Nonprofits compete for grants

When over 30 nonprofit managers, volunteers and board members show up for a grant-writing class sponsored by Catawba Valley Community College’s Small Business Center, you quickly get a sense for how a sour economy and government budget shortfalls have forced nonprofits to find new funding sources to fulfill their missions. It’s not a news-flash that all organizations — nonprofit and for-profit — have had to adjust to new realities, but you may not realize how significant a role nonprofits play in the economy.

According to the NC Center for Non-Profits, the nonprofit sector provides nearly 400,000 jobs in North Carolina, or almost 10 percent of our state’s employment. Nonprofits pay nearly $13 billion in wages and have a $33 billion impact on the state’s economy. On the national level, the nonprofit sector accounts for 5 percent of GDP and 8 percent of all wages paid.

Calvin Patterson of Earnest Harvest LLC in Winston-Salem has helped secure over $10 million in grant funds, primarily for small nonprofits, and his seminar on April 21 shared information on how to research funding sources and assemble a proposal to increase an organization’s odds for successful funding. Some advice to nonprofits from Mr. Patterson’s presentation:

Be clear on your mission and understand the type of support your organization needs. There are different types of grants and funding available to nonprofits for operating support, specific projects, capital purchases including new equipment or construction, and staff additions. Be clear on the type of grant you need and make sure your mission is consistent with the organization you are making the request from.

When it comes to grant seeking, use the carpenter’s rule: measure twice and cut once. Spend two thirds of your time researching foundations, government agencies, and other potential grant providers to understand their application process, their priorities, and the appropriate people to contact for questions or clarification. Spend one third of your time working on the proposal. Finding the right foundations and building relationships with the right people are more time consuming and challenging than the actual proposal writing.

The research you conduct to identify potential funding sources can be done through your local library or through Internet sites such as www.grants.gov (free) or www.fdcenter.org (subscription service through The Foundation Center). Many corporations have foundations or programs that make contributions to non-profits. Check out their websites for more information and review their annual reports to get a sense of their giving history.

When writing a proposal, use the grant application as a guide for the content. Typically, this will include an executive summary which summarizes the key areas of the proposal, as well as a statement of need which clearly outlines the current situation and how it will be improved if your request for funding is approved. In addition, provide all of the appropriate financial information and take the time to make sure your numbers are clear, correct, and responsive.

We’re fortunate to live in an area that is made more interesting through the good works of its many nonprofits and arts groups. (Been to the SALT Block lately?) Hopefully our nonprofits will find the right combination of revenue, grants and expense control to make it to better economic times.

Do you have a business question or topic that would make a good column? Send your ideas or questions to jeff.neuville@b-assistnc.com and share your business experience with others.