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Some small businesses and organizations are created to accomplish important goals to better communities and improve people’s lives. However, accomplishing these goals is impossible without the proper funding.
Small businesses and nonprofits making a difference often rely on funding from grants. These important funding opportunities are open to many businesses, and yours could be one.
In this article, we’ll cover everything about grant writing, including:
- What grant proposals are
- Which businesses could apply
- How to write them
- Where to learn more
What Are Grant Proposals?
Funds received from a grant do not need to be repaid. However, the funding is given with specific stipulations. It’s not free money—it’s an investment for a business to produce a specific kind of work, most often community improvement.
A grant proposal is a formal document submitted to a funding agency in an effort to receive grant funding. It explains the mission of your organization, what you’d like funding for, and how you plan on using the funds.
The most successful proposals include the business's story alongside the proposal. You need to include the specifics of your funding needs, but you should also stress the why behind your ask. Most grant proposals present an opportunity for funders to participate in an important mission.
Where do Grants Come From?
Receiving grant funding can improve an organization’s ability to pursue its mission, but you might be wondering where all those funds come from. Who hands out grants?
Grants typically come from three primary sources:
- Government organizations: Many government organizations are in the business of improving communities through economic, housing, and civic development. Businesses that align with these organizations can receive funding to affect change in their community.
- Private or public for-profit businesses: Businesses like FedEx dedicate a significant amount of funds to uplift and assist small businesses.
- Foundations: Foundations receive donations and distribute those funds to businesses or individuals in the form of grants. These foundations are generally dedicated to specific activities.
Organizations that give out grants usually have access to significant funds and are able to help out multiple businesses or organizations at a time.
Businesses That Should Consider Grant Writing
REDC’s Grant and Proposal Writer Eric Stoff says that grant funding is designed for nonprofit organizations so that they can do good work and remain mission-driven. However, there are a few categories for businesses that are eligible for grant funding:
- Minority-owned and rural businesses: Funding opportunities are available to businesses owned by women, Black, Indigenous, and people of color (BIPOC) individuals, and veterans.
- Tech startups: Grants can support businesses involved in research, prototyping, and technology commercialization.
- Clean and renewable energy companies: Businesses focused on energy efficiency, solar, recycling, or EV infrastructure may qualify for grants that promote environmental goals.
- Agriculture and food businesses: Farmers and agriculture-related businesses that focus on sustainability or regional food systems often align with USDA priorities.
- Educational and workforce training companies: Businesses involved in upskilling, apprenticeships, or reentry workforce programs may qualify for support through the Department of Labor or workforce innovation grants.
Nonprofit organizations rely on donations and grants grants. According to an analysis produced by Candid, at least 30% of nonprofits rely on government grants.
Grant Proposal Options
Grants fund a specific purpose within an organization. That means you can’t just ask for money; you need to have a particular purpose for the funds and provide documentation of how these funds were spent.
Before writing a grant, you need to figure out what you want funding for. These are the most common types of grants:
- Research grants: Your organization could receive funding to conduct research for science, surveying communities, humanitarian efforts, or anything else.
- Seed grants: These funds are used to help a startup or a new program.
- Capital grants: These are used to fund building upgrades, equipment purchases, and new construction.
- Program and project grants: These funds are restricted to specific programs and projects.
- General operating grants: Unrestricted funds used for anything an organization needs.
Before asking for funding, you need to have a concrete plan for how you’ll spend the money and keep a close record of the funds used.
How to Write a Grant Proposal
Grant proposals are formal documents that have specific requirements. These requirements aren’t intuitive, but following these guidelines for grant writing will increase your chances of success.
Find Opportunities
It’s impossible to know how much money is given to businesses in grants yearly, but it’s a huge number. The opportunities are there; you just need to find them.
Eric had some advice for finding grant opportunities:
“My email inbox, and I’m only halfway joking.”
He’s subscribed to many newsletters over the years that share grant opportunity announcements, and recommends those seeking grants do the same.
“By subscribing to grant announcement newsletters and proactively seeking opportunities to match funding needs, you’ll set yourself up to be aware of a wide range of potential funding opportunities.”
Here are specific places you should look first when hunting down grant opportunities.
- Grants.gov: This is a comprehensive database of government grants available to small businesses
- GrantStation: This fee-based grants database includes federal, state, and foundation opportunities, filtered by geographic area, focus area, and eligibility
- Rural Business Development Grants: If your business is in the business of developing rural areas, then you may apply for the USDA Rural businesses development grant
- SBIR: The SBIR provides support to organizations through federal agencies to empower entrepreneurs and small businesses
- Check local organizations: You never know what options are available until you ask. Look for local organizations that are dedicated to helping local businesses and communities
Consider Your Organization’s Eligibility
According to REDC’s Grants Coordinator, Nicole Rossi, you need to make sure that your organization’s mission lines up with the grant proposal. The grant instructions and description have a few different names:
- Request for proposal
- Notice of funding opportunity
- Solicitation notice
- Proposal guidelines
Review this section thoroughly, and highlight key information to find later.
“This is also the stage where I consider whether the opportunity aligns with my organization’s mission, vision, values, and current strategic priorities. I also consider whether the project we have in mind aligns with the funder’s interests and funding priorities.”
Fully understand the grant’s requirements to ensure you receive the funding. In your proposal, make sure to call out not only how you’re eligible for the grant, but how your vision aligns with that of the funding agency.
Craft Your Narrative
Your grant proposal needs to tell a story. How does your business plan to effect change and help your local community? What goals does your business have? What does your business already do?
Create a template for the proposal that includes each question in the exact same order in which they appear in the instructions. Following this framework helps the reviewer quickly find the information they need.
Read our article about how to write a grant proposal to learn more about the anatomy of a grant and what you need to include.
Nicole talked about the importance of building a narrative and having everything in order.
“By following these steps when building a proposal, I know that I am presenting a cohesive picture of the project where every section of the proposal has a clear relationship to our funding request.”
Include Documentation
Funders prefer to give their money to businesses with a proven track record. Further documentation like budgets, resolutions, and supporting letters may be necessary to apply for a grant.
Write and Edit
Now that you have everything in order, it’s time to start writing your proposal. Fill out the story you laid out earlier, and include the details necessary for the application.
Don’t sweat the details at first. Just get the words onto the paper, then start editing and refining your proposal.
How to Learn Grant Writing
Grant writing is a specialty that takes a lot of practice to perfect. If you’re going to be writing grants often, a grant writing course can go a long way.
The REDC at Yavapai College offers online self-paced courses that are easy to enroll in. Our Introduction to Grant Writing course will outline the steps of grant writing while exploring tools and techniques.
Our experts can provide small businesses with grant writing. We’ll help you find opportunities, collect and refine required information, and develop grant proposals. Contact our grant assistance department to learn more.