The document outlines a series of questions nonprofit organizations should ask themselves to determine if they are ready to apply for grants. It addresses whether the organization has incorporated, obtained 501c3 status, established a board and budget. It also discusses the need to demonstrate impact, leadership, clear goals for funding, and understanding of costs. If organizations cannot yet answer yes to all questions, the document provides next steps like obtaining tax IDs, registering as a nonprofit, or gathering additional documentation and experience before applying for grants.

1. Ron Flavin
Is your not-for-profit
organization ready
to apply for grants?
Question Next steps
Does your organization have
a Federal Tax Identification
Number (FEIN)?
Have you officially incorporated
as a 501c3 nonprofit
organization?
Have you received your
official 501c3 nonprofit status
notification letter from the
Internal Revenue Service?
Does your organization have a
Board of Directors and a formal
mission statement?
Does your organization have a
facility and/or other infrastructure
elements in place?
Does your organization have a
written annual budget?
Is your organization bringing
in or generating revenue?
Can your organization
demonstrate fiscal
responsibility?
If yes, move on to next question. If no, visit www.irs.gov to obtain a FEIN.
If yes, move on to next question. If no, register your organization with
your state and complete Form 1023 to obtain 501c3 nonprofit status
from the IRS.
If yes, move on to next question. If no, be certain that you have submit-
ted the proper paperwork and that your 501c3 status application is in
process.
If yes, move on to next question. If no, establish a Board of Directors
and adopt a formal mission statement.
If yes, move on to next question. If no, unless your funding request is
for a facility or other infrastructure items, you will need to demonstrate
to funders that your organization is able to effectively operate in your
current facility or with your current infrastructure.
If yes, move on to next question. If no, formulate an annual budget with
projected expenses and revenue sources.
If yes, move on to next question. If no, few funders are willing to
support a complete startup nonprofit organization that has not demon-
strated a track record of bringing in revenue. In order to be grant ready,
your organization will have to show that it is bringing in revenue. You
may have to self-fund the organization, hold fundraisers, launch a
crowdfunding campaign or use other bootstrapping strategies to help
your organization establish the track record it needs to attract the
interest of potential funders. The more diverse your revenue streams,
the better in terms of attracting grant funding.
You might also consider seeking startup funding for your organization
by entering a business plan competition, launching a crowdfunding
campaign, or approaching other funders that support nonprofit or social
entrepreneurship-focused startups.
Funders need to see that your organization is fully capable of man-
aging its finances in a fiscally responsible manner. This also includes
operating within its means and not consistently operating at a deficit
or otherwise demonstrating fiscal irresponsibility. If yes, move on to
next question. If no, talk with a qualified accountant and be sure your
financial house is in order.
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YES NO
Response

2. Question Next steps
Is your organization planning to
deliver programs or services or
is it actually delivering them?
If your organization is delivering
programs or services, can you
demonstrate the impact these
programs or services have had
on your target population or
community?
Does your organization have
documents on hand that funders
might require as part of the
application process? These
documents can include: list
of board members, financial
statements, audited financial
statements (if applicable), and
990 PF (annual IRS report)
Does your organization have
capable leadership?
Does your organization have a
clear, specific goal in mind in
terms of what it would like to
accomplish with grant funds?
If your organization is planning to deliver programs or services but
has not yet begun to deliver them, you will have a difficult time finding
private or public funders willing to provide a grant. It is possible, but the
number of funders willing to support your agency will be very limited.
To widen the pool of potential funders, you should focus on developing
a track record of effective service delivery. Until your organization is
“grant-ready,” you can recruit volunteers or provide services yourself to
establish the track record you need to attract the interest of funders.
If delivering, move on to next question.
Funders like to see a track record of accomplishment and they need
to know that your organization is capable of successfully carrying out
the proposed program. If your organization is delivering programs or
services, then you should be able to provide information demonstrating
the impact they have had (e.g., improvements in educational outcomes,
number of persons served, or other similar indicators of success).
If yes, move on to next question. If no, gather information that can
demonstrate the impact your organization and the services you provide
have had in the community. You may want to consider
administering a survey.
If yes, move on to next question. If no, at the very minimum, your
organization should have updated financial statements on hand (within
the last six months but no more than one year) as well as a list of your
board members. Depending on the size of your annual budget, your
organization may or may not be required to have an annual Certified
Audit. Almost all nonprofit organizations are required to file an annual
990 form with the Internal Revenue Service.
In order to qualify for grant funding, your organization must
demonstrate that it has skilled, qualified leaders at the helm. If yes,
move on to next question. If no, conduct a skills gap analysis to
determine which skill sets (e.g., management, program development,
fund raising, finance, etc.) are missing from your organization. Next,
recruit individuals with these skill sets and invite them to be part
of your organization, either as direct volunteers, board members or
members of an advisory board.
Funders prefer to support particular programs with specific, measurable
objectives. While some funders will provide general operating support,
they rarely provide this type of funding to new organizations or those
where there is not an existing relationship. To attract the interest of a
funder, you need to have a clear, specific goal about what you want to
achieve with grant funds. If yes, move on to next question.
If no, brainstorm and identify the specific goals you want to achieve
with grant funds.
Planning
Delivering
YES NO
YES NO
YES NO
YES NO
Response

3. Question Next steps
Has your organization ever
received a grant in the past?
Do you know how much money
you will need to accomplish
your goals?
If yes, gather relevant information (funder, amount, date, purpose,
outcomes) about the previous grant to demonstrate your capacity to
successfully manage grant funds.
If no, having been previously awarded a grant is not a requirement to
get funded. If your organization has not won a grant award, then look for
other ways to demonstrate your capacity.
Funders are only going to support projects where all expenses necessary
to achieve the project goals are clearly defined (Note: funders generally
do not like to be the sole supporters of a program—identify other
internal and external sources of funding to support your project). If yes,
move on to next question.
If no, identify and estimate all of the expenses necessary to carry out the
proposed program and achieve the desired goals.
YES NO
YES NO
Response
RF
If your organization is ready to apply for a grant, or you need
help clearing some of the hurdles outlined in this document,
contact ron flavin at ron@rflavin.com for help
and consulting in the proposal process. You
can also visit my website at
http://www.rflavin.com
Ron Flavin