5 ways to strengthen your approach to grants funding

I have worked in grants partnerships for over 20 years, and when I think about the organisations that have the most success, the same themes come up repeatedly. I will set them out in this article.

This is happening at a time when charities are facing major external pressures, including cuts to statutory funding and overseas development assistance. For many charities, particularly those seeking support from Action Planning professionals, grants are a new income stream.

In these organisations, most income has often come from sources such as private sector partnerships, endowments, major gifts from individuals or government funding. Grants are, therefore, seen as a way to fill a growing gap.

An investment in grants funding

With resources shrinking and demand for services increasing, many charities have managed their finances carefully so they can invest in grants fundraising, and plan to diversify their income. They do this knowing that real results can take 18-24 months.

While investing in grants fundraising is a sensible step, charities often underestimate what else is needed to enter this market successfully. Based on recurring experience, organisations ahead of the curve will take away learnings from the process that will strengthen capacity and improve their chances of being successful.

These learnings include:

● Investing in non-grant staff capacity. When hiring new staff or developing existing programme teams, ensure that they have a good understanding of grant funding, so they are able to explain clearly the charity’s impact in a way that grant funders expect, focusing on outputs, outcomes and learning. This helps grant fundraisers receive meaningful content, whilst presenting a clear and credible picture of how the organisation works, grows and sustains its impact in the cultivation and relationship-building process.

● Building shared responsibility for grants. Grant fundraising works best when it is not seen as the job of one person. Setting simple, relevant KPIs for grants across teams and at the Board level helps colleagues understand what to look out for in their work and networks, how to share information, and how the Board can contribute through contacts, insight and feedback.

● Ensuring leadership is visibly involved. Senior leaders should play an active role in fundraising, be open to learning and ask questions when they are unsure. This sets the tone for the rest of the organisation.

● Bringing in extra support when needed. Even short-term or interim support can make a real difference, whether for strategy development, prospect research, relationship building or funder stewardship. This is especially true when you can’t expand your workforce with full-time hires.

● Managing the process thoughtfully. From the moment a potential funder is identified, researched, or has provided feedback to the point where you are managing applications and grants, the journey should be tracked on a CRM. Teams should be clear about relationship strategies, when updates are needed, where high-value relationships and partnerships are held and signed off in the organisation, how relationships are stewarded and when to discuss a follow-on grant or next tranche of funding.

Small but practical

The grant funding environment is highly competitive. However, these relatively small and practical changes can significantly strengthen how charities build relationships with funders. Even when a grant is not secured the first time, a well-managed and thoughtful approach leaves funders more open to future opportunities and revisiting the idea of collaboration.

If you think your organisation would benefit from extra grants funding support, please get in touch.