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From: PAUL ROGERS <pwaynerogers@yahoo.com>
To: Multiple recipients of list <nifl-esl@literacy.nifl.gov>
Subject: [NIFL-ESL:10986] grant writing
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I have received some very good feedback on my grant
proposal. And a few peope have asked how to write a
grant. So, below are steps for grant writing and
forming a non-profit, if that is needed.
It is also quite possible to use the "umbrella status"
of a non-profit, which simply means that an
organization volunteers to submit your grant and
administer the funds for you.
There are hundreds of foundations that can be
approached, such as the Federal Government, Literacy
Centers, local foundations, Bill Gates, etc.
It is also possible for a for-profit company to
receive a grant from the federal government in order
to install a work-place program.
The key to applying for a grant is to Keep It Short
and Sweet - KISS.
The key to getting the grant is --- to ask for it.
Paul Rogers
Introduction to grantwriting
Grantwriting is usually seen as a complicated
task. Many people feel that they need to write as much
as they can in order to fulfill the foundation’s
requirements. So, they end up with a long, complicated
application and description of their needs, which does
not necessarily impress the foundation’s
decision-makers.
On the other hand, if a grant is written in a
concise form, stating clearly how much money is needed
what it is needed for, the odds are that the person
reading that application will become more interested
in considering the proposal.
Grantwriting steps;
1. Research Foundations
Visit your local Foundation Center or Public
library to compile a list of foundations which fund
projects like yours.
2. Write a Letter of Inquiry -
Send a 1 page letter describing your group and
project. Your closing sentence could read something
like:
“If our project falls within your funding
guidelines, please send an application.”
Many foundations require a 2 to 3 page letter of
inquiry first.
Tips:
Use 12 or 14 pt. font, bold type
State clearly how much money is being requested, and
for what purpose.
Define your target population or constituency - i.e.,
age, ethnic background, socio-economic status and
conditions
Paint a mental picture of what you are trying to
accomplish
Include a short video, unless otherwise stated by the
grantmaking foundation
3.
Checklist for Applying for Grants
Most foundations need the following information in
order for them to finalize a grant:
1. IRS tax exempt status of your organization -
Federal 510(C)(3) and 509(A) certificates
OR of the group acting as “umbrella” -
(note: if you are using an umbrella group for
non-profit status, send a copy of this form to the
appropriate person in the group)
An “umbrella” group is an organization which has
501(C)(3) status already and which has agreed to act
as your non-profit fiscal sponsor, usually for a fee.
Therefore, you can start to write grants immediately,
and if you receive a grant, the money goes directly to
the “umbrella” which sends you a check for the total
minus 10% (or whatever the arrangement is). The
“umbrella” is responsible for keeping records and
reporting to the grant-maker.
2. State tax exempt status (of “umbrella” if
appropriate)
3. Form 990 (of “umbrella” if appropriate)
Previous year’s tax form from your accountant or
bookkeeper
4. Most recent audited financial statement
Previous year’s report from the accountant or
bookkeeper
5. Organization’s budget from last year
Report from accountant or bookkeeper
6. Organization’s background information
Mission statement, accomplishments, projects,
articles, etc.
(500 words or less)
7. Population organization serves
Include brief description of the economic conditions
of the population, age, and what the major problems
are. (500 words or less)
8. Project to be funded (500 words or less)
9. Project budget
How much money is needed for the project and what it
will be used for
(1 - 2 pages, itemized)
10. Sources of income from last year
For example: the amount received from members (“donor
base”), grants from foundations, other areas of
fundraising such as bake sales, etc.
11. Methods of fundraising
In other words, how do you expect to receive funding
from your project in case you do not receive grants.
12. List of current board members, if applicable.
13. Structure of the organization
How are decisions made, is the organization
“hierarchical” or “horizontal”
14. Articles of Incorporation, by-laws, and other
documents generated by your organization.
FORMING A NON PROFIT
Non-profit status {or 501(C)(3)} allows a group
to receive tax-deductible grants and donations. If
your organization is involved in educational,
charitable, religious, literary or scientific
projects, it is eligible for non-profit status. If a
sizable percentage of your effort is spent doing
political work, you may wish to consider a 501(C)(4)
status, which restricts the amount of tax deductible
money you can raise.
Usually, members of small organizations working
for social change think that applying for and
receiving non-profit status is a long and complicated
process. Well, it is, but if done methodically,
non-profit status can be granted within 6 months. And
you don’t necessarily need a lawyer.
Beside non-profit status, there are other
classifications you might consider. “Unincorporated
non-profit status” is the term used for what you
probably already have - a group with a small budget
(under $10,000 a year), with no staff, and no need to
report to the IRS. Donations in this case are not
tax-deductible.
You might also wish to remain a “not-for-profit”
organization, which is also not eligible for
tax-deductible donations.
In the meantime, if you would like to apply for
grants and other kinds of tax-deductible donations,
you will need an “Umbrella” group, which acts as your
fiscal sponsor. An “Umbrella” organization is the
agency which receives the check for your group,
deposits it in its bank account, and sends you a check
for the amount of the grant minus 10% or so to pay for
their expenses.
Steps to form a Non-Profit 501(c)(3):
Based upon “How To Form a Non-Profit Corporation” by
NOLO Press.
Set a schedule to complete the following:
Write a mission statement - 2 or 3 short sentences
Form a board of directors (at least 1- 3 people) and
hold first meeting
Outline by-laws
Choose a name for your organization
Order materials and forms from Secretary of State to:
Check name availability
Reserve your corporate name
Perform a name search
Protect your name
Write the Articles of Incorporation
Write your Articles of Incorporation
File Articles of Incorporation with Secretary of
State
Write By-laws
Define membership status and provisions if applicable
Prepare and file your Federal Tax Exemption
application
Obtain state corporate Income Tax Exemption
application
Obtain state corporate income tax exemption
Set up corporate records book
Prepare minutes of first board of directors meeting
Place minutes and attachment in corporate records
book
File asumed business name statement
Apply for Federal non-profit mailing permit
Apply for property tax exemptions
File corporate report form
Register with Attorney General
Comply with reporting requirements
As is mentioned in the NOLO Press publication,
the act of forming a non-profit is also good in terms
of providing a structure for the members of your group
to begin discussions about your purpose, goals and
objectives.
In any case, if you fill out and file the appropriate
forms in a timely fashion, you should receive
notification within 3 months after mailing in the
papers.
__________________________________________________
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