Most leaders of smaller nonprofits experience a classic “chicken and the egg” dilemma when it comes to grants. You know you need to bring on someone to specialize in developing and executing a grant strategy, but hiring a professional to research funders, write strong proposals, and manage awards can feel out of reach when you’re already stretching every dollar. You don’t need me to tell you that building grant capacity is an investment that often returns many times over in new revenue and stronger sustainability and you probably don’t need a full-time grant professional to see solid results. But how should you get started? Where do you get the seed money to hire grant expertise, before you see the returns on that investment? Here are a few approaches.
Start Close to Home
Your board members and major donors are the first place to turn. They already believe in your mission. Invite them to fund hiring grant strategy expertise as a capacity-building gift. Frame it as leverage: a $10,000 investment in professional grant support could generate $100,000 or more in new funding. That’s not just generosity; it’s smart stewardship.
While we’re on the topic, don’t underestimate the power of a challenge match. If you have a robust network of smaller donors, invite a major donor to seed a “capacity challenge grant,” where their gift is unlocked if the community helps raise the rest. It’s a way to engage other donors or even new donors in building something foundational, and it sparks momentum.
Talk to Existing Funders
If you have existing grants and may not use all the funding—yes, it does actually happen–talk to the funder about possibly using some of the leftover funds to pay for professional grant services, including grant research, strategy creation, and writing. Most foundations are required to disburse 5% of their earnings each year and you returning unused grant funds can create difficulties for them. Those returned funds may reduce the percentage of the funds they disbursed for the year, putting them below their 5% requirement. If you have grant funds you didn’t spend because, for example, fewer participants showed up or that tech solution you planned to buy was cheaper, the funder may be willing to let you keep the funds and use them for a project like diversifying your grant funding.
Look for Capacity-Building Grants
Some funders specifically want to strengthen nonprofits behind the scenes and have dollars set aside for infrastructure projects like strategic planning, financial systems, and yes, grant strategy development. It’s worth applying not just for program support, but for the capacity you need to keep delivering programs at all.
The Buddy System
Sometimes the smartest move is to share. If you and a nonprofit peer are serving similar populations, consider pooling resources to bring on a grant professional together. Partnerships can open doors to collaborative grants while splitting the cost of expertise neither of you could afford alone. Strong partnerships will pay benefits in other ways that increase your grant “fundability,” but that’s a topic for another post.
Make the ROI Case
Finally, make sure you talk about building your grant strategy as an investment, not an expense. Funders and donors want to know their dollars will multiply. Help them understand that any investment is not a quick return, and those that promise quick returns (at best) don’t deliver, and (at worst) are often scams. Building and expanding grant funding takes time, expertise, and relationships with funders. That doesn’t happen overnight.
Funders aren’t the only important relationship you need to cultivate. Building a relationship with a grant funding professional over time helps them tell your story more effectively as you get to know your organization better and helps you keep on top of new developments in the grant world.
Securing funds for grant capacity can seem overwhelming. By engaging your closest supporters, seeking out capacity-building grants, forming smart partnerships, and framing the work in terms of ROI, you can build the infrastructure that fuels your mission for the long term.