Decoding the Federal Grant Application Process: Is Your Organization Ready?

If you’ve never applied for a federal grant, the process can seem so overwhelming that you avoid even attempting to apply. While the application process is lengthy and complicated, there are good reasons to consider applying for federal grants, and there are ways to make the process less intimidating. 

First, let’s consider some of the benefits, then we’ll consider your organization’s eligibility and, lastly, then we’ll consider the challenges and how the process can be made less overwhelming. Lastly, we’ll pose some questions to help you evaluate your organization’s, and your program’s, readiness for federal funding. 

1. What are the benefits to my organization?

Money to fund your program. It’s a grant, not a loan. And it could be larger than any single grant your organization has been awarded. It will typically cover all the expenses of the program or project that you propose in your application. 

Credibility with donors and other financial partners. Donors look for organizations that have already received federal funding so you may be able to leverage a grant award into additional support. 

Expertise. After going through the process of applying for a federal grant, your organization will have gained valuable knowledge and experience, and will be better positioned to apply for future federal grants. Or, perhaps you will have learned that you’re not yet ready to pursue federal funding. 

2. Is my organization eligible?

A. Who can apply for and receive government grants?
Eligibility varies according to the agency and the opportunity, but all of the following organizations can find grants that they are eligible to apply for: 

• • State and county governments. 

  • Cities or township governments. 

  • Native American tribal governments. 

  • Independent school districts. 

  • Private institutes of higher education. 

  • Public and Indian housing authorities. 

  • 501c3 nonprofit organizations, except higher education institutions. 

  • Nonprofits that don’t have 501c3 status and are not higher education institutes. 

  • Businesses. 

  • Individuals. 

  • Foreign applicants.

B. My organization is a 501c3 nonprofit. What do I need in hand to apply? 

• • Nonprofits that don’t have 501c3 status and are not higher education institutes. 

  • Businesses. 

  • Individuals. 

  • Foreign applicants.

C. Read our series on how to complete your registrations:  

     Registrations Part 1: How To Get Started with SAM.GOV 

     Registration Part 2 - Grants.gov and Other Registrations 

     Registration Part 3: Managing Organization Roles in Grants.gov 

3. What are some challenges I should consider? 

A. Time and effort involved in applying. Federal grants are notoriously detailed and demanding; a Federal application can take 80 to 100 hours and several months to draft and most nonprofits need to hire a professional proposal writer. Of course, some proposals are less burdensome but even scanning potential opportunities is time-consuming. 

B. Cash flow. If your organization can afford to spend money first, and then get reimbursed, a Federal grant can be a good option. But many small nonprofits you probably don’t have the cash to pay program costs up front and wait for reimbursement.  Private funders usually award the grant at the beginning of a program.  

C. Influence of elected officials on where Federal money goes. Members of Congress, e.g., want community groups in their Districts to get funded. This commitment for local projects makes it helpful for nonprofits to make themselves known to their Representatives. 

D. Competition - your chances could be as low as 1 in 100, although some foundation and corporate grants are just as competitive. 

4. How do I know if I’m ready to submit a competitive application?

You should determine if your program, team, and finances are all ready for the process of applying for a federal grant, executing the program successfully, and reporting on outcomes and finances. 

A. Is your program ready? 

• • Do I have team members with the appropriate skills and experience to achieve the program outcomes? 

  • Will I need to hire people if this proposal is accepted? If so, how easily or quickly will I be able to recruit and fill these positions? 

  • Does my organization have the appropriate institutional knowledge to execute on this grant if I win the award? 

  • Do I have the software and physical infrastructure required to deliver on this proposal? 

In addition to experience and expertise to implement a grant-funded program, an organization should be able to magnify the impact of its program(s) leveraging partnerships with complementary organizations, have data collection and analysis processes in place, and have staff who can integrate an evidence-based approach. 

B. Is your team ready?

Applying for a federal grant will involve your executive, financial, and program staff, such as Executive Director; Chief Financial Officer; Development Director; Marketing Staff; Program Staff (or someone who will be in charge of delivering the program for which you seek funding) and/or contractual grant professionals. They should expect to take time away from other projects during the application, execution, and reporting phases of a federal grant.

C. Are your finances ready?

The government places rigorous financial reporting requirements on organizations that receive federal funding. The Uniform Grant Guidance (UGG) outlines rules that recipients of federal grants must follow to maintain compliance; and penalties for non-compliance can be harsh. 

For example, you must: 

• • Have an accounting system in place

  • Be closing your books each month; i.e., reconciling all of your bank accounts and credit cards

  • Be tracking your expenses to both a GL code/category and a funder/program/grant 

  • Have a documented, consistent, approach to allocating shared expenses such as payroll, facilities, and insurance 

5. Do I need an audit? 

You don’t necessarily need a nonprofit audit to qualify for federal grant funding.  

If you receive more than $750,000 in federal grant money in any given fiscal year, you will be required to undergo a ‘single audit’, which will determine whether your organization complied with grant guidelines and only used grant dollars for allowable purposes. 

6. Am I ready for the Reporting requirements? 

Government grant reporting requirements may include: 

• • Financial data 

  • Federal and state compliance information 

  • Project data with community impact 

Nonprofits must keep detailed reports on how they use government grant funds and how their programs impact their beneficiaries and local communities. They can provide this information through regular progress reports, site visits, and financial audits. 

7. Should I hire a consultant to write my grant application? 

Your grant application must be as perfect as possible. A minor detail can make or break your chances to win a grant. Unless you have a staff, including a grant writer, with expertise in writing a proposal for the type of grant for which you’re applying, it is a worthwhile investment to hire an expert. While your staff members and volunteers can always keep an eye on any sudden changes in rules and eligibility, your grant writer is the only person who will be able to take the right step toward them. You do not need a full-time grant writer. You can always hire them on hourly basis or flat rate per grant basis.  

Contact us today for a complimentary consultation regarding our services and how CFS can best assist your organization. With our help, you can increase your chances of funding success and transform your ideas into impact.