If You Want Grants, Start Here: The Essentials Your Nonprofit Needs in Place First
You may have noticed that the world is changing rapidly lately. Likewise, it’s important that as nonprofit leaders we are not only staying up-to-date with current trends and policies, but also getting the basics done as well as we can given time and resource constraints.
I do not know what YouTube Channel, consultant, or friend might have told you that starting and funding a nonprofit was as easy as…
Start a nonprofit
Do good work
Find grants
Apply
Get money
In reality, between steps 2 and 3 there is a massive gap.
In 2025 and 2026, grants are arguably more competitive now than they have been in the last 1-2 decades. Grantors are NOT LIKELY to fund good intentions. They ARE LIKELY to fund well researched, organized, and documented good work. Nonprofits are still businesses, we are just in the business of social ROI instead of financial ROI.
Before you spend a single minute writing grants or hiring a contractor like us to help you find the right grants to apply for, take 45 minutes each night this week and schedule time to get some of the items below done.
1. Monday - Crystal Clear Mission + Program Descriptions (Memorized!)
Here is What Foundations Need To Know & Ask on Grants:
WHO exactly have you served? (Demographics, geography, specific populations) Not who you want to serve.
WHAT exactly did you do? (Specific services, not vague concepts)
HOW did you do it? (Your methodology, approach, frequency)
WHY this approach? (Evidence based, expertise, community need)
How many people did you serve? (outputs)
What changed for them? (outcomes)
How do you know? (measurement)
The test: Can someone who's never met you read your description and accurately explain your program to someone else? If not, you're not ready. Are you recording data by using online RSVP forms, day-of sign in sheets, or staff to record data on who was served and when? If not, you're probably not ready.
Try this: Write a 2-3 paragraph program description that a middle schooler could understand. If you can't, your program isn't clear enough yet - not for funders, donors, and honestly, probably not for the people you are trying to serve.
2. Tuesday - Testimonials & Case Studies (Real Stories from Real People)
Funders Want:
Written testimonials from people you've served (with permission to share)
Letters of support from community partners, other organizations, local leaders
Case studies or stories that show the before-and-after of your work
Photos (with proper consent/releases) that show your programs in action
The mistake people make: Waiting until they're writing a grant to collect these. By then, it's often too late. The people you helped six months ago have moved on. You can't find them. You're scrambling.
Do this: Create a simple system for collecting stories as you go. After someone completes your program, ask: "Would you be willing to share how this helped you?" Keep a folder. Update it yearly. Add what you can to your website and social media as well.
3. Wednesday - Compliance (The Boring Stuff That Matters)
Every state has different requirements for nonprofits, and Foundations check!
You will need:
501(c)(3) determination letter & EIN number assignment letter from the IRS (the actual copies, not just "we applied")
State charitable registration (if your state requires it - most do)
Annual reports filed with your state (some states require this, some don't)
Good standing with your Secretary of State
Tax-exempt status up to date (if you let this lapse, you could be dead in the water)
The reality: Different states have vastly different rules. In some states, you need to register before you can legally fundraise. In others, you need annual audits past a certain budget threshold. Some states require specific board policies. If you are not compliant, most foundations will not even look at your application.
Do this: Google "[your state] nonprofit compliance requirements" and make a checklist. If you're lost, it might be worth paying a lawyer or accountant for a consultation. I also recommend keeping annual deadlines in your Google Calendar, Project Mgmt software, or a Google Doc - wherever you will be able to easily access it.
4. Thursday - Governance That Actually Exists
I've seen so many nonprofits with the same problem: a board that only exists to meet the legal requirement of having a board. In these cases, the Board is usually comprised of family and friends.
Red flags they're looking for:
Board members who are all family members
No board meetings in the past year
No fundraising or governance policies
Board members who can't articulate what the organization does
No diversity on the board (all one demographic, profession, or social circle)
What good governance looks like:
Active board that meets regularly (at least quarterly)
Meeting minutes that are documented and filed
Clear roles (officers, committees if relevant)
Fundraising participation (board members give and/or get)
Policies in place: conflict of interest, whistleblower, financial oversight, etc.
Diversity in perspective (not just demographic—also professional backgrounds, community connections, skill sets)
Do this: If your board is just names on paper, it's time for an honest and potentially hard conversation. You need people who are engaged. Three active board members are worth more than seven disengaged ones. Try posting a Board position on LinkedIn or a local nonprofit job board, find new and engaged individuals.
5. Friday - Financial Systems (Even If You're Small)
You do not necessarily need fancy software. But you DO NEED:
Separate bank account for the nonprofit (never ever mix personal and organizational money)
Bookkeeping system (even a simple Excel spreadsheet if you're tiny, I recommend QuickBooks Online regardless of your business size)
Budget for the current year (and ideally, projections for next year)
Financial statements you can actually produce (income statement, balance sheet), almost every grant asks for this!
The truth about small nonprofits: If your budget is under $500K, foundations don't expect an expensive GAAP audit. But they DO expect organized finances and someone who knows where their money is going.
Do this: At minimum, set up a simple accounting system (QuickBooks Online is like $40/month, or there are free alternatives). Track everything. Reconcile your bank account monthly. Know your numbers.
7. Saturday/Sunday - Staff and Volunteer Infrastructure
If you're a brand new nonprofit with zero paid staff, that is okay, you are considered 100% volunteer run and there are many nonprofits that exist in that space. However, you need something that shows organizational capacity, and at a certain point in your organizational growth, you should pay the Executive Director, Admin, or Project Staff at least a stipend for sustainability (e.g. if they leave, your programs will not die).
Foundations want to know:
Who's doing the work? (staff, volunteers, contractors)
What are their qualifications? (relevant experience, training, lived experience)
How are they supported? (supervision, training, evaluation)
What happens if someone leaves? (succession planning, even if informal)
If you are an all-volunteer organization: That's not automatically a deal-breaker for smaller grants. But you need to show:
Clear roles and responsibilities
Consistent volunteer engagement (not just "whoever shows up")
Some kind of training or orientation process (especially if legally required, e.g. working with minors, background checks)
How you're ensuring quality and safety
Do this: Document who does what. Create simple job descriptions or volunteer role descriptions. Track volunteer hours. If you're paying staff, make sure you're doing it legally (payroll taxes, etc.).
Need help figuring out what you're ready for?
Right now, we are offering a special promotion through February 1st on a 12-Month Funding Strategy. When you partner with us, we begin with a comprehensive intake questionnaire to understand your organization’s history, goals, and capacity. From there, we meet with you at least every 2 weeks over the next 2 months for strategic planning calls to identify your strongest grant opportunities - and, if you host annual events, the sponsorships most worth pursuing.
Email us at info@fundingstrategycollab.com to schedule a free 30-minute call.
We are here to help you build the clarity, structure, and strategy you need to secure real, sustainable funding - and to remind you that you never have to navigate this work alone.
