How To Develop and Write A Grant Proposal
How To Develop and Write A Grant Proposal
How To Develop and Write A Grant Proposal
Summary
This report is intended for Members and staff assisting grant seekers in districts and states and covers writing proposals for both government and private foundations grants. In preparation for writing a proposal, the report first discusses preliminary information gathering and preparation, developing ideas for the proposal, gathering community support, identifying funding resources, and seeking preliminary review of the proposal and support of relevant administrative officials. The second section of the report covers the actual writing of the proposal, from outlining of project goals, stating the purpose and objectives of the proposal, explaining the program methods to solve the stated problem, and how the results of the project will be evaluated, to long-term project planning, and, finally, developing the proposal budget. The last section of the report provides a listing of free grants-writing websites, including guidelines from the Catalog of Federal Domestic Assistance and the Foundation Centers Proposal Writing Short Course. Related CRS reports are CRS Report RL34035, Grants Work in a Congressional Office, by Merete F. Gerli; CRS Report RL34012, Resources for Grantseekers, by Merete F. Gerli; and CRS Report RS21117, Ethical Considerations in Assisting Constituents With Grant Requests Before Federal Agencies, by Jack Maskell. This report will be updated as needed.
Contents
Developing a Grant Proposal........................................................................................................... 1 Preparation................................................................................................................................. 1 Developing Ideas for the Proposal............................................................................................. 1 Community Support .................................................................................................................. 2 Identifying Funding Resources.................................................................................................. 3 Getting Organized to Write the Proposal................................................................................... 4 Writing an Effective Grant Proposal................................................................................................ 5 Overall Considerations .............................................................................................................. 5 Basic Components of a Proposal ............................................................................................... 5 Cover Letter............................................................................................................................... 6 Proposal Summary: Outline of Project Goals............................................................................ 6 Introduction: Presenting a Credible Applicant .......................................................................... 7 Problem Statement or Needs Assessment.................................................................................. 7 Project Objectives: Goals and Desired Outcome....................................................................... 8 Program Methods and Program Design: A Plan of Action ........................................................ 8 Evaluation: Product and Process Analysis................................................................................. 9 Future Funding ........................................................................................................................ 11 Budget Development and Requirements ................................................................................. 11 Proposal Appendix................................................................................................................... 13 Additional Proposal Writing Websites........................................................................................... 13
Contacts
Author Contact Information........................................................................................................... 14
Staffing needs, including use of existing staff and new hires or volunteers; and Preliminary budget, covering expenses and financial requirements, to determine what funding levels to seek.
When developing an idea for a proposal, it is also important to determine if the idea has already been considered in the applicants locality or state. A thorough check should be made with state legislators, local government, and related public and private agencies which may currently have grant awards or contracts to do similar work. If a similar program already exists, the applicant may need to reconsider submitting the proposed project, particularly if duplication of effort is perceived. However, if significant differences or improvements in the proposed projects goals can be clearly established, it may be worthwhile to pursue federal or private foundation assistance.
Community Support
For many proposals, community support is essential. Once a proposal summary is developed, an applicant may look for individuals or groups representing academic, political, professional, and lay organizations which may be willing to support the proposal in writing. The type and caliber of community support is critical in the initial and subsequent review phases. Numerous letters of support can influence the administering agency or foundation. An applicant may elicit support from local government agencies and public officials. Letters of endorsement detailing exact areas of project sanction and financial or in-kind commitment are often requested as part of a proposal to a federal agency. Several months may be required to develop letters of endorsement, since something of value (e.g., buildings, staff, services) is sometimes negotiated between the parties involved. Note that letters from Members of Congress may be requested once a proposal has been fully developed and is ready for submission. While money is the primary concern of most grantseekers, thought should be given to the kinds of nonmonetary contributions that may be available. In many instances, academic institutions, corporations, and other nonprofit groups in the community may be willing to contribute technical and professional assistance, equipment, or space to a worthy project. Not only can such contributions reduce the amount of money being sought, but evidence of such local support is often viewed favorably by most grant-making agencies or foundations. Many agencies require, in writing, affiliation agreements (a mutual agreement to share services between agencies) and building space commitments prior to either grant approval or award. Two useful methods of generating community support may be to form a citizen advisory committee or to hold meetings with community leaders who would be concerned with the subject matter of the proposal. The forum may include the following: Discussion of the merits of the proposal; Development of a strategy to create proposal support from a large number of community groups, institutions, and organizations; and Generation of data in support of the proposal.
Federal agencies are required to report funding information as funds are approved, increased, or decreased among projects within a given state depending on the type of required reporting. Also, grant seekers may consider reviewing the federal budget for the current and future fiscal years to determine proposed dollar amounts for particular budget functions. The grant seeker should carefully study the eligibility requirements for each government or foundation program under consideration (see, for example, the Applicant Eligibility and Rules and Regulations sections of the CFDA program description). Federal department and agency websites generally include additional information about their programs. CFDA program descriptions and websites include information contacts. Applicants should direct questions and seek clarification about requirements and deadlines from the contacts. The applicant may learn that he or she is required to provide services otherwise unintended such as a service to particular client groups, or involvement of specific institutions. It may necessitate the modification of the original concept in order for the project to be eligible for funding. Questions about eligibility should be discussed with the appropriate program officer. For federal grants, funding opportunities notices appear on websites such as Grants.gov at http://www.grants.gov or FedConnect at https://www.fedconnect.net. Applicants can search and sign up for email notification of funding opportunities, and download applications packages. To submit applications, registration is required. The grantseeker must also obtain Dun and Bradstreet (DUNS) and register with Central Contractor Registration (CCR): Grants.gov provides instructions and links. Deadlines for submitting applications are often not negotiable, though some federal programs do have open application dates (refer to the CFDA program description). For private foundation funding opportunities, grant seekers should contact foundations or check the Foundation Centers website for daily postings of Requests for Proposals (RFPs) at http://foundationcenter.org/findfunders/fundingsources/rfp.html. Specified deadlines are usually associated with strict timetables for agency or foundation review. Some programs have more than one application deadline during the fiscal or calendar year. Applicants should plan proposal development around the established deadlines.
If the funding source expresses interest in the concept paper, the grant seeker can ask for suggestions, criticism, and guidance, before writing the final proposal. Feedback and dialog are essential elements to a successful funding proposal. Throughout the proposal writing stage, an applicant may want to keep notes on ideas and related materials for review. The gathering of documents such as articles of incorporation, tax exemption certificates, and bylaws should be completed, if possible, before the writing begins. At the end of this report, useful websites cover proposal writing, give sample grant proposals (including a template for writing a proposal), and link to federal program information and grants management circulars.
At various stages in the proposal writing process, the proposal should be reviewed by a number of interested and disinterested parties. Each time it has been critiqued, it may be necessary to rethink the project and its presentation. While such revision is necessary to clarify the proposal, one of the dangers is that the original excitement of those making the proposal sometimes gets written out. Somehow, this must be conveyed in the final proposal. Applicants are advised: make it interesting!
3. Introduction describing the grant seeker or organization 4. Problem statement (or needs assessment) 5. Project objectives 6. Project methods or design 7. Project evaluation 8. Future funding 9. Project budget
Cover Letter
The one-page cover letter should be written on the applicants letterhead and should be signed by the organizations highest official. It should be addressed to the individual at the funding source with whom the organization has dealt, and should refer to earlier discussions. While giving a brief outline of the needs addressed in the proposal, the cover letter should demonstrate a familiarity with the mission of the grantmaking agency or foundation and emphasize the ways in which this project contributes to these goals.
One of the pitfalls to be avoided is defining the problem as a lack of program or facility (i.e., giving one of the possible solutions to a problem as the problem itself). For example, the lack of a medical center in an economically depressed area is not the problemthe problem is that poor people in the area have health needs that are not currently being addressed. The problem described should be of reasonable dimensions, with the targeted population and geographic area clearly defined. It should include a retrospective view of the situation, describing past efforts to ameliorate it, and making projections for the future. The problem statement, developed with input from the beneficiaries, must be supported by statistics and statements from authorities in the fields. The case must be made that the applicant, because of its history, demonstrable skills, and past accomplishments, is the right organization to solve the problem. There is a considerable body of literature on the exact assessment techniques to be used. Any local, regional, or state government planning office, or local university offering course work in planning and evaluation techniques should be able to provide excellent background references. Types of data that may be collected include historical, geographic, quantitative, factual, statistical, and philosophical information, as well as studies completed by colleges, and literature searches from public or university libraries. Local colleges or universities which have a department or section related to the proposal topic may help determine if there is interest in developing a student or faculty project to conduct a needs assessment. It may be helpful to include examples of the findings for highlighting in the proposal.
2. A flow chart of the organizational features of the project: describe how the parts interrelate, where personnel will be needed, and what they are expected to do. Identify the kinds of facilities, transportation, and support services required (throughputs). 3. Explain what will be achieved through 1 and 2 above (outputs), that is, plan for measurable results. Project staff may be required to produce evidence of program performance through an examination of stated objectives during either a site visit by the grantor agency or foundation, and/or grant reviews which may involve peer review committees. 4. It may be useful to devise a diagram of the program design. Such a procedure will help to conceptualize both the scope and detail of the project.
Example: Draw a three-column block. Each column is headed by one of the parts (inputs, throughputs, and outputs), and on the left (next to the first column) specific program features should be identified (i.e., implementation, staffing, procurement, and systems development). In the grid, specify something about the program design, for example, assume the first column is labeled inputs and the first row is labeled staff. On the grid one might specify under inputs five nurses to operate a child care unit. The throughput might be to maintain charts, counsel the children, and set up a daily routine; outputs might be to discharge 25 healthy children per week.
5. Carefully consider the pressures of the proposed implementation, that is, the time and money needed to undertake each part of the plan. Wherever possible, justify in the narrative the course of action taken. The most economical method should be used that does not compromise or sacrifice project quality. The financial expenses associated with performance of the project will later become points of negotiation with the government or foundation program staff. If everything is not carefully justified in writing in the proposal, after negotiation with the grantor agencies or foundations, the approved project may resemble less of the original concept.
A Program Evaluation and Review Technique (PERT) chart could be useful and supportive in justifying some proposals. Larger projects can easily be laid out using commercial off-the-shelf project or grants management software. The software allows the project manager to construct a PERT chart that provides a graphical representation of all tasks in the project and the way tasks are related to each other. Such project manager software provides a variety of report formats that can be used to track project progress. The PERT chart and other related reports can be maintained on a network of computers so that all project participants can access the latest project information.
6. Highlight the innovative features of the proposal which could be considered distinct from other proposals under consideration. 7. Whenever possible, use appendixes to provide details, supplementary data, references, and information requiring in-depth analysis. These types of data, although supportive of the proposal, if included in the body of the proposal, could detract from its readability. Appendixes provide the proposal reader with immediate access to details if and when clarification of an idea, sequence, or conclusion is required. Time tables, work plans, schedules, activities, methodologies, legal papers, personal vitae, letters of support, and endorsements are examples of appendixes.
objectives are indeed being met, and whether proposed methods are accomplishing these ends; or whether different parts of the plan need to be fine-tuned to be made more effective and efficient. Among the considerations will be whether evaluation will be done by the organization itself or by outside experts. The organizations will have to decide whether outside experts have the standing in the field and the degree of objectivity that would justify the added expense, or whether the job could be done with sufficient expertise by its own staff, without taking too much time away from the project itself. Methods of measurement, whether standardized tests, interviews, questionnaires, observation, etc., will depend upon the nature and scope of the project. Procedures and schedules for gathering, analyzing, and reporting data will need to be spelled out. The evaluation component is two-fold: (1) product evaluation and (2) process evaluation. Product evaluation addresses results that can be attributed to the project, as well as the extent to which the project has satisfied its stated objectives. Process evaluation addresses how the project was conducted, in terms of consistency with the stated plan of action and the effectiveness of the various activities within the plan. Most federal agencies now require some form of program evaluation among grantees. The requirements of the proposed project should be explored carefully. Evaluations may be conducted by an internal staff member, an evaluation firm, or both. Many federal grants include a specific time frame for performance review and evaluation. For instance, several economic development programs require grant recipients to report on a quarterly and annual basis. In instances where there are no specified evaluation periods, the applicant should state the amount of time needed to evaluate, how the feedback will be disseminated among the proposed staff, and a schedule for review and comment. Evaluation designs may start at the beginning, middle, or end of a project, but the applicant should specify a start-up time. It is desirable and advisable to submit an evaluation design at the start of a project for two reasons: Convincing evaluations require the collection of appropriate baseline data before and during program operations; and If the evaluation design cannot be prepared at the outset, then a critical review of the program design may be advisable.
Even if the evaluation design has to be revised as the project progresses, it is much easier and cheaper to modify a good design. If the problem is not well defined and carefully analyzed for cause and effect relationships, then a good evaluation design may be difficult to achieve. Sometimes a pilot study is needed to begin the identification of facts and relationships. Often a thorough literature search may be sufficient. Evaluation requires both coordination and agreement among program decision makers. Above all, the federal grantor agencys or foundations requirements should be highlighted in the evaluation design. Also, grantor agencies may require specific evaluation techniques such as designated data formats (an existing information collection system) or they may offer financial inducements for voluntary participation in a national evaluation study. The applicant should ask specifically about these points. Also, for federal programs, consult the Criteria For Selecting Proposals section of the CFDA program description to determine the exact evaluation methods to be required for a specific program if funded.
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Future Funding
The last narrative part of the proposal explains what will happen to the program once the grant ends. It should describe a plan for continuation beyond the grant period, and outline all other contemplated fund-raising efforts and future plans for applying for additional grants. Projections for operating and maintaining facilities and equipment should also be given. The applicant may discuss maintenance and future program funding if program funds are for construction activity; and may account for other needed expenditures if the program includes purchase of equipment.
The items in the non-personnel section will vary widely, but may include space/office rental or leasing costs, utilities, purchase or rental of equipment, training to use new equipment, and photocopying, office supplies.
Some hard-to-pin-down budget areas are utilities, rental of buildings and equipment, salary increases, food, telephones, insurance, and transportation. Budget adjustments are sometimes made after the grant award, but this can be a lengthy process. The applicant should be certain that implementation, continuation, and phase-down costs can be met. Costs associated with leases,
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evaluation systems, hard/soft match requirements, audits, development, implementation and maintenance of information and accounting systems, and other long-term financial commitments should be considered. A well-prepared budget justifies all expenses and is consistent with the proposal narrative. Some areas in need of an evaluation for consistency are as follows: Salaries in the proposal in relation to those of the applicant organization should be similar. If new staff persons are being hired, additional space and equipment should be considered, as necessary. If the budget calls for an equipment purchase, it should be the type allowed by the grantor agency. If additional space is rented, the increase in insurance should be supported. In the case of federal grants, if an indirect cost rate applies to the proposal, such as outlined by the Office of Management and Budget (OMB) in Circulars such as numbers A-122, A-21, and A-87 (see http://www.whitehouse.gov/omb/grants/ grants_circulars.html), the division between direct and indirect costs should not be in conflict, and the aggregate budget totals should refer directly to the approved formula. If matching funds are required, the contributions to the matching fund should be taken out of the budget unless otherwise specified in the application instructions.
In learning to develop a convincing budget and determining appropriate format, reviewing other grant proposals is often helpful. The applicant may ask government agencies and foundations for copies of winning grants proposals. Grants seekers may find the following examples of grants budgets helpful: Budget Information, Instructions and Forms http://www.neh.gov/grants/guidelines/pdf/BudgetInstructions.pdf Foundation Center: Examples of Nonprofit Budgets http://foundationcenter.org/getstarted/faqs/html/samplebudget.html Getting Your Grant Proposal Budget Right http://nonprofit.about.com/od/foundationfundinggrants/a/grantbudget.htm Proposal Budgeting Basics http://foundationcenter.org/getstarted/tutorials/prop_budgt/index.html
In preparing budgets for government grants, the applicant may keep in mind that funding levels of federal assistance programs change yearly. It is useful to review the appropriations and average grants or loans awarded over the past several years to try to project future funding levels: see Financial Information section of the CFDA program description for fiscal year appropriations and estimates; and Range and Average of Financial Assistance for prior years awards. However, it is safer never to anticipate that the income from the grant will be the sole support for larger projects. This consideration should be given to the overall budget requirements, and in particular, to budget line items most subject to inflationary pressures. Restraint is important in determining inflationary cost projections (avoid padding budget line items), but the applicant may attempt to anticipate possible future increases.
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For federal grants, it is also important to become familiar with grants management requirements. The CFDA identifies in the program description OMB circulars applicable to each federal program. Applicants should review appropriate documents while developing a proposal budget because they are essential in determining items such as cost principles, administrative and audit requirements and compliance, and conforming with government guidelines for federal domestic assistance. OMB circulars are available in full text on the Web at http://www.whitehouse.gov/ omb/grants/grants_circulars.html. To coordinate federal grants to states, Executive Order 12372, Intergovernmental Review of Federal Programs, was issued to foster intergovernmental partnership and strengthen federalism by relying on state and local processes for the coordination and review of proposed Federal financial assistance and direct federal development. The executive order allows each state to designate an office to perform this function, addresses of which may be found at the OMB website at http://www.whitehouse.gov/omb/grants_spoc. States that are not listed on this Web page have chosen not to participate in the intergovernmental review process. If the applicant is located within one of these states, he or she may still send application materials directly to a federal awarding agency.
Proposal Appendix
Lengthy documents that are referred to in the narrative are best added to the proposal in an appendix. Examples include letters of endorsement, partial list of previous funders, key staff resumes, annual reports, statistical data, maps, pictorial material, and newspaper and magazine articles about the organizations. Nonprofit organizations should include an IRS 501(c)(3) Letter of Tax Exempt Status.
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