7 Ways To Maximize Grants For Nonprofits

Grants are often a vital part of a nonprofit’s funding strategy. That said, they’re rarely the “easy money” some people imagine. For maximum success, nonprofits need to learn how to maximize grants that they’re awarded. 

Below we cover seven steps to make every grant count. You’ll find our tips cover the entire lifecycle of a grant, so there’s something for everybody.

7 Ways To Maximize Grants At Your Nonprofit

1) Start With Strategic Fit, Not Just Available Dollars

It’s common to chase grants simply because they’re available. But for most organizations? If the money doesn’t align with your mission, capacity, or some kind of long-term strategy, it’s likely to be more of a distraction.

Here are a few questions you should ask yourself before you apply for a grant:

• Does this grant help us with work we are already doing, or do we have to start something from scratch?
• Would the burden of extra work outweigh the financial benefit?
• Is the grant a one-time payment, or part of a longer funding commitment?

The best grants help your organization do more of what it’s good at. If a grant isn’t a good strategic fit, it’s probably better to skip it. 

2) Build In Infrastructure, Not Just Programs

When you draw up a grant budget, it’s normal to focus on the “direct” program costs. This includes things like supplies, events, and maybe staff hours. This makes sense (and is necessary), but it’s not the ideal approach. That’s because the best grant budgets don’t just fund an activity – they support the infrastructure that makes the activity possible.

Here are a few ways to maximize grants so that this necessary infrastructure is supported:

• Fairly allocate staff time, which includes grant management and reporting
• If allowed, include indirect costs (rent, IT, or HR)
• Think ahead to sustainability – what will it take to keep these activities going after the grant ends?

The main lesson here is that you shouldn’t be afraid to push for full-cost funding. Don’t accept a grant that starves your organization while asking you to deliver high-level results.

3) Get Everyone On Board As Early As Possible

Maximizing a grant is a team effort. That means getting your key departments involved early in the stage. For example, finance needs to understand any reporting requirements or reimbursement schedules that are built into the grant. Your development team, meanwhile, should understand how the grant fits into your broader funding strategy.

By getting everyone involved, you are more likely to take full advantage of the grant. And assuming you do that, it’s much easier to secure further funding in the future. 

4) Track With Intention

Once a grant is awarded, the documentation begins. Tracking things correctly (and doing it straight from the start) is important for a few reasons. First, it keeps you organized. A project is much easier to manage if you know exactly where your time and money are going. Second, it proves that you are an organization that has its act together. This makes it more likely that your funder will work with you into the future.

Here are a few ways you can build tracking into your workflow from day one:

• Use your financial system to log grant-related expenses separately
• Set up shared dashboards for outputs and outcomes
• Schedule regular check-ins with program staff to review progress and troubleshoot early

Don’t wait until the last minute to scramble for receipts or performance data. Tracking should be a priority from the beginning.

5) Avoid “Mission Drift”

This is where things get tricky. Once you’ve secured a grant, it can be tempting to shift your focus. This is often the result of wanting to fit a funder’s interests. They propose a project, give you a grant…and then start making suggestions. 

While this happens more often than you’d think (particularly with larger grants), it’s in your best interest to push back. Your mission is important. Stay grounded in what it is you do (regardless of outside voices), and you are more likely to pursue grants that you can actually deliver on. 

If your team finds itself doing work that’s “off-mission” to satisfy a funder, ask yourself one question: is this actually helping us to deliver on our main priorities, or just keeping us busy?

6) Focus On Building The Relationship

Grants are a kind of transaction. Still, this doesn’t mean that funders should be neglected. In fact, focus as much as you can on the relationship with grant funders, and you will be rewarded. 

Here are our thoughts on it: to maximize grants, you need to invest in your relationship with the funder just as much as the project itself. As for how you do that? Here are a few things to consider:

• Communicate proactively if something changes
• Share wins (even the small ones) along the way
• Ask for feedback if you think it’s useful 
• Invite in-person visits when appropriate

Nonprofits that treat their funders like partners set themselves up for long term success. They are more likely to be recommended to other supporters, and usually find it easier to maximize grants as a result.

7) Use the Grant to Tell Your Story

Lastly, when used correctly, grants are a great opportunity for effective storytelling. Remember this: grants aren’t just about the money – they can also be a great way to support your narrative. And once you get in the habit of doing that, it becomes much easier to maximize grants in the future.

For each grant you receive, think about how you can use your grant reporting and communications to:

• Highlight the larger outcomes of your project (not just the “tasks”)
• Demonstrate how the grant advanced your mission 
• Introduce the people whose lives you’ve changed

All these data points are part of a bigger story. Tell it effectively, and you lay the groundwork for not only renewal, but larger grants in the future as well.

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