How to Answer Funding Questions for Grants
Many nonprofits rely on grant funding in order to carry out and execute their mission. The process of applying for grants can be difficult and complicated, and part of that is in the application process. Oftentimes, grants will ask the question: “How do you intend to fund this program after the grant is complete?” Knowing how imperative the answer to this question may be in securing funding, and nonprofits have to be particularly intentional in how they answer this question. Below are some of the best considerations and potential answers for navigating this question:
Response 1: “Extra grant funding is not expected in the future.” Consider these situations for this response:
- Find out whether the grant money that you request will allow you to cover one-off expenses. Request to receive one-off grants for expenses that are relatively small, including a building for your organization, or for equipment that you need that will last for a long time.
- Grant funding for pilot programs are useful if you are developing a new program. If you receive grants that are necessary for that project, ask if they can be funded as they are.
It is possible to ask for more funds for an activity to test, improve, or continue to work; it is just possible.
Response #2: “We will need additional funds, but here is our plan and due diligence.” These are potential situations that this response could be helpful:
- Gaining donor support takes time. Many donors offer long-term financial assistance to organizations. Request a grant from a major grantee to pay for certain projects in the interim. The long-term support a grant donor gives organizations can help them with is important, since it gives them time for future development projects to take place. If you can provide a realistic answer, the funder will appreciate knowing that you have provided a detailed answer to a particular question.
- Your organization may be waiting on future funding from other avenues that have not come through yet. If you are considering applying for operating grant money, you should outline that source of money and give a timeline for when the funds will be available. Grants donors are more concerned with the long-term benefits of giving.
Response #3: “We plan to do more fundraising.”
- Sometimes grant applicants will say this to help them obtain a grant, but many grant readers expect you to say what will be useful to them. If a grant from a major donor is made available to a nonprofit organization, that person may ask for a grant that is based on the promise that the grant donor has made to the organization. If you fail to fulfill that commitment, the donor will know that you have failed them. This affects the reputation of your organization in the long run and might impact grant funding in the years to come.
- If you select this option, be more specific about what you are planning to do. If your response is no, explain why and give details to support your claim. If this is what the grantor asks, be specific and try to convince the grantor that what they are saying is true.
Response #4: “This program will be completed once the grant funds are fully utilized.”
- Here is an additional way to approach this question and to help donors understand what you are planning to do. Why not apply to this funder in the future if it is clear that it may only happen once? Even though it may seem unlikely, a lot of donors are willing to support programs that run through the a certain amount of time, particularly the holidays. These short-term programs can still have a powerful impact that lasts well beyond the scope of the project.
Last Thoughts: Think Long-Term
It is important to work out a long-term program to receive additional money, including from donors who have already granted grants to nonprofits. If that is not possible, try to start with a smaller, more conservative proposal or simply resign from the grant. Instead of applying for a grant, find a new funding source. If a grant donor does not approve what you proposed, you should continue to do what you said you would do.
There are many grant recipients who feel isolated; grant recipients generally give only mediocre answers to this question. If you can provide a good answer that demonstrates that you have the skills to successfully conduct your fundraising efforts, grant donors may accept your request. Having good plans in place now can save you time and money in the future, and MyDonors can help you develop your plans.
MyDonors is part of MyCommunity, which exists to build relationships and tools that equip organizations so that they can maximize their impact. Our suite of tools is designed to help organizations of all sizes focus on their mission without worrying about the logistics. We understand the importance of building strong relationships, so we provide the necessary tools to maximize impact and make a difference like our easy-to-use platforms MyDonors and MyVolunteers. Likewise, MyNonprofitCoach equips nonprofits with the training they need to be successful. Schedule a demo for any of our solutions here.
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