With over 87,000 grantmaking foundations in the United States, the potential for securing funds to fuel your nonprofit’s mission is vast. With individual fundraising up and down over the last few years, it’s important to diversify funding streams. That’s where grants come in.

Grants are not just a funding source—they’re an opportunity to expand your impact, develop innovative programs, and strengthen your organization’s foundation. They offer an invaluable way for nonprofits to diversify funding, ensuring stability when other revenue streams fluctuate. In this guide, we’ll cover why grants are vital, the challenges nonprofits face in the grant process, and actionable steps to secure and manage grants effectively. We’ll even sprinkle in tips for scaling your grant-seeking system and share real-world insights to inspire you.

Grants are not just funding opportunities—they are catalysts for change, enabling nonprofits to scale their work and amplify their missions. Grants are an opportunity to expand your impact, develop innovative programs, and strengthen your organization’s foundation. But success in the grant process requires preparation, strategy, and efficient management.

Grants, grant writing, and grant management are complicated subjects. This guide takes a 30,000-foot view and walks you through the basics steps to identify, secure, and manage grants while avoiding common pitfalls.

Why Grants Are Crucial to Nonprofit Success

Grants offer a unique advantage: flexibility. Whether you’re building a capital project, launching a new program, or funding daily operations, grants can fill financial gaps in ways other funding sources might not. And with foundations required to distribute 5% of their net assets annually, there’s always funding waiting for the right nonprofit.

Unlike donations, which often rely on individual generosity, grants are tied to measurable impact. This makes them particularly valuable for projects with clear, defined outcomes. However, grants also come with challenges—they’re competitive, often slow to materialize, and require dedicated resources for application and management.

But grants aren’t a magic wand. It takes an average of two years and four months for a nonprofit to secure its first grant, and even then, amounts tend to hover between $5,000 and $15,000 for most. To succeed, nonprofits need a thoughtful strategy and a consistent, long-term approach.

The Challenges of Grantseeking

Let’s not sugarcoat it. The grant process is challenging. Here are the most common obstacles nonprofits face:

Finding the Right Fit
With so many foundations out there, how do you find those that align with your mission? Many nonprofits struggle to sift through the data to identify funders whose priorities match their own.
Building a Sustainable System
Many nonprofits approach grants reactively, treating each application as a standalone effort. Some organizations rely on overwhelmed staff or hire consultants without truly understanding the process. This can lead to inefficiencies and mixed results. Without a systematic approach, it’s hard to scale or replicate success.
Managing the Workload
Writing, submitting, and tracking multiple applications—while juggling other responsibilities—can overwhelm even the most organized teams. Without the right tools or workflows, it’s easy to feel stuck in the weeds.

Preparing for Grant Success: Five Steps to Get Started

Before diving into grant applications, preparation is key. Here are five steps to set your nonprofit up for success:

Be Discoverable
Your website is your nonprofit’s digital handshake. Is it clear what you do, who you serve, and the impact you’ve had? If not, it’s time for a refresh. Highlight your mission, showcase success stories, and make contact information easy to find.
Pro tip: Take a peek at websites of similar organizations for inspiration.
Audit Your Organization’s Readiness
Funders often look for “grant-ready” organizations. This means having a clear mission statement, measurable impact data, a strategic plan, and financial stability. Ensure your nonprofit checks these boxes before applying.
Activate Your Board and Community Networks
Grant opportunities are not just about the proposal—they’re about relationships. Use tools to identify potential funders, then tap your board members or supporters for connections. Personal introductions can make a world of difference.
Build a Strategic Funding Plan
Take a step back and look at the big picture. How much of your funding will come from grants versus individual donors? Use frameworks like the SOAR Model (Strengths, Opportunities, Aspirations, Results) to align your goals and clarify your priorities.
Reframe Programs as Projects
Funders love specifics. Instead of describing your ongoing programs, frame them as distinct projects with clear outcomes. For example, instead of saying, “We run an after-school program,” you might say, “We’re launching a six-month STEM initiative for 50 underserved students.”
Adopt a Decision-Making Framework
Not every grant is worth pursuing. Use a decision-making rubric to evaluate opportunities based on factors like funder alignment, application complexity, and potential impact. This ensures you focus your energy where it matters most.

Scaling Your Grantseeking Efforts: Five Tips for Success

Once you’ve laid the groundwork, these tips will help you build a sustainable grant-seeking system:

Streamline Tools and Processes
Are you using one platform for prospecting, another for deadlines, and yet another for tracking? Streamlining your tools can save time and reduce headaches. Look for platforms, like Julep, that integrate multiple functions.
Assign Clear Roles and Responsibilities
Grantwriting isn’t a one-person job. Define responsibilities for each step of the process—from proposal writing to budget preparation to reporting. Clear roles lead to better collaboration and fewer bottlenecks.
Create a Standard Operating Procedure (SOP)
Document your process so everyone knows what to do, when to do it, and how. Regularly review and refine your SOPs to address any hiccups that arise.
Do Your Homework on Funders
Foundation tax forms, known as Form 990s, are a goldmine of information. Use them to discover grant sizes, new vs. returning grantees, and areas of focus. This research can help you tailor your proposals for success.
Build Relationships First
Before applying, reach out to funders to ask questions and introduce your organization. A quick phone call or email can help you understand their priorities and make your proposal stand out.

Grant Management Best Practices

Winning a grant is only the beginning. Effective management ensures compliance, builds trust with funders, and paves the way for future opportunities and keeps you updated on deliverables and reports.

Evaluate Capacity Before Applying
Be realistic about your ability to meet grant requirements. Adjust timelines, budgets, and staff roles as needed to avoid overcommitting. Sometimes, the grant management will require hiring an additional staffer to keep up with reporting demands.

Collaborate Across Teams
Involve staff from all relevant departments—development, finance, and programs—throughout the grant lifecycle. Regular check-ins ensure everyone stays aligned.

Track Deadlines and Deliverables
Use shared calendars to manage reporting timelines and responsibilities. This is especially critical when juggling multiple grants.

Stay Organized
Use a shared calendar to track deadlines and deliverables. This is especially important if you’re managing multiple grants simultaneously.

Understand the Fine Print
Review grant agreements carefully. Ensure all team members are aware of budget restrictions, reporting requirements, and other key details.

The Big Takeaway: Consistency is Key

Grants are a powerful tool for nonprofit growth, but they are not a quick fix. They’re a long-term investments in your organization’s future. They require dedication, strategy, and teamwork. By preparing thoroughly, building relationships, and adopting scalable processes, your nonprofit can unlock new funding opportunities and amplify its impact.

What’s been your experience with grants? Whether you’re a seasoned grantwriter or just starting out, I’d love to hear your insights and challenges. Let’s keep the conversation going!