This document discusses key aspects of fundraising and grant writing for nonprofit organizations. It covers the differences between nonprofit, charitable nonprofit, and not-for-profit organizations. It also discusses nonprofit registration requirements, restricted and unrestricted funds, ethics in fundraising, collaborating on grant writing, and hiring professional grant writers. The timing of the grant writing process is outlined, including planning, writing, and submission phases.

1. Chapter 1
Gearing Up for
Fundraising
What You Need to Know

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Nonprofit versus
Charitable Nonprofit Organizations
• Nonprofit organizations may be eligible for
certain benefits such as state property,
sales, and income tax exemptions.
• Nonprofit charitable organizations are set
up and operated to improve some part of
society without a profit motive.

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Nonprofit versus Not-for-Profit
Organizations
• Not-for-Profit organizations are devoted to
some sort of activity, such as a hobby.
• Nonprofit organizations or agencies are
founded for purposes other than profit
making.

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Nonprofit Fundraising Registration
• The Federal Trade Commission is the
government’s chief consumer protection
agency. Laws may vary state to state.
• Applicants must submit determination
letters, audit paperwork, bylaws,
fundraising contracts, IRS 990 forms,
notarized signatures, and fees.

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Unified Registration System, 1997
• The URS was developed to merge the
information and date requirements of
those states that require registration of
nonprofit organizations, which solicit for
funds within their jurisdictions.
• As of August 2010, 37 states accepted the
URS.

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Three Stages of the URS
1. Assembling an inventory of registration
information requirements from all states.
2. Constructing a form which includes all (or
most) of these requirements.
3. Persuading states to agree to this
“standardized” format as a replacement for their
own forms.

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Unrestricted versus
Restricted Funds
• Unrestricted funds are available for the
agency to use toward any purpose.
• Restricted funds are limited to a
designated purpose as per the donor’s
request or are raised for a specific
purpose or project.

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Temporarily or
Permanently Restricted Funds
• Temporarily restricted funds have donor-
imposed restrictions; either by time or
purpose.
• Permanently restricted funds are also
restricted by the donor and never expire.

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Understanding the
Ethics of Fundraising
• Agencies may be tempted to seek funding
wherever they can find it.
• The leaders of the organization must
embrace ethical decision-making and
recognize the importance of values and
ensure that no one individual is to profit
from the organization.

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Some Fundraising Pitfalls
• Failing to have a solid team in place.
• Failing to motivate the team.
• Failing to have a mission statement and
set of goals.
• Failing to plan, develop evaluation, and
seek consultation.
• Failing to choose the best fundraisers.

11. Chapter 8
Setting the Stage
Grant Writing
Considerations

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Grant Writing: A Collaborative
Effort?
• Collaboration can enhance or complicate
the grant writing process.
• Agencies must look at both the benefits
and complications associated with the
collaborative efforts.

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Collaborating With Colleagues
• Putting together a team of qualified
members can be very time consuming.
• Choose team members who are
compatible and self-motivated.
• Assign roles that suit the team members’
talents, skills, interests, and abilities.

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Teaming Up With Other
Organizations
• Collaboration provides organizations the
opportunity to pool their efforts and allow
for higher grant amounts.
• Partnerships among community agencies,
schools, citizens, government, and others
allow more complex problems to be
addressed.

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Timing Is Everything
• Timelines vary from proposal to proposal.
• Agencies must plan for anything and
everything to go wrong.
• Timelines include three phases:
– Planning Phase
– Writing Phase
– Submission Phase

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The Planning Phase
• Typically begins 6 – 12 months before
submission deadline.
• Identify needs and resources.
• Brainstorm and research ideas.
• Assess funding goals and resources.
• Identify prior work accomplished by
others.
• Create a budget.

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The Writing Phase
• Typically begins 2 – 6 months before
submission deadline.
• Outline the structure of the application.
• Complete the required forms.
• Plan and develop first draft.
• Proof the draft.
• Write all sections of the proposal.

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The Submission Phase
• Typically takes place 1 – 2 months before
submission deadline.
• Proofread and make all revisions.
• Submit the final copy to a proposal review
office.
• Submit the final grant at least 2 days
before the deadline.

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Quality Trumps Deadlines
• Producing a top-notch proposal is more
important than meeting a deadline.
• Throwing a proposal together at the last
minute is a certain denial.
• Submitting a proposal the following year or
to a similar funder once it has been
redone is a better idea.

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Contracting With a Professional
Grant Writer
• Agencies may not have the time and staff
available to dedicate to grant writing.
• If discretionary funds are available, a
professional grant writer may be the best
decision.
• Agencies should weigh the pros and cons
of hiring a professional grant writer.

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Pros of Hiring a Professional Grant
Writer
• Have the time to devote to the project.
• Have the knowledge and expertise.
• Have exposure to current trends.
• More likely to complete the grant on time.
• Can teach the basics of grant writing to
the agency’s staff.

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Cons of Hiring a Professional Grant
Writer
• Grants may lack the passion.
• Writers do not know the grant history of
the agency.
• Choosing a grant writer can be a difficult
task.
• Hiring a grant writer can be very costly.

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The Grant Writer Selection Process
• Begin the process early.
• Ask for referrals from other agencies.
• Contact grant writer associations for
referrals.
• Determine the length of the grant writer’s
position; temporary or permanent.
• Advertise the position.

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Assisting Nonprofits in Connecting
With Grant Writers
• Several associations provide resources,
services, and directories to assist
nonprofits in connecting with grant writers.
– American Grant Writers’ Association
– Association of Fundraising Professionals
– Charity Channel
– Grant Professionals Association