Grant requests for operating funds

For most nonprofit organizations, grants for operating funds are an essential part of their funding base. Although there are some federal programs that provide ongoing program funding (Head Start, for example), the vast majority of operating grants are made by foundations and corporations. Operating grants are much like grants from individual donors in that, by making a grant for operating funds, the grantor is recognizing the value to the community of all the services of a given organization.

The grantor is also aware that in providing a grant for operating funds for any given year or years, it will be encouraging requests for such funding from the same organization in the future. Thus such grants are usually made to an organization with which the foundation or corporation has already established a solid relationship, often through earlier, successful, grant-funded projects.

Proposals for operating funds are usually submitted only after considerable discussion with the grantmaker. Often, as a result of these discussions, the amount is agreed upon and funding is almost certain. However, a quality grant proposal is still essential. Funders want evidence of your financial and organizational stability.

The Program Planning & Proposal Writing™ model provides a good foundation for many types of grant requests. But if you’re requesting operating funds, some modifications are necessary. Be sure to follow the directions from the foundation or corporation. It’s not unusual for funders to ask that such requests come in the form of a one- or two-page letter. That letter should be directed to the appropriate person, should have the names and positions of your organization’s board of directors on the letterhead, and although concise, should be both clear and compelling.

Many funders are reluctant to make the first operating grant to an organization. When they make such a grant, they know the grantee will submit more operational funding requests in the future. So funders are careful to make operating grants only to agencies whose value to the community is clearly recognized.

Article by Mary Ruth Clowdsley, a consultant trainer for The Grantsmanship Center. This article is excerpted from "Understanding Requests for General Operating Grants," one of a series of five articles in Adapting the Program Planning & Proposal Writing™ Model. The complete article examines the components of operating grant requests (introduction, needs assessment, methods, program outcomes, evaluation plan, future support, and budget) in detail.