Build your fundraising capacity through grant writing

Article from the Growth & Co Blog   |  Posted in November by Larissa Stoddart

What is grant writing?

Grant writing is the process of applying for funds from foundations, government bodies, and other funding organizations. It involves researching grant opportunities, understanding the goals and requirements of the funder, and creating a compelling proposal (often by completing the required fields in the grant application) that demonstrates how your organization’s work aligns with the funder’s mission. 

Unlike unrestricted donations, grants are usually tied to specific projects, programs, and other specific needs. 

While each grant application is unique, they generally include sections on your organization’s background, the problem you’re addressing, your proposed solution, and a budget breakdown.

Fundraising Capacity Building - What Comes First?

Charities and nonprofits often receive their initial revenue by applying for and receiving a grant (a specific amount of non-repayable money) to fund a specific project at their organization. 

Once an organization has been operating for some time, their board directors and senior leaders often start having conversations regarding how to raise more money– not just for specific projects and programs, but for the ongoing administrative expenses required to fulfill their mission. 

They reach a point when they need to hire a fundraising staff member to grow fundraising revenue further, but experience a ‘chicken or the egg’ scenario. They aren't sure if they should hire a fundraiser to enable money to start coming in, or if they need to get money in first to then hire a fundraiser.

Capacity Building Grants

One solution to this challenge is applying for a capacity building grant to build their to hire and train their fundraising staff and build the fundraising operation!

Organizations can receive grants to build and enhance their fundraising operations and train a fundraising staff member and the grant can include that fundraising staff member’s salary!

 A grant for a capacity-building project can provide your organization with the resources needed to hire an external expert, hire and train your fundraising staff member, create the fundraising plan, craft your case for support, and build the systems and processes required to execute your fundraising strategies. 

Here’s why capacity-building grants are especially valuable:

    1.    Securing Specialized Funding: These grants often fund projects that may be challenging to finance through general donations, such as staff training, technology upgrades like your donor CRM, and infrastructure development such as building systems and processes to raise money. 

    2.    Increasing Sustainability: By funding capacity-building initiatives like building your fundraising department, grants help nonprofits build self-sustaining fundraising strategies which can support future growth.

    3.    Enhancing Credibility: Successfully securing capacity building grants from reputable foundations or government bodies can boost your organization’s reputation, making it easier to attract other donors and partners once your fundraising department is up and running. 

Tips for Writing Fundraising Capacity Building Grants

If you’re interested in applying for grants to support capacity-building projects—such as bringing in a consultant or training program to strengthen your fundraising—here are some tips to consider:

1. Define Capacity Building in Clear Terms

Capacity-building grants are focused on strengthening the organization itself, not just the services it provides. For example, if you want to apply for a grant to fund fundraising training, outline how this training will empower your staff to develop sustainable revenue streams and attract more donors, ensuring the organization’s future resilience.

2. Showcase the Long-Term Impact

Funders want to see a long-term benefit from their investment. Describe how the skills your team gains through a capacity-building project will continue to benefit your organization well after the grant period ends. Be specific about outcomes, like the expected increase in funds raised or the ability to establish a major gifts program within a year.

3. Explain How External Support Will Drive Change

Hiring an external consultant, like a fundraising coach, can be a game-changer, providing your team with expert insights, strategies, and tailored training that can take your fundraising to the next level. Highlight how an experienced consultant can bring a fresh perspective and fill knowledge gaps, especially if your team is small or lacks dedicated fundraising experience.

4. Provide a Realistic, Detailed Budget

Capacity-building grants are often scrutinized for efficiency. Break down your budget to show exactly how the funds will be spent, whether it’s on consultant fees, training materials, or follow-up coaching sessions. Include a timeline of milestones so the funder knows how you’ll measure progress.

5. Back Up Your Plan with Data

Funders appreciate seeing evidence of need and potential. Use relevant data to demonstrate why building your fundraising capacity is essential, such as growth in demand for your services, increased competition for funding, or a changing donor landscape. Quantify your goals where possible; for example, show how an increase in fundraising staff training can help you reach a specific annual donation target.

6. Demonstrate Your Commitment

Funders want to see that you’re fully committed to making the project work. Outline any additional resources you’re willing to commit, such as staff time or matching funds, and describe how you’ll incorporate lessons learned from the consultant or training into your operations on an ongoing basis.

Fundraising Intelligence Training and Coaching Program Can Help 

As a nonprofit, securing a capacity-building grant to bring in expert support can be transformative. Growth & Co.’s Fundraising Intelligence training and coaching program is specifically designed to build the skills, confidence, and knowledge that nonprofit professionals need to create sustainable revenue strategies. From building your fundraising plan, to crafting a strong case for support, to identifying and cultivating major donors, our program gives your team the tools they need to drive long-term success.

If you’re considering applying for a capacity-building grant to build your fundraising capacity, much of what you need for your grant application can be found on our Fundraising Intelligence page below!