Should you use a templated proposal?

It depends on what you are calling a template.

Periodically I have people ask me to write a template for them to use to reply to RFPs or LOIs (Letters of Inquiry or Introduction). What they seem to see as a template is a one-size-fits-all canned response, like a sales letter, that they can send out shotgun-style to multiple grantors.

In some cases, they will send me to their "about" or Facebook page and tell me to use that wording verbatim, but "put it into a grant format."

It would oh-so-easy for me to just add a couple of paragraph headers and collect a few bucks and move on.

The problem with that is the client would probably never win a grant with it, and here's why.

All Requests for Proposals (RFPs) and all grantors are different.

It follows then that there will be differences in the verbiage in your application. While they may have a similar macro-focus their goals will be different.

Take youth program funding for instance. That's a macro-category. To one funder that may mean providing money to purchase tablets or laptops. The next one may see it as providing after-school care.

If you send out your canned LOI, but none of your programs address laptops or after-school care, you just wasted your time.

What CAN be templated or reused.

When I think of a template I think of the headings in an application or proposal. Things like program descriptions, statistics,  board member biographies, prior year outcome reporting, annual reports and organizational history tend to stay fairly constant for at least a year, and these can be pasted into a proposal.

Most RFP's have sections for these things. Statements of need can utilize statistical reporting such as population, race, age or gender percentages, income profiles of the targeted populations, etc. That wording can be pretty much left as is for as long as they are accurate.

Other things will have to be written so that they apply to the specific grantor.

   

Program descriptions and goals tend to stay pretty much the same, but sections of them may need to be highlighted or even extracted to show relevancy to the grantor's goals.

Board members, key personnel and their bios usually don't change much for at least a couple of years  but should still be reviewed and any additions or subtractions noted such as promotions or a change in title.

   

Notice that I don't include the executive summary as a static document. If the proposals are slightly different the executive summary will also change. That's why it's called a summary. Sections of it might not change, but it should still reflect the proposal you are submitting.

I distinctly remember one summary I read that was still talking about funding for an event that had happened several years in the past. I do a lot of these documents, and I always verify that all, and I mean all, of the information is up-to-date and applicable to the grantor.

So the answer to the title question is a qualified maybe.

If the grantor or the request you are sending, say for assistance with a capital campaign, is exactly the same you could get away with sending out nearly the same proposal or LOI to several grantors during the year. If not, you may need to do a substantial rewrite.

BTW - Do be sure you have the right grantor's name in your executive summary or request for funding. I remember one person who used a foundation's name in the original LOI, and then hit "send to all" to seven different funder  prospects. Awkward!

Questions or comments?  Drop me a line at rightwords@ida.net

Can your nonprofit apply for grants?

To most of the public, the definition of a nonprofit or charity  is the one used to describe 501(c)(3) organizations. In other words, organizations that solicit and spend tax-exempt and  tax deductible funds "for the public good."

Actually there are several subsections of section 501, and how you file your initial paperwork can substantially change the funding landscape for you.

For some of the differences, check out this chart.

Lately, I have run into several organizations self-described as foundations and approved as 501(c)(4) entities that want to apply for grants from other foundations.

In most cases, I don't quite understand why they chose that subsection to file under, but that's a topic for another post.

If you are wondering "what's the difference, we are still a charity " then you might not understand why foundations reject your grant applications and donors don't support you.

 One major difference is that donations to a (c)4 are not tax deductible, and you are legally required to state that fact prominently on all your publications asking for support.

While tax deductibility in and of itself is not the major reason people donate, the lack of that component can lead casual donors to question whether their money will be used for charitable purposes or political lobbying.

As far as major foundation and corporate donors are concerned, the (c)4 can legally only access funds from other charitable organizations under certain well-defined conditions.

That means that (c)4's are far more dependent on developing their donor base one-on-one than their (c)3 counterparts, meaning that grants are usually not part of the fund-raising equation.

Fundraising for a (c)4 may involve more donor education to attract individual donors.

Particularly since the flap about the IRS targeting (c)4's for their political activities, donors need to be told why your foundation is problem-centered rather than politically centered, assuming of course that is the case.

Other types of fundraising that are typically more productive are things like black-tie events, one-on-one donor meetings, social media campaigns, website donation capability, direct mail, phone campaigns  and email solicitations.

You can combine events with a (c)3, as long as the donations are clearly separated. You can rent an email-list from (c)3's, but it must be rented at fair market value (typically .10 to .40 cents per name).

If your mission and that of a public charity are aligned in some way (for instance a research mission to find a cure for cancer could combine with a public charity seeking funds for respite care for cancer victim caretakers),  the (c)3 might welcome your participation.

A major donor cultivation program is essential to access larger lump-sum donations. Just be aware that currently donors are limited to a $13,000 a year limit.

It is absolutely essential that your board participate in fundraising efforts. Even more than usual, (c)4 fundraising is more about who you know than what you know.

Some (c)4's are spin-offs from(c)3's and vice versa. If your organization is having a lot of trouble fundraising, you might want to consider converting to or adding a (c)3, again assuming that your primary mission is not political. 

Need donors? Think like a salesman.

One of the hardest concepts for me to get across to new nonprofits that want me to get grants for them  is the concept of producing what you might call a sales pitch when approaching donors. Nine times out of ten, when I produce a grant narrative for them I get it back with the words "we need" added multiple times.

For-profit companies have no problem understanding that while their motive is to make money, they have to create a product or service with market potential and then design a sales pitch to sell it.

Nonprofits, particularly new nonprofits, don't readily make that connection between the mission and the sales pitch needed to fund it.

What makes you decide to spend money on something?  You either need it, want it or both.

If you both need it AND want it, you are far more likely to haul out the credit card or wallet and actually cough up the cash. The trick is in determining which motive is driving your potential donors, and then appealing to that motivation.

That's the somewhat over-simplified reasoning behind approaching donors for money. They have a need, specifically a need to help someone or something, and you have the product (program) that will fill that need.

   

Impulse buyers initially react on the spur of the moment.  They are the ones that hear or see something that strikes a chord and pick up the product (program) and head to the check-out line. For them you need an emotional component to your appeal to get their interest in the first place. I call them Heart, Head, Hand donors, because that's the way they give.

   

Your job at that point is to convert the impulse to a sale. If they recognize your nonprofit's name and associate it with a record of good works, your can be fairly assured they will actually write the check. If not, you need to have resources available to them that prove your legitimacy.

Investor-type donors on the other hand have their own goals, and they expect a return on their money.  In the nonprofit world, that means actually improving a condition that corresponds to the donors mission objectives. You already have a common interest, so you don't need to sell them on the mission. I call them Head to Hand donors, because their hearts are already engaged.

For them, you need to produce a package that shows that you understand their mission, that your program is compatible with that mission, and  most of all that you are in a position to produce results for that mission. It isn't enough to make general statements like "we want to help low-income children" or "give goats to every woman in Africa".

Notice that at no point have I said this is about your needs. That's not to say that you shouldn't have goals for any money you raise, but the appeal can't be about you.

People give to benefit the end users of the money. They already know that you will receive the money, but they aren't primarily interested in supporting your organization unless they are specifically interested in organizational development.

Here's the difference.

When you say "WE need money to help feed children", you break their line of sight to the end result. They want to visualize a happy well-fed child, not your new office furniture.

When you say "YOU can feed little Johnny lunch this month for just $30.00" you are making the donor responsible for little Johnny.

See the difference?

Need help with your appeal?  Drop me a line at rightwords@ida.net.