01 Jul Best Practices for Working with Government & Foundation Funding

By Jackie Sue Griffin, MBA, MS

Funding from government contracts and foundations play a prominent role in the health of nonprofits, but it can be challenging to navigate your way through their application and management processes. Government and foundation funding generally comes with strict guidelines that must be followed.

To increase your chances of obtaining both types of funding, we’re outlining some best practices to follow to make sure you get—and keep—that valuable support.

Government Funding

Before applying for a government grant, be sure to consider the following questions:

• Do you have the capacity to deliver on program promises and meet all funder needs?
• Are the activities you’re planning to conduct consistent with your mission, aims and strategy?
• Can you continue with your work after the funding ends?

Nonprofits that are most successful in getting government grants have these qualities:

• A history of successful funding. Government funders are looking for evidence that your nonprofit has already received funds from the community, family or corporate foundations;
• Ongoing support from your board of directors;
• Capacity and credibility. The reviewers will check to see if you have the right team with the right qualifications to implement your program, sufficient technological resources to deliver the program and suitable space to run it;
• A history of successful outcomes;
• A program that reflects national best practices;
• Sufficient evidence to support your program, such as statistics, demographics, etc.;
• A solid evaluation plan of the short-term and long-term success of the program;
• A letter of support from other leaders, organizations or businesses proving your nonprofit can get the job done.

Foundation Funding

Foundations are created to pursue charitable purposes, and their goals are as varied as the goals of nonprofits. To win foundation funds, there are a few things you should do:

• Before applying for funds, make sure you understand the interests of your funder. Research their previous grants, their amounts and their purposes. If your nonprofit is not a good fit with the funder, don’t apply for the grant;
• Strictly follow the foundation’s instructions for contacting their staff and for submitting a letter of interest. If you don’t abide by their rules, you won’t get the grant;
• Build a partnership with a foundation by reaching out to staff members when possible and working to establish mutual trust. Always be professional and honest and keep the funder at the forefront of all discussions;
• Before applying for a grant, have your facts and figures in order. Ensure that your program is explained in detail, with measurable results and an accurate and reasonable budget.

How to Keep Your Funders Happy

It’s not enough to just meet the funder’s bare minimum requirements; to foster long-lasting relationships, take these steps to make them happy:

• Have open and transparent communication by regularly sending newsletters and information;
• Use surveys to find out more about the funders;
• Keep them actively engaged through all stages of your project;
• Invite them to special events or even organize events around them;
• Make an effort to personally thank them for supporting you;
• Ask them for suggestions and opinions;
• Ask one of the funders to be your brand ambassador;
• Deliver on your promises.