PERSUASIVE PROJECT PROPOSAL WRITING –FOR EFFECTIVE FUNDRAISING

Biography This course on “Persuasive Project Proposal Writing – for Effective Fundraising”

is developed by:Emmanuel Tokpah Barrow, BSc, MBA

His undergraduate major is in “Business Management & Communication”. His graduate major is in “Non-Profit Management”.

He also has training in “Grant Proposal Writing”, “Personal Leadership”, “Organizational Development”, “Annual Fundraising Strategies”, “Marketing & Public Relation”, “Development Agriculture”, among other areas in development studies and leadership

Mr. Barrowhas traveled widely and studied in the

United States of America and the Peoples Republic of China respectively, where he obtained his BSc from ‘Concordia University in Madison, Wisconsin, USA;

MBA from the University of St. Thomas in Minneapolis, Minnesota, USA, and Graduate Certificate from Fujian University of Agriculture and Forestry, in the Peoples Republic of China.

Mr. Barrow has many years of experience working

with international and local NGOs, USAID, institutions of higher learning, and government agencies.

Currently, Mr. Barrow is the Fundraising and Outreach Coordinatorat the Louis Arthur Grimes School of Law, implementing the

Legal Professional Development and Anti-Corruption Program in Liberia (LPAC), a USAID funded project

Mr. Barrow is a Facilitator & Lecturer at the Access Training Institute,

an astute international human capacity development learning center. He teaches “Project Management” and “Project Proposal Writing”.

Introduction

Course Overview:

The purpose of this course is to train participants in the art of writing a persuasive project proposal that will win funding to enable the implementation of projects and the overall continue viability of their respective organizations/institutions.

The course is designed to be taught through Power Point presentation and slides with interactive visual of photos, clip arts and icons depicting meaningful connotation for each topic.

Introduction cont…Course Objectives:

- To train participants in exceptional persuasive writing skill that stands out and win donors interest to support their projects and institutions;

- To teach participants how to organize and arrangethe components of a project proposal in a standard andprofessionally best practice method;

- To teach participants key fundraising strategies that can be apply to raise funds for their organizations/institution;

- To teach participants key terminologies associatedwith writing project proposals;

- To be able to develop budget line items for a project proposal.

Learn

Introduction cont…Course Benefits:

After the training, participants will be able to:- do persuasive writing for project proposal; - Identify, organize, and arrange components

of a project proposal in an orderly manner;

- Learn different fundraising strategies;- Learn how to develop a concept note;- Learn how to write grant solicitation letter;- Lear key terminologies associated

with project proposal writing.- Learn how to develop budget line items in

Project proposal.

Introduction cont…

Course Audience:

This course is designed for:- Project managers; - People who are actively involved in

NGO related work;- Church/religious leaders;- Community leaders;- Researchers, students, and- Others professional who wants to be

able to write project proposals

Introduction cont…

Course Prerequisites:

Prior to attending this course, participants should:- Have completed high school level education with at

least 2 or more years of college education;

- Be able to read with comprehension and write constructively;

- Know the basic concepts as necessary for understanding what a project proposal means;

- Must be able to participate in class discussionand express h/her idea without being intimidated;

Introduction cont…

Course Duration and Schedule:

- The duration of this course is 6 weeks, 4 hours a day, once a week, on every Saturday

- A course outline and schedule is prepared separately and made available to participants during the first day of lecture.

Introduction cont…

Course Evaluation:

- Participants in this course will be asked to fill in an evaluation questionnaire at the end of this course.

- specific and detailed feedback will be anticipated and all participants will be encouraged to answerthe evaluation questionnaire.

Course Content

I. Project Proposal Writing1) What is a Project2) What is a Proposal3) What than is a Project Proposal

II. The 7 Elements of a Project Proposal 1) Understanding of the Clients/beneficiaries Needs2) Your approach to solving the Problem3) How Long is it Going to Take?? 4) What Will the Clients/Beneficiaries Get?? 5) Who Will Do the Work??6) How Much is it Going to Cost??7) The Next Steps

Course Content – cont…

III. How to Avoid Writing Poor Quality Proposal1) Playing with Resources2) The “war & peace” Proposal 3) Line Item pricing4) Self Promotion5) Cutesy Consultant Bios6) Endless Appendices

IV. Effective Proposal as a Fundraising Tool1) Organization and Fundraising 2) Types of Fundraising3) Why do People Give??4) Key concepts of Proposals

Course Content – cont…

V. Writing an Effective Proposal1) Components of Proposal 11) Beneficiaries2) Cover Letter 12) sustainability3) The Title 13) Methodology4) Summary Sheet 14) Organization & Key Personnel5) Project Description 15) Facilities6) Goals & Objectives 16) Evaluation7) Activities 17) Structure of Evaluation8) Inputs 18) Attachments9) Outputs 19) Time-Table10) Impact 20) Budget

VI. Terminologies Related to Proposal Writing

I. PROJECT PROPOSAL WRITING

1. What is a Project?

The PMI definition of a project is:

- “A project is a temporary

group activity design to

produce a

unique product, service

or result”.

The PRINCE2* definition is:

- “A project is a temporary

organization that is created

for the purpose of delivering

one or more business products

according to an agreed

Business case”.

*PRINCE2 (Projects IN Controlled Environments)

is a structured project management method.

2. What is a Proposal In composition — especially

in business writing and

technical writing — a

proposal is a document that

offers a solution to a problem

or a course of action in response to a need.

As a form of persuasive writing, proposals

attempt to convince the recipient to act in

accordance with the writer's intent and

includes such as examples as internal proposals,

external proposals, grant proposals,

and sales proposals.

2. What is a Proposal Cont…

In the book "Knowledge Into Action,"

Wallace and Van Fleet remind us that

"a proposal is a form of persuasive

writing; every element of every proposal

should be structured and tailored to

maximize its persuasive impact."

3. What is a Project Proposal

A project proposal is a document that

request support – usually

money – for work a proposal

wants to do. What makes

a proposal a proposal is that

it asks the audience to

approve, fund, or grant

permission to do the

proposed project.

II. The 7 Key Elements of A Project Proposal

1) Understanding of the Client’s Needs- Here’s where you outline and agree upon the

problem statement(s), goals and objectives for the client. It’s imperative that you establish this common ground in order to set the stage for the balance of your proposal.

- By demonstrating that you comprehend the client’s situation – you establish a baseline for moving forward.

- If you aren’t on the same page with your client about what you are going to be doing and why then you have no business proposing on the work.

II. The 7 Key Elements of A Project Proposal - Cont…

2) Your Approach to Solving the Problem

- Outlining how you intend to meet the client’s goals and objectives is critical.

- In this section, you’ll document your approach towards the project or

program and walk through the major blocks of work with descriptive text and ‘how’ statements.

- The client should be able to understand exactly what strategies and tactics you’ll employ to help solve their problems and achieve their

objectives.

II. The 7 Key Elements of A Project Proposal - Cont…

3) How long is it going to take?- Everyone loves a good timeline slide.

- So here’s your chance to build a road map to success and graphicallydemonstrate the steps and order in which you propose to tackle the work.

- Whether you use clunky Gantt charts, swim lanes or whatever – just make sure it’s clear and not overly colorful and loaded with goofy emoticons.

- Also, avoid using a ‘key’ or ‘legend’ on your timeline.

- If you need to call out what all the shapes and colors mean then you’ve already confused everyone in the room.

II. The 7 Key Elements of A Project Proposal - Cont…

4) What will the client get?

- Believe it or not, this is where many fall down.

- All this good work is put in describing the problem, the approach and thetimeline – but then the key deliverables get left off.

- Don’t be that guy or gal who forgets to tell the client what they aregetting for their money.

- Make sure you clearly state what the client gets from this engagement intangible terms.

- The last question you want to hear during your pitch is “So, I’m spendingX million dollars for what?”

- You don’t need a laundry list of everything you’ll provide but make sure the big ticket items are outlined and easily understood.

II. The 7 Key Elements of A Project Proposal - cont…

5) Who will do the work??- You do not need detailed bios and resumes for everyone on the proposed

team.

- But you do need a brief 2-3 sentence summary of the key players.

- Who will lead the engagement?

- Who will be the key point of contact for the client for financials, escalationsand issue resolution?

- Who are the key subject matter experts they are paying for?

- Build a high level project org chart and keep it to the top 3-5 people on the team and how they will fit into the client’s organization.

II. The 7 Key Elements of A Project Proposal - Cont…

6) How much is it going to cost?

– The money slide gets a lot of play – and for good reason.

– If you are selling a consulting engagement you’ll want to show the total cost with perhaps a breakdown by major milestone or phase.

– A lot will depend on the desired structure of the deal, the pricing model (fixed vs. hourly vs. risk-based or other) so pay attention to your client’s needs and outline the proposed cost in terms they have requested and will understand.

– And for the love of Pete – please don’t break down the hourly rate for each individual or each deliverable on the project.

II. The 7 Key Elements of A Project Proposal - Cont…

7) Next Steps– The last and final slide in your deck should be next steps.

– I know it seems simple but listing out the expected decision points, timeframes and accountable parties sets expectations equally across teams and also tees up the follow up schedule.

– You do not want to be that person waiting for the phone to ring with resources in queue and partners breathing down your neck for answers.

– Sure, not every timeline is adhered to but by setting a follow up schedule up front you at least have some basis to communicate on next steps.

III. How to Avoid Writing Poor Quality Proposals

Playing with resources – It’s always the A-team that you’ll be providing for the engagement.The minute you start throwing in things like ‘blended resource model’, ‘junior analysts’ or ‘shared personnel’ you start to lose the trust and confidence of the client.

The “War and Peace” proposal – As written earlier, you are going for concise, short, sweet and to the point. You aren’t getting paid by the slide or for the weight ofyour deck. I’ve closed more deals with quality proposals that are less than 10 slides than I have with 60 slide volumes.

III. How to Avoid Writing

Poor Quality Proposals – cont…

Line-item pricing – If you start to break down every single

element of cost in a proposal then you need to be prepared

to defend every estimate and argue for every nickel now

and down the road. Boil up your pricing model so it’s clean and easy to

understand. If there’s a discussion about a specific block of

work, be prepared to discuss the associated cost and have

supporting data at the ready. Avoid debating about minor cost

elements like the plague.

I

III. How to Avoid Writing

Poor Quality Proposals – Cont…

Self-promotion – Clients do not care how many

‘Best Places to Work’ awards you have won nor do

they want to see a picture of you accepting your

(insert local publication here) award. The fact

that you’ve been asked to propose on the work already

means that you have gained enough trust and

confidence to be considered. Sure, having lots of

case studies and accolades in your proposal looks

pretty but it’s merely no more than chest thumping if

you are nearing the finish line.

III. How to Avoid Writing

Poor Quality Proposals – Cont…

Cutesy consultant bios – Am I interested in that fact that

Consultant Rob is a world traveler, loves cats and surfs in his spare time? Maybe, once I get to know him personally.

But I’m not reading a Match.com profile here. Keep it

business-like and everyone will be happier. I can learn

about Rob and the rest of the team when we build a

relationship through our work.

III. How to Avoid Writing

Poor Quality Proposals – Cont…

Endless Appendices – The Appendix section of every

deck is where slides go to die. Be decisive and get rid of them.

Have them in your back pocket if you need them but save

some ink and keep those to yourself.

IV. Effective Proposal

As a Fundraising Tool Fundraising and the organization •

Sources of money •

Why do people/organizations give? •

“The Effective Proposal”

--Components

--Critiques

1) Organization and Fundraising 1

Institutional objectives should be established

Development objectives should be established

Support should reflect institutional needs

Start fundraising with natural prospects

Search for sources of money

Organization and Fundraising 2

Case for funds should reflect mission of granting institution

Needs

Involvement is key to support

Prospect research should be thorough and…

Realistic

Cultivation of key donors and partners

Solicit when previous principles followed

2) Types of Fundraising 1

Individual versus organization as donor

• Proposals - specific requests

• Annual campaign

• Capital campaign

• Corporate and business support – in kind – cash – partnership

Types of Fundraising 2

Non-profit support – in kind – cash – partnership

Foundation or philanthropy

Specific benefit event

Major gift - money, land, stock, other

Deferred or planned gift

3) Why Do People Give? 1

Needs, motivations benefits to persons or…

Institutions who give

Communitarian - doing good makes sense

Altruist - doing good is an obligation

Devout - doing good is G-d’s will

3) Why Do People Give? 2

Investor - doing good is good business

Socialite - doing good is good business

Person who repays - doing good in return

Dynasty - doing good is family tradition

4) Key Concepts of Proposals

Write for the donor, not yourself

Simple language that is interesting

Clarity and descriptive text

Avoid superlatives

Defense is the worst offense

Friend-raising, not fundraising

V. Writing an Effective Proposal

#1: Components of Proposal

Cover Letter ImpactTitle Page BeneficiariesSummary SustainabilityProject Description MethodologyGoals & Objectives BudgetActivities AttachmentsInputOutput

# 2: Cover Letter

Includes funder's name, title, and address Directed to the responsible individual Brief overview of the organization and its purpose Reason for the funding request The amount requested One or two pages Name and address of contact Signature

# 3:The Title

Choose a title that conveys information about your project.

Avoid jargon

Make it brief

# 4: Summary Sheet

Title of the Project Project Type • Location Implementing agency Donor agency Duration of project Starting date Beneficiaries Project Cost Contact person name, title, phone and email address Narrative?

# 5: Project Description

This is the first (and could be the only) part of the proposal that a busy reviewer will see.

The PD should be a map of the rest of the proposal.

It should be able to stand alone

give it careful time and effort

# 5: Project Description…Cont…

Provide a clear statement of the problem.

Describe the factors that have contributed to the problem.

Describe what has and has not worked in the past.

Indicate what needs to be done (by you) now.

# 5: Project Description…Cont…

Never assume the proposal reviewer knows what you know.

Convince the reviewer that the problem is IMPORTANT!

# 6: Goals & Objectives

Goals: What does this word mean? Let’s talk!

Objectives:What does this word mean? Let’s talk!

How are these two words different?

What do they mean to YOU?

#7: Goals vs. Objectives

Sometimes used interchangeably, but importantly and in practical terms, objectives form the foundation of goals.

Goals. Think of the word ‘go’; it has no end. They are usually: broader, less tangible and precise, more abstract, more difficult to measure and validate.

Objectives. Think of the word "object." They are usually: narrower, more tangible and precise, more suited to measurement, evaluation, and validation.

Miyamoto (2002) has said “Think of the goals as the treasure at the top of a stairway, and the objectives as the stairs.”

#: 7 Activities

Implementation Steps

Focus on How the objectives are to be accomplished and the goals are to be met.

Use “Action” words, e.g., recruit, analyze, evaluate

#8: Effective Project Design

Goals, Objectives and Activities Should Always Relate to One Another

# 9: Input

• Resources (money materials, time, personnel)

9

# 10: Output

Goods/Products or services produced, andcompetencies and capacities resulting fromthe proposed activities

# 11: Impact

what will be different and better as a result of the work to be done

# 12: Beneficiary

Beneficiaries

Direct Indirect

Implementing Partner

Target Group

People of the Area

# 13: Sustainability

Ability to generate results after the external support has beendiscontinued.

While a project islimited by time,the benefits shouldcontinue without theneed for external inputs.

# 14: Methodology State your method

clearly

Choose and detail appropriate policy

Say something about evaluation and monitoring for validityand reliability

Answer reviewers’ questions before they are asked!

#15 Organization & Key Personnel

Describe your organization’s Strengths and Capabilities

Describe the people that will help to make decisions in howthe project is carried out.

Provide a description of their background, training, and expertise.

Highlight everyone’s accomplishments

#16 Facilities

Describe any specialcapabilities or experiences possessed by your agency to carry out the project.

#17 Evaluation

Measures of performance – input – process – output – outcome

Structure of Evaluation Process of evaluation and timetable Form and timetable of reporting How evaluation used for program Improvement

#18 Structure of Evaluation

Who will evaluate?

How will evaluators be selected?

Evaluation criteria Methods and

instruments – instruments as attachments

Process of analysis

#19 Attachments

Organization, Board Staff, with resumes Partner organization Letters of support Documentation as required

– Status documents – Evaluation instruments – Bids

Timetable Budget

#20 Timetable

Schedule of activities Use of staff Deliverable schedule Measurement schedule

#21 Budget

Line item or program budget Budget Budget justification Budget documentation Matching or in kind contribution Categories, rates, and documentation

#21: Line Item Budget 1

Personnel costs

Salaries and wages

Fringe benefits

Consultants

Contracts

#21: Line Item Budget 2

Non-personnel major costs

Equipment - purchase or lease

Space

Overhead or indirect costs

#21: Line Item Budget 3

Non-personnel costs - not major Supplies or materials Travel Telephone or fax Postage or delivery Photocopying Books or documents Tuition and fees Publication costs Maintenance and repair Other expenses

#21: Budget……Cont……

Code: For better references to the desired item. Description: The explanation of the expenses.

Unit: Measure for each expense.

Unit Number (#): The number for each unit.

Unit Cost: The price or rate for each unit.

Cost Contribution: Allocation of the cost for different sources. Total Cost: Total sum of cost contribution

Code Description Unit Unit # Unit Cost Cost Contribution Total Cost

Donor IP Community

VI: Writing a Concept Note

#1: What is a Concept Note??

A concept note outlines the project idea. It does not have to contain a lot of details and may only be about 2 to 3 pages in length – in most cases. The for writing a concept note before a full proposal is to give an idea of what we hope to do

#2: The Contents of a Concept Note

Background information

Why the project is necessary

Who will benefit from the project

How will they benefit

An estimate of both the total budgetand the resources needed to carry onthe work

How it fits with the vision andstrategic plan of your organization

#2: The Purpose of a Concept Note

Acknowledge the role of the sponsoring organizationDemonstrate your knowledge of the private orpublic organization by summarizing the nature of its involvement in the project. For example, if the funders are dedicated to advancing literacy in developing nations, acknowledge their successful history in this area.

#2: The Purpose of a Concept Note – cont…

Describe your team or organization:Explain the core objective of your project. For example, you may be an instructional software company that uses software programs to teach reading skills to disenfranchised populations. Clearly convey your position as it relates to the goals of the funding organization.

#2: The Purpose of a Concept Note – cont…

Identify the problem:Funders read your concept paper because they have a shared interest in the problem. Describe the core issue. Explain the problem in enough detail to convey your background and expertise with the issue. If necessary, include data to demonstrate the extent of the problem.

#2: The Purpose of a Concept Note – cont…

Include an assessment of previously applied methods:This may be a report of your past successes with a similar project. Or it may be a reference to a history of successes experienced by various organizations who have applied your specific solution to the problem.

#2: The Purpose of a Concept Note – cont…

Explain how you will meet the need:Describe the product, service or program. Be clear and concise. Use language that the reader will easily understand. Avoid using technical language for a non-technical audience.

#2: The Purpose of a Concept Note – cont…

Outline your intended objective:Your solution to the problem may save money, advance learning or prevent health issues. Include quantitative details, such as the number of people who will benefit, how much time will be saved or the amount of profit that will be generated.

#2: The Purpose of a Concept Note – cont…

List the resources necessary to offer the services:This may include a list of materials to build a product or the type of personnel required to provide the services. A detailed list will demonstrate your grasp of the project's needs and your readiness to provide the product or service.

#2: The Purpose of a Concept Note – cont…

Establish a time line for delivery of services:Explain how long it will take to build the product, deliver the service or manage the project. The time line should be both realistic and efficient.

#2: The Purpose of a Concept Note – cont…

Specify the amount of funds you are requesting.If possible, research the amount of money that the funding organization has available to stay within its budget. Asking for an amount that exceeds the available funds may result in an immediate dismissal of your program, project or service.

#2: The Purpose of a Concept Note – cont…

Summarize the concept paper by

describing the outcome:

Close with a few sentences to

ensure the sponsoring organization

that an investment in your team or

organization will meet objectives and

solve the specific problem.

#2: The Purpose of a Concept Note – cont…

Include your contact information:List your name, address, website, phone number and email address.

VII. Terms Related to

Proposal Writing• Attachments: Documents appended to the proposal narrative

that complete the proposal package. Most grant makers will expect to find the IRS tax-exempt letter of determination, list of board members, brief staff profiles, current operating budget, and audited financial statements among the attachments.

• Budget narrative: An optional section of a proposal’s project budget used to explain unusual line items in the budget or to provide more detail.

Terms Related to Proposal Writing – Cont…

• Capital support: Funds provided for endowment purposes, buildings, construction or equipment.

• Challenge grant: A grant that is paid only if the done organization is able to raise specified additional funds from other sources. Challenge grants are often used to stimulate giving from other donors.

• Common Grant Application Form: A formal adopted by groups of grant makers to allow applicants to produce a single proposal for a specific community of funders, thereby ensuring consistency and thoroughness, and saving time.

Terms Related to Proposal Writing – Cont…

• Community foundation: An organization that makes grants for charitable purposes in a specific community or region. The funds available to a community foundation are usually derived from many donors and held in an endowment that is independently administered; income earned by the endowment is then used to make grants, some at the explicit instruction of the donor (alive or deceased) and some at the discretion of the community foundation’s board. Most community foundations are 501(c)(3) public charities and are thus eligible for maximum tax-deductible contributions from the general public.

Terms Related to Proposal Writing – Cont…

• Company-sponsored foundation (also referred to as a corporate foundation):

A private foundation whose assets are derived primarily from the contributions of a for-profit business. While a company-sponsored foundation many maintain close ties with its parent company, it is an independent organization, often with its own endowment, and as such is subject to the same rules and regulations as other private foundations. See also Private foundation.

Terms Related to Proposal Writing – Cont…

• Conclusion: The final section of a proposal narrative, summarizing the main points. Usually no more than two paragraphs in length, the conclusion offers the grant seeker a final opportunity to make the case for support, and to portray the benefits and the beneficiaries of the project.

• Corporate giving program:A grant making program established and administered within a for-profit corporation. Because corporate giving programs do not have separate endowments, their annual grant totals generally are directly related to company profits. Corporate giving programs are not subjective to the same reporting requirements as corporate foundations.

Terms Related to Proposal Writing – Cont…

• Cover letter: The first page in a proposal package. The letter is usually one page in length, and contains the funding request, reason for approaching the funder, reference to any previous contact, description of the application contents, a brief project description, and an offer to provide additional information. The letter is usually signed by the organization’s chief operating officer.

• Done: The recipient of a grant. Also known as the grantee or beneficiary.

Donor: An individual or organization that makes a grant or contribution to a (usually nonprofit_ done). Also known as grantor.

Terms Related to Proposal Writing – Cont…

• Endowment:

Funds intended to be invested in perpetuity to provide income for continued support of a nonprofit organization.

• Evaluation plan:

A proposal component that describes how the project’s impact will be measured to determine how well its objectives have been achieved. This can be done by informal monitoring reports or by a formal plan to measure the product or analyze the process, depending on the nature of the project.

Terms Related to Proposal Writing – Cont…

• Executive summary:

A proposal component that provides the abstract of a grant seeker’s case for a project or organization and a summary of the key information in the proposal that follow.

• Family foundation:

An independent private foundation whose funds are derived from a member or members of a single family. Family members often serve as officers or board members if family foundations and have a significant role in grant making decision.

Terms Related to Proposal Writing – Cont…

• Fiscal sponsorship:

An individual grant seeker’s affiliation with an existing nonprofit organization for the purpose of seeking, receiving, and administering grants. The fiscal sponsor may charge a small fee for this service.

• 501(c)(3):

The section of the U.S. tax code that defines nonprofit, charitable, tax- exempt organizations; 50(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations.

Terms Related to Proposal Writing – Cont…

• From 990:

The information return that public charities file annually with the internal Revenue Service.

• From 990-PF:

The information return that all private foundations are required by law to submit annually to the Internal Revenue Service, and that are part of the public record.

Terms Related to Proposal Writing – Cont…

• General/operating support: A grant for the day-to-day operating costs of an existing program or organization. Also called an unrestricted grant or basic support.

• Grant maker: A foundation, corporate giving program, or public charity that awards grants to nonprofit organizations and in some instances to individual grant seekers. Also known as funder.

• Grant seeker: A nonprofit organization or individual seeking to obtain foundation, government, or other grant support for a project or programs.

Terms Related to Proposal Writing – Cont…

• Guidelines: procedures set forth by a funder that grant seekers must follow when applying to that grant maker for funding.

• Independent foundation: A grant making organization usually classified by the IRS as a private foundation. Independent foundations may also be called family foundations, general purpose foundations, special purpose foundations, or private non-operating foundations. See also Private foundation.

• Letter of inquiry/letter of intent: A brief letter outlining an organization’s activities and its request for funding that is sent to a prospective donor in order to determine whether it would be appropriate to submit a full grant proposal. Many grant makers prefer to be contacted in this way before receiving a full proposal; some rely on this letter to make a decision instead of a full proposal. Also called a letter proposal, and sometimes referred to as LOI.

Terms Related to Proposal Writing – Cont…

• Matching grant: A grant that is made to match funds provided by another donor.

• Mission statement: A concise statement in which a nonprofit organization describes its identity, purpose, and the beneficiaries of its work.

• Need statement: A proposal component that explains why the grant seeker’s project is necessary by succinctly and persuasively describing the problem that exists. The need statement often includes relevant supporting data and statistics. Also called the Statement of Need.

Terms Related to Proposal Writing – Cont…

Operating foundation: A 501(c)(3) organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter. An operating foundation may make grants, but the amount of grant awarded generally is small relative to the funds used for the foundation’s own programs.

Terms Related to Proposal Writing – Cont…

• Organization information: The section of a proposal that describes the mission, history and governing structure of the nonprofit grant seeker, its primary activities, audiences, and services.

• Overhead: A proportion of ongoing expenses such as rent, utilities, certain administrative salaries, and other cost that some funders will support as part of project budget.

• Planning grant: Support for such efforts as goal-setting, information gathering, needs assessment, consensus or coalition building, or planning for a larger grant.

Terms Related to Proposal Writing – Cont…

Planning foundation: A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and program managed or age by its own trustees or directors. Private foundations are established to maintain or aid social, educational to maintain aid social, educational, religious, or other charitable activities serving the common welfare, primarily through the making of grants.

Terms Related to Proposal Writing – Cont…

• Program officer: A staff member of a foundation who reviews grant proposals and processes applications for the board of trustees. Only a small percentage of foundations have program officers, or indeed any staff at all.

• Project budget: The document created for a proposal that outlines the anticipated costs of personnel, non-personnel, and overhead expenses, as well as revenue.

• Project description: The component of a proposal that provides details about the goals, objectives, and methods related to a proposed project. Typically this section also includes details about staffing and administration, a timeline, a description of project evaluation, and sustainability.

Terms Related to Proposal Writing – Cont…

• Proposal:

A written application, accompanied by supporting documents, submitted to a foundation, corporate giving program, or government agency in requesting a grant. Most foundations and corporations do not use printed application forms but instead require written proposals; others prefer preliminary letters of inquiry prior to a formal proposal. Grant seekers should consult published guidelines.

• Seed money:

A grant or contrition used to start a new project or organization. Seed money grants may cover salaries and other operating expenses of a new project.

Terms Related to Proposal Writing – Cont…

• Tax-exempt: Refers to organizations that do not have to pay taxes, such as federal or state corporate tax or state sales tax. Individuals who make donations to such organizations may be able to deduct these contributions from their income tax.

• Timetable or Timeline: A graphic representation of the sequence of steps needed to complete a project, sometimes included in the project description section of a grant proposal.

• Trustee: A foundation board member or officer who helps make decisions about how grant monies are spent. Depending on whether the foundation has paid staff, trustees may take a more or less active role in running its affairs.

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