What is Grant Readiness?

Cara Barrett

 Prior to applying for grants it is critical for nonprofits to assess themselves in numerous areas to be sure they can be competitive in the grant seeking arena.


Regardless of the size or age of your nonprofit or the fact that you have won a few grants previously, the last thing you want is to be ready to apply for a grant and then discover you are not able to meet their requirements. Assessment and preparation are keys to grant success.


When I first hung out my shingle as a grant writing consultant with Pathways to Growth almost 10 years ago I didn’t know what I didn’t know. I had written many grants for a variety of nonprofits prior to that. However, I wasn’t fully prepared for the number of clients who approached me for help, but who were not grant ready. If I didn’t have integrity, I could have written grant proposals for whoever asked for my help, but I knew I needed to find a solution instead. It was at that point that I began to develop an Agency Assessment for Grant Readiness. This tool drew upon my then twenty years of grant writing experience to identify the wide variety of information that funders typically request and use that information to help nonprofits prepare ahead of time for the rigors of grant seeking. One of the most shocking things for me is the number of times that I have found even large organizations missing vital components to grant readiness.


To reach perfection in the realm of grant readiness can seem like an ever-moving target as funders change requirements and foci over the years. The good news is that an organization doesn’t need to be 100% grant ready prior to applying for and winning grants. Of course, the closer to perfection, the greater your options. Grant funders differ in some of their requirements, which can allow your organization to apply for some grants with no problems. For example, while atypical, some grant funders will not require an organization to yet have its 501(c)(3) status to win a grant.


I continue to be surprised after thirty years in the field to see new questions and requirements from funders I have not yet encountered. The components needed to be 100% grant ready are vast and can sometimes be quite specific to the particular funder. The following are the three top categories of the most common keys to grant readiness. 


  1. Financial Records:
    Funders often ask for your past two years of financial statements, an agency budget, a program and/or project budget, and your organization’s most recent 990. They may also ask about your written financial policies and procedures. They will want to know the name of your board treasurer. And, if you meet income thresholds, they will ask if you have an annual audit. They may even ask for a copy of your most recent audit.
  2. History of Successes:
    This success takes a variety of forms. Funders are interested in your overall agency success. You should have a written history of your organization’s timeline with major successes/milestones. They are interested in success stories. And, perhaps most importantly, they are interested in learning about your organization’s impact upon the community and your particular target population. You must be able to describe your impact, otherwise known as measurable outcomes, both quantifiably and qualitatively.
  3. Board Involvement:
    Funders are interested in knowing who your board members are as legal and fiduciary officers of your nonprofit. At a minimum, they require a board list. Often, the board list will also ask about the qualifications of each board member. Over the past seven years or so most funders are now asking what percentage of your board members personally financially donates to your nonprofit. They sometimes even ask what percentage of your budget is given by your board.

 


Question: What are your biggest challenges as a nonprofit to becoming more grant-ready?



By Pamela Ames Coke July 31, 2025
One of the most controversial “asks” in the nonprofit sector, alongside general operating expenses, is the request for capacity building funds. It can be challenging to find a funder who will financially support capacity building. Unlike a programming request, an organization cannot point to a specific event and report, “The company served an additional 500 people by upgrading its customer relationship management system.” It is more challenging to quantify the impact of purchasing upgraded technology—but it is not impossible. A nonprofit’s superpower is what it already has: the organization’s mission and vision. Capacity-building funding is central to American philanthropy and to a civil society. In order to thrive, nonprofit organizations need to be free to develop their skills and abilities—to get even better at what they do best. The National Council of Nonprofits defines capacity building as “whatever is needed to bring a nonprofit to the next level of operational, programmatic, financial, or organizational maturity.” It is the type of funding that allows a nonprofit to advance its mission and act on its vision. Capacity building funding is central to American philanthropy and to a civil society. In order to thrive, nonprofit organizations need to be free to develop their skills and abilities—to get even better at what they do best. This is why capacity building is vital. A nonprofit can enhance its capacity building requests in three ways: by focusing the lens on the organization’s mission; by expanding the lens to look at the organization’s vision; and by changing the lens to consider succession planning. All these elements can open funding streams that allow an organization to get even better at what it does best. Mission Impossible - Without Full Capacity When considering applying for capacity building grants, focus on the organization’s mission. This can be an effective way to frame a nonprofit’s funding request. Suppose an organization provides adult daycare services for seniors in its community. In that case, the organization’s mission might be to provide quality programming that supports the social and mental wellness of area seniors for improved health outcomes. Perhaps the team is noticing that the demand for its nonprofit’s services is exceeding the staff’s availability. The nonprofit may need to purchase a volunteer management system or recruit and train more volunteers. Collaborate with the team to articulate the request that will help take the nonprofit to the next level of programmatic maturity. To craft a persuasive capacity building request focused on the company’s mission, consider the following: Mission - What is the organization’s mission statement? Need - What does nonprofit need that it currently does not have in order to fulfill its mission? Data that supports this need - How does the team know the business needs this? Request - What is the nonprofit requesting? How much is the cost of each budget item? Include a budget breakdown for the funder. Return on investment - How will these capacity building funds help the nonprofit fulfill its mission? How does the team know? In terms of data, consider what would have the most impact on the potential funder. For example, if the organization is applying to a financial organization, the applicant might refer to the bottom line—the cost of doing business. In April 2024, the Independent Sector, in cooperation with the Do Good Institute at the University of Maryland, reported that the estimated value of one volunteer hour in 2023 was $33.49, a 5.3% increase over 2022 (independentsector.org). How does that $33.49 contribute to the organization’s ability to fulfill its mission? Capacity building starts and ends with a nonprofit’s mission. The mission is what the organization does best. Make it clear why funding this capacity building request will help the organization do its best for the target population. Show, don’t tell, a potential funder how it is impossible for the business to fulfill its mission without being at full capacity in a given area of the organization, such as volunteer management. Vision Screening - Seeing up close and far away Mission is seeing up close. It is what the nonprofit team does on a day-to-day basis. Vision is far-sighted; it is stepping back and looking at what the organization wants to accomplish over a period of years. Suppose a company is a nonprofit that provides after-school mentoring for at-risk youth. The organization is receiving feedback that the needs of the students the team serves—and the needs of the mentors who serve them—are changing. Students need access to technology, and mentors need training on new tools and resources to best meet those demands. The company has been getting by with what is available, but it is time to step back and look at the bigger picture, to evaluate what could be possible for the organization and the people the team serves. It is time to review—or create—the organization’s strategic plan to identify and order the company’s needs. The strategic plan is a nonprofit’s roadmap to success. It helps a company prioritize its needs by outlining its goals and identifying how the team plans to meet that vision. A strategic plan outlines an organization’s identified needs over time. But how does a nonprofit balance the needs outlined in a strategic plan alongside the needs that arise from day-to-day interactions with the people the organization serves? When using a strategic plan to identify a vision-aligned capacity building funding request, consider the following: Vision - What is the nonprofit’s vision statement? Need - What are the organization’s immediate needs? How do these needs align with the nonprofit’s identified needs over the next 2-5 years? Data that supports this need - How does the team know these are the organization’s short-term and long-term needs? What are the data points? What is the nonprofit currently [not] able to do? Where are the gaps? How does the team know? Request - What does the nonprofit need to guide the organizational development? Can the organization do this work internally, or does the leadership team need to hire a consultant? Return on Investment - How will these capacity building funds help the nonprofit fulfill its vision? How does the team know? In terms of data points, how does the organization evaluate current services? Does the team use qualitative tools (narrative feedback), quantitative tools (surveys with closed-ended questions), or mixed methods (a combination of the two)? In terms of the request, what does the company want and need this request to include? If the organization has a lot of competing needs, it can be helpful to hire a consultant to guide the team through the prioritizing process. Include that cost in the capacity building request. Capacity building allows an organization to grow and meet the next level of operational maturity. Having—and using--a strategic plan is essential to a thriving and responsive nonprofit. Succession Planning - What you don't know can hurt you According to BoardSource’s latest Leading with Intent Report (2021), only 29% of nonprofits surveyed reported having a written succession plan in place (councilofnonprofits.org). While succession planning involves deliberate consideration of who will take over in the event of a retirement or other transition at the leadership level, succession planning is not an event (naming a successor); it is a process. If a nonprofit does not already have a succession plan in place or needs to update its plan, consider requesting capacity building funds to financially support this process. The National Council of Nonprofits (councilofnonprofits.org) identifies ten planning tips for leadership transition, from engaging the board and the staff in meaningful conversation about managing intentional transitions in leadership to dedicating time and money to deliberate on-boarding. This planning incurs costs, and securing capacity building funds can make this process easier. Leadership - What are the organization’s current leadership roles? Need - Why does the nonprofit want to develop a succession plan? What would be the impact on the organization and its programming if the nonprofit does not have a succession plan? How would such chaos impact the company’s mission and vision? Data that supports this need - What is the organizational structure? How does the team decide who serves in each capacity? How many Board members does the organization have? Staff members? Volunteers? How many people does the nonprofit serve? How many team members serve in multiple roles? Request - How would the organization use capacity building funds? Break down the component costs, from creating an Emergency Leadership Transition Plan to developing new leaders to onboarding leaders. Return on Investment - How will these capacity building funds allow the nonprofit to fulfill its mission and vision? How will it save the company time and money in the long run? Capacity building funds are necessary for securing the long-term health and survival of an organization. Data tells us that 71% of nonprofits are ill-prepared for a change in leadership, whether that change is planned or unexpected. Investing in purposeful succession planning using capacity building funds can help safeguard an organization, allowing the team to take the nonprofit to the next level of financial and organizational maturity. Be intentional The key to requesting capacity building funds is to be intentional. Know who the nonprofit is, who the nonprofit serves, and how the nonprofit serves (mission). Know where the organization is today and where it wants to be in 5-10 years (vision). Know who the leaders are today—and in five years (succession planning). All of these are part of capacity building. A contender is hard-pressed to complete a grant application or draft an LOI without addressing sustainability—how a team plans to stay afloat as an organization. Capacity building makes sustainability possible. By staying focused on the nonprofit’s mission and vision, an organization can craft a capacity building request that allows the team to get even better at what it does best. Now that’s a superpower!
Story Telling
By By: Valarie Bostic June 13, 2024
Every child has a hero, someone who inspired vision in them, someone they aspired to be like. For me, as a little girl, I had two heroes- Benjamin Franklin and Dr. Seuss. Although from different times and disciplines, they both taught me invaluable lessons I still use today. Despite their different fields of expertise - Franklin in politics, science, and invention, and Dr. Seuss in children's literature - they both left a lasting legacy that continues to shape and inspire generations. Both were unique influential philosophers who found purpose and fulfillment through connections to others. From the wisdom of “Poor Richards Almanac” to the lyrical ingenuity of “Oh The Places You Will Go,” both Franklin and Seuss were storytellers with a voice for change. Their words made me think and encouraged me to dream. At eight years old, I knew I also wanted to write and tell stories that would encourage people and change the world. It's fascinating how childhood aspirations can pave the way for unexpected yet fulfilling careers. Little did I know that this passion would one day lead me to a successful career in grant writing. Inspired by the works of two literary giants, I found myself drawn to a path of advocacy and change. So, after a successful 25-year career in non-profit Executive leadership, I was given the opportunity to join the Pathways to Growth Team as a grant writer. Pathways has been a leader in the non-profit consulting arena for many years so to be able to work with the best of the best has been a privilege! To me, grant writing is a harmonious blend of science and art, where data-driven methodology meets creative expression to produce persuasive and impactful proposals. Sounds impressive, right? So, what did I learn about grant writing from these two? For that, I will start with good ole Ben.
Momentum and Impact
By Marcia Wynn, PhD April 29, 2024
Securing a grant represents a monumental achievement for any entity or individual striving to confront societal challenges or propel constructive transformations forward. It signifies a crucial step toward making a tangible impact and fostering positive change within communities. While obtaining a grant marks a substantial milestone, the true impact transcends mere acquisition; it hinges on the adept execution of the proposed program or project. Effectively implementing the envisioned initiatives is where the transformative potential of the grant truly manifests. Maximizing the impact of a grant necessitates a meticulous approach, characterized by thorough planning, strategic execution, and continuous evaluation. This comprehensive process ensures that resources are allocated judiciously and utilized optimally, ultimately leading to the attainment of desired outcomes. Below are eight fundamental strategies essential for the effective implementation of programs, designed to unlock the full potential and maximize the impact of grants. These strategies serve as guiding principles, shaping the trajectory of grant-funded initiatives toward meaningful and sustainable outcomes.
Board Giving and Grant Success – A Vital Link
By Jule Colvin July 14, 2021
It is a very competitive grant world out there, so be sure you understand the vital link between board giving and grant success.
Everything Rises and Falls on Leadership
By Jule Colvin May 5, 2021
As the leader of your nonprofit, your leadership abilities are crucial for the welfare of your staff, volunteers, and the community you serve.
Tell Your Nonprofit’s Story by Wagging Your Own Tail
By Carla Wright March 2, 2021
To quote my Aunt Babe (age 93), “It’s a poor dog that won’t wag its own tail.” This gives you permission to share positive observations about yourself.
Efficient Productivity for Grant Seeking – Part II
By Kari Cronbaugh-Auld MSW, GPC February 17, 2021
his article is a continuation of a blog we posted two weeks ago on efficient productivity in grant seeking. Here is a recap of the first five steps: 1) Manage your Energy, Not Your Time, 2) Be Your Own Coach or Find A Trusted Coach, 3) Read About Productivity, 4) Set Goals. Let’s continue with #5…
Efficient Productivity for Grant Seeking – Part 1
By Kari Cronbaugh-Auld MSW, GPC January 29, 2021
Some of us are wired to organize and seek out efficient productivity. Some of us are not, but no judgment here! The good news is that regardless of how easy it is for you to stay organized and have efficient productivity on a daily basis, there are some tried and true steps that will help you stay on track and meet your grant goals.
Lessons in Grant Seeking from a Tricolored Heron
By Jule Colvin January 11, 2021
I did not expect to receive lessons in grant seeking while on holiday break this year with my husband.
Grant Budgets & Cookie Recipes!
By Kari Cronbaugh-Auld MSW, GPC December 30, 2020
Writing the narrative takes the bulk of the time you spend preparing a grant proposal, just like mixing the cookie ingredients. However, grant budgets are just as important; they are like recipes when you are baking.