Every charitable organization should have a person on their payroll who understands how to write a fundraising proposal. It is one of those prerequisites that you cannot circumvent if you want your NPO to be successful.
In a nutshell, a fundraising proposal is a document that a nonprofit organization prepares in order to get funding from a given company, institute, or (in certain cases) individuals.
It serves as an in-depth look into:
A good fundraising proposal is articulate, well-written, and clearly structured. It is well researched and concise and features all the necessary supporting documentation and addendums.
It also meets donor guidelines and specifications when setting out goals and objectives, and shows that the NPO has the capacity to bring a given project to fruition.
Your letter of request is the cover letter of your proposal. It should summarize what your NPO is about, what problem you face/goal you want to achieve, as well as the type of support you require.
Remember, this may very well be the only part of your proposal that a prospective donor will read before it goes into the YAE or NAY pile. As such, it has to be very well written, and make for a compelling read.
Your title page should share all the relevant business information of your NPO. This includes your official registered name, business postal address, names and contact info of key personnel, telephone and fax numbers, your registration number, tax status, etc.
This is normally followed by a table of contents that stipulates what else is included in the fundraising proposal.
TOP TIP: Always include page numbers and make very sure to check that those are correct before you hit ‘print’!
Where the letter of request is akin to an elevator speech, your executive summary is akin to a quick coffee date. It should summarize your project proposal in a way that gets your reader excited about the idea.
However, it should also still tick all the “must-have information” boxes. Take the time to craft this very well (ideally with the help of a business writer).
Next up, you need to introduce your organization in a way that makes a prospective benefactor understand why they should support you. Break it down into:
This is the part where you explain what issues your NPO is trying to address, and how the reader of the proposal can help you do so. Structure it in a way that gets to the crux of the issue quickly.
For instance: Charity XYZ offers shelter for abused women and children. Since we are now serving upwards of 400 individuals per month, our current premises have become too small and we have to turn vulnerable women and children away.
Your next step should show what you plan to do about the need you described previously. We want to expand by adding another wing to our building. This should include your goals, i.e. expected outcomes, and how you plan to make it happen, i.e. your objectives.
For instance: Charity XYZ wants to expand our current premises in order to accommodate an additional 150 individuals at any given time. In order to do so, we have to expand by adding another wing to our building. As such, we require a monetary donation of $1.5 million. This will allow us to complete the building process within 6 months.
If your company is able to support us in doing so, the wing will be named after you. Additionally, a full campaign will be run to promote your support of our cause. A detailed timeline of the building plans is presented with this proposal. We have already secured the pro bono services of an architect, and discounted rates from an approved building vendor.
To ensure that your NPO reaches its goals and objectives, a monitoring and evaluation system should be in place from the get-go.
Provide a list of people who will be involved in this process. Naturally, they need to be impartial and uninvolved with your NPO. Advisory boards are the norm. These groups monitor and guide a project from inception to completion.
Explain how you will report to your funders and show financial accountability on a regular basis. This will indicate that you are ready to be transparent in your use of any funds they may provide.
Break down the big number you presented initially by showing where their money will go and how you arrived at that sum. Ideally, share official quotations on any big-ticket items.
You should also indicate which goods and services can be met in-kind. Remember to include operational costs and salaries.
Summarize your goals and objectives and the importance of your projects. Reiterate why your NPO is the best organization to address a given need and how the donor stands to benefit.
This includes reference letters and letters of support, annual financial statements, formal evaluations of completed projects, official quotes, etc.
Add this to the cover of your proposal to show prospective donors that the document is complete, and you are not wasting their time.
Knowing how to write a fundraising proposal will set your nonprofit on the road to success. Follow the guide above and include all the different sections mentioned and you will end up with a comprehensive proposal that is bound to impress!
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