Writing a grant proposal: A five-step guide for nonprofits

Too often, nonprofits are left guessing what makes a proposal resonate with donors. So, we went straight to the source—grantmakers from foundations and CSR teams—to find out what makes them say yes.  

At ATE Chandra Foundation, we focus on two factors that we believe determine the success of a programme or an organisation. 

• Leadership: We believe that strong leaders build resilient organisations that create transformational impact. When assessing an organisation, we also evaluate the leadership team guiding the programme. We do this by examining their history of delivery, consistency of performance, and their thought leadership—that is, how they have contributed to shaping the narrative around the issue they tackle.  
• Long-term vision: We encourage organisations to approach us with a programme strategy that spans at least three years. Complex social problems cannot be solved in a short time period, and it is important for us to see that the organisation is committed to achieving outcomes over an extended period. 

While each funder has their own selection process, what they look for is not remarkably different. In light of this, we have collated a checklist of essential elements for all proposals.  

Here are five fundamental components that every proposal should have.

1. The introduction: Establish alignment

A ‘cold’ proposal or pitch that does not reflect the donor’s interests and inclinations runs the risk of being cast aside. At the same time, over-tailoring a proposal to match a funder’s vision also poses the danger of derailing from one’s own mission. Many organisations fall into the trap of reshaping not only their proposal, but the project itself, to suit what donors would like to see.  

In most cases, a good donor will want you to stick to your mission, and this kind of deviation is likely to diminish their interest, and consequently, funding. So, what does striking the right balance look like? Most funders will have specific areas of interest. Typically, they will also have a demographic or geographic focus. Therefore, the first and foremost step is to know your donor before approaching them. Since they are potentially going to be a stakeholder in your project, it is useful to research: 

• the causes are they interested in 
• the change they would like to support 
• where they work and who they typically work with  

Most of this information can be gathered through research on social media or by speaking to those familiar with the donor’s work.  The focus should be on showcasing how your project outcomes align with the impact the funder is seeking. The most efficient way to do this is by identifying overlaps between your mission and theirs and then finding a way to spotlight these similarities. 

2. Frame the problem

A well-defined and clearly articulated problem statement is half the battle won. It communicates your perspective, priorities, and approach, setting the tone for the solutions you will propose. In any proposal or pitch, the problem should be outlined at the beginning. The most effective proposals are those that define the problem and substantiate it with relevant, up-to-date data and research, whether primary or secondary.  

What sets successful proposals apart is their ability to situate the problem in the broader system and pointing to the specific aspects that their solution aims to cover. That particular problem may be vast and interconnected, with multiple potential ways of being addressed. Therefore, your solution should express your underlying philosophy and strategic direction. A sharp problem statement does three things: 

1. It establishes the ‘why’ for your proposed solution. 
2. It instils confidence in the donor that you have a thorough understanding of the issue and its underlying causes.   
3. It sets the stage for the crux of your proposal—the actionable steps through which you propose to address the problem.

3. Outline the solution, outcomes, and measurement

The step-by-step details of how the problem can be addressed should be at the core of your proposal. One of the best ways to present the solution is by breaking it down into two questions: ‘What will you do?’ and ‘What shifts will it lead to?’ This provides a clear link between your planned activities and your mission. Here are three guiding points to establish this link.

1. Help an outsider understand the process by outlining what your organisation will do. 
2. Highlight the immediate results of your intervention. 
3. Link these results to your larger mission. 

Many donors tend to have templates that help structure activities, outputs, and outcomes. Sticking to the template is not as important as displaying your understanding of these points. 

But how will you—or anyone else—know if your intervention is successful? Measurement of success is not just for the donor; it is an important element of programme design. Frequent measurement of indicators helps understand whether the programme is on track, if the results are as per the programme design, and the extent to which the programme has been successful in achieving desired outcomes.  

Programme success can be conveyed through both quantitative and qualitative data. Here, it is important to refer to step one again. What kind of data does your donor like to see? Do they like to see stories or numerical evidence? This can also be gauged through social media, your networks, or reaching out to those who have previously worked with them. Our recommendation is to find a balance between stories and hard data. Stories help make the data tangible. It is also important to communicate to the donor that one story is also representative of the majority. For instance, is the story of the girl who is re-enrolled in school as a result of a school retention programme and has achieved grade-appropriate foundational literacy and numeracy the story of 80 percent of students who underwent the same intervention?

4. Limitations, risks, and mitigation

Just as it is important to communicate what your organisation can achieve, it is also important to communicate what it cannot, and risks could affect the programme. This instils confidence in the donor about your ability to think proactively and holistically about externalities. It also demonstrated that you will try your best to mitigate certain risks that might affect the achievement of desired outcomes.  

In this regard, three questions you must address are: 

1. What are the focus areas or gaps that the organisation will not be able to cover? 
2. Which external factors will affect regularity of activities or programme outcomes, and how will you ensure that they are mitigated or managed? 
3. What is the contingency plan if the organisation receives only partial amount in funding? 

This articulation also assures the donor that you understand the cause and the community deeply and are ready to incorporate potential solutions to address factors affecting the programme.

5. The conclusion: Bring the story together through the budget

A proposal is often not written by the team that formulates the budget attached within it. This results in the proposal presenting two different stories: one told by the narrative and another by the budget.  

It is important to ensure that the budget reflects the same story presented throughout your proposal. Some donors may provide a template, while others may leave it to you. In either situation, your budget should have notes and justifications for each line item. Nonprofits often hesitate to mention all their needs in a proposal due to the fear that donors might question or reject certain expenses. As a result, they tend to omit less visible—but critical—costs, which ultimately affects the cohesiveness and effectiveness of the proposal. Therefore, having all the line items in a budget also acts as a way of sensitising the donor to the actual costs of what it takes to implement a programme and achieve the desired results.  

Here are three things you can do to ensure one story:

1. When writing the proposal, include the people who design, implement, and measure the programme’s success and those who are part of the reporting team. Ideally, including a percentage of the fundraising costs as part of the programme will help the audience understand and look at a proposal holistically. 
2. Clarify what percent of the total programme cost you are asking them for so that they have an idea about the value of their contribution.
3. Mention other stakeholders supporting the initiative, as the donor may want to know who else has bought into your vision. 

A compelling proposal is more than just a well-written document—it’s a reflection of your organisation’s conviction and commitment to long-term impact. By grounding your proposal in strong leadership, a clear vision, and an understanding of your donor’s priorities, you not only increase your chances of securing funding but also build a foundation for a meaningful, long-term partnership. 

Abhishek Das, Janvi G Kanakia, Sweety Thomas, Niharika Nautiyal, and Sharmista Chaudhury contributed to this article.

Disclaimer: IDR is funded by ATE Chandra Foundation.

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Know more

• Read this fundraising guide for nonprofits. 
• Learn more about the basics of building a retail fundraising model.