Two qualities that funders love to see radiate from their grant proposals, above all else, are credibility and impact. In fact, many funders say the first part of the proposal they read is the budget.
This is because, if the budget is doing its job right, it explains with instant crystal clarity the components and mechanics of the project, what’s required to make the project happen, and how much support you’ve already secured to make it happen, versus how much you’re currently asking for.
Your budget can be a powerful tool to illustrate credibility and impact, those same two qualities that funders want to see above all else in a grant proposal.
Let’s talk specifically about credibility. If your numbers don’t add up or pieces of the project are conspicuously missing from the budget, that can suggest that you may not fully understand how the project really works. However, if the budget is complete, easy to understand, and the numbers make sense, you are demonstrating credibility.
Also, if the income side of your budget shows that you’re funding the project with a decent variety of diversified revenue sources, that is helpful, too.
Funders usually do not want to see you fully reliant on them for support. They want to see your project as sustainable, with a variety of supporters throwing their resources behind it.
Having the enthusiastic support of multiple funders or donors makes you look extremely credible, and that support will, in turn, help you to create a bigger impact.
Learn more about all aspects of nonprofit accounting by attending the ACCOUNTING for Time & Money class on Saturday, November 19 at 1 pm as part of the Sunshine Certificate in Nonprofit Management.
Learn more about writing winning grants by attending the REVENUE: Grant Writing & Evaluation class on Monday, November 21, 2022 at 5:30 pm as part of the Sunshine Certificate in Nonprofit Management.
Source: Candid Learning. Candid has been a preferred partner since 2018 when Florida Nonprofits became an outlet for the Foundation Center Funding Network.
Author: Tracy Kaufman, Network Engagement Manager Candid