Crack the Code: 5 Steps to a Winning Grants Cycle
For mission-driven organizations, grants can be a game-changer—fueling programs, expanding reach, and powering real social impact.
But let’s be real: successful grant funding doesn’t just fall into your lap.
Behind every grant award is a thoughtful, strategic, and often complex process that goes far beyond filling out an application.
From identifying the right funders to managing the dollars once they’re in the door, the grants cycle requires intention, coordination, and follow-through. Whether you're new to fundraising or refining your approach, mastering the grants cycle can set your organization up for long-term success.
In this blog, we break down the five essential steps of a successful grants cycle—and how to approach each one with clarity and confidence.
Preparation and research
Before even thinking about applying for a grant, the first step is preparation. This involves understanding your organization’s needs, goals, and capacity, and aligning them with potential funders' priorities. We recommend you begin this process at least three months prior to the beginning of your fiscal year. By giving yourself lead time, you are setting up a plan for the upcoming year, knowing where you will be allocating resources, and ensuring you are identifying funding gaps early.
Assess Organizational Needs: What does your nonprofit need funding for? This could range from a specific program or project, general operating costs, capital expenses, or an initiative that supports long-term sustainability. Part of this assessment is budgeting. Creating an organizational budget will help identify where there are gaps in your funding that are not filled by other sources of revenue.
Research Potential Funders: Not all grant providers will be a good match. Identifying the right funders is crucial. This means researching foundations, government entities, or corporate giving programs that have a history of supporting initiatives similar to your own. Resources like Foundation Center, GrantWatch or Instrumentl can help streamline this research process and more easily accessible information, but you can also use general internet searches or the free version of ChatGPT.
Understand Grant Criteria: Each grant has its own eligibility requirements. Some are specific to geographic areas, types of programs, or size of the organization. Be sure to evaluate the guidelines carefully to avoid wasting time on applications that aren't a good fit.
2. Building a Smart Outreach Plan
After identifying potential funders, the next step is crafting a strategic outreach plan to establish connections and increase funding chances. This step is often missed when applying for grants and it is often one of the most important steps. We see time and time again how the organizations who build relationships with grant funders are more successful in securing awards.
Begin Outreach Early: You do not have to wait for a grant cycle to open to begin outreach. Start as early as possible as it can take a while to get a response or schedule a meeting. The goal is to create long term relationships so the engagement with grant funders will be an ongoing process.
Identify Key Stakeholders: Research the decision-makers or relevant program officers within potential funders. LinkedIn and funder websites can help you pinpoint who to approach.
Personalized Outreach: Craft tailored outreach materials, such as an introductory email or one-page overview, that align your mission with the funder’s goals.
Leverage Networking: Check with your staff and board to see if anyone has a connection to any of your prospects. Attend events and conferences to build relationships informally. Set up face-to-face meetings, in person or virtually, whenever possible to deepen connections before submitting a formal proposal.
Transparency and Communication: Be clear about your needs and timelines. Funders value open communication, so be responsive and transparent.
Follow Their Lead: If a funder asks that you do not contact them or do not want to be added to your mailing list or event that they are not interested in funding your organization, respect their requests! If you still think they are a really good fit for your organization, you can try again in a couple of years to see if their priorities have changed.
3. Writing and Submitting the Grant Proposal
Once you’ve found the right funding sources, the next critical step is crafting a well-thought-out and compelling grant proposal. A strong proposal is key to capturing the attention of funders and showing them why they should invest in your project.
Articulate the Problem and Solution: Clearly define the problem you are trying to solve and present a concrete solution. Be sure to explain the significance of the issue and why it matters to the community, region, or cause you serve.
Set Specific Goals and Objectives: Funders want to see that your program has measurable outcomes. Outline your goals, objectives, and timelines for achieving them. Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to structure these.
Budgeting: A detailed, realistic budget is often required by grantmakers to ensure the funds will be used appropriately. Be transparent and break down how every dollar will be spent to support the project’s goals.
Demonstrate Organizational Capacity: Show that your organization has the experience, staff, and resources necessary to carry out the project. This can include details about previous successes or a description of your team's qualifications.
4. Award Notification and Fund Disbursement
After the waiting period, you will be notified whether your grant proposal has been accepted or rejected.
Acceptance: If your proposal is accepted, you’ll typically receive a formal agreement outlining the terms and conditions of the grant. This can include the amount awarded, the purpose of the funds, reporting requirements, and timelines for fund disbursement.
Rejection: Rejection doesn’t necessarily mean your project isn’t valuable. If this happens, try to get feedback from the grantmaker and use it to improve your next proposal. Many successful grant applicants are rejected multiple times before they secure funding. Reaching out to the funder is another way to continue building the relationship and understand if you should try again in the next cycle.
5. Grant Implementation and Reporting
Once you’ve secured the funds, it’s time to implement your program or project. This phase involves utilizing the grant as outlined in your proposal to achieve the outlined goals.
Program Execution: Ensure that all resources are allocated as per the agreed-upon budget and timelines. Adhering to these parameters is crucial for maintaining a good relationship with the funder and ensuring continued support.
Monitoring and Evaluation: Throughout the implementation phase, be sure to monitor your program’s progress toward its goals. Funders may require periodic reports on the status of the program, including performance metrics, financial accounting, and any challenges you’ve encountered.
Final Report: Many grantmakers require a final report that includes detailed outcomes, a financial summary, and an evaluation of the program’s impact. This final report is essential to closing out the grant and might influence the likelihood of receiving future funding.
After completing a funded project, the grant cycle starts over, keeping the funder engaged through consistent communication that can lead to future funding opportunities and ongoing collaboration.
Whether you're a novice grant writer or an experienced fundraiser, the key to success lies in project managing the process: thorough planning and research, clear communication with the funder through conversation and proposals, and building trust by effectively managing funds once received