What Funders Check Before They Read Your Proposal

Many nonprofits spend weeks perfecting a grant narrative, then get declined without ever learning why. Sometimes the proposal was fine. The problem was something the funder checked first.

Most foundations, corporate giving programs, and government agencies run a quick screen before a reviewer reads your narrative closely. If something fails that screen, the strength of your writing may never come into play.

Here is what they typically look at.

1. Your legal and tax-exempt status

Funders confirm that you are a registered 501(c)(3) in good standing. They may search the IRS Tax Exempt Organization Search to see whether your status is active, and whether your organization appears on the list of organizations whose exemption was automatically revoked for failing to file annual returns.

They may also check your state registration. In Missouri, that means your nonprofit corporation is in good standing with the Secretary of State.

Check this: Search your EIN on the IRS site and your organization name on the Missouri Secretary of State business search. Confirm everything is current before you apply.

2. Your Form 990 filing history

Your 990 is public. Funders use it to see your revenue, expenses, program spending, and who sits on your board. If you are required to file and haven't, that is often an automatic decline.

Check this: Make sure every required 990, 990-EZ, or 990-N has been filed on time.

3. Whether your program fits their priorities

This is the most common reason good organizations are declined. A funder focused on early childhood literacy will not fund a senior wellness program, no matter how well written the proposal is.

As I've written before, the strongest grant strategy starts with building programs that connect to what funders already want to support. Read the funder's guidelines, recent grants list, and annual report before you apply.

Check this: Can you point to the specific language in the funder's priorities that your program matches? If not, keep looking.

4. Your online presence

Funders search your name. They look at your website, social media, and Candid profile to confirm you are active and that what you describe in your application matches what you show the public.

Check this: Do your website and application describe the same programs, the same population, and the same leadership?

5. Your board

Funders want to see an independent, engaged board. Red flags include a board made up mostly of family members, a board with fewer than three people, or a board where no one has made a personal gift.

Check this: Can you say that 100 percent of your board contributes financially, at whatever level they can?

6. Your budget

Reviewers look at whether your program budget is realistic and whether your organizational budget can support the work. A request that is several times your annual operating budget is a concern.

Check this: Does your request make sense compared to your current revenue? Is your budget math correct?

7. Your attachments

Missing documents are an easy reason to set an application aside. Common requirements include your IRS determination letter, board list, current budget, most recent financial statements or audit, and letters of support.

Check this: Keep a ready folder with current versions of every standard attachment so you are never scrambling at the deadline.

Get ready before you write

Most of these items have nothing to do with writing skill. They come down to preparation. Organizations that win grants consistently tend to get their foundation in order first, then write.

Not sure how ready your organization is? The ATB Grant Readiness Kit includes a full self-assessment and scorecard that shows exactly where your gaps are. Find it in our shop at atbizstl.com, or book a consultation for Grant Research & Writing at atbizstl.com/services.