Assessing Your Nonprofit's Readiness for Federal Funding

Applying for and managing federal grants can feel like a daunting task, especially for organizations that are new to the process. However, with the right tools and knowledge, it can be a manageable and rewarding endeavor. How do you know if your organization is ready to apply?

Federal grants management involves a variety of tasks, including applying for grants, tracking funds, ensuring compliance with government regulations, and reporting on the use of funds. Each step in this process presents its own set of challenges.

Eligibility

Make sure you are eligible for the opportunity. There are many restrictions that might make you ineligible. Review the funder's RFP, RFQ, or NOFO and FAQs carefully (and more than once!) and when in doubt, ask questions.

Complex Application Processes

The first hurdle in federal grants management is the application process itself. Applying for federal grants often requires detailed proposals that outline your project's goals, budget, and expected outcomes. This can be time-consuming and requires a deep understanding of both your project and the specific grant you're applying for. Your organization must provide a myriad of documents to even be eligible to register within the application portal - and that's before you even access the application itself. Ensure you have months, if not a year or more, to start the grants.gov or System for Awards Management (SAM) registration process if you are new to it.

Strong Potential Project

Before applying for a federal grant, it's important to have a very strong potential project that:

• Has clear and well-defined project goals and expected outcomes. This includes understanding the specific outcomes you hope to achieve and how the grant will help you reach them. Well-defined goals and outcomes will make it easier to create a compelling proposal. Consider processes or tools such as a logic model or a theory of change to help you fully define the project.

• Is for a project that is worth the effort. Don't apply for federal funding for a $5,000 project if you think you'll spend more than $5,000 in staff time just submitting the application (which is certainly possible, especially if you're paying a grantwriting consultant). Some federal applications take 40 hours or more. Make sure you the project you select is a high value, necessary project.

• Is supported by an organizational strategic plan. This signals to the funder that the project is well thought through and is supported by the highest levels of the organization.

• Is aligned with your organization's mission. This means that it not only complements the core values and goals that your organization strives to achieve but also actively contributes to the fulfillment of its long-term objectives.

Strong Team and Resources

Having a strong team and the necessary resources is also essential. This includes having staff members who are knowledgeable about grant management and having access to the necessary tools and technology. A well-prepared team will increase your chances of success. You should have key staff who will be the Project Director, Project Manager, Grant Administrator, and so on. You cannot have one person play all three roles. If you are relying on volunteers to perform these roles, ensure that this is allowable.

Understanding of Grant Requirements

It's important to thoroughly understand the requirements of the grant you're applying for. This includes knowing the eligibility criteria, application process, and reporting requirements. Being well-informed will help you create a more competitive application.

Financial and Data Tracking Readiness

Finally, ensure that your organization is financially ready to manage the grant. This includes having a solid accounting system in place and understanding how the grant will impact your organization's finances. Financial readiness is crucial for maintaining compliance and ensuring the success of your project. Similarly, you will be expected to track and report on data measures, so having a plan in place to capture data will be essential to staying in compliance with the funder.

Federal funding is daunting and organizations should approach opportunities with care and planning. If done properly, however, federal funding can be a great source of support for a wide variety of organizations doing amazing work in the community.

Taking the Plunge

Programs like PureGrant can help you manage the various complex components of federal funding applications to make the process more organized and less painful.

Sheena Link is the COO of PureGrant. She has applied for and won dozens of federal grants in her career.