You've built something real. Your nonprofit is incorporated, your 501(c)(3) is in hand, you're registered to solicit, and your programs are running. This month we go after the money that fuels it: grants.
Here's the secret most first-timers miss — winning grants isn't about writing more proposals. It's about writing the right proposal to the right funder. So we'll do this in two halves: first find funders who already fund work like yours, then write a proposal in the structure funders reward.
Start with fit, not the search box
It's tempting to Google "grants for nonprofits" and apply to everything. Don't. A funder that gives to youth literacy in Ohio will never fund your food pantry in Mississippi, no matter how good your writing is. Before you search, write down your fit criteria: your geography, your program area, and the grant size that matches your budget. Our guide to finding the right grants walks through exactly how to set these up first so you stop wasting nights on funders who were never going to say yes.
Build your prospect list
Now go find funders who already give to work like yours. Start with our free, verified funder directory, then go deeper in the funder research database, where you can browse grantmaking foundations by state and pull real IRS data on each one. Your goal this month is modest and achievable: a working list of 10 to 15 funders that genuinely match your mission.
Research each funder's 990 for fit
This is the step that separates winners from the pile. A funder's IRS return is public, and it tells you exactly who they funded last year, for how much, and for what. Private foundations file an annual Form 990-PF, which lists every grant they paid; public charities and community foundations file the regular Form 990, where grants appear on Schedule I. Use our grant prospect research guide to read these returns and score each prospect on three signals: geography (do they fund your area?), program (do they fund your kind of work?), and size (are their typical grants in your range?). Drop anyone who doesn't fit on all three. A short list of strong matches beats a long list of long shots every time.
Why the 990 is your best friend
A funder's own return tells you the truth, in their own numbers, before you spend a minute writing. If your organization is similar in mission and size to grantees already on their list, you've found a real prospect. If you're nothing like anyone they fund, that's your signal to move on — kindly, and quickly.
Write the proposal funders reward
Once you have a fit, write to the structure funders expect. Our step-by-step proposal guide lays out the flow: confirm fit, then a tight need statement (your strongest paragraph), measurable goals and objectives, your methods, an honest evaluation plan, and finally the budget. Don't bury your need in backstory — open with the problem your community faces, backed by your own real numbers, and make the reader feel why it matters now.
Don't shortchange your budget
First-timers often ask only for program costs and forget the rent, insurance, and bookkeeping that keep the lights on. Those are real, fundable costs. If you don't have a negotiated rate, you can claim the 15% de minimis indirect cost rate — a flat percentage of your modified total direct costs that you're entitled to use without special approval. Our indirect cost calculator (15% de minimis) does the math so your budget covers what it actually costs to do the work.
A quieter, steadier source of funding
Grants are powerful, but they're cyclical and competitive. Pair them with recurring everyday support: Good Circles is free for nonprofits, and when your supporters shop, they save about 10% while 10% of merchant net profit comes to you — roughly $72 per active supporter per year (an estimate). It launches Mississippi-first in September 2026, so you can add your nonprofit now and have your community ready on day one.
This month's actions
- Write down your fit criteria — geography, program area, and grant size — before you search.
- Build a list of 10–15 well-matched funders using the funder directory and research database.
- Read each prospect's IRS return (Form 990-PF for private foundations, Form 990 Schedule I for public-charity funders) and score it on geography, program, and grant size; drop the misfits.
- Draft one proposal in the funder-rewarded structure: need, goals, methods, evaluation, budget.
- Build your budget with the 15% de minimis indirect cost calculator so it covers your real costs.
Free resources for this lesson
- How to find the right grants
- Funder directory (free & verified)
- Funder research database
- Grant prospect research & fit scoring
- How to write a grant proposal
- Indirect cost calculator (15% de minimis)
Not enrolled yet?
Get every lesson by email, one focused step a month. Enroll free →