If you run a small nonprofit, it’s highly unlikely that you have days – or even hours – to dedicate to finding potential grants for your organization. And even if you do, you’ve probably asked yourself, “Where do I begin the research process? Do I need to purchase an expensive database to find grants? If so, which one (there are so many out there!)?”
Most nonprofit leaders get stuck at this point. The endless loop of whether or not to invest in a grant search platform, which one to choose, and how much they are willing to spend.
I want to stop you right there. If you are running a small nonprofit and are just getting started with seeking grants, you do not need to invest in a grants database. And it’s not because there aren’t great tools out there that could help your organization find excellent grant opportunities. There are, and we use many of them when we undertake comprehensive prospect research for clients here at Page Consulting.
The problem is not the databases (or even the cost), the problem is your time, which is precious. As a nonprofit leader, you simply cannot spend hours pouring over grants data and then transferring it into something usable for your organization.
The good news is, as a small nonprofit, you don’t need a list of hundreds of potential funders or grant opportunities – you just need a handful to focus on.
With this in mind, let me share with you my number one research hack for small nonprofits who want to find grants quickly and effectively. Simply follow these instructions:
Create a list of 5-10 well-established nonprofits in your area with similar missions or populations served, then visit their websites to find their supporter lists or annual reports and note their top foundation donors. This becomes your foundation prospect list.
Most of the time, when I suggest this to nonprofit leaders, they cringe. Something about it feels wrong. But why? However you choose to do your research, if it’s done well, the foundations that are funding similar organizations to yours should absolutely end up on your prospect list.
We encourage all of our nonprofits partners to challenge the “scarcity mindset” around grants competition, which implies that if I apply and win a grant, I’ve taken funds away from another worthy organization. Foundations are mandated to give away 5% or more of their assets annually to charitable causes or they lose their tax status. They have to give away their money – and it’s likely that if they are funding organizations like yours, they will want to hear from you.
Will this process land you with the most comprehensive list of foundation prospects? No.
Will this process give you a really solid, short list of potential foundation prospects? Absolutely.
So drop the scarcity mindset, set aside a couple hours, and build your list. I can guarantee you it’ll be a worthwhile place to start!