Grant writing for nonprofits: A step-by-step guide

Grant writing doesn’t have to be scary—and it’s one of the most powerful ways to get the funding your organization needs to do more good. Whether you're just getting started or trying to improve your process, knowing how to craft a strong grant proposal can open doors to real impact.

The grant writing process for nonprofits

What is grant writing?

Grant writing is just the process of asking for money—but in a very specific way. You're not asking a friend or a regular donor. You're applying to a foundation, a government agency, or a company that wants to support causes like yours. They usually have rules, deadlines, and a clear format they expect you to follow.

At its core, grant writing is about telling a funder what your organization does, what you need money for, and why your work matters. It’s a way to connect your mission with someone who has the resources to help bring it to life. When done right, it’s not just about money—it’s about building a long-term relationship with a partner who believes in your work.

Why the grant writing process is essential for nonprofit organizations

Most nonprofits have big goals but small teams. That means every dollar counts—and grant funding can be a game-changer. When you get a grant, you’re not just getting money. You’re getting trust. A funder is saying, “We believe in what you’re doing, and we want to help you do more of it.”

Going through the grant writing process helps you slow down and really think through your plans. It pushes you to be clear about your goals, your impact, and how you’ll measure success. That’s not just helpful for funders—it’s good for your team, your board, and your supporters, too. A strong grant proposal can sharpen your strategy and give your entire organization a clearer path forward.

Types of grant funding available to nonprofit organizations

Government agencies and private foundations

When people think of grants, they usually picture big checks from foundations—and that’s part of it. But grants can come from all sorts of places. Government agencies at the local, state, and federal levels often offer funding for programs that serve the public. These grants usually have strict rules but can provide major support for long-term projects.

Private foundations, on the other hand, are often more flexible. Some are large national groups with formal processes. Others are smaller family foundations that might support work in a specific community. There are also corporate funders—companies that give back to causes that align with their values.

The key is knowing which funders fit your mission and goals. Not every grant is the right one—and chasing the wrong ones can burn a lot of time.

Program-specific vs. unrestricted grant funding

Not all grant dollars work the same way. Some grants are program-specific, which means you can only use the money for a certain project or purpose. For example, if you get a grant to run a summer program for teens, you can’t use that money to pay for office rent or a staff member's salary unless it's directly tied to that program.

Then there’s unrestricted funding—and this is the dream. These grants let you spend the money where your organization needs it most. It might go toward admin costs, staff time, or even building your fundraising efforts. Unrestricted grants are rare, but incredibly valuable because they give your team breathing room and flexibility.

Both types of funding are helpful. The key is knowing what you're applying for—and making sure the grant aligns with your actual needs.

When and how to apply for a grant

Assessing your nonprofit’s readiness

Before you dive into writing, take a step back. Is your nonprofit really ready to apply for a grant? It’s not just about having a good idea. Funders want to see that you have a solid foundation—clear goals, strong leadership, and systems in place to manage the money if you get it.

Ask yourself a few questions: Do we have a clear mission and track record? Can we measure our impact? Do we have time to write the proposal and follow through if we win? If your executive director and board aren’t fully on board, or if your team is already stretched thin, it might be worth waiting until you’re more prepared.

Getting a grant is great. But being ready to manage it well? That’s what sets your organization up for long-term success.

Where to find the right grant opportunity

There are tons of grants out there—but not all of them are a good fit. The best grant opportunities are the ones that truly match your mission, your programs, and your capacity. Chasing the wrong ones just wastes time and energy.

So where do you look? Start with local funders—community foundations, small family funds, even city and county programs. These are often less competitive and more invested in local impact. Then branch out to regional and national foundations that focus on your issue area. Don’t forget government agencies, which often have bigger awards but stricter requirements.

There are also great tools online that help you search and filter opportunities based on your needs. And here’s a pro tip: look at who funded organizations similar to yours. If they funded someone like you once, they might do it again.

Writing a grant proposal: A step-by-step guide

Step 1: Introduce your organization

Think of this part as your nonprofit’s handshake. You’re giving the funder a quick but clear picture of who you are, what you do, and why it matters. You don’t need to go into your whole history—but you do want to build trust and show you’ve got experience.

Focus on the basics: your mission, how long you’ve been around, who you serve, and the impact you’ve made. You can also talk about your leadership, any awards or recognition, and your ability to manage funds responsibly. Keep it focused, but make it real. This is your chance to show funders that you're not just passionate—you’re prepared.

Step 2: Define your problem statement

This is where you explain the why behind your project. What issue are you trying to solve? Why does it matter? And who is affected if nothing changes? A strong problem statement connects the dots between your mission and the real-world need you’re addressing.

The key here is to be clear and specific. Use numbers, stories, or quotes to show the scope of the problem. But don’t just focus on what's broken—help the funder see why your organization is the right one to help fix it. You’re painting a picture of the challenge, but also setting up your proposal as the solution.

And remember, funders read a lot of these. Make yours easy to understand and hard to forget.

Step 3: Outline your project plan

Now that you’ve shared the problem, it’s time to show how you’re going to tackle it. This section is all about the how. What exactly are you planning to do? When will it happen? Who’s going to be involved? Funders want to see that you’ve thought this through and that your plan is realistic.

Break it down into simple steps or phases if you can. Mention the people or partners who will help. Include a timeline that shows when things will happen and how you’ll keep things on track. If there’s anything new or creative about your approach, highlight that too—but keep it grounded. This isn’t the place for fluff. It’s about showing you’ve got a solid, thoughtful plan to make real change.

Step 4: Develop your evaluation plan

Funders don’t just want to know what you’ll do—they want to know how you’ll prove it worked. That’s where your evaluation plan comes in. This part shows how you’ll measure success and keep your project accountable.

You don’t need to overcomplicate it. Just focus on a few key results and how you’ll track them. For example, how many people will be served? What will change for them? What tools will you use to measure that—surveys, interviews, attendance logs, progress reports?

Also, let the funder know who will be in charge of tracking and reporting. That shows you’re serious about transparency and impact. A strong evaluation plan helps funders feel confident that their investment will lead to real results—and that your organization is ready to deliver.

Step 5: Create a compelling budget

Your budget is more than just numbers—it’s a snapshot of your plan in action. It shows exactly how you’ll use the grant money and proves you’ve thought through every detail. Funders want to see that their dollars will be spent wisely and where they’ll make the most difference.

Keep it simple, clear, and honest. Break it down into categories like staffing, materials, equipment, or outreach. Be ready to explain why each item is needed and how it supports your project goals. If you’re using other funding sources too, make that clear. That kind of transparency builds trust.

And if you’re asking for partial funding, let the funder know how you’ll cover the rest. A well-thought-out budget tells funders, “We’re ready—and we’re responsible.”

Step 6: Write your cover letter and executive summary

This is your chance to make a great first impression. Even though it’s often the first thing a funder reads, your cover letter and executive summary should be the last thing you write. That way, you’ll have a clear picture of your full proposal and can hit the highlights with confidence.

Your cover letter should be short, warm, and personal. Address it to a real person if you can. Mention your organization, the specific funding opportunity, and why you’re excited to apply. This is also a good place to quickly connect your mission to theirs.

Your executive summary should give a quick snapshot of the whole proposal—what you’re doing, why it matters, who it helps, and how much it’ll cost. Think of it as your pitch in a paragraph or two. Keep it tight, clear, and compelling.

Tips for writing a winning grant proposal

There’s no magic formula for a perfect grant, but there are a few things that set strong proposals apart. 

First: tailor every proposal. Don’t copy and paste. Funders can tell when you’ve done your homework—and when you haven’t. Use their language. Show that your mission lines up with their goals.

Second: keep it clear and simple. Don’t try to sound fancy. Just be real. Write like you’re explaining your project to a smart friend who doesn’t work in nonprofits. If something takes too long to explain, it probably needs to be simplified.

Next: back it up with data and stories. Share real numbers, but also talk about people. How many kids got meals last year? Tell me about one of them. Funders want to see both the big picture and the human impact.

And finally: get fresh eyes on it. Ask someone outside your team to read your proposal. If they get confused or bored, a funder probably will too. Tighten it up before you hit send.

Avoiding common grant application mistakes

Even great organizations can get tripped up by small missteps. Here are a few of the most common mistakes we’ve seen—and how to avoid them.

Skipping required attachments. Sounds simple, but it happens all the time. If a funder asks for a budget, board list, or IRS letter, include it. Leaving something out can get your whole application tossed.

Not following directions. Every grant has its own rules—word counts, formats, deadlines. Ignoring those is like showing up late to an interview. Follow instructions exactly, even if they seem picky.

Using the same proposal for every grant. What works for one funder might not work for another. Reusing content is fine, but make sure it’s customized. Funders want to feel like you’re speaking to them, not just sending a form letter.

Overpromising. It’s tempting to say you’ll do more than you can, especially when money’s on the line. But it’s better to be honest and deliver than to overpromise and struggle to follow through. Realistic goals build trust.

After the grant is awarded: What’s next?

Getting the grant is a big win—but the work doesn’t stop there. Once you’re awarded funding, the next step is to follow through on everything you promised. That means running your program, tracking your results, and staying in touch with your funder.

Start by sending a thank-you. A simple, genuine message goes a long way. Let them know you're grateful and excited to get started. Then, make sure you set up a system to track your outcomes—whatever you said you’d measure in your proposal, now’s the time to start gathering that data.

Also, keep your funders updated. You don’t have to wait until the final report. A quick update halfway through the project can help build trust and set the stage for future support. If something changes or doesn’t go as planned, be honest about it. Funders appreciate transparency—and it shows you’re serious about doing the work right.

A grant can be the start of a long-term relationship. Treat it that way, and you’ll open the door to more support down the road.

Making grant writing work for you

Grant writing is just one piece of the puzzle. Running a nonprofit means juggling fundraising, donor relationships, reporting, and making sure your mission stays front and center. That’s where Harness comes in.

We’re more than a donation platform—we’re your partner in every part of the journey. From simplifying grant proposals to managing donors, campaigns, and impact reporting, Harness gives you the tools and support to keep your nonprofit moving forward.

Let’s build something bigger together. Ready to grow your funding, streamline your work, and amplify your mission? Harness is here to help.

Frequently asked questions

What is the grant writing process for nonprofit organizations?

It’s the step-by-step way nonprofits apply for funding. It usually includes finding the right opportunity, writing a proposal, creating a budget, and submitting everything by the deadline.

What should be included in a nonprofit grant proposal?

A strong proposal has a summary, a clear problem statement, a plan, goals, an evaluation strategy, a budget, and a bit about your organization’s background.

How do I find the right grant opportunity?

Start with local foundations or government agencies. Use online tools, search by issue area, and look at who funds groups like yours.

Can small nonprofits apply for grants?

Absolutely. Many funders support smaller organizations—especially those making a big impact in local communities.

How long does it take to write a grant proposal?

It depends on the grant, but it usually takes a few weeks. Give yourself plenty of time to write, revise, and gather any required documents.

Do I need a professional grant writer?

Not always, but having someone experienced can help. If your team is stretched thin or new to grants, working with a grant writer—or with a team like Harness—can make things smoother.