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Unmesh Sheth10/8/23 4:38 PM4 min read

How to write a grant proposal for nonprofit? - Differentiate!

Nonprofits often struggle with the pressing issue of insufficient funds, which can hinder their ability to create meaningful societal change. This article provides practical steps to increase your chances of success in securing grants. We will reveal the secret formula for crafting a compelling "social impact statement" to help you prioritize critical activities. The key is to differentiate your organization from others and focus on defining metrics. While collecting quantitative data can be challenging, we recommend an innovative approach that combines qualitative and quantitative AI-based analytics.

Let's embark on a step-by-step journey to overcome this challenge.

Start with a Social Impact Statement

One of the primary challenges for nonprofits is articulating their goals and needs. Communicating a clear problem statement, success criteria, testimonials, accomplishments, and funding requirements is essential.

Consider this template to design your problem statement:

Social Impact Statement Syntext


To illustrate this point, let's consider a hypothetical nonprofit organization dedicated to improving employment opportunities. One of the challenges they face is the presence of numerous for-profit companies that can showcase better financial and operational outcomes. However, this nonprofit's unique value proposition focuses on supporting marginalized communities. The question arises: How can they gather the appropriate evidence of their impact and effectively communicate it? Let's begin by crafting a clear problem statement based on the aforementioned framework to gain a deeper understanding.

Girls Code Reporting Requirement

Problem Statement: Human trafficking is a significant issue for young girls aged 15 to 17, primarily due to limited opportunities for quality education. This vulnerability increases their risk of trafficking, emphasizing the necessity for better educational and employment opportunities.

Social Impact Statement Example

Secret to success - Outcome

A strategic shift towards an outcome-based approach can be instrumental. This strategy not only illustrates the tangible impact of a program but also serves as a magnet for more grants and donations.

Your funding request should be both clear and concise. Grounded in your problem statement, craft a Theory of Change or Logic Model. Tools like the Impact Strategy builder can assist in this endeavor. This tool, developed by my team and me, embodies the above principles.

For the aforementioned problem statement, consider these programs:

Educational Empowerment Program:  

Girls Code offers a foundational program that equips girls with the necessary job skills for the local industry. But how does Girls Code provide evidence of girls enrolled in their learning management system (LMS)? Additionally, they track the progress of these girls three months after completing the course to determine if they have secured decent jobs. These indicators make it easier to measure the program's success.

Education Outcome  Example

Skills Training and Job Placement Initiative

The "Skills Training and Job Placement Initiative" is a potent catalyst for change, not just in the lives of the girls it directly impacts but for the community. By contributing $750, you unlock a realm of possibilities for one girl, furnishing her with vocational training followed by job placement assistance. This initiative is more than just a short-term solution; it's a long-term investment in her safety and financial independence.

The ripple effect of this empowerment transcends the individual, contributing to a cycle of prosperity that can redefine the community's economic landscape. Each girl trained and placed in a job is a step towards breaking the shackles of poverty and gender inequality, propelling a wave of sustainable development.

Job Training Outcome

Community Awareness Campaign

The "Community Awareness Campaign" educates individuals about human trafficking, fostering a vigilant community that protects young girls. This initiative diminishes trafficking incidents, creating a safer environment. It aims to eradicate human trafficking and ensure the safety of young girls.

So, how do we create an effective pitch?
Community Outcome

Once you have crafted your pitch, it is crucial to back it up with ongoing data collection to track all program data, including qualitative and quantitative feedback from stakeholders. Continuously collecting data and effectively communicating results builds a long-term relationship with donors and reduces the risk of donor drop-off, which can be detrimental to a nonprofit's finances.

Engaging Donors Effectively

Maintaining donor engagement is crucial. Nonprofits can ensure sustained funding by presenting a well-defined problem statement, program proposals, and compelling narratives.

The Administrative Overhead Conundrum

High administrative costs can deter donors. It's imperative to convince backers of your commitment to continuous improvement, empowering stakeholders, and reducing donor dependency.

Integrating technology and rallying volunteer support can significantly reduce administrative costs, making your mission more attractive to potential donors.

Communicating Unique Value

Your unique value proposition (UVP) can make or break your grant proposal. For instance, the UVP for "Girls Code" emphasizes educating communities about human trafficking and safeguarding young girls.

Qualitative Analytics


Communicate impact 

Effective communication with stakeholders is essential for maximizing fundraising efforts. However, achieving success in grant raising goes beyond simply providing annual reports, impact reports, or dashboards. It also extends beyond social media posts. The key to standing out and differentiating yourself lies in focusing on your unique success metrics meticulously collecting and analyzing data through automated AI processes. By doing so, you can effectively communicate the distinct value of your organization compared to others.

Nonprofit Unique Value Proposition

In Conclusion

To secure funding and support, nonprofits should:

  • Craft compelling problem statements.
  • Define clear success metrics.
  • Break down associated costs.
  • Demonstrate genuine commitment to impact-driven growth.

Elevate your mission's impact-driven growth today.

Interested in learning more?  Impact reporting


Unmesh Sheth

32 years of track record In technology companies, innovation, leadership. Deep understanding of bottom-up and top-down data trust challenges in high impact philanthropy and impact investments.