"Grant professionals must insist on being part of the [program] development team—during the creation of new programs, expansion of existing ones, or during program reevaluations," says Saadia Faruqi in "The Grant Professional’s Role in Program Design" (CharityChannel, October 14, 2009). The experience and expertise of those responsible for proposal development can equip them to:

• Suggest market analysis and business planning efforts to address funder requirements
• Encourage assessment of community needs
• Help clarify goals, objectives, inputs, and outcomes
• Steer the planning team away from program designs that include red flags for funders (e.g., high administrative to program cost ratios)
• Help develop outcome measurements and evaluation plans

[The complete article can be accessed only by CharityChannel subscribers.]

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Most federal agencies provide a list of standard requirements for grant applicants. To avoid having your proposal rejected before it’s even been read, you must observe these precisely. "Following Agency Submission Requirements Is Critical to Your Success" (Local/State Funding Report, September 21, 2009) cites the Substance Abuse and Mental Health Services Administration (SAMHSA) as an example. SAMHSA prefaces their list of instructions with the statement, "If you do not adhere to these requirements, your application will be screened out and returned to you without review." Among other things, SAMHSA’s rules specify:

• The size, color, and weight of the paper on which the request is printed
• The type font and ink color
• Number of pages allowed for each section
• The way in which the parts of the proposal are attached to each other

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Every organization must find ways to fund general operating costs: administrative salaries, rent, utilities, and the other expenses essential to carrying out their mission. But most foundations want to make grants only for specific programs. In "How to Gain Support for Those Pesky Operating Funds" (CharityChannel, September 30, 2009), Alyssa Hanada suggests ways to resolve this dilemma. She recommends that you:

• Determine whether any of your general operating costs can legitimately be included in program budgets.
• Focus your proposal narrative on the services you provide, their necessity, and their impact on those you serve.
• If a funder clearly states that they won’t pay for certain types of indirect costs, never try to mislead them.

[The complete article can be accessed only by CharityChannel subscribers.]

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What can you do when you’ve run out of ideas for new places to send proposals? In "Looking Beyond the Usual Places for Funding" (CharityChannel, September 23, 2009), Jeannette Archer-Simons suggests mining your own back yard:

• Ask your long-term individual donors whether they are connected to a foundation, corporation, or other potential source of grants.
• Talk to the companies with which you have done business over a significant period. Do they contribute to community groups?
• Find out whether your bank provides advice and services to trusts and foundations that might be a source of grants.
• Survey your board members and staff for connections they have with business owners, law firms, and others who may be involved with grantmakers.
• When talking with your current funders, ask for advice about other potential grant sources.

[The complete article can be accessed only by CharityChannel subscribers.]

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Capacity-building grants are a growing trend among both private and government grantmakers. But writing proposals for capacity building can be difficult, especially for an organization that is unfamiliar with the functions and language of these efforts. While organizations may be aware that there are grants available to support capacity building, they’re often confused as to just what qualifies—and what doesn’t. For example, capacity building does not include program development or expansion; and it does not include capital projects, such as a new facility.

Capacity building is about strengthening management systems and governance in organizations. However, capacity building should not be confused with capacity repair. The purpose of capacity-building grants is to help organizations make good operations better, not to rescue organizations from bad planning or to rehabilitate bad management. If your agency is careening out of control because your board and management have been asleep at the switch, don’t expect a grantmaker to rescue you.

Capacity-building grants are a recognition that organizations need to build management systems as well as programs. By helping you to improve your organization’s systems and operations, they are strengthening your ability to serve your clients, which is, after all, what most funders are primarily interested in. Keep in mind that most such grants are given to proven organizations, no matter the size or the sophistication.

Projects that may be eligible for capacity-building grants include:

• Organizational assessment
• Evaluation of overall effectiveness
• Strategic planning
• Board development
• Staff training
• Fund development planning
• Success planning
• External communications strategies
• Mergers and other restructuring efforts
• Membership development
• Technology improvements

There is a remarkable consistency in the way grantmakers define capacity-building. Here’s one example:

The Wilburforce Foundation, a regional foundation that assists nonprofits in the Northwest, lists capacity building among its funding priorities. The foundation’s guidelines describe capacity-building grants as "strategic investments in your organization that increase its sustainability and effectiveness, including, but not limited to: strategic planning and evaluation; resource development, such as revenue diversification and major donor campaigns; membership development, such as recruitment and retention; technology improvements, such as computer and software upgrades, Internet advocacy, or new equipment; and board and staff development, such as training, workshops, or conferences." The foundation’s application form asks questions such as, "How would this grant help strengthen your organization?" and "One year from now, how will your organization have improved as a result of this grant?"

If you’re considering applying for a capacity-building grant, remember: funders want to improve organizations—not rescue them. Make sure you’re starting from a position of strength.

Susan Chandler is a trainer for The Grantsmanship Center. She has had more than 20 years of experience in program development and proposal writing and 18 years of management experience in public and nonprofit organizations. This article is excerpted from "Understanding Research Proposals," one of a series of five articles in The Grantsmanship Center’s newest publication, Adapting the Program Planning & Proposal Writing™ Model. The complete article explains how to prepare each component of a proposal for a capacity-building grant.

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