I know your nonprofit organization is probably eager to attract some grant money to help support your good work. The idea of a funder handing a large check to your nonprofit probably makes your heart flutter. Visions of popping the champagne might come to mind.

And that’s what grants are there for!

But you should know that not all grants are good for you. Before diving in, I suggest that you first get clear about the difference between a grant that can be helpful to your organization and one that actually doesn’t do you any favors.

Pursuing a grant strategy is a major endeavor and you want to go in with your eyes wide open!

Grant Application Consideration #1

Grants generally take up to 6-12 months to be awarded after you apply— and that’s not counting the time it takes to prepare your application. In fact, good preparation (read: grant writing) is quite time-consuming itself!

[Recently, especially with COVID-19 grants, emergency or “rapid response” grants have had shorter turnaround times. But that is rare.]

A waiting period of many months is often too long for an urgent project. Sometimes board members, or even Executive Directors, are unfamiliar with grantseeking and may think that grants offer a quick and easy way to fund the organization. This is generally NOT the case.

Grant Application Consideration #2

Grantmakers often change their priorities and can be unreliable. You don’t want your organization to be dependent on only 1 or 2 grants that could disappear next year! You can protect your organization’s well-being by having many different sources of income in case any suddenly slow down or dry up.

What are those other sources of income? Think individual donors, events, fees for services you provide, or social enterprises you run.

My point: Any grant strategy should be part of a MUCH LARGER fundraising plan.

Grant Application Consideration #3

Grants are only temporary and have no guarantee of continuing. Your organization needs to be sustainable – that is, have a strategy to ensure that you can survive or thrive past the duration of any specific grant.

While grants can and should be part of the mix, you can’t expect them to be anything more than a short-term fix for a year or two. And if they end up being long-term, when then, you will be pleasantly surprised!

Living grant-to-grant is like living paycheck-to-paycheck without a guaranteed job – not a good idea if you can help it!

Grant Application Consideration #4

Grants are actually NOT free money! Sorry if this bursts your bubble.

There is a LOT of work involved in seeking and managing different types of grants.

Your nonprofit organization has to decide if it’s worth dedicating the needed time, effort, and other resources in exchange for the possible cash you could receive in the form of a grant.

In addition, some grants come with strings attached. You have to consider the agreement you’re making to accept money from any particular funder. For example, sometimes a funder demands way too much work in exchange for a grant that will only partially cover your expenses. What would you do then?

Grant Application Consideration #5

Your organization might simply not be ready. If you are not prepared with all of the information, people, and other resources you’re going to need, you will be wasting your time and money pursuing grants. You need to make sure you are able to take this on.

For example, funders may see your organization as not yet organized enough — with the right capacity — to make the best use of their grant. And they might be right!

You may find that a given grant application or proposed project doesn’t fit with your organization’s stage of development right now. Or perhaps you have to address some internal challenges before you can put your best foot forward to a funder.

As you can see, it’s not always the right time for any given nonprofit organization to seek and manage any given grant. I encourage you to carefully consider your options and adopt a clear-eyed perspective about the grant opportunities that come your way. In fact, you might want to share this information with others at your organization who may need to see the larger picture.

When you are sure a grant would be truly good for your organization, you’ll be set to start your grant seeking and grant writing journey.