Grant Vocabulary and Frequently Asked Questions

New to grant writing, or just need a refresher? Here's a quick reference for the terms and questions that come up most often.

First, some vocabulary:

  • An LOI is a brief introduction to your organization and/or program. This can be the first step of a formal, multi-step application process, or a way to gauge funder interest before diving into a full proposal. 

  • A full proposal is what most people picture when they think of a grant application: a detailed submission covering your organization, programs, impact, and goals. Depending on the funder, it may be the only step in the process, or the final step following an LOI. 

  • Restricted funds must be used for a specific purpose, defined by the funder. Restrictions can be loose, such as intended for a specific program but with some flexibility over expenses. Others are highly specific, limited to particular line items. Unrestricted funds, also called general operating support, can be used for any organizational expense. 

  • Capital funding supports one-time, durable investments such as construction, renovations, or vehicle and equipment purchases.

That covers the core vocabulary you're likely to encounter in grant writing. Now, here are the questions I hear most often from organizations getting started in grant writing:

Should I apply if I don’t meet the grant funder’s criteria?

Some funders list criteria as firm requirements, and others treat them as general guidelines. If you’re not sure, it’s a great idea to reach out to the funder in advance and ask. If they don't accept that kind of outreach, use your judgment. Consider how close you are to meeting the criteria, how complex the application is, and how competitive you think it will be.

How long should a grant proposal be? 

If the funder provides guidance for word, character, or page count, follow it exactly. If they don’t, a general rule of thumb is two pages for an LOI and four pages for a full proposal.

What should I include in a proposal if the funder doesn’t provide guidelines?

These are the core sections to include, though you can always add more if you have something especially compelling to share. 
  • Organization history 
  • Mission and purpose 
  • Description of each program 
  • Statement of need 
  • Description of population served 
  • Goals and objectives, and how impact is measured 
For more information on how to answer these questions, see Grant Boilerplate Language.

How do I find funders that might be a fit for my organization?

  • Your organization's vendors
  • Local “heavy hitters” (banks and credit unions are often key players)
  • Employers of board members or volunteers
  • Personal and professional networks
  • Referrals from colleagues

Online databases such as Instrumentl, Candid, and GrantStation are good starting points for prospect research. Each has its pros and cons (more on that here). You can also look at who funds organizations similar to yours in size, scale, population served, programs, and geographic area. Other potential leads can include:

What should I do if a funder says they don’t accept unsolicited proposals? 

In most cases, these won’t be strong prospects, even if they fund work similar to yours. When researching prospects like this, it’s helpful to prioritize those where you have the strongest potential for connection and keep expectations realistic.

A good first step is to see whether you have a shared connection, such as a board member or colleague who can make an introduction. Sometimes funders specify that they don’t accept unsolicited full proposals but will accept LOIs. In those cases, submitting an LOI is appropriate. If the guidelines are unclear, you can consider sending a brief introductory email or making a short call, unless they explicitly say not to.

What should I do if my proposal is rejected? 

If a funder allows it, consider reaching out to ask for feedback. You might explain that you’re working to strengthen your grant proposals and would appreciate any insights they can share. You can ask whether anything was unclear, how decisions were made, and whether it would be worthwhile to reapply in the future. Not all funders will respond, but when they do, the feedback can be very helpful.

How do I build relationships with funders? 

  • Attending workshops and webinars
  • Reaching out to introduce yourself and request a meeting
  • Adding funders to your mailing list
  • Inviting them to events
  • Asking for advice before applying and feedback afterward
  • Thanking them whether you receive funding or not
  • Maintaining a few touchpoints each year (email, phone, events, etc.)
  • Sharing updates or reports, even if not required
Organizations are significantly more likely to receive funding when they have an existing relationship. Ways to build and maintain relationships with current and prospective funders include:

What should be included in a grant application budget? 

If the funder provides a budget template, use it. A strong budget should be easy for a general reader to understand, and ideally, someone should be able to grasp the program just by reviewing it. Aim for around 10 line items each for income and expenses. This isn’t a hard-and-fast rule, but most funders don’t need highly detailed budgets unless they specifically ask for them. For better or worse, some funders are hesitant to cover administrative or operational costs. If your program budget includes items that may sound administrative, be sure to clearly explain them in programmatic terms (for example, “printing and mailing family outreach materials” instead of just “printing and postage”).

What’s missing from this list?

I want this to be as useful as possible. If you have other grant-related questions you’d like to see answered, please submit them via the contact form below.