best way to present this information is through storytelling and clear past examples. Impactful stories are appealing from an empathetic stand-point and is another way to prove a non-profit is worthy of funding.
Sustainability
Sustainability has been growing in popularity among the business world over the recent years and is a major factor in funding consideration. Funders need reassurance that even after their grant money has been used, the organization will continue to thrive and create a long-term impact. It also shows that the social issue or concerned focus is at top priority for the organization and gives funders very little room to question the mission statement or motives. This can be done through presenting an impact plan that not only sustains the organization’s present goal, but also supports the business or organization in the future. Thinking of how the grant will help every aspect of a strategic plan in the end as much as the beginning of it is an important element in the grant application process. It shows the funder a mature approach to planning and also increase overall credibility.
Partner Organizations
The relationships that are built between funders and non-profits seeking grants needs to be clearly beneficial for both groups. With this being said, introducing partner organizations into the mix is more than just noteworthy. Collaboration between groups creates a “continuum integration.” Goals are achieved efficiently when it’s not just a single group working towards one goal. Presenting funders with the partner organizations allows room for creative outcomes since there are diverse perspectives of the societal issue at hand and ways to achieve a common goal through collaboration. Giving an organization more than one voice will ensure that the grant is inclusive and puts applicants into a higher consideration than others with only one perspective.
New Media Ventures is a mission-driven venture fund and investor network focused on innovation to advance progressive change. Recently they interviewed funders from a variety of backgrounds and came up with these five things funders consider when investing.
Vision & Leadership
Presenting ideas in a way that shows personal or external experience towards a certain social issue allows the funders to see the real value of the start up. It also helps them thoroughly understand the thought process behind every aspect of the plans you wish to put into place and presents your NGO or non-profit with a greater deal of potential above most over presenters.
Execution
Being able to present any idea with strong points and persuasive background research is fundamentally important to the entire process. They need to clearly see well-thought out revenue, strong management, and supportive relationship among the board and staff. They remember the ones with charismatic leaders and well executed visions.
Ability to Learn
Josh Stearns from the Democracy Fund stated, “We look for organizations that have shown they can learn, who have illustrated they are monitoring key indicators and thinking deeply about how they’re learning and adapting as they go,” says Stearns. “Seeing an organization thoughtfully gathering feedback and adapting strategy….this is a strong indicator for us, especially in an uncertain moment.” Showing a sense of adaptability and inspiration towards the community in need of help of social issue being faced is incredibly important to funders.
Transparency
Stearn says “when people come in and talk about how they are the savior, that is the red flag for us. We tend to be really humble and look for an organization that is humble, that may be pioneering, but is also doing important work. I want a founder to be able to say ‘Here are the five things we think we are doing right. Here are the three places that might fail, and this is what we are doing to address them.’ Knowing someone can be honest is important.” Humility goes a long way in the business world and do you a lot of good when presenting solutions to a social issue.
In the end, funders are looking for reliable NGOs/non-profit organizations who go the extra mile to make a difference. Using these techniques to persuade and build relationships with funders influences them to believe in the mission statement and overall goals will give them more reasons to the request into consideration above others. Including data as a factor of impact is a creative way to make business propositions credible. Organizations that are prepared for any situation or question a funder throws at them end up with a higher chance at receiving grant money and creating long lasting relationships with the people who are willing to give.
Sources:
http://www.socialsolutions.com/blog/nonprofit-funders-reporting-data-2017/
https://newmediaventures.org/funders-looking-five-key-indicators-youll-good-investment/