difference between a business plan and a grant proposal

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Business Plan vs. Business Proposal

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023 Updated on December 11, 2023

A business plan and a business proposal are similar documents. In fact, in some cases the terms can be used interchangeably, such as when both aim to attract investment. 

But generally speaking, a business proposal tends to have broader scope, and this handy guide lays out precisely how these two common terms differ. 

• What is a Business Plan?

A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand. 

Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

Components of a Business Plan

A business plan is generally much more detailed and broader than a business proposal, and has several elements :

• Executive Summary  
• Company Description/Overview
• Products or Services Offered 
• Market Analysis 
• Marketing and Sales Strategies
• Operations and Management  
• Financial Plan
• What is a Business Proposal?

A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.

But a business proposal could also be for others purposes, including:

• Bringing on a partner
• Proposing a management contract to a person you want to hire 
• Proposing a business relationship with a potential customer 
• Proposing a partnership with another company
• Suggesting a deal to a member of your board of directors

A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way. 

Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.

Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure. 

Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success. 

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Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

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Grant Proposals (or Give me the money!)

What this handout is about.

This handout will help you write and revise grant proposals for research funding in all academic disciplines (sciences, social sciences, humanities, and the arts). It’s targeted primarily to graduate students and faculty, although it will also be helpful to undergraduate students who are seeking funding for research (e.g. for a senior thesis).

The grant writing process

A grant proposal or application is a document or set of documents that is submitted to an organization with the explicit intent of securing funding for a research project. Grant writing varies widely across the disciplines, and research intended for epistemological purposes (philosophy or the arts) rests on very different assumptions than research intended for practical applications (medicine or social policy research). Nonetheless, this handout attempts to provide a general introduction to grant writing across the disciplines.

Before you begin writing your proposal, you need to know what kind of research you will be doing and why. You may have a topic or experiment in mind, but taking the time to define what your ultimate purpose is can be essential to convincing others to fund that project. Although some scholars in the humanities and arts may not have thought about their projects in terms of research design, hypotheses, research questions, or results, reviewers and funding agencies expect you to frame your project in these terms. You may also find that thinking about your project in these terms reveals new aspects of it to you.

Writing successful grant applications is a long process that begins with an idea. Although many people think of grant writing as a linear process (from idea to proposal to award), it is a circular process. Many people start by defining their research question or questions. What knowledge or information will be gained as a direct result of your project? Why is undertaking your research important in a broader sense? You will need to explicitly communicate this purpose to the committee reviewing your application. This is easier when you know what you plan to achieve before you begin the writing process.

Diagram 1 below provides an overview of the grant writing process and may help you plan your proposal development.

Applicants must write grant proposals, submit them, receive notice of acceptance or rejection, and then revise their proposals. Unsuccessful grant applicants must revise and resubmit their proposals during the next funding cycle. Successful grant applications and the resulting research lead to ideas for further research and new grant proposals.

Cultivating an ongoing, positive relationship with funding agencies may lead to additional grants down the road. Thus, make sure you file progress reports and final reports in a timely and professional manner. Although some successful grant applicants may fear that funding agencies will reject future proposals because they’ve already received “enough” funding, the truth is that money follows money. Individuals or projects awarded grants in the past are more competitive and thus more likely to receive funding in the future.

Some general tips

• Begin early.
• Apply early and often.
• Don’t forget to include a cover letter with your application.
• Answer all questions. (Pre-empt all unstated questions.)
• If rejected, revise your proposal and apply again.
• Give them what they want. Follow the application guidelines exactly.
• Be explicit and specific.
• Be realistic in designing the project.
• Make explicit the connections between your research questions and objectives, your objectives and methods, your methods and results, and your results and dissemination plan.
• Follow the application guidelines exactly. (We have repeated this tip because it is very, very important.)

Before you start writing

Identify your needs and focus.

First, identify your needs. Answering the following questions may help you:

• Are you undertaking preliminary or pilot research in order to develop a full-blown research agenda?
• Are you seeking funding for dissertation research? Pre-dissertation research? Postdoctoral research? Archival research? Experimental research? Fieldwork?
• Are you seeking a stipend so that you can write a dissertation or book? Polish a manuscript?
• Do you want a fellowship in residence at an institution that will offer some programmatic support or other resources to enhance your project?
• Do you want funding for a large research project that will last for several years and involve multiple staff members?

Next, think about the focus of your research/project. Answering the following questions may help you narrow it down:

• What is the topic? Why is this topic important?
• What are the research questions that you’re trying to answer? What relevance do your research questions have?
• What are your hypotheses?
• What are your research methods?
• Why is your research/project important? What is its significance?
• Do you plan on using quantitative methods? Qualitative methods? Both?
• Will you be undertaking experimental research? Clinical research?

Once you have identified your needs and focus, you can begin looking for prospective grants and funding agencies.

Finding prospective grants and funding agencies

Whether your proposal receives funding will rely in large part on whether your purpose and goals closely match the priorities of granting agencies. Locating possible grantors is a time consuming task, but in the long run it will yield the greatest benefits. Even if you have the most appealing research proposal in the world, if you don’t send it to the right institutions, then you’re unlikely to receive funding.

There are many sources of information about granting agencies and grant programs. Most universities and many schools within universities have Offices of Research, whose primary purpose is to support faculty and students in grant-seeking endeavors. These offices usually have libraries or resource centers to help people find prospective grants.

At UNC, the Research at Carolina office coordinates research support.

The Funding Information Portal offers a collection of databases and proposal development guidance.

The UNC School of Medicine and School of Public Health each have their own Office of Research.

Writing your proposal

The majority of grant programs recruit academic reviewers with knowledge of the disciplines and/or program areas of the grant. Thus, when writing your grant proposals, assume that you are addressing a colleague who is knowledgeable in the general area, but who does not necessarily know the details about your research questions.

Remember that most readers are lazy and will not respond well to a poorly organized, poorly written, or confusing proposal. Be sure to give readers what they want. Follow all the guidelines for the particular grant you are applying for. This may require you to reframe your project in a different light or language. Reframing your project to fit a specific grant’s requirements is a legitimate and necessary part of the process unless it will fundamentally change your project’s goals or outcomes.

Final decisions about which proposals are funded often come down to whether the proposal convinces the reviewer that the research project is well planned and feasible and whether the investigators are well qualified to execute it. Throughout the proposal, be as explicit as possible. Predict the questions that the reviewer may have and answer them. Przeworski and Salomon (1995) note that reviewers read with three questions in mind:

• What are we going to learn as a result of the proposed project that we do not know now? (goals, aims, and outcomes)
• Why is it worth knowing? (significance)
• How will we know that the conclusions are valid? (criteria for success) (2)

Be sure to answer these questions in your proposal. Keep in mind that reviewers may not read every word of your proposal. Your reviewer may only read the abstract, the sections on research design and methodology, the vitae, and the budget. Make these sections as clear and straightforward as possible.

The way you write your grant will tell the reviewers a lot about you (Reif-Lehrer 82). From reading your proposal, the reviewers will form an idea of who you are as a scholar, a researcher, and a person. They will decide whether you are creative, logical, analytical, up-to-date in the relevant literature of the field, and, most importantly, capable of executing the proposed project. Allow your discipline and its conventions to determine the general style of your writing, but allow your own voice and personality to come through. Be sure to clarify your project’s theoretical orientation.

Develop a general proposal and budget

Because most proposal writers seek funding from several different agencies or granting programs, it is a good idea to begin by developing a general grant proposal and budget. This general proposal is sometimes called a “white paper.” Your general proposal should explain your project to a general academic audience. Before you submit proposals to different grant programs, you will tailor a specific proposal to their guidelines and priorities.

Organizing your proposal

Although each funding agency will have its own (usually very specific) requirements, there are several elements of a proposal that are fairly standard, and they often come in the following order:

• Introduction (statement of the problem, purpose of research or goals, and significance of research)

Literature review

• Project narrative (methods, procedures, objectives, outcomes or deliverables, evaluation, and dissemination)
• Budget and budget justification

Format the proposal so that it is easy to read. Use headings to break the proposal up into sections. If it is long, include a table of contents with page numbers.

The title page usually includes a brief yet explicit title for the research project, the names of the principal investigator(s), the institutional affiliation of the applicants (the department and university), name and address of the granting agency, project dates, amount of funding requested, and signatures of university personnel authorizing the proposal (when necessary). Most funding agencies have specific requirements for the title page; make sure to follow them.

The abstract provides readers with their first impression of your project. To remind themselves of your proposal, readers may glance at your abstract when making their final recommendations, so it may also serve as their last impression of your project. The abstract should explain the key elements of your research project in the future tense. Most abstracts state: (1) the general purpose, (2) specific goals, (3) research design, (4) methods, and (5) significance (contribution and rationale). Be as explicit as possible in your abstract. Use statements such as, “The objective of this study is to …”

Introduction

The introduction should cover the key elements of your proposal, including a statement of the problem, the purpose of research, research goals or objectives, and significance of the research. The statement of problem should provide a background and rationale for the project and establish the need and relevance of the research. How is your project different from previous research on the same topic? Will you be using new methodologies or covering new theoretical territory? The research goals or objectives should identify the anticipated outcomes of the research and should match up to the needs identified in the statement of problem. List only the principle goal(s) or objective(s) of your research and save sub-objectives for the project narrative.

Many proposals require a literature review. Reviewers want to know whether you’ve done the necessary preliminary research to undertake your project. Literature reviews should be selective and critical, not exhaustive. Reviewers want to see your evaluation of pertinent works. For more information, see our handout on literature reviews .

Project narrative

The project narrative provides the meat of your proposal and may require several subsections. The project narrative should supply all the details of the project, including a detailed statement of problem, research objectives or goals, hypotheses, methods, procedures, outcomes or deliverables, and evaluation and dissemination of the research.

For the project narrative, pre-empt and/or answer all of the reviewers’ questions. Don’t leave them wondering about anything. For example, if you propose to conduct unstructured interviews with open-ended questions, be sure you’ve explained why this methodology is best suited to the specific research questions in your proposal. Or, if you’re using item response theory rather than classical test theory to verify the validity of your survey instrument, explain the advantages of this innovative methodology. Or, if you need to travel to Valdez, Alaska to access historical archives at the Valdez Museum, make it clear what documents you hope to find and why they are relevant to your historical novel on the ’98ers in the Alaskan Gold Rush.

Clearly and explicitly state the connections between your research objectives, research questions, hypotheses, methodologies, and outcomes. As the requirements for a strong project narrative vary widely by discipline, consult a discipline-specific guide to grant writing for some additional advice.

Explain staffing requirements in detail and make sure that staffing makes sense. Be very explicit about the skill sets of the personnel already in place (you will probably include their Curriculum Vitae as part of the proposal). Explain the necessary skill sets and functions of personnel you will recruit. To minimize expenses, phase out personnel who are not relevant to later phases of a project.

The budget spells out project costs and usually consists of a spreadsheet or table with the budget detailed as line items and a budget narrative (also known as a budget justification) that explains the various expenses. Even when proposal guidelines do not specifically mention a narrative, be sure to include a one or two page explanation of the budget. To see a sample budget, turn to Example #1 at the end of this handout.

Consider including an exhaustive budget for your project, even if it exceeds the normal grant size of a particular funding organization. Simply make it clear that you are seeking additional funding from other sources. This technique will make it easier for you to combine awards down the road should you have the good fortune of receiving multiple grants.

Make sure that all budget items meet the funding agency’s requirements. For example, all U.S. government agencies have strict requirements for airline travel. Be sure the cost of the airline travel in your budget meets their requirements. If a line item falls outside an agency’s requirements (e.g. some organizations will not cover equipment purchases or other capital expenses), explain in the budget justification that other grant sources will pay for the item.

Many universities require that indirect costs (overhead) be added to grants that they administer. Check with the appropriate offices to find out what the standard (or required) rates are for overhead. Pass a draft budget by the university officer in charge of grant administration for assistance with indirect costs and costs not directly associated with research (e.g. facilities use charges).

Furthermore, make sure you factor in the estimated taxes applicable for your case. Depending on the categories of expenses and your particular circumstances (whether you are a foreign national, for example), estimated tax rates may differ. You can consult respective departmental staff or university services, as well as professional tax assistants. For information on taxes on scholarships and fellowships, see https://cashier.unc.edu/student-tax-information/scholarships-fellowships/ .

Explain the timeframe for the research project in some detail. When will you begin and complete each step? It may be helpful to reviewers if you present a visual version of your timeline. For less complicated research, a table summarizing the timeline for the project will help reviewers understand and evaluate the planning and feasibility. See Example #2 at the end of this handout.

For multi-year research proposals with numerous procedures and a large staff, a time line diagram can help clarify the feasibility and planning of the study. See Example #3 at the end of this handout.

Revising your proposal

Strong grant proposals take a long time to develop. Start the process early and leave time to get feedback from several readers on different drafts. Seek out a variety of readers, both specialists in your research area and non-specialist colleagues. You may also want to request assistance from knowledgeable readers on specific areas of your proposal. For example, you may want to schedule a meeting with a statistician to help revise your methodology section. Don’t hesitate to seek out specialized assistance from the relevant research offices on your campus. At UNC, the Odum Institute provides a variety of services to graduate students and faculty in the social sciences.

In your revision and editing, ask your readers to give careful consideration to whether you’ve made explicit the connections between your research objectives and methodology. Here are some example questions:

• Have you presented a compelling case?
• Have you made your hypotheses explicit?
• Does your project seem feasible? Is it overly ambitious? Does it have other weaknesses?
• Have you stated the means that grantors can use to evaluate the success of your project after you’ve executed it?

If a granting agency lists particular criteria used for rating and evaluating proposals, be sure to share these with your own reviewers.

Example #1. Sample Budget

Jet travel $6,100 This estimate is based on the commercial high season rate for jet economy travel on Sabena Belgian Airlines. No U.S. carriers fly to Kigali, Rwanda. Sabena has student fare tickets available which will be significantly less expensive (approximately $2,000).

Maintenance allowance $22,788 Based on the Fulbright-Hays Maintenance Allowances published in the grant application guide.

Research assistant/translator $4,800 The research assistant/translator will be a native (and primary) speaker of Kinya-rwanda with at least a four-year university degree. They will accompany the primary investigator during life history interviews to provide assistance in comprehension. In addition, they will provide commentary, explanations, and observations to facilitate the primary investigator’s participant observation. During the first phase of the project in Kigali, the research assistant will work forty hours a week and occasional overtime as needed. During phases two and three in rural Rwanda, the assistant will stay with the investigator overnight in the field when necessary. The salary of $400 per month is based on the average pay rate for individuals with similar qualifications working for international NGO’s in Rwanda.

Transportation within country, phase one $1,200 The primary investigator and research assistant will need regular transportation within Kigali by bus and taxi. The average taxi fare in Kigali is $6-8 and bus fare is $.15. This figure is based on an average of $10 per day in transportation costs during the first project phase.

Transportation within country, phases two and three $12,000 Project personnel will also require regular transportation between rural field sites. If it is not possible to remain overnight, daily trips will be necessary. The average rental rate for a 4×4 vehicle in Rwanda is $130 per day. This estimate is based on an average of $50 per day in transportation costs for the second and third project phases. These costs could be reduced if an arrangement could be made with either a government ministry or international aid agency for transportation assistance.

Email $720 The rate for email service from RwandaTel (the only service provider in Rwanda) is $60 per month. Email access is vital for receiving news reports on Rwanda and the region as well as for staying in contact with dissertation committee members and advisors in the United States.

Audiocassette tapes $400 Audiocassette tapes will be necessary for recording life history interviews, musical performances, community events, story telling, and other pertinent data.

Photographic & slide film $100 Photographic and slide film will be necessary to document visual data such as landscape, environment, marriages, funerals, community events, etc.

Laptop computer $2,895 A laptop computer will be necessary for recording observations, thoughts, and analysis during research project. Price listed is a special offer to UNC students through the Carolina Computing Initiative.

NUD*IST 4.0 software $373.00 NUD*IST, “Nonnumerical, Unstructured Data, Indexing, Searching, and Theorizing,” is necessary for cataloging, indexing, and managing field notes both during and following the field research phase. The program will assist in cataloging themes that emerge during the life history interviews.

Administrative fee $100 Fee set by Fulbright-Hays for the sponsoring institution.

Example #2: Project Timeline in Table Format

Example #3: Project Timeline in Chart Format

Some closing advice

Some of us may feel ashamed or embarrassed about asking for money or promoting ourselves. Often, these feelings have more to do with our own insecurities than with problems in the tone or style of our writing. If you’re having trouble because of these types of hang-ups, the most important thing to keep in mind is that it never hurts to ask. If you never ask for the money, they’ll never give you the money. Besides, the worst thing they can do is say no.

UNC resources for proposal writing

Research at Carolina http://research.unc.edu

The Odum Institute for Research in the Social Sciences https://odum.unc.edu/

UNC Medical School Office of Research https://www.med.unc.edu/oor

UNC School of Public Health Office of Research http://www.sph.unc.edu/research/

Works consulted

We consulted these works while writing this handout. This is not a comprehensive list of resources on the handout’s topic, and we encourage you to do your own research to find additional publications. Please do not use this list as a model for the format of your own reference list, as it may not match the citation style you are using. For guidance on formatting citations, please see the UNC Libraries citation tutorial . We revise these tips periodically and welcome feedback.

Holloway, Brian R. 2003. Proposal Writing Across the Disciplines. Upper Saddle River, New Jersey: Prentice Hall.

Levine, S. Joseph. “Guide for Writing a Funding Proposal.” http://www.learnerassociates.net/proposal/ .

Locke, Lawrence F., Waneen Wyrick Spirduso, and Stephen J. Silverman. 2014. Proposals That Work . Thousand Oaks, CA: Sage.

Przeworski, Adam, and Frank Salomon. 2012. “Some Candid Suggestions on the Art of Writing Proposals.” Social Science Research Council. https://s3.amazonaws.com/ssrc-cdn2/art-of-writing-proposals-dsd-e-56b50ef814f12.pdf .

Reif-Lehrer, Liane. 1989. Writing a Successful Grant Application . Boston: Jones and Bartlett Publishers.

Wiggins, Beverly. 2002. “Funding and Proposal Writing for Social Science Faculty and Graduate Student Research.” Chapel Hill: Howard W. Odum Institute for Research in Social Science. 2 Feb. 2004. http://www2.irss.unc.edu/irss/shortcourses/wigginshandouts/granthandout.pdf.

You may reproduce it for non-commercial use if you use the entire handout and attribute the source: The Writing Center, University of North Carolina at Chapel Hill

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Write Your Proposal like a Business Plan

Knowing how to write a business plan can help your grant proposal stand out and increase your chances of acquiring funding. A business plan is a written document that describes in detail how a new business is going to achieve its goals. Similarly, a grant proposal describes in detail how a project’s goal and objectives will be achieved . Grant proposals include many of the same elements as business plans and serve nearly the same purpose. The success of either depends on the information presented, the way they are written, and the brilliance of their approach or methodology. Above all, deliverables are what they have in common. To demonstrate the results, both plans should be SMART: specific, measurable, attainable, realistic and time bound.

Certain important qualities in a business plan make it far more likely to find financial backing. Here are some of those qualities which are equally important for grant proposals as well.

1. It fits the business need

You have to start with whether or not the plan is going to achieve its business purpose. Some plans will sell an idea and a team, others will sell a research plan, and yet others will sell a service that will be undertaken for constituents. A good business plan fits the business need. Equally, your grant proposal should parallel the institutional mission. It should achieve the objectives or the goal in systematic and measurable increments.

2. It’s realistic and can be implemented  

You do not get points for ideas that cannot be implemented. You may have a brilliantly written and excellently researched business plan for a grant. However, if it does not have a management plan or team to manage implementation, it will not get funded. This proposal will not fare well with the donor, and the lack of feasibility may be the fatal flaw that will get it rejected.

3. It’s specific – you can track results against the plan

Measurable objectives are driven by outcomes and can be tracked against your goal. They will keep you on track to achieve your tasks, deadlines, budgets, and evaluation. Good planning requires specifics about who, what, when, and how much. Your plan of operation will include activities, timelines, personnel, outcomes, evaluation, and budgets. In other words, it will be specific and all the pieces will fit together like a puzzle.

4. It clearly defines responsibilities for implementation

You have to be able to identify a single person who will be responsible for every significant task and function. A task that doesn’t have an owner isn’t likely to be implemented. In a good business plan or a grant proposal, you can distinguish a specific person responsible for implementation at every point.

5. It clearly identifies assumptions

Since a proposal and a business plan are both guessing the future, they must clearly show assumptions and discuss alternative plans. Not thinking about the unexpected may lead to failed plans along the way. You will need to identify assumptions and outline alternative paths, in case the original plan does not unfold as initially envisioned. This demonstrates that you have projected into the future and developed plans that will lead to your ultimate goal, which is the effective completion of the project.

6. It’s kept alive by a regular review and follow-up

The evaluation process must be ongoing and measure the effectiveness of the activities at various stages. It has to bring the planning process with it, meaning regular review and course correction. This demonstrates that accountability will take place during all stages of the proposed plan. A large percentage of your success depends on regular review.

A plan that is simple, easy to read, and reflects the above qualities can sell even the most complex research grant ideas. The common denominator for both grant requests and business plans is that they are specific, measurable, achievable, realistic, and time-bound. At the end of your proposal, you should ask the following questions: Is the plan realistic? Is the budget reasonable? Are the milestone dates feasible? If the answers are yes, then you have created a proposal with a sound and cost effective business plan.

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Mathilda Harris

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One thought on “ Write Your Proposal like a Business Plan ”

Hello Ma’am, Will you be willing to guide and lead me (examine the details) in applying to D~PRIZE for a grant? I do not want to be rejected.

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Business Plan vs. Business Proposal

• May 15, 2024

When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?

Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.

Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.

Let’s start by defining them!

What is a business plan?

A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.

Pretty much everything a company will use to achieve its intentions.

Okay! And what about the business proposal?

What is a business proposal?

On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.

It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.

Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.

Business plan vs. business proposal: How are they different?

Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:

Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.

But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.

On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.

Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.

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2. Components and Structure

When you write your business plan , it will typically follow a specific structure containing the following components:

• Executive summary: This summary summarizes your entire business plan, highlighting the most important aspects, such as your company’s mission, financial projections, and vision statement.
• Company description: It reveals your company’s history, mission, value proposition, detailed description of products and services, achievements, and target market.
• Industry or market analysis: This is an analysis of the industry landscape to gain statistics about market needs, size, trends, competitors, and target demographics.
• Marketing plan: This includes different marketing strategies and approaches your company will take to market its products and services. It can be your pricing strategy, sales and distribution plan, and unique selling proposition.
• Operations plan: This component reveals how a company’s operations would look on a day-to-day basis.
• Organizational structure and management team: This section provides an overview of your company’s structure and how its management teams will execute the operations plan effectively.
• Financial projections and goals: This section contains a company’s financial performance, including income, sales goals, cash flow projections, and balance sheets.

Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:

• Cover or title page: To make a first impression. It can contain aesthetic visuals.
• Introduction: To introduce yourself and your company. Also, briefly explain how your product or service will solve a specific problem.
• Statement of the problem or project: To explain your understanding of the customer’s need, its importance in addressing it, and your right-fit, proposed solution.
• Table of contents: To make your data essay accessible.
• Project details: To communicate essential data, including objective, scope, timeline, key stakeholders, disclaimers, cost, and conclusion.
• Agreement with a signature box: To obtain the client’s signature.

3. Audience

A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.

On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:

• Addressing customer needs
• Solving customer problems
• Or seizing opportunities

Do you know how many types of businesses exist today? Two words: Too many!

Now, that implies there are many different types of business plans. But here’s a quick list of the most common types:

• Startup business plan: This plan describes the foundation of a new business with room to adjust as the company grows. It’s given to potential investors to ask for startup funding.
• Internal business plan: In this plan, company leaders communicate business goals, strategy, and performance. The aim is to keep the board and the team in sync regarding business objectives.
• Strategic business plan: This plan documents the framework required to keep long-term goals and company vision intact.
• Growth business plan: Also known as an expansion plan, this plan describes how a company is trying to grow and hence requires greater resources like more employees, funds, materials, etc.

Business proposal types can be broadly divided into two categories:

• Solicited business proposals: In this case, a prospective client requests the informational document from you directly or expects to receive it—implicating their interest in your products or services.
• Unsolicited business proposals: Here, no client requests the documents. Instead, you take the cold email approach and send your unsolicited proposals to people you think are prospective clients or partners.

Business Proposal and Planning Best Practices

It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!

Here’s how to go about it:

• Clearly define your business goals and objectives.
• Make sure you get your audience right. (Business plans and proposals have different audiences, remember?)
• Conduct in depth research and analysis.
• Use pictures along with words, such as visuals and statistics, to support your claims and projections.
• Pay attention to the writing style, structure, and tone depending on your audience and purpose.
• Use software like an AI business plan generator or proposal templates to save time and effort.
• Review and revise regularly.

Start creating effective business plans and proposals using Upmetrics

It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.

While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.

When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.

Build your Business Plan Faster

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Frequently Asked Questions

What is the difference between a business plan and a business idea.

A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.

How many pages is a business proposal?

A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.

What comes first, a business plan or business proposal?

The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.

Do I actually need a business plan?

A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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A Guide to Writing a Small Business Grant Proposal

Last Updated on 

January 19, 2023

While there may be more opportunities for non-profit organizations when it comes to grant funding, grants for small business owners are not rare.

In fact, small businesses received more than $334 billion in total award obligations through the SBA in 2021 , spread across more than 9 million transactions and 7 million new awards. Over $254 million was spent through grants alone. The amount spent on grant awards has risen in 2022 as well, increasing to more than $455 million.

Federal contracts and financial assistance are out there. And that is without mentioning small business research grants and other types of non-governmental contracts and awards.

Grants for small businesses can often be a better option than a loan, as grants do not require repayment of any kind. The caveat? Your goals need to align with the goals of the organization or awarding agency you’re seeking a grant from.

Many grants are dedicated to supporting non-profit work or specific research initiatives. However, small business grants are dedicated to helping owners and founders achieve specific business goals or projects that align with a funding agency’s mission or a particular initiative.

This includes research grants designed to support businesses working on research and development that has a high potential for commercialization. As a biotech founder, CEO, or employee, this is most likely the exact type of grant you’re looking for.

Like non-profit grants, small business grants are offered through both government and non-government agencies. Furthermore, unlike loans, grants do not need to be paid back.

In this article, we’ll review small business grants, grant proposals, and how to write small business grant proposals. We’ll also review some best practices for grant writing, the differences between a “good” and “bad” proposal, the various types of grants available, and additional resources to help you write a small business grant.

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What Is a Small Business Grant Proposal?

A small business grant proposal, like a typical grant proposal, is a clear and concise presentation of what you’re proposing to do before it actually happens. It usually takes the form of a written document that you either prepare online or physically.

You send your proposal to a particular funding agency that’s providing a grant opportunity you’re interested in.

The presentation should thoroughly explain the reasons for your proposal and why you’re applying for grant funding from a specific funder. Explain the who, what, when, where, how, and why of your proposed project or program.

When you clearly and concisely explain your proposal in an organized and well-thought manner, you will have a better chance at receiving approval from the grant reviewers.

What Are the Steps to Developing a Grant Proposal?

There are several steps you should take to develop an effective proposal. First, begin with an idea, followed by planning, strategy, and success.

What is the idea you’re hoping to make a reality? It’s ideally something you’re already working on and are seeking additional funding to help continue developing, but it can also be something you’re planning on starting and need funding to begin that journey.

Once you know what you’re trying to accomplish, you need to start planning. Flesh out the details of what your program, project, or initiative is all about that you’re seeking funding for.

After planning, you’ll need to start forming a strategy. This involves detailing your approach and methodology regarding bringing your program or project to life. How will you effectively put your plan into action?

With a strategy in place for success, you’ll be able to show the funder how you will accomplish what you’re setting out to do and how you will evaluate your accomplishments, giving the funder confidence in you by showing them you’ve got a game plan.

From here, you will want to take some additional steps before you start researching grant and developing your proposal:

• Make sure your idea can be funded, as some things are not eligible for grant funding
• Read the grant application guidelines carefully, they will help you determine if you actually qualify or not
• Make note of the eligibility requirements and what the funder is requesting; you might not be eligible or have everything they’re asking for

Lastly, ask yourself:

• Is my proposal doable?
• Does it have a focused goal?
• Can you provide everything a funder is asking for in the application? (If you can’t, you’re putting yourself in a position to become disqualified, wasting time and effort)
• Is it in alignment with your own goals and, most importantly, with the goals of the potential funding agency?
• Is there a beginning, middle, and end? (Granting agencies do not fund projects forever; in fact, most grants only last a year or two, depending on who’s providing the grant)
• Can you meet the deadline? (Grants have deadlines; if you start too late, you’ll have to rush and that can lead to mistakes and disqualification)

Grant Proposal Review & Common Elements

Grant proposal guidelines and instructions vary from funder to funder. This means the required information and formatting may be different from proposal to proposal. To better understand the common elements, it can help to review grant proposal guidelines and instructions to get a sense of what will be asked of you.

In the guidelines that you can typically find on the funding agency’s website, you’ll see exactly what you need to do in order to apply for a grant. While following these guidelines and instructions does not guarantee you’ll get funding, it does increase the likelihood of getting approved.

If the guidelines provide a list of do’s and don’ts, take note. Funding agencies will have various requests for you that include things they’d like to see in your application and things they wouldn’t like to see.

There may also be a checklist for completed requirements. If that’s the case, you can use the checklist to track your progress and make sure you don’t miss anything. Budget your time to make sure you’ve got enough time to get everything together that is required of you before the deadline. You don’t want to rush. It can lead to mistakes, which will automatically disqualify you in most cases.

Similarly, if you don’t complete and submit the proposal by the listed due date, your application will automatically be denied. We can’t stress this enough—give yourself enough time!

You’ll also see in the guidelines that a grant proposal must include information submitted in a specific order. Make sure to do this, and follow the instructions for each section exactly. Funders will most likely reject your application if your proposal is not in the correct order.

There are additional requirements for proposals that can include submitting the proposal to a specific address or department, rules about how you can submit the application, and reporting leadership or major staffing changes after you’ve submitted your proposal.

Do your diligence and read the guidelines and instructions carefully. Grant proposal reviews can be the best way to learn what to expect. That said, there are some elements, or sections of information, seen across many different types of grant proposals. These can include:

• A cover sheet or letter of intent that allows the agency to estimate how many independent reviewers will be needed; it also helps the agency avoid potential conflicts of interest in the review
• A short executive summary, or “abstract” in the non-profit world, summarizing your grant proposal
• A table of contents; it should help the reviewer find what they need quickly and easily should they want to flip to a specific section
• A needs statement and problem statement describing the purpose of your project, the need you’re addressing, or problem you’re solving, and why the project is important
• A project description or narrative explaining the project you want to fund in greater detail; you can separate different ideas into sections to better explain each aspect of your project and review the expected outcomes; this description can sometimes be included in the executive summary
• A list of your goals; ideally you will pick SMART (Specific, Measurable, Attainable, Realistic, Timeline) goals
• A description of the methods you will use, in addition to project management plans and timeline, illustrating how you will achieve your goals and objectives
• A staffing list showing how you will staff your project
• A detailed budget explaining what the money will be used for
• A cover letter providing an introduction of yourself or your business as the grant seeker, in addition to a description of your ethos, professionalism, and proposed project or business goal

You will most likely need to include information about yourself and your business as well, including:

• Your business’s mission and history
• Your business’s financial health and stability
• Any additional support documents, usually in the form of appendices; additional records, endorsements, tax status information, personnel bios, letters of support, etc.

Including this information is not only important, it’s necessary. Without it, your application will be disqualified.

Remember, this isn’t the exact order for every grant proposal. Proposals vary from funder to funder, and each may ask for a different order that the information above should be included. It’s vital that you follow the grant’s instructions exactly and include everything that’s asked for.

Before You Start, Research

Before you start writing your grant proposal, you’ll want to research the grant or grants you are applying for and the organization to whom you are submitting your proposal. This is part of the pre-award phase, covered in more detail on grants.gov .

Also consider who your audience is, what the grant’s expectations are, and how you will achieve your goals if you secure funding. To properly prepare for your application, it’s important that you:

• Follow the steps for developing a grant proposal listed above; this means clearly defining what you want to do, why you want to do it, how you’ll do it, when you’ll do it, and who you’ll do it for—remember to be SMART when defining your goals (Specific, Measurable, Achievable, Relevant, and Time-bound.)
• Identify an awarding agency or organization that funds projects or goals like the one you have in mind and figure out if their goals align with your own.
• Identify a grant funding opportunity before you begin the application process; it’s important that you find a grant that matches your proposal and goals and a funder whose mission aligns with yours.
• Review the agency’s grant proposal guidelines, eligibility requirements, and instructions document to determine if you are eligible and have everything on hand that they’ll require.
• Register to apply for grants through websites like grants.gov and sbir.gov ; depending on the agency, you will have to go through several steps to register and may be required to complete different types of registration to receive all the necessary identification.
• Review any grant proposal samples you might have or can find in order to get a better understanding of what a good or bad proposal looks like.

Research will help you identify a grant you can actually apply for, an agency that will want to work with you, and a better feel of what the funder’s interests actually are. This will vary from funder to funder, but doing your research will help greatly.

How to Write a Small Business Grant Proposal

The grant writing process can be quite arduous. But, there are a variety of ways to approach it. The best way you can handle the writing process, in our experience, is to begin with great research, followed by developing an effective proposal that carefully follows all the instructions and guidelines a funding agency provides, including everything they ask for. It’s all about giving the information that is required, not pushing the information that you want.

After taking all the necessary steps, such as registering your business in the proper places, identifying a grant funding opportunity, and determining your eligibility, you’ll begin preparing your written application and developing your proposal.

Below we break down the basic approach to writing a small business grant proposal based on our own experience as a small business.

Keep in mind that this is a guide for you to learn how to write a proposal. We outline a general approach of how to write a small business grant proposal. It will help you be well-prepared to begin the writing process, but does not necessarily follow exactly how a funder will want you to put together your proposal. Remember to follow instructions carefully!

Be meticulous in your following of the proposal’s instructions. This means including all the necessary documentation, completing the required forms, and staying on top of deadlines.

Write Your Cover Letter

You can start by writing your cover letter. However, it may help to leave this till the end of your application, as you might have a clearer idea of the main parts of your proposal and their value.

That said, if you do start with your cover letter, make sure to keep it short but impactful—you need to capture the attention of the agency’s reviewers.

Say what you need without using too much fluff, being as direct as possible without missing the important parts. And make sure to connect your project and goals with the funding agency’s own. If you can make a connection between their mission, funds, and your proposed project, you will have a better chance of getting approval.

Write Your Executive Summary

Next, write your executive summary. This serves as an overview of why your organization wants the grant, what your funding needs are, and how you plan to follow through with the project. Be as engaging as possible, using short and clear sentences that concisely illustrate the main aspects of your proposal.

Introduce Your Business

You can introduce your business next. Share as much relevant information as you can about your infrastructure, history, mission, experience, etc.

Here you include a biography of key staff, your business track record (success stories), company goals, and philosophy; essentially, highlight your expertise.

Client recommendations, letters of thanks, feedback from customers and the general public are must-have things to write in a grant proposal.

Also include all valid industry certifications (ISO or Quality Certifications), licenses, and business and indemnity insurance details.

You need to show that your company or organization has the capacity and the ability to meet all deliverables from both an execution perspective but also meet all legal, safety, and quality obligations.

Write Your Needs & Problem Statements

Now, write your needs and problem statement. It should illustrate the problem you will solve and how the grant funds will help you do it. It will be important to convey the scope of the problem or need of addressing and what sets you apart from others trying to solve the same problem or need. It can be helpful to include any research you’ve done on this matter as well.

Don’t rush this section of the proposal. It’s a critical element. Craft your argument patiently, and make sure to use any supporting data and research you have to back up your argument and plan.

It’s important to keep the language simple as well, as there is a big chance the reviewer doesn’t have the same technical expertise you do. Keep jargon to a minimum, or fully explain what each term means, in order to keep things clear.

Write Your Project Description

Next, write your project description. Clearly explain your goals for the project, how you plan to achieve those goals, and how the grant funding will help. Stick to SMART objectives, ones that can be easily tracked and measured. Doing so will help you demonstrate your eventual successes to the grantor, an important part of the grant process later on.

When you explain how you plan to achieve your goals, it can help to include specific information about your project’s timeline, budget, staffing, the resources and community you’ll leverage, and why you’re in a strong position to tackle a problem or need. It can also help to explain how you will track your project and goals, evaluating your overall success.

Ideally, your project description provides a clear picture of your goals, how you will achieve those goals, what you plan to do with the funds, and how you will manage and measure your project’s progress. If you tie your goals into the funding agency’s mission or goal, you will build an even stronger case for your business.

Write a Detailed Budget

After that section, you will need to write about your budget. It’s critical that you provide a detailed project budget that outlines how you will use the funding and what your operational costs will be. This will also serve to explain your expenses and justify the amount of money you’re seeking.

Provide any financial documents you may have to back up your budget here, and try to stay within the funding limits the funding agency is offering. It’s important to neither overquote nor underquote yourself, because while you might secure the grant by underquoting, you may not walk away with enough funding for your project. Overquote and you may see your application rejected.

When we say provide a detailed budget, we mean it. Include information about all of the costs, whether they’re direct or indirect. This can include everything from personnel, materials and supplies, and equipment to travel costs, advertising, utilities, insurance, and more.

Remember to check your numbers. You want to ensure they’re accurate. Otherwise, your application might not make it through the review process. Simple errors like an incorrect decimal point or forgotten number can significantly distort your budget. If you need to, leverage a team member who is excellent with numbers.

Perform a Final Review & Have Your Team Help

After you’ve finished writing, attached all the necessary documentation, and completed the required forms, you need to review your application! Make sure you have:

• Followed all the instructions
• Stuck within the guidelines
• Included all the necessary documentation
• Completed the required forms
• Formatted your proposal correctly
• Eliminated simple spelling or math errors

It can help to have others review your application as well. They can bring a different perspective and fresh eyes to the proposal and catch things you may have missed. In fact, it can help to have as many people you trust review the proposal. When you’re confident there are no errors, it’s time to submit your proposal.

Properly Submit & Track Your Application

Depending on the funding agency you’re submitting your application to, there will be different instructions for submitting. Figuring out what these submission processes look like can sound a little daunting, but each group will provide clear instructions somewhere on their website on how to properly submit your proposal.

It will be important that, once you submit the application, you make sure to track it to address any errors that are flagged and view the assembled application to ensure it is 100% accurate.

Once you’ve submitted, you can check online that your application has all the correct information and hasn’t been flagged for errors. After making sure your proposal wasn’t flagged, all you can do is wait for a response from the funding agency.

If the review process goes well, you may be asked to provide additional information. The way this request is handled can vary from department to department. For example, the NIH uses the Just-in-Time (JIT) process, located in its eRA Commons .

If you’re selected to receive funding, you’ll be sent a notice that you have been selected for the award! In the case of the NIH and the SBIR/STTR programs, you’ll receive a Notice of Award (NoA) , the official grant award document the department uses to notify an awardee the grant has been made. From there, you will be able to access more information on how to manage the award, and what the post-award process and requirements entail.

In addition, you will gain access to a wide number of agency resources and programs, helping you maximize the benefits of your grant funding.

While the approval rating for grants has increased through 2022, grant funding is highly competitive, and there is a big chance your proposal will be rejected. Don’t give up! It’s important that you keep trying. If the review does not go well, you will be able to reach out to the program official to discuss next steps. You can review feedback, address the issues, and resubmit your application .

12 Tips for Writing A Successful Business Grant Proposal

Below are steps to writing award-winning grants that you can use to improve your proposal, potentially increasing your chances at writing a small business grant application that will get approved.

Develop a Game Plan

Create a game plan for where you’re headed. Don’t dive into effort without knowing exactly what you’re doing. You’re going to want some mode of operation to complete the grant writing process, and a game plan can help you do that. In fact, you’re already using a game plan right now: learning how to write grant proposals in an effective way.

Don’t Rush & Pay Attention to the Agency’s Goals

First and foremost, don’t rush your writing. Grant applications can be long and grueling, and it can be easy to make mistakes if you try to rush through the grant proposal writing process.

Hopefully you start early enough so that you can take your time writing before the deadline gets closer. Making mistakes can make it take even longer to complete your proposal, and will lead to a rejection.

Taking your time will undoubtedly make it easier to craft your story and proposal, leading to a more developed proposal narrative and project description before you start writing grant applications. Having a strong story and a detailed proposal will help you stand apart from other grant applicants, clearly explaining the what, why, and how of your proposal.

Use Rich Media When You Can

Use pictures, charts, and graphics if permitted. Using rich media can help your proposal come to life and convey important points in different ways. While this may be harder to do with certain applications, look for instances where you can add visuals.

Research Prior Winners

If there are previous grant winners for the specific grant you’re applying for, review their business and the project. There may be a connection or similarity between your business and a prior winner that you can integrate into your proposal.

Seeing what kinds of businesses are awarded a certain grant can help you narrow down if your business is a good fit, what you could do to increase your chances, and ultimately help you save time by not applying to a grant you’re unlikely to land.

Search Through Local Grants First

It might be easier to secure a local grant than a federal grant offered nationwide. While federal grants can be more appealing—the award is typically larger—local grants are sometimes less competitive. Start your search by looking at locally offered grants, and expand your search as you rule out grants you might be able to apply for through your city, the state and regional levels.

Apply for Grants of All Sizes

In addition to searching for local grants first, you should also pay attention to funding opportunities of all sizes. Smaller grants can sometimes be easier to secure, and doing so can even make your business more appealing to agencies offering larger grant funds. Showing the support you’ve already received can make you more attractive to grantors.

Use a Team Approach

It’s often helpful and more effective to assemble a team to write your proposal. Ideally you can include people who have review proposals before or someone who has experience as an editor. Your choices do not have to be limited to your business, you can find people outside your organization to help with the process.

Approach The Writing Process Like a Reviewer

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What is a Grant Proposal? (How to Write One, Tools, and Best Practices)

January 8, 2019

by Bethany Fagan

So, you need to write a grant proposal?

It likely goes a little something like this: Your organization is eager to start a new and exciting project, you’ve carefully curated a shortlist of the best possible grantees, and you’ve had some great initial feedback. Now, it’s time to choose the best one.

Where do you start? How should you structure your proposal? When is the best time to send it? What can you do to stand out?

We’ll answer all of those questions in this post. We’ll tell you exactly what a grant proposal is, how it differs from other documents, when to send it, who to send it to, and even how to write one. We’ll also provide you with some data-backed tips so you have the best possible chance of success.

(Source: Unsplash )

What is a grant proposal?

In a nutshell, a grant proposal is a request for money (a grant) that is sent to either a profit or non-profit grant-awarding organization.

Sounds simple enough, right? Let’s dig into the details.

A grant is a sum of money given by an organization to fulfill some purpose, usually charitable, scientific, or artistic in nature. A grant may be awarded by a government institution, not-for-profit, or corporation. In almost all cases, the motivation of the organization awarding the grant is to affect some kind of positive change. This will be in keeping with the grantees’ mission, culture, and values.

There is a wide range of reasons for which grants might be sought. An undergraduate student, for instance, may write a grant proposal requesting tuition fees from the university scholarship department. Another instance could be a charitable organization seeking hundreds of thousands or even millions of dollars from the charitable arm of a large corporation for a cross-border project.

Often, grant proposals, which are structured differently than an RFP and other types of business proposals , will only be for a portion of the overall funding required in combination with internal fundraising and other grantees. This is especially the case with not-for-profit charitable foundations.

The term grant proposal is sometimes used interchangeably with grant letter. In the vast majority of cases, they are the same thing. Sometimes, grant letter may be used to mean a shorter precursory letter sent to gauge interest in a project before a full proposal is sent.

How to structure a winning grant proposal

A good grant proposal almost always outlines a project that is ready to go. It should not be abstract and should include a clear sequence of steps, a timeline, and a budget.

Generally speaking, the outline below is applicable to all grants, irrespective of size. It’s always important to check the specific requirements detailed by the grantee and whether or not a specific format should be adhered to.

The following elements are the key parts of a grant proposal:

1. Cover letter

This is the short, abstract part of the proposal where you should communicate (1) roughly, what your project involves, and (2) how much money you need.

TIP: Learn  How to Write a Cover Letter

2. Executive summary

The executive summary is a more detailed description of what your project involves, who you are as an individual or organization, and how your project fits with the values of the grantee. (This can be stated either implicitly or explicitly, depending on which is appropriate.) The executive summary is more detailed than the cover letter, but you are not yet going into the nuances of your project. These will be fleshed out later.

3. Statement of need

The statement of need is a detailed outline of the specific problem that you are seeking to solve. It’s important at this stage to describe the problem in concrete terms, drawing on data and practical examples wherever possible. It’s also good practice to highlight that the problem is solvable, so as not to make the grantee feel as though it is insurmountable.

4. Goals and objectives

This is where you outline the results you expect to achieve in both general and specific terms. Describe the broader impact you hope to make before drilling into measurable results the grantee’s money will help you attain.

5. Methods and strategies

The goals and objectives section was the what;  this is the how . Here, you specifically detail how you intend to achieve the outcomes outlined in the previous section. This is one of the most important parts of the whole proposal, as it comprises the activities you are seeking funding for.

6. Plan of evaluation

Your plan of evaluation is your mechanism for measuring the progress of your project and provides accountability for both you and the grantee.

The budget is a distinct breakdown of how the money received will be allocated.

8. Organization information

Along with detailed information about your organization, include biographies and roles of the key people that will be involved in this section.

7 tips for writing winning grant proposals

At PandaDoc, we’ve studied thousands of successful proposals (along with some unsuccessful ones). And a number of features have stood out to us.

To give your proposal the best possible chance of success, consider the following tips.

1. Focus on the recipient’s cause

Always keep the cause of your recipient in mind. An organization provides a grant because it wants to have a positive impact. Maintain focus on how you are going to achieve this in the context of the goals of the grantee.

The benefits and outcomes should be in clear alignment with the values of the organization from which you are seeking funding.

2. Include rich media (sparingly)

Rich media , images, videos, charts, etc. can be useful to clearly communicate both the problem you are seeking to resolve and your plan of action. The key word here is sparingly.

We’ve repeatedly found that, while rich media can help capture the attention of readers, it’s easy to make a proposal appear convoluted. Even elements of sales gamification can be added if appropriate.

(Source: cdn2.hubspot.net )

3. Follow a proven template

Rather than start from scratch, consider using a grant proposal template that has already worked. If you do not have any available within your organization, find one online.

4. Send your proposal at the right time

Research has shown that the best time to send an email is on a weekday in the morning (in the recipients’ respective time zone). Sending your proposal at the right time will maximize the chances that it's reviewed quickly.

5. Make it easy for recipients to sign and pay

The traditional approach to sending proposals involves lots of manual tasks. Recipients have to print a proposal, sign it, and scan it before sending it back. Payments also have to be handled separately offline. Proposal software, however, remedies the vast majority of these obstacles.

eSignature software enables both recipients and senders to quickly and securely approve a proposal without having to leave the document. Payment options can also be embedded, allowing for quick and efficient payment.

It’s not always appropriate to include payment options or signature fields in a grant proposal, but, when it is, using a fully paperless solution can yield tremendous benefits.

6. Use a smart follow-up strategy

Research has shown that sending follow-up emails drastically increases the chances of a proposal being successful.

Many grant-awarding organizations require a specific consideration period (usually up to six weeks), so keep that in mind. Ensure that you follow-up whenever it's appropriate, and don’t be put off if you don’t receive any replies for a while.

7. Include contact details of key people

Confirm that contact details – particularly emails and telephone numbers – of key people are included so the grantee can reach out to you if necessary.

Some tips for specific industries

While the principles of successful grant proposal writing are mostly universal, there can be a small degree of variance between industries. Grants tend to fall into one of three categories: charitable, scientific, and artistic.

Here are a few tips for dealing with each:

For grants for charitable work – solving social, health-related, educational, or environmental problems – it’s important to focus on the seriousness of the problem and how your approach is desirable over other possible solutions.

Because these projects usually involve a large team of people, highlighting their individual experiences and skills is also worthwhile.

For scientific proposals, you’ll want to highlight the contribution it will make to scientific understanding, along with the broader societal impacts. Data, research, and scientific facts are all imperative.

It’s also crucial to avoid overly-scientific language. Write the proposal in easy-to-understand language.

Grant proposals for artistic projects should emphasize the history and past portfolio of the artist(s) involved, the role the art will play in the broader community, and how the money will be used (according to a specific timeframe).

Next steps in the grant process

Those looking to create their first grant proposal should look to the best proposal software in 2019.

Bethany is the content marketing manager at PandaDoc . When she's not writing new content or discovering a new distribution channel, her time is spent exploring her Brooklyn neighborhood with her husband and two French Bulldogs, Tater Tot and Pork Chop.

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April 13, 2023

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Difference Between Business Plan and Business Proposal

One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.

What's Inside?

You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.

You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.

Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?

The Difference Between a Business Plan and a Business Proposal

When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.

A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.

The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.

Executive Summary

The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.

We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.

The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.

A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.

A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!

What Are Business Plans?

A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.

It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.

Here's a sample template to use while creating a detailed business plan.

What Is The Purpose of a Business Plan?

A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.

A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.

There are many reasons to create a business plan. Some of the most common reasons include:

• To track progress - A business plan can help you track your progress and ensure that you are on track to achieve your goals.
• To make decisions - A business plan can provide guidance when making decisions about the future of your company.
• As a planning tool - A business plan can help you identify potential problems and solutions, and it can be used to forecast future growth.
• To attract investors or partners - A well-written business plan can help you attract investors or partners who share your vision for the company.

What is a business proposal?

A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.

A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.

A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.

Here's a sample template to use while creating a detailed business proposal.

Why do you need a business proposal?

A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.

It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.

Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.

How To Prepare For a Business Proposal?

Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!

When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.

You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.

Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.

Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.

Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time

How To Write a Business Proposal?

When writing a business proposal, make sure to follow this brief outline:

- Introduce yourself and your company

- Outline the proposal's purpose

- Explain the problem that you're trying to solve

- Describe your solution

- Explain the benefits of your solution

- List your qualifications

- Request a meeting

It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.

Here's another sample template you can use while creating a business proposal:

Business Proposal Template Checklist

Here's a story of our customer John who joined the Decktopus community 2 years ago.

John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.

John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.

This is the outline we gathered while our support team helped him along the way:

-Executive Summary

-Problem/Opportunity Statement

-Business Plan

- Marketing Plan

-Financial Plan

Types Of Business Proposals

An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .

A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .

A proposal to bid is a document that a company submits to a potential customer in response to an RFP.

The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.

Here's a proposal to bid template .

Business Plan Structure

A business plan has three main sections: the executive summary, a description of the business model, and financial projections.

The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.

The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.

The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.

While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.

A well-crafted business plan can help convince potential investors to put their money into your company.

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Blog Business How to Write a Grant Proposal [Templates Included]

How to Write a Grant Proposal [Templates Included]

Written by: Tobi Ojenike Feb 28, 2024

If you work for a nonprofit organization or are a researcher, you’ll know that a grant proposal is a document submitted to a funding agency.

Grant proposals are also known as a request for application, notice of funding opportunity, or request for quotes and qualifications.

Grant proposals are your chance to convince grantmaking bodies (agencies that distribute funds) to hand over money. Generally, grant proposals include information such as an organization’s mission and budgetary needs.

In this post, I’ll show you how to write a successful grant proposal (tips and templates included!) and then teach you how to make a grant proposal using a Proposal Maker and grant proposal templates .

Click to jump ahead:

• Factors to consider before writing a grant proposal

How to write a grant proposal

Sample grant proposal templates.

• How to create a grant proposal with Venngage

Here are some things to consider before writing a grant proposal

• Audience:  Consider your target audience and tailor your copy to their interests and needs.
• Funding:  Choose your funder carefully. Always have an alternative list of potential funders and know the long-term sustainability of your project.
• Understand the grant requirements: Every grantmaking body sets its own rules regarding goals, application deadlines, and guidelines, so make sure you understand them and can differentiate between them.
• Have a plan :  Create a specific, actionable plan for what you want to do and why. Make sure you know how your plan will achieve positive results.
• Write a draft : Research and write down each request in an outline. Plan how you’ll add visuals to give your grant proposal an extra edge.
• Be clear and concise:  Avoid writing in the past tense and use action verbs. Again, visuals can sometimes be a better option over words.
• Include supporting materials : Provide a budget of how you’ll use the funds and include evidence to substantiate any claims you make.

Other helpful tips to consider

Here are some extra tips to help you write a grant proposal that stands out.

• Start early
• Apply early and often
• Get feedback and revise your proposal accordingly
• Be brief, concise and clear
• Be organized and logical
• Be explicit and specific
• Be realistic in designing the project
• Follow up after the proposal

Grant writing can be tricky, but it doesn’t have to be if you understand the basics.

In this section, I’ll give you tips on how to write grant proposals that’ll impress prospective funders (grant writers take note!).

Include a cover letter

The cover letter is not technically part of a grant proposal but they’re core to a successful grant application because it helps funders understand who you are.

Busy decisionmakers want to know who they’ll be funding and look for clues in your cover letter after reading through your proposal.

In your cover letter, don’t be afraid to bring out your personality, but also make sure you cover the basics like how your project fits with the funder’s objective.

Include an executive summary

The executive summary is probably the first (and maybe only) part of a grant proposal read by a funding organization.

It needs to be concise and summarize key points such as goal, strategy, people involved, expected results, and budgetary needs.

Here’s an example executive summary for some inspiration.

Provide organizational information

Providing organizational information in a grant proposal helps build credibility and establishes trust.

More importantly, this section allows funders to assess the alignment between their funding priorities and your organization’s goals and activities.

Therefore, make sure to answer questions like: What is your mission? Do you have an organizational history? What will be the impact of this project? What other programs or services do you render? 

Here’s an example of background organizational information you can make your own.

State your objective(s)

Early in your grant proposal, you should state the objectives of your project, the target audience, and expected results.

This underscores the feasibility of your project within a grant timeframe and can influence funders’ decision on a project’s worthiness (i.e.; the difference between a yes and no).

Here’s a great example of a grant proposal that nails this section.

Describe the statement of needs

The statement of needs section is used to build strong case for your project.

In this section, use data, facts and figures to back statements. This will be more meaningful than just words alone.

But make sure your data is accurate. There’s nothing worse than misleading information which can lead to rejections and damage your reputation.

Here’s a grant proposal template that has a customizable statement of needs.

Explain your methods and strategies

You’ve identified a problem and solution, but how are you going to achieve what you plan to do?

That’s what the methods and strategies section is for. Here, potential funders want to see how you’ll use their funds to determine if the project is viable.

For example, maybe your objective is to enhance community health through a mobile clinic initiative.

Detail each step of this process from procurement of medical equipment and vehicles, recruitment and training process for healthcare professionals, and logistics for deploying mobile clinics.

Here’s an example of a grant proposal that first lists goals and objectives and immediately provides an overview of the path to success.

Include an evaluation plan

When funders hand out money, they have certain conditions, like making sure you are held accountable of project progress. Often, you’ll only get more money to continue as you complete milestones.

The evaluation plan section is where you show funders how you’ll spend money as described in your grant proposal to ease their fears and doubts.

This section also shows funders that you have a realistic timeline for the project and that you’re not using the funds for any other purposes.

Include a project budget

Perhaps the most part of your grant proposal is the project budget. This is where you reveal exactly how you’ll be using funds.

Be transparent and provide a full overview of expenses and detail where and how it’ll be spent.

A great way to do this is to use an itemized table or financial plan.

When presenting an overall sum, make sure you don’t overstate or understate your needs. You don’t want funders to doubt your true intent or doubt project viability.

Here’s a grant proposal with a budget section you can use.

Include a financial sustainability plan

Most grant writers overlook including a long-term financial sustainability plan.

Most funders view grants as a long-term investment and want to back projects that can be sustainable even after the money stops rolling in.

Demonstrating a clear understanding of these factors shows funders that you have thoroughly considered the project’s financial trajectory and are prepared to manage it responsibly.

What should you include here? Total cost of future ownership, maintenance costs, inflation, ongoing, and future growth potential are a few ideas.

Sign off with your team information

Treat grant proposals as official documentation.

At the end of your grant proposal, include your (or your company’s) contact details. This makes it easier for the funders to reach out to you and do their research on you and your team.

Here’s an example of a grant proposal with a great ‘about us’ section.

Now that you understand the basics of a grant proposal, it’s time to get to work and create your own.

But you don’t need to start from scratch. Instead, edit these grant proposal templates and convert them into your own winning proposal

(Hint: visit the links to see the entire template).

How to create grant proposals with Venngage

If you want to create grant proposals that grab attention, look no further than Venngage.

With Venngage, you can you communicate boring technical info with engaging visuals and customize our professionally-designed grant proposal templates.

You don’t need to be a designer to use Venngage. If you know how to work Microsoft Word or Google Slides or similar tools, you can use Venngage.

Step 1 – Sign up for a Venngage account (it’s free!)

Sign up for a Venngage account for free using your email, Gmail or Facebook.

Step 2 – Go to the “Templates” page and select “Proposals”

Venngage already has grant proposal templates you can edit to suit your idea and vision.

To find them, go to our templates page and choose the “Proposals” category. After selecting it, this screen should load.  

Note :  Some of our grant proposal templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

Step 3 – Select the “grant proposal” subcategory

Look for the grant proposals subcategory in the proposals template page and select it.

Step 4 – Customize your grant proposal

Browse our selection of grant proposal templates. Once you find one you like, click on it to launch the editor tool.

Here, you’ll be able to add your own text, change the design, and customize the template as you like.

Some of your customization options include:

• Add engaging visuals and symbols 
• Change color scheme
• Change the fonts and text to match your brand or style
• Move elements around with a drag and drop interface

For example, let’s pretend I chose this grant proposal template to customize.

Let’s edit this together.

For example, I want to replace the logo to reflect my company. Well, just select it and click the “ Replace ” feature on the top left. 

Once you click “ Replace “, a tab will open where you can select visuals from our library of icons. You can also upload an image (your logo).

By the way, our in-editor library has thousands of free, professional icons, plus diverse icons.

Now, let’s say I want to change the background color of some of my template.

That’s easy as well! Just select the text or background and select the “Replace” feature again. This time, you’ll be prompted with another pop-up where you can select a different color.

If you sign up for a Business Plan, you’ll also get access to My Brand Kit . With this, you can apply your brand colors to any design with one click. 

Step 5 – Save, share, or download your grant proposal

When your grant proposal is complete, you can save it as a PDF or PNG file if you’re on a Business Plan.

However, all users will always have access to shareable link that they can send potential funders.

Final thoughts: Create grant proposals with Venngage and secure funding today

A well-structured grant proposal with appealing visuals can make a lasting impression on funders and tip the balance in your favor.

Don’t waste your time with tools like Word, Google Docs where you’ll get limited design flexibility and visuals that don’t engage.

Instead, head over to Venngage’s grant proposal templates to give yourself a winning edge.

Frequently asked questions

How long is a grant proposal? 

The length of a grant proposal depends on the funder but a typical grant proposal is usually between 5-20 pages. The funding body might request additional documents as well, so it’s important to know funding guidelines.

What is the writing style for a grant proposal?

The writing style for a grant proposal is formal. You want to be concise and objective, so focus on clarity, impact and your alignment with the priorities of the funder.

What is the lifecycle of a grant proposal?

The grant proposal lifecycle begins with research, planning and development, followed by drafting, revising and editing the narrative and budget. Applications are then submitted before funders review and make decisions. If successful, negotiations may occur to finalize details, after which the funded project is implemented according to the approved plan. Finally, progress and final reports are submitted to the funder. This cyclical process ensures accountability and project success.

What is the difference between a proposal and grant proposal?

Proposal is a broader term encompassing various applications for funding, resources, or partnerships whereas a grant proposal specifically refers to an application for grant funding from a foundation, government agency, or other organization.

What is the difference between a grant proposal and a grant letter?

A grant proposal is a detailed document that includes the project description, methodology, financial plan, and financing rationale. A grant letter, on the other hand, can be a more straightforward request or statement of interest.

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Mastering Grant Proposals: Your Ultimate Guide + Pro Insights

Reviewed by:

April 3, 2022

Last Updated:

October 27, 2023

Table of Contents

As a nonprofit organization, you are familiar with the role of grant funding in your operations. However, receiving grant funding can be a pretty tough task for even the veterans of the grant-writing industry. The best tactic for seeing award letters in your inbox is understanding what a grant proposal really is.

This article will give you a great start at understanding what a grant proposal is, it will cover the common sections of a proposal, and it will showcase a few samples to get your writing off on a solid path.

If you are ready to dig into proposal writing, keep reading!

What Is a Grant Proposal?

Before you start researching funding opportunities, you should know what a grant proposal is. ‍

A grant proposal is a document outlining a project or program with the intent to justify your need for support and map out your plan of action against that need.

This article will make the case that you have a compelling need for funding and that you are uniquely positioned to utilize those requested funds to realize positive outcomes.

Importance of Grant Writing

Grant writing is the lifeblood of many nonprofit organizations.

It's not just about securing funds; it's about building credibility, ensuring financial sustainability, expanding project reach, and strengthening donor and stakeholder relations.

Elevating Organizational Credibility

A well-crafted grant proposal demonstrates a nonprofit’s professionalism and commitment to its cause.

When funders see that you've taken the time to articulate your project clearly, they gain confidence in your organization's ability to deliver results. It also shows that you’re willing to put in considerable effort to get your project funded.

Ensuring Financial Sustainability

Grants can provide a stable source of income for nonprofit, reducing the uncertainty they often face.

Winning grants allows you to plan for the future and execute long-term projects. In fact, grants contribute 32% of the total annual revenue generated by nonprofits.

Expanding Project and Program Reach

With grant funding, nonprofits can amplify their impact. New initiatives can be launched, existing programs can be expanded, and underserved communities can be reached.

Strengthening Donor and Stakeholder Relations

Successful grant applications can enhance your relationships with donors and stakeholders .

Grant proposals contain detailed information about your nonprofit’s mission, vision, operations, financials, and more. This provides transparency and accountability, which further fosters trust with your nonprofit’s supporters.

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What Is the Difference Between a Grant and a Grant Proposal?

To understand grant proposals fully, it's essential to differentiate between a grant and a grant proposal.

Essentially, a grant is the financial support provided by a funder, while a grant proposal is the written request for that funding.

Grants are generally provided by a funding organization to support a nonprofit’s specific project or program. For example, Walmart provides local community grants that nonprofits can apply for throughout the year.

On the other hand, a grant proposal is a formal document that outlines the project or program for which you seek funding. It serves as a persuasive argument for why your organization deserves to win the grant funding.

While a grant is the tangible result of a successful proposal, the proposal itself is a persuasive narrative that convinces funders of your project or organization’s worthiness.

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What Is the Role of the Grant Proposal?

Now that we've clarified what grant proposals are and how they work, let's explore their role in the nonprofit world.

Advocacy for Financial Support

A grant proposal makes a compelling case for financial support for your nonprofit.

Most grant funders receive applications from lots of different nonprofits who all want to win the grant, so your proposal is your chance to convince funders that your initiative is not only important but also most deserving of their resources.

Blueprint of Project or Program

A well-structured grant proposal also outlines the blueprint of your project or program for which the grant funding will be used.

Your proposal should provide a clear roadmap that funders can follow to understand your vision and the steps you are planning to take to achieve that vision.

Demonstrating Organizational Competence

Funders are not just looking to give away money; they want to make a meaningful impact and drive positive changes in society.

Grant proposals serve as a vehicle to showcase your nonprofit organization’s competence and capability to bring about that change. Your proposal should emphasize your team's expertise, your successful track record, and your ability to turn the funder’s investment into tangible, positive outcomes.

Establishing Accountability and Metrics

Additionally, grant proposals establish a framework for accountability. They define the metrics by which your project's success will be measured, ensuring transparency and results-oriented funding.

What Are the Most Common Sections of a Grant Proposal?

Writing a grant proposal may seem overwhelming or complicated. However, if you divide a grant proposal into its most common sections, it gives you the opportunity to write in shorter spurts.

Thinking of the proposal as a sum of its parts gives you smaller benchmarks to write toward. The following is a list of the most common sections of a grant proposal and things to keep in mind as you write.

Executive Summary ‍

The executive summary is the first section of your grant proposal, which is often written after writing everything else. Just as its title suggests, this is a summary of your proposal.

An executive summary is your first impression, a high-level overview of your project. Whether the funder finds your project in alignment with their mission and interesting may lie in only reading your executive summary.

Writing the remainder of your proposal first makes the most sense. You are more likely to accurately and succinctly summarize your proposal after you have already written the other sections.

Needs Statement

The needs statement articulates the problem or needs your project addresses. It's the foundation of your grant proposal, showcasing the urgency and significance of your work.

Your needs statement should outline the fundamental problem or gap that exists that you are uniquely qualified to solve with the requested support.

A needs statement is a statement, so think in terms of writing a few sentences, not multiple paragraphs. Finally, your needs statement should align with the goal or intent of the funding opportunity as presented by the grantmaker.

Goals and Objectives

Goals and objectives define what you aim to achieve with the grant funding. They create a roadmap for your project, helping funders understand its purpose and impact. This section is meant to clearly define your plan of action and outcomes.

One highly-regarded strategy for writing goals is to follow the SMART framework.

In this framework, goals should be specific, measurable, achievable, relevant, and time-bound. The University of California put out a paper detailing how to write SMART goals . You may want to check it out if this sounds unfamiliar to you.

After outlining your project goals, you will also be presenting your aligned objectives. Think of your objectives as your action steps for achieving your goals. The goals are the end outcomes and your objectives break down how you are going to get there.

Check out the Instrumentl Partner Webinar with Dr. Beverly Browning (Dr. Bev), author of Grant Writing for Dummies, to learn more about goals and objectives.

Method and Strategies

The method section is where you will really tell the reviewer how you intend to meet the stated need at the outset of your grant proposal. This is your plan of action. On the other hand, your strategies will tell how you will execute your methodology.

Some proposals use these two terms interchangeably or ask for one or the other. They both speak to how you intend to act on solving the problem you outlined in your need statement.

Grant reviewers want to know how you (and they) will know you have hit the goals of your proposed project.

The evaluation section details exactly how and when achievement will be measured. This grant evaluation plan should tie back to the stated project goals.

If you intend to utilize specific tools or rubrics to measure your project, call those out specifically and include them if the page count and appendices rules allow.

Information About Your Organization

When you write a proposal, you need to describe who you are for your reviewers. ‍

Don’t narrate your organization’s entire history and daily work efforts. Rather, briefly provide the most important details about your nonprofit that are connected to your current funding request.

Here are some details you may want to include in the information about your organization section:

• Full, legal name of your organization
• Legal status, such 501c(3)
• Location of your headquarters, as many grants prioritize funding for certain regions
• Your mission statement
• Who you typically serve, detailing your target audience further helps to align your proposal with the stated mission and goals of the funding organization

Project Budget

It is expected that in a request for funding, you would want to include how you propose that funding will be spent. Your proposal should include a section dedicated to your project budget .

Often, your project budget section will have two parts.

Budget Spreadsheet- A budget template resembles a standard spreadsheet. Unless the application specifies exactly what they want to see in your budget, there are innumerable ways to craft your budget. Most commonly, budgets are built on categories of spending. Some of the most common categories are:

• Salaries and wages
• Benefits- This is always a separate line as it requires separate accounting codes
• Non-consumable
• Computer/Hardware

If you want to have a visual starting point to draft your own proposal budget, we wrote a blog that provides more insight on the proposal budget and budget templates as a starting point .

Budget Narrative- In a budget narrative , you will describe the elements of your project that the funds will support. This is not a time for descriptive or superfluous language. It is a place to articulate your budget items a bit more specifically than a line item or budget category allows. The budget narrative should directly correlate with the budget table you included.

One method for writing a budget narrative is to write in sections that align with each of your budget categories. Call out your categories and describe in more detail what each category will entail at the individual activity level. A budget narrative is an opportunity to have the typical budget spreadsheet expanded for more meaning and understanding of your project.

Common Types of Grant Proposals

A grant proposal is a relatively universal way to access support funding. The format is basically the same whether the proposal is solicited via an application process, a request for proposals, or as a communication tool between a single organization and a potential funder.

Capital Grants

It is challenging to build capital expenditures into a nonprofit budget. Margins are tight and funds tend to be short in accomplishing all that you set out to do. The inability to set aside large amounts of money for capital projects means that nonprofits often rely on capital grants to fund capital projects. ‍

Capital grants are a relatively common type of grant proposal due to the pressing need for capital funding options. Capital projects tend to have hefty price tags.

Coinciding with capital grant proposals, nonprofit organizations often engage in capital campaigns . These campaigns provide opportunities for stakeholders to contribute their support for these large-scale projects. Additionally, a capital campaign can help address any match that may be required by the grantmaker.

We will discuss matching grants in more detail in another section.

Program / Project Grants

The most common grant proposal is one requesting support for a program or project.

In a program grant, the funds will be used for a specific purpose referenced in the grant proposal. These proposals typically articulate a funding need that is somewhat entirely encompassed by the grant funds requested.

Many program or project grant applications will ask that you speak to your ability to sustain the program beyond the term of the grant. So, although it is common to request funds for a project that otherwise couldn’t exist, keep in mind ways you might be able to sustain outcomes you realize during the funding period.

General Operating Grants

While capital and project grants have tangible and exact intended uses of funds, there is often a need for less specific funding to support ongoing operations. This is what is called an operating grant .

In the past few years, grantmakers have expanded their funding scope to include more operating grant opportunities. These grants have historically been less represented as it is hard for a foundation to attach its mission to something as ambiguous as ongoing operation efforts for a nonprofit.

Matching / In-Kind Grants

In order to stretch their resources, grantmakers will often offer matching or in-kind grant opportunities .

These grants require funding from the applicant. They will specify where these match funds can come from. This is an important detail to pay attention to, as some matching grants allow you to use other grant funds for your match while some require these to come from your general operating budget.

Each grant will specify the required match amount. As an example, if you were applying for a $100,000 grant that required a 20% match, you would be asked to contribute $20,000 to the project.

What Are the Steps to Writing a Grant Proposal?

Now that we've covered the components, let's explore the steps involved in writing a grant proposal:

Initial Research and Identification

Your journey to writing a grant proposal begins with research.

• Market Research: Conduct extensive research to identify potential funders whose missions closely align with the goals and objectives of your project.

To start your search, you can check out Instrumentl’s database of grants which includes private, corporate, and government grants all in one place.

• Mission Alignment: Evaluate the alignment of your project with the missions and priorities of potential funders. Seek funders whose values and goals resonate with your organization's mission. ‍
• Finding the Perfect Funder: Identifying the most suitable funder for your project is a pivotal step. Dive deep into your research to find a funder whose objectives align seamlessly with your project's goals. 

Beyond mission alignment, consider the funder's funding history, preferred project scale, and geographic focus. A targeted approach increases your likelihood of securing funding from a source genuinely interested in your nonprofit's mission and the positive impact it aims to achieve. Utilize resources like Instrumentl's funder profiles to pinpoint the ideal funder efficiently.

Understanding Grant Guidelines

Each funder has specific guidelines for proposal submission. Familiarize yourself with these guidelines to ensure your grant proposal complies with their requirements.

Here’s how you can understand grant guidelines:

• Thorough Review: Perform a comprehensive review of the grant guidelines provided by potential funders. Understand their expectations regarding proposal content, length, deadlines, and submission methods.
• ‍ Eligibility Criteria: Carefully assess whether your nonprofit meets the eligibility criteria outlined by the funder. Confirm your eligibility status before investing time into crafting a proposal.
• ‍ Proposal Specifics: Dive into the specifics of what the funder seeks in a proposal. This may include details about the narrative, budget, evaluation plan, and any supplementary materials required.

Assembling a Proposal Team

Grant proposal writing is a collaborative effort. Assemble a team with the necessary skills, including researchers, writers, and budget experts.

• Skill Diversification : Identify the key roles necessary for a successful proposal, such as researchers, writers , budget experts, and project coordinators. Ensure that team members possess the required expertise to fulfill their roles effectively. ‍
• Collaboration and Coordination: Foster collaboration and effective communication among team members. Establish clear roles and responsibilities, timelines, and a project management system to keep everyone aligned and on track. You can use resources like Instrumentl’s grant writing calendar to manage your projects better.

Preparing Essential Documents

To bolster the strength of your grant proposal, you must gather several essential documents including:

• Financial Statements : Prepare comprehensive, accurate, and up-to-date financial statements. These should include your organization's budget, income statement, and balance sheet . Demonstrating financial transparency and responsibility can enhance your proposal's credibility.
• ‍ Letters of Support: Collect letters of support from partners, stakeholders, or beneficiaries who can vouch for the significance and feasibility of your project. These letters serve to bolster the credibility of your proposal and validate the community or organizational support behind your endeavor.
• ‍ Certifications and Documentation: Ensure that you possess all the necessary certifications and documentation required by the funder. These may encompass proof of nonprofit status, licenses, permits, and other legal or regulatory documents pertinent to the nature of your project.

Drafting and Revising

Start writing your grant proposal, beginning with a rough draft. Revise and refine your proposal meticulously to ensure clarity and persuasiveness. Here’s how you can do it more efficiently:

• Rough Draft: Commence the proposal writing process by generating a rough draft that focuses on conveying your project's objectives, impact, and alignment with the funder's priorities. At this stage, the goal is to articulate your ideas and concepts without undue concern for perfection.
• ‍ Thorough Revision: After completing the initial draft, allocate ample time to revise and refine your proposal meticulously. Conduct a comprehensive review of each section, emphasizing clarity, coherence, and persuasiveness. Ensure that your narrative flows seamlessly, providing a compelling and logically structured case for funding.

Submission and Follow-up

Once your grant proposal is polished and ready, it's time to submit it. Here's a more comprehensive look at the submission process:

• Submission Protocol: Adhere to the funder's submission protocol precisely. Double-check deadlines, submission methods (online or hard copy), and any specific requirements for attachments or supplementary materials.
• ‍ Confirmation of Receipt: After submission, follow up with the funder to confirm the receipt of your proposal. This step ensures that your proposal has been received and logged for review.
• ‍ Additional Requests: Be prepared for potential requests for additional information or clarification from the funder. Timely and comprehensive responses demonstrate your commitment and professionalism.

Tips for Writing Grant Proposals in Different Fields

As a nonprofit, you know that not all industries function exactly the same. Similarly, not all fields approach grant funds the same way. There are three main sources of grant funding:

• Local, state, and federal governments
• Private businesses and corporations
• Foundations

You can utilize Instrumentl’s funder search capabilities to identify grants provided by each of these different funding sources.

Within each of those main funding sources, there are also different fields of focus. Different fields may have slightly different expectations for what should be included in a grant proposal. We have put together a list of some of the more common fields open for grant funding and specific tips on writing for each of them.

Research Grants

Most of our innovative and cutting-edge discoveries have been found under grant-funded programs. Research grants are quite common in the science, technology, and medical fields. At times, these grants are highly competitive and can result in large multi-year contracts.

So, how do you get awarded a research grant?

There are some key strategies for getting research funded. Here are our top five: ‍

• Follow guidelines- Requests for proposals in research will almost certainly specify what should be presented and how you should submit your documents. Always follow these guidelines closely. If templates are provided, use the templates.‍
• Be specific- Before submitting a research grant proposal, make sure you are abundantly clear on what your funding request entails. It is common that the funding request covers only specific elements of a research project, not all associated costs of your time or other auxiliary expenses. Keep the proposal as focused on the research as possible.
• Use clear language- Your reviewers may not be as read in your field as you are, so avoid unexplained or unnecessary jargon. You also will have space constraints and word counts to contend with; keep your language clear and succinct.‍
• Ask questions- There is a level of formality in the research industry that may have you feeling as though reaching out is not an option. It is. Feel comfortable reaching out to points of contact to ask clarifying questions as needed.‍
• Use rejection as a learning tool- Research grants are limited against an endless pool of viable research requests. Know that you will be rejected. Consider tip #4 after rejection and reach out for feedback or critique of your own submission. Revise and resubmit at the next opportunity.

Community Grants

Another common grant field is in the community and youth program industry. There are many grants available for things like after-school programs and family support. Some things to think about as you consider applying for community grants:

• Location matters- Community grants are intended for the community. Be watchful of grants that specify location. Sometimes, in larger areas, this can get as specific as neighborhoods within a city. More commonly, these grants cover a city, region, or state.
• ‍ Mission- Reviewers of community grants will want to see that your project request aligns with their mission. The funds for community programs tend to be specific to targeted audiences, so ensure your own nonprofit mission and work match what is being asked for.
• ‍ Differentiate yourself- There may be many organizations that can meet the needs put out by the grantmaker or foundation. When you write your proposal, focus on how you stand out and what makes you different. Be sure to articulate how you are uniquely capable of delivering powerful results.

Health-related Grants

Our final example of field-specific grants you might see is in the health sector. Health-related grants are common. You may have even seen references to health grants throughout your life as major medical crises transpire across the globe.

The real key to ascertaining funding for health-related research, projects, or programs is your ability to identify the need. Use data and statistics to back up your claim. An example of a health-related needs statement might be:

According to {National Center}, over 60% of Our County residents do not have access to a health care provider that practices within 60 miles of their residence. This lack of immediate access results in 40% less frequency of visits for preventative care than shown in similar counties.

We covered the importance of a needs statement earlier in this article. In this field of grants, it is essential to nail that section.

Your Grant Proposal Was Rejected. What Should You Do Next?

In the world of grant proposal writing, rejection is an inevitable part of the process. Let's explore how to respond to rejection and turn it into an opportunity for growth.

Understanding the Reasons

Upon receiving a rejection, it's essential to delve into the reasons behind it.

To do this, you may need to reach out to the funder to ask for feedback and clarification. Was the rejection due to a misalignment with the funder's priorities, or did it stem from a weakness in the proposal?

Seeking this feedback is a valuable step in improving your future proposals and increasing your chances of securing funding. It provides insights that can help you refine your approach and address any issues that led to the rejection.

Refining and Improving the Proposal

Use the rejection of your current grant proposal as a constructive opportunity for growth. By addressing the specific shortcomings identified by the funder and taking their feedback to heart, you can significantly enhance and refine your future proposals.

This iterative process of learning from rejection not only increases your chances of success but also demonstrates your commitment to continuous improvement, which can be a compelling factor for funders.

Seeking Feedback and Mentorship

Don't hesitate to seek feedback from experienced grant writers or mentors.

Their insights can be invaluable in improving your proposal writing skills. You can engage and interact with other nonprofit professionals by attending nonprofit community meetings, conferences, meetups, awards, etc.

Exploring Alternative Funding Opportunities

Sometimes, rejection can lead you to alternative funding sources that may be an even better fit for your project.

You can consider other fundraising strategies like corporate sponsorships , individual donations, or hosting fundraising events .

An open-minded approach to exploring alternatives can lead to innovative and fruitful partnerships that fuel your mission.

You've Secured a Grant. What's Next?

Congratulations on securing the grant! But the process doesn’t end here.

Let’s delve into the crucial steps and responsibilities that follow the successful acquisition of funding.

Acknowledging and Thanking the Grantor

Expressing gratitude is the first step after securing a grant.

Take the time to acknowledge and thank the grantor for their invaluable support. This initial gesture sets a positive tone for your partnership and reinforces the grantor's confidence in your organization. Craft a heartfelt thank-you letter or a message that reflects your appreciation for their commitment to your cause.

Setting Up Reporting and Accountability Structures

To ensure transparency and compliance with the grant's terms, it's vital to establish robust reporting and accountability structures. This step involves:

• Report Requirements: Familiarize yourself with the specific reporting requirements outlined by the grantor with regard to writing a grant report . Understand what information they expect and the deadlines for submission.
• ‍ Designated Responsible Parties: Appoint individuals within your organization who will be responsible for compiling and submitting reports. Clearly define their roles and responsibilities.
• ‍ Data Collection and Documentation: Develop a systematic approach to data collection and documentation to facilitate the reporting process. This includes tracking project progress, expenditures, and outcomes.

Allocating and Managing Funds

Prudent financial management is critical. Carefully allocate and manage the grant funds according to the budget plan you presented in your proposal. Key considerations include:

• Budget Adherence: Ensure that your spending aligns with the approved budget. Track expenses meticulously to avoid any discrepancies.
• ‍ Financial Records: Maintain accurate financial records that account for every dollar spent. These records will be essential for reporting and audit purposes.
• ‍ Adapting to Changes: Be prepared to adapt your budget if unexpected circumstances arise. Communicate any necessary budget revisions to the grantor promptly.

Continuous Communication With the Grantor

Maintain open and ongoing communication with the grantor throughout the project's duration. Keep them informed about project progress, milestones achieved, and any challenges faced. Regular updates help build trust and transparency in your partnership.

Additionally, if any unforeseen issues arise that may affect the project's timeline or outcomes, it's essential to communicate these promptly to the grantor.

Evaluating and Sharing Outcomes

Once your project reaches its conclusion, it's time to evaluate its outcomes and impact. You should also share the results with the grantor to demonstrate the successful use of their funds.

This step serves multiple purposes:

• Assessing Success: Evaluate the extent to which your project achieved its goals and objectives. Analyze the data and results to determine success. ‍
• ‍ Demonstrating Accountability: Share the outcomes with the grantor to demonstrate the effective use of their funds. Provide evidence of how their investment contributed to positive change.
• ‍ Future Planning: Use the insights gained from the evaluation to inform future project planning and improvement efforts. Learning from your successes and challenges is a valuable aspect of continuous growth.

Helpful Additional Resources for Preparing Grant Proposals

Preparing and writing grant proposals is a lengthy and time-consuming process. Spending time familiarizing yourself with as much of the grant cycle, proposal structure, and application process as possible will help you start with confidence.

There are many ways to increase your understanding of grant proposal writing. Here are some of our favorite resources for preparing grant proposals:

• Blogs- Just like the one you are reading, blogs are a great source of information and support to help you prepare to write grant proposals. We encourage you to look back through our blog posts to find relevant articles about each of the sections of the grant proposal as well as tips and tricks on writing a proposal.
• ‍ Podcasts - If you don’t have a ton of time to read articles or look through proposal templates, you can still familiarize yourself with grant proposals through podcasts. We curated a list of the best grant writing podcasts to shorten your time searching for the right one to listen to.
• ‍ Peer networks - Find other people who are writing grant proposals and share in the effort. Having peers review your writing, give suggestions, and provide support during moments of writer's block can be more valuable than any technical aid available.

Sample Grant Proposals to Check Out

Now that you have a general idea of how to write a grant proposal, you can check out our previous blog for a complete list of successful grant proposals . Below are three examples of successful proposals and why we think they are worth reviewing:

Kurzweil Education Systems- This grant proposal example is one worth sharing repeatedly. It outlines a successful grant example while also explaining each section as you go. This example serves to both support your growing knowledge and understanding of proposal structure as well as give sample language for each section.

The Kurzweil document provides samples of more than just the proposal. You will also be able to read an example cover letter, cover page, and a sample letter format for foundation funding requests.

Boys and Girls Club of America- Youth and community-based grants are a very common request in the nonprofit sector. The Boys and Girls Club of America provided a great sample proposal resource to consider if you are looking for funding.

This particular resource can be used in two different ways. For those within the Boys and Girls Club nonprofit umbrella, this template serves as a document almost ready to submit for funding requests. For those outside the BGCA enterprise, you can read and glean key structure and content details from a successful proposal.

This sample proposal also points out another tip in proposal writing: You should utilize any templates or forms provided by the grantmaker or foundation.

While standardized documents are not always required when provided, using provided forms allows reviewers to more easily read your proposal. The familiar format means they can skip to making meaning of your request rather than figuring out where the pertinent information lives in an unfamiliar document.

National Institute of Allergy and Infectious Disease- This example includes multiple successful proposals in the same space. NIAD offers many examples of successful grant applications on its grant application landing page.

When organizations and agencies offer grant funding, they hope to find the most compelling and beneficial uses for those funds possible. To that end, it is in their best interest to share what those kinds of programs have looked like before.

For those looking to write grant proposals in the science and research sector, this resource is beneficial to read and explore similar successful project proposals .

Wrapping Things Up: What Is a Grant Proposal?

Grant proposals can feel daunting. After reading this article, you should be able to feel more confident that you know what a grant proposal is.

You should also be able to identify the most common sections of a grant proposal, find sample proposals , and have a few tips for writing across a variety of fields.

You should be set to start drafting your first grant proposal. If you would like more support across all aspects of your grant finding, writing, and tracking processes, visit Instrumentl and sign up for a 14-day free trial.

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Difference Between a Business Plan & a Business Proposal

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Why Create a Business Plan?

How to rescind a business letter, 6 types of business plans.

• How to Create a New Business Plan
• How to Conclude a Business Plan

A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

Reasons for a Business Proposal

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.

An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

• Entrepreneur: An Introduction to Business Plans
• Forbes: The Difference Between a Business Plan and Planning

Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

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How to Choose the Right Type of Grant Proposal + Tips

• 13-minute read
• 26th April 2024

Grant proposals play a crucial role for businesses by securing funding for various projects and initiatives and serving as a roadmap for potential funders to understand the purpose and impact of a project they’re being asked to support. Understanding each type of proposal is essential to maximize your chances of successfully securing grant money for your endeavors.

In this guide, we’ll explore the different types of grant proposals – research, project, and operating – and provide insights into navigating them effectively . Let’s dive into the world of grant writing and learn how to craft a compelling proposal that will stand out to potential funders.

1. Research Grants

Research grants are financial awards provided to researchers, scholars, and institutions to support the investigation of specific topics or projects. These grants play a critical role in advancing knowledge and innovation across various fields such as science, technology, social sciences, and humanities. They enable researchers to conduct experiments, collect data, and disseminate their findings. 

Research grants can help you pay for equipment purchases, hire research assistants, take care of travel expenses for fieldwork or conferences, and cover publication fees. Grant writing varies among academic disciplines, but there are several criteria and tips to keep in mind to heighten your chances of securing funding.

Criteria for Qualifying for a Research Grant

Securing research grants is highly competitive. They’re usually awarded based on the quality of the proposed research project , the researcher’s track record, and the potential impact of the study. When applying for a research grant, meeting specific criteria is essential to increase your chances of qualifying for funding. Here are some common criteria for researchers to be eligible for a research grant:

• Research proposal: A well-defined and compelling research proposal outlining the expected outcomes, methodology , and potential impact of the study is crucial.
• Relevance: The proposed project should align with the funding organization’s or grant provider’s priorities and focus areas. Be sure to research your prospective funder thoroughly.
• Qualifications: Researchers often must demonstrate their expertise in the field through academic qualifications , publications, and relevant experience.
• Budget: A clear and realistic budget plan detailing how the grant funds will be utilized is usually necessary.
• Ethical considerations: Researchers must adhere to ethical standards when conducting their research, including obtaining necessary approvals for studies involving human subjects or sensitive data.
• 6. Timeline: Research grant applications will likely require a detailed timeline outlining key milestones and deliverables throughout the research project.

Tips for Writing a Compelling Research Grant Proposal

1. clearly define your research objectives.

Start by clearly outlining the objectives of your research project . Clearly state the problem you’re addressing, the significance of the work, and the expected outcomes.

2. Provide a Detailed Methodology

Describe in detail the methodology you’ll use to conduct your research. Explain why this approach is suitable and how it will help you achieve your research objectives.

3. Demonstrate Feasibility

Show that your research project is feasible by providing a realistic timeline, budget, and the resources required to complete the study successfully.

4. Highlight Your Qualifications

Emphasize your qualifications and experience in the field to demonstrate that you’re capable of carrying out the proposed research.

Common Mistakes to Avoid in Research Grant Proposals

When it comes to preparing research grant proposals, there are several common mistakes that you should watch out for to increase your chances of success. 

One of the most common mistakes in research grant proposals is providing an inadequate literature review . Failure to demonstrate a thorough understanding of the existing research on your topic can weaken your proposal’s credibility and impact.

Another critical mistake is ignoring or failing to adhere to the specific guidelines the granting agency provides. Carefully read and follow these guidelines to ensure your proposal is compliant and competitive.

Finally, overlooking proofreading and editing can significantly diminish the quality of a research grant proposal. Typos, grammatical errors, or inconsistencies can detract from the overall professionalism of the document.

2. Project Grants

Project grants are a valuable source of funding for initiatives in various fields, such as education, training, demonstration, and technical assistance. These grants are typically used to support specific projects that aim to achieve certain objectives or outcomes within a designated timeframe. 

A benefit of project grants is that they can provide financial support for activities that may not be feasible through regular funding sources.

Entry Criteria for Project Grants

When applying for project grants, it’s essential to clearly outline the goals, methodology, budget requirements, and expected outcomes of the proposed project. These components play a significant role in demonstrating the feasibility and impact of the project to potential funders.

• Goals: Define the overarching goals of your project along with specific objectives that outline what you aim to achieve through the proposed activities . What problem does the project solve? Make sure your goals are realistic, measurable, and in line with the funding organization’s mission.
• Methodology: Describe in detail how you plan to execute the project, including the strategies, activities, and timeline. Provide information on any research methods or tools you’ll use to measure your progress toward your goals.
• Budget: Create a detailed research budget that outlines all the anticipated costs associated with implementing your project. Include expenses such as employee salaries, equipment purchases, travel costs, supplies, and any other relevant expenditures.
• Expected outcomes: Articulate what you expect to accomplish by the end of the project period. Underscore the significance of your research project by explaining how these outcomes will help you address the problem that your project is focused on and how they align with your goals and those of potential funders.

By incorporating these criteria into your project grant proposal, you can effectively communicate your vision for the project while demonstrating its feasibility and potential impact on achieving its desired goals.

Key Considerations of a Successful Project Grant Proposal

1. highlight the potential impact and sustainability of your project.

Grant-making organizations are often interested in supporting sustainable projects that have a lasting effect beyond the funding period. Clearly outline how your project will create positive change and continue to thrive after the grant ends, as this can make your proposal more compelling.

2. Demonstrate Strong Partnerships

Demonstrating strong partnerships and collaborations can enhance the credibility of your proposal. Showcase any existing partnerships or plans for collaboration with other organizations or stakeholders to indicate to funders that your project has a solid foundation for success.

3. Tell a Compelling Story

Use storytelling techniques to engage the reader and make them care about your project. Highlight personal anecdotes, case studies, or statistics that demonstrate the impact of your work.

Common Mistakes to Avoid in Project Grant Proposals

There are several potential mistakes to be aware of when writing project grant proposals. One of the most common is failing to clearly articulate the project’s goals , objects, and expected outcomes. Be concise yet detailed in explaining what your project aims to achieve.

Another common mistake is not following a funder’s guidelines . With project grants, each grant proposal will come with specific guidelines and requirements set by the funding organization. Ignoring or deviating from these guidelines can lead to immediate disqualification. 

Finally, failing to proofread and edit can reflect poorly on your professionalism and attention to detail. Always proofread and edit your proposal before submission.

3. Operating Grants

Operating grants provide funding for organizations to cover essential expenses, such as rent, utilities, salaries, building maintenance, and day-to-day operational costs. These types of grants provide financial support to ensure the smooth functioning of an organization’s daily expenditures so that it can focus on its mission.

Eligibility Requirements for Operating Grants

Unique eligibility requirements are often in place for operating grants to ensure the funding is allocated to organizations that have a genuine need for financial support. Common eligibility requirements include:

• Nonprofit status: Many operating grants are exclusively available to nonprofit organizations. Applicants must provide proof of their nonprofit status through registration documents or tax-exempt certification.
• Mission alignment: Grant providers often look for organizations with missions that align with the goals and values of the funding source. It’s essential to demonstrate how your organization’s activities and objectives align with those of the grant provider.
• Financial stability: Grantmakers may assess an organization’s financial stability and sustainability before awarding an operating grant. This process could involve submitting financial statements, budgets, and other relevant financial documents.
• Impact assessment: Organizations may be required to demonstrate their impact on the community or target population they serve. Grant applications often ask for information on past achievements, outcomes, and evaluation methods.
• Regulation compliance: Operating grants typically have specific regulations and reporting requirements that grantees must adhere to. Organizations must ensure that they can comply with these regulations before applying for funding.

By understanding and meeting these eligibility requirements, organizations can increase their chances of securing operating grants to support their mission-driven work effectively.

Strategies for Crafting a Successful Operating Grant Proposal

Crafting a successful operating grant proposal requires careful planning and execution. Here are some key strategies to help you increase your chances of securing funding for your organization:

1. Budget Wisely

Develop a detailed budget that aligns with the proposed activities and outcomes outlined in your operating grant proposal. Ensure that all expenses are clearly justified and realistic.

2. Engage Stakeholders

Involve key stakeholders , such as board members, staff, volunteers, or beneficiaries in the grant writing process. Their insights and perspectives can enrich the narrative of your proposal.

3. Review and Revise

Take the time to review and revise your grant proposal multiple times before submission. Check for errors, clarity of language, consistency in formatting, and adherence to guidelines.

Common Mistakes to Avoid in Operating Grant Proposals

Creating a successful operating grant proposal requires careful planning and execution. A common mistake seen with operating grant proposals is a lack of clarity in the objectives and goals of the organization to justify the need for the grant. Be specific, measurable, achievable, relevant, and time-bound ( SMART ) when defining objectives.

Another misstep is weak budget justification . A strong budget justification is essential to demonstrate that the requested funds will be used effectively. Avoid vague or unrealistic budget allocations and ensure that each expense is clearly justified and aligns with the project’s goals. 

Finally, omitting an evaluation plan from your proposal can be detrimental, as it shows a lack of foresight in measuring the impact and success of the project. Including a robust evaluation plan demonstrates accountability and commitment to achieving results.

Which Grant Is Right for my Business?

When considering a grant for your business, study up on the different types to determine which one aligns best with your goals. Here’s a quick recap:

Research grants:

• Research grants are typically awarded to support scientific or academic research projects.
• They’re designed to fund investigations that contribute new knowledge or address specific research questions.
• These grants often require detailed proposals outlining the research methodology, objectives, and expected outcomes.

Project grants:

• Project grants focus on supporting specific initiatives or projects within an organization.
• They can be used for activities such as community programs, educational initiatives, or capacity-building projects.
• Project grants may require a clear outline of how the funds will be utilized and the expected impact on the target audience.

Operating grants:

• Operating grants provide funding to support the overall operations and sustainability of a nonprofit organization or business.
• They can cover expenses such as salaries, overhead costs, program development, and capacity-building efforts.
• Applicants for operating grants may need to demonstrate their organizational structure, financial stability, and long-term goals.

To sum up, research grants focus on advancing knowledge, project grants support specific initiatives, and operating grants sustain overall operations.

Factors to Consider When Choosing the Right Grant Type for Your Organization

When deciding on the most suitable grant type for your organization, several factors come into play to ensure a successful application process:

• Purpose and goals: Consider the primary purpose of your organization and its current goals. Research grants are typically geared toward funding specific research projects, while project grants support initiatives that align with a particular cause. Operating grants provide general operating support for overall sustainability.
• Scope of work: Evaluate the scope of work involved in your project or program. Research grants focus on conducting studies or experiments to advance activities to achieve desired outcomes, while project grants emphasize implementing specific activities to achieve desired outcomes. Operating grants support the day-to-day operations and infrastructure of an organization.
• Budget and funding needs: Assess the budget requirements and funding needs for your proposed project or organizational activities. Research grants often provide funding for equipment, personnel, and research-related expenses. Project grants cover costs associated with implementing programs or services, while operating grants help cover operational expenses such as rent, utilities, salaries, and overhead costs.

Grant Writing Tips for Success

Despite the differences between the grant proposal types we’ve discussed, there are overlaps in the eligibility criteria and recommended strategies for success. Here are some general tips to enhance the effectiveness of your grant proposals:

• Clearly define your project goals and objectives: Clearly outline what you aim to achieve with your grant funding. Provide a detailed description of the project, including its purpose, target audience , and expected outcomes.
• Tailor your proposal to the funder: Research the funder’s priorities , guidelines, and requirements before drafting your proposal. Customize your proposal to align with their mission and objectives for a better chance of success.
• Use clear and concise language: Avoid jargon or technical terms that may be difficult for non-experts to understand. Use simple language to clearly communicate your ideas and make a strong case for why your project deserves funding.
• Highlight the impact of your project: Clearly demonstrate how your project will make a difference to the community or the field it serves. Provide evidence of past successes or outcomes that support the effectiveness of your proposed activities.
• Include a realistic budget: Present a detailed budget that accurately reflects the costs associated with implementing your project. Ensure that all expenses are justified and reasonable based on industry standards.
• Proofreading and editing: One of the most crucial steps in creating a successful grant application is thorough proofreading and editing . Before submitting your grant proposal, review it multiple times to catch any grammatical errors, typos, and inconsistencies. Remember, a polished and error-free proposal demonstrates professionalism and attention to detail, which can significantly impact its success in securing funding.

In this post, we navigated the differences between the main types of grant proposals, discussed how to choose the right type for your organization, and shared some strategies on how to increase the likelihood of each type’s success. We also went over some general tips to enhance the effectiveness of all three types of grant proposals, including clearly defining the project goals, tailoring the proposal to the funder, using clear and concise language, highlighting the impact of the project, including a realistic budget, and proofreading and editing your grant proposal documents thoroughly.

If you’d like help with editing or proofreading your grant proposal, Proofed for Business is here for you. Learn more about how our team of experts can proofread, edit, and polish your professional content by scheduling a call with us today !

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Difference Between a Business Plan and a Business Proposal

Table of contents

It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats. 

A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. 

However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.

Business Plan

A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck. 

A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.

Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.

Components of a Business Plan

A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan. 

An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths. 

These can be further broken down into the following sections:

• Description of products and services, including mission, vision, and objectives of the business
• Target market
• Competitive advantage
• Industry and Competitor Analysis
• Marketing strategy
• Operating plan
• Team structure and qualifications
• Internal business analysis
• Management introduction 
• Financial analysis
• Cash flow statement or sales forecast
• Break-even analysis

Business Proposal

A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients. 

It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners. 

A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals. 

At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients. 

Solicited and Unsolicited Business Proposals

Proposals are solicited from you, or you send them on your initiative. 

You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects. 

But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.

Components of a Business Proposal

The following are the key components of a business proposal :

• Executive summary
• Introduction
• Problem statement
• Scope of work
• Benefits of Return on Investment (ROI)
• Call to Action (CTA)

Business Plan vs. Business Proposal

While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.

In the following table, we have summarized the main differences between a business plan and a business proposal:

Streamline the proposal creation process

To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business. 

With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.

Business Proposal and Business Plan: What’s the Difference?

Business proposal and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.

You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.

The main distinguishing factor to note is that a business proposal documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business) . 

Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.

What is a Business Proposal?

A business proposal is a company’s documentation that goes directly to its prospective. It’s usually written in an attempt to sell a company’s product or service.

While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.

In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.

Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea. 

It answers any questions or concerns potential investors may have about the suggested business idea.

Prospero business proposal generator can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.

Let’s now look at the importance of a business proposal and a business plan.

Reasons for a Business Proposal

The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.

Invited proposal

An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.

Alternatively, businesses request a proposal from a group of suppliers they’re willing to consider as prospective clients.

Non-invited proposals

Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers. 

Proposals are limited in the scope of a particular need or project and written to specific audiences.

The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.

It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.

What is a Business Plan?

A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.

The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.

It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).

A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.

Reasons for a Business Plan

Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.

Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.

Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.

The main reason companies write business plans is to convey and record information.

Structure of a Business and Plan Proposal

Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:

Structure of a Business Proposal

Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.

A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:

• Usually, it takes a quick description of products and services relevant to the RFP goals.
• Outlining the company’s scope of work.
• Answers to questions posed in the RFP.
• Estimate detailing tools, materials, labor, delivery, and other elements that’ll affect the project’s cost.

An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .

A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.

Try creating your business proposal here .

Structure of a Business Plan

A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:

• A summary of the executive
• Product/service description
• Industry analysis
• Operating plan
• Marketing strategies  
• Internal analysis
• Built-out plan
• Structure of leadership 
• Introduction of management 
• Financial goals

The business plan is more like an information document displaying the company’s operation and potential.

Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients. 

Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.

What’s the Difference Between a Business Plan and a Proposal?

Business proposals differ from business plans in content, writing style, purpose, goals, and structure.

The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.

Let’s look at some distinguishing features between the two terms:

Business Proposal vs. Business Plan

A business plan provides a detailed description of how the business was set up, plus its project.

On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.

In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.

On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.

A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.

Conversely, proposals show a limited scope of a specific project or need for a particular audience.

While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.

Types of Business Plans and Proposals

A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.

Solicited Proposals

This is presented in response to a request for proposal (RFP). It’s usually submitted responding to a work statement from sponsors.

These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept. 

A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.

In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.

The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.

Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator .

Unsolicited Business Proposals

This proposal is submitted to potential clients, even when they haven’t asked for one.

In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.

A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.

Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.

Types of Business Plans

Business plans are also categorized into four types, including

• short plans,
• presentation plans,
• working plans,
• and what-if plans.

These types require different degrees of labor and are not always proportional to results.

Presentation Plan

Using PowerPoint to outlay information about a business changed the way companies created their business plan. Many businesses lose sleep trying to figure out how you’re going to present a business plan that can affect a company’s future.

Working Plan

This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.

If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.

A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.

Internal policy considerations may guide what to include or exclude in the working plan.

What-If Plan

A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.

This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.

A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.

Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.

In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.

In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.

On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.

Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders. 

Why Not Give Prospero A Try?

Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.

You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.

It’ll increase your chances of securing contracts and proposals that can take the business to the next level.

Sign up for free today and get your free trial!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

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How to Write Winning Grant Proposals: 9 Tips and Techniques

Securing grant funding is not just about having a great project idea—it’s about effectively communicating that idea to align with the funding organization’s goals. Winning grant proposals act as a bridge between the potential of your project and the priorities of the funder, presenting a compelling case for why your project deserves support.

This article will guide you through the essential elements of crafting effective grant proposals, including how to structure your proposal, what key details to include, and how to ensure your proposal resonates with the funder’s objectives.

By mastering these elements, you can enhance your ability to secure funding and bring your project visions to life.

How to Write Winning Grant Proposals: Tips and Techniques

1. understand the funder’s objectives.

Before you start writing, it’s crucial to thoroughly understand what the funder is looking for. Review the funder’s mission and past funded projects to gauge their priorities and interests.

This knowledge will help you tailor your proposal to clearly align with their goals, increasing your chances of success. Delve into the specific criteria that the funder uses to evaluate grant proposals and look for any strategic themes or focus areas emphasized in their recent grant cycles .

Engaging with the funder’s published materials, such as annual reports or strategic plans, can also provide deeper insights into their long-term objectives and how they measure impact.

By aligning your proposal with these insights, you not only demonstrate your project’s relevance but also show your commitment to contributing to the funder’s overarching goals, significantly strengthening your grant proposals.

2. Structure Your Proposal Clearly

A well-structured proposal makes a strong first impression. Most grant proposals include the following sections:

• Executive Summary: A concise overview of your project that includes the need for the project, the expected outcomes, and the amount of funding requested.
• Statement of Need: Why the project is necessary and what issues it seeks to address.
• Project Description: Detailed outline of the project including goals, timeline, and activities.
• Budget: An itemized list of how funds will be used.
• Organization Information: Background information that establishes credibility and capacity to complete the project.
• Conclusion: Briefly recap the proposal’s key points, reinforcing the project’s importance and your organization’s capacity to successfully implement it.

3. Focus on the Need

Your proposal should clearly articulate the problem or need your project addresses. Use data and research to back up your statements and show the funder why this issue is important.

This section should evoke a sense of urgency and demonstrate that your project can effectively address this need. Be sure to present a compelling narrative that connects the need to real-world impacts, illustrating the consequences of inaction and the benefits of timely intervention.

Detailing the specific populations or ecosystems affected and citing recent studies or statistics not only validates the significance of the need but also positions your organization as well-informed and capable of handling the challenge.

Furthermore, by articulating a clear, direct connection between the funder’s objectives and your project’s aims, you enhance the relevance of your grant proposals, making it more compelling to the decision-makers.

4. Define Clear Goals and Objectives

Clearly state what your project intends to achieve. Goals should be broad, long-term aims, and objectives should be narrow, specific, and measurable. This clarity helps the funder understand your project’s scope and the specific outcomes you aim to achieve, which makes your grant proposals more compelling.

5. Develop a Detailed Project Plan

This is where you outline how you intend to achieve your objectives. Include a timeline, the specific activities to be completed, and who will be responsible for each activity. This section should convey a realistic and well-thought-out plan that instills confidence in your ability to manage the project .

Elaborate on the resources you will need, including any tools, technologies, or support services that are essential to project execution. Additionally, delineate the milestones you expect to reach throughout the project duration, providing clear markers of progress that align with your goals.

This level of detail not only demonstrates your thorough preparation but also reassures the funder that your organization has the competence and foresight to navigate any challenges that may arise.

By presenting a robust, actionable plan, you effectively communicate your commitment to making the project a success and your accountability in using the funder’s resources responsibly.

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6. include a comprehensive budget.

The budget should be detailed, realistic, and justified. It should clearly align with your project activities and reflect a prudent use of funds. Be sure to include a narrative that explains each budget item. This transparency helps build trust with the funder.

7. Make Your Case Compelling

Use persuasive language to make your case. While your grant proposals should be based on facts and evidence, remember that conveying a compelling story can also capture the funder’s interest.

Show how your project will change lives, improve systems, or transform communities. Incorporate testimonials or case studies from past initiatives that demonstrate your organization’s impact and expertise.

These narratives can humanize your data, giving a face and a story to the numbers and making the outcomes of your proposed work more relatable and tangible.

Moreover, explain the broader implications of your project: discuss how the changes you propose will lead to significant societal, environmental, or economic benefits.

This approach helps the funder visualize the ripple effects of their investment, further solidifying the value and urgency of your proposal.

By intertwining factual data with emotive storytelling, you can engage the funder on both intellectual and emotional levels, making a memorable and persuasive case for your project.

8. Revise and Proofread

Grant proposals that are well-written and error-free reflect your organization’s professionalism and attention to detail. Before submitting, revise your proposal several times and have it proofread by someone who can provide a fresh perspective.

9. Follow Submission Guidelines

Carefully review the submission guidelines provided by the funder. Adhering to these guidelines is crucial as failure to do so can lead to your proposal being disqualified before it is even reviewed.

Crafting winning grant proposals is a crucial skill that can significantly impact your organization’s ability to fund and execute projects. By aligning your proposal with funder priorities, articulating a clear need, and detailing a sound project plan and budget, you increase your chances of success.

Remember, the key to effective grant writing is not just in following a template but in understanding how to tell your project’s story in a way that engages funders and clearly shows the value of your work.

As you apply these tips and refine your approach, each proposal becomes an opportunity to learn and improve, enhancing your ability to secure funding and make a meaningful difference in your community and beyond.

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• Fundraising

How To Write a Perfect Grant Proposal In 8 Steps

By Colin Hunter on May 29, 2024

Want to build an effective fundraising campaign?

Our team is here to give you more details and guides on how to grow your fundraiser.

Securing funding for your projects is important for many organizations, and writing a grant proposal is often a key part of that process. However, writing a strong grant proposal can be challenging. It can make the difference between getting the funds you need and missing out on valuable opportunities.

This guide will show you how to write a perfect grant proposal in 8 easy steps. We'll take you through the process, offering practical tips and insights to help you create a clear and compelling proposal. 

What Is a Grant Proposal?

A grant proposal is a formal request for financial support, typically directed to organizations that grant funds, like governments, corporations, or foundations. 

It's structured to clearly explain the need for funding and how it will be used to achieve specific outcomes. The request outlines your project's scope, goals, and plans to convince the funder that your initiative is worthy of support.

Types of Grants

• Foundation Grants: These are issued by both private and public foundations and charities.
• Corporate Grants: Businesses and corporations provide these grants to promote social responsibility and increase community involvement. 
• Federal Government Grants: These grants are provided by government bodies at the national level. 
• State Government Grants: Similar to federal grants, these are distributed by state governments and usually focus on projects that benefit residents within the state​.
• Local City Government Grants: These are smaller grants that address local community needs and are distributed by city or local government bodies.

Should I Apply For a Grant?

Deciding whether to apply for a grant should involve a few considerations. 

First, assess whether your project's goals match the grant's objectives. It's crucial to ensure that your mission and the potential grant's purpose are compatible​​. 

You should also consider the potential impact of your project, your organization's capacity to complete the project within the grant's terms, and the likelihood of sustaining the project after the grant period ends. 

Remember, applying for grants is competitive and requires a significant effort to prepare a compelling proposal that gets noticed.

A Simple Guide To Write a Grant Proposal

Step1: start with  a cover letter.

The cover letter is your first chance to make a good impression. It should be concise, on a formal header, typically no more than one page, and must include key elements to catch the funder's attention.

Start by clearly stating your name, the name of your organization, and your contact information at the top of the letter. Make sure this information is accurate to avoid any confusion.

If possible, address the cover letter to a specific person. Use a formal salutation like "Dear Mr./Mrs." followed by their name to personalize the communication.

Quickly explain what your organization does. Clearly state the purpose of your request in the first few sentences. Describe your project and why it aligns with the funder’s goals. 

Specify the amount of funding you are requesting and briefly overview how it will be used. 

End with a statement that invites further communication, such as a request for a meeting or a site visit, and express your anticipation for discussing the project in more detail.

• While it's important to be professional, avoid overly stiff language that might come across as insincere or robotic.
• Use clear language. Assume the reader is not familiar with your field and avoid using specialized terminology without explanation.
• Personalize your cover letter to each funder. Generic cover letters are easy to spot and can suggest a lack of effort or genuine interest.

Step 2: Add Executive Summary

A cover letter and an executive summary serve different purposes in a grant proposal. The cover letter is your chance to make a personal introduction, express your interest, and briefly mention what the grant will support. It's personalized and addresses the funder directly. 

On the other hand, the executive summary provides a comprehensive overview of your project. It details the problem, your solution, and the outcomes you anticipate. 

Begin with a compelling statement or statistic that highlights the urgency or importance of your project. Grab the reader's attention and set the stage for the details that follow.

Clearly define the issue your project addresses. Be specific about how this problem affects your community or field and why it needs immediate attention.

Briefly describe your proposed solution. Explain how it addresses the problem and why it is effective. Include any innovative aspects of your approach that make your project stand out.

Detail the positive changes or results your project aims to achieve. Be specific about how these outcomes will benefit the target community or field. 

End with a summary of the overall impact of the project. Emphasize how the expected outcomes will advance broader goals or align with the funder's mission.

• Provide specific information about the problem and your solution. General statements are less compelling and can make your proposal seem unfocused.
• While it's important to be thorough, the executive summary should not discuss every aspect of your project. Leave the finer details for the main body of the proposal.
• Ensure the summary is logical and flows smoothly from one section to the next. It should be easy to follow and build a strong case for your project.

Step 3: State the Need (Problem Statement)

Writing a strong problem statement is the key to capturing the essence of what your project intends to address. 

Start by clearly identifying the specific issue your project will tackle. It should be relevant and significant enough to justify the need for funding. For example, rather than broadly addressing "education," focus on a specific issue like "reducing dropout rates among high school students in underserved communities."

Next, provide context by describing the circumstances that have led to or exacerbated the problem. Include data and evidence to support the existence and impact of the problem, making it relatable and urgent. 

Detail who is affected by the problem and how, and discuss the consequences of not addressing the issue.

Propose a brief outline of your potential solution, indicating how it addresses the problem. Show that your project is not only about identifying issues but also about providing feasible solutions.

Finally, describe the impact of the problem and the positive change your project aims to achieve. This part of the statement should match the funder's objectives.

• Data or credible sources should back every statement about the problem's significance.
• Customize the problem statement to align with the funder’s interests and show how your project supports their goals.
• Focus on a specific issue rather than trying to tackle a problem that is too wide or multifaceted for the scope of a single project.

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Step 4: Describe Clear Goals and Objectives

Make sure that your goals and objectives are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. 

• Specific: Clearly define what you aim to achieve. Instead of a broad goal like "improve health," specify what aspect of health you intend to improve and in which population or community.
• Measurable: Ensure that your objectives can be quantified or have clear indicators of success. For example, instead of just aiming to "increase participation," state a specific number or percentage by which participation will increase.
• Achievable: Set objectives that are realistic and attainable within the project's timeframe and with the available resources.
• Relevant: Align your goals and objectives with both the needs identified in your problem statement and the funder’s priorities to demonstrate the impact and necessity of your project.
• Time-bound: Include specific deadlines or time frames for achieving your objectives to provide a clear timeline for project implementation and evaluation.
• Avoid generalities that make your objectives difficult to understand or measure. Be precise about what you are aiming to achieve.
• While ambition is good, setting unrealistic goals can undermine the credibility of your proposal.
• Failing to specify when each objective will be achieved can leave your proposal looking under-planned.

Step 5: Provide a Realistic Budget

Creating a realistic budget for your grant proposal is important to demonstrate your organization's financial planning and accountability. 

Begin by thoroughly understanding what the funder requires in a budget proposal. Includes the format, categories, and specific financial details they want to see. 

Break down your costs into clear, defined categories such as salaries, equipment, supplies, and overheads. Be specific about each item and ensure that all costs are justified within the context of the project. T

Make sure to include both direct costs (specific to the project) and indirect costs (general organizational overheads). Some funders allow a percentage of the total budget to cover indirect costs, but your proposal should clarify and justify this.

Use detailed, current market rates for items and services you plan to procure. Avoid approximations. Instead, use quotes and estimates from vendors to substantiate your figures. 

Ensure your budget reflects and supports the narrative of your proposal. 

• Ensure all costs are realistic and account for potential variations in market rates.
• Each budget item should be specific and clearly linked to project activities.
• Consider all aspects of project implementation, including less obvious costs like maintenance or unexpected contingencies.

Step 6: Mention Evaluation Strategy

Evaluation strategy is another key part of your grant proposal. It's essential to include both formative (process) and summative (outcome) evaluations to assess the effectiveness of your project comprehensively.

• Formative Evaluation: This ongoing evaluation helps monitor the project’s progress toward achieving its objectives. It allows for adjustments and improvements in real-time, ensuring the project stays on track.
• Summative Evaluation: Conducted at the end of the project, this evaluation assesses the overall impact and outcomes against the initial goals. It is crucial for demonstrating the project's success and value to funders.

Define what you will measure and how. Make sure these metrics connect with your project’s goals. Specify whether the focus is on direct outputs (e.g., number of people served) or broader impacts (e.g., long-term community changes).

Outline the methods for gathering and analyzing data. Decide on the tools and techniques you will use, such as statistical software for quantitative data or content analysis for qualitative data. 

Describe how the results of the evaluations will be reported and used. Include plans for internal use, such as improving the program, and external use, such as sharing successes and lessons learned with the community and stakeholders​.

• Clearly specify what will be measured and how.
• Engage those affected by or interested in the project in the evaluation process.
• Be open to adjusting your evaluation methods as the project evolves.
• Ensure your evaluation methods respect participants' rights and privacy.

Step 7: Share Strategies To Ensure Sustainability

The next step is to show funders that your project has the capacity to endure beyond the initial funding period. Funders are increasingly interested in projects that address immediate needs and demonstrate long-term viability and impact.

To ensure ongoing support, plan to diversify your funding streams. Plan to secure future grants, establish partnerships with businesses for corporate sponsorships, and initiate community fundraising efforts. 

Include a detailed projection of ongoing costs for at least five years. Cover daily operations, maintenance, potential growth, and even decommissioning if applicable. Include inflation factors, the need for specialist skills, and ongoing training to maintain project efficacy and relevance over time​.

Explain how the project will be managed in the long term. This includes establishing robust management practices, securing essential resources, and potentially increasing your organizational capacity to handle expanded operations or services as the project grows​.

• Avoid overly optimistic projections that may not be realistic or achievable.
• Avoid vague statements. Be specific about how sustainability will be achieved.
• Do not ignore potential risks or challenges that could impact long-term sustainability.

Step 8: Final Review and Submission

• Ensure that every section of your proposal meets the specific requirements set by the funder, including format, content, and length​.
• Double-check your budget calculations for accuracy and ensure they align with the project narrative. Include all required documentation and justification for the funds requested​.
• Read through the entire proposal to make sure it is clear and logical. Look for any sections that might be confusing or ambiguous and clarify them.
• Perform a thorough spell check and grammar review. It can be helpful to have another person review the proposal as well to catch any errors you might have missed​.
• Confirm that all necessary compliance forms are included and that every required section is complete. This might include conflict of interest forms, human subjects protections, and other regulatory documents.

Tips on Submitting the Proposal and Following Up with Funders

• Follow the funder's specified process for submission, which may include online submissions through portals like Grants.gov or other digital platforms. Make sure all electronic forms are filled out completely and accurately.
• After submitting, ensure you receive an acknowledgment receipt from the funder. If the submission is through an online system, you might receive an automatic notification​.
• After submission, keep track of the review timelines and be proactive in responding to any requests from the funder for additional information or clarifications​.
• Whether your proposal is accepted or rejected, request feedback from the funder. It can be invaluable for improving future proposals and understanding the funder's priorities​.
• Keep a copy of the submitted proposal and all correspondence with the funder for your records. This documentation will be helpful for future applications and may be required for institutional or compliance reasons.

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About Colin Hunter

Colin Hunter is the cofounder of BetterWorld , where he leads initiatives to expand reach and impact. Previously, he cofounded and served as CEO of luxury custom menswear brand Alton Lane. Colin’s experience as a consultant with Bain & Company, working with Global 1000 companies, shaped his approach to leadership and growth. He holds a BA from the University of Virginia and studied in Oxford, England. Colin lives in Scottsville, Virginia with his wife and three daughters.

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The difference between a business plan and a business proposal

Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.

According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.

A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.

A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.

According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.

A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.

A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.

The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.

Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.

You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.

For more information, here is an article on how to write a business proposal .

Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290

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Identify Your Project’s Strategic Plan

Being awarded a grant takes more than an idea and a funding source. It takes an organization that is well managed, that understands its purpose, and that uses its staff and board efficiently. A successful grant program requires the organization to identify its long- and short-term goals, the priorities of the proposed project, and the strengths and limitations of its staff and their procedures. This section will help you understand the importance of a strategic plan and provide a model for you to follow as you create your own strategic plan.

What Is Strategic Planning? Strategic planning helps you develop a direction for the future and details how to get there—how to solve a problem, how to implement a program or project, etc.

Why Engage in Strategic Planning?

• Stimulate team or organizational thinking.
• Add an element of science (such as research) to your thinking.
• Clarify your future direction.
• Generate support, buy-in, and teamwork.
• Improve the probabilities of success.

Strategic planning can be broken down into two components: strategy and tactics. Strategy determines the overall direction of a plan and establishes its principle goals or mission; tactics concern the detailed plans, choices, and decisions made to reach the primary goal. In summary, a strategy helps people choose and implement tactics.

To achieve lasting improvements, you must consider not only immediate concerns or crises, but also issues that can appear tangential, such as community values, leadership styles, and the degree to which implementation disrupts routine. Above all, avoid implementing plans that achieve your goals but inflict significant hardships on organizations and communities. A plan that might work well for a large government contractor, for example, may very well run into problems if implemented by a small American Indian tribe—or vice versa.

Elements of Strategic Planning Developing a comprehensive strategic plan involves (1) thinking through and detailing plan elements, (2) developing the logic underlying the choice of elements, and (3) clearly documenting the plan. The logic model helps ensure that the plan will work, and that the elements (goals, objectives, tasks, and action steps) will lead to the desired results. The documentation helps preserve the connections. This information is critical for the evaluation phase. If the work is not done upfront when the project is being planned, the evaluator will have to reconstruct the logic and data needed for evaluation. At this stage, sometimes the necessary data has not been collected and is not available.

A strategy specifies how a vision will be achieved. A strategic plan begins with an assessment—both external to the organization and within it. This is similar to identifying and analyzing problems. The resulting strategic plan is made up of these elements:

• Goals and objectives: major steps to accomplishing a goal; specific, measurable, and achievable in a defined period of time.
• Tasks: more specific activities designed to accomplish objectives.
• Action steps: timeline, activities, persons responsible, sequential chain of events.
• Results measurement.

Goal-based strategic planning is the preferred process in community-based planning. Here is a guide to getting that done:

• Identify strengths, weaknesses, opportunities, and threats. These can exist both within and outside of your organization.
• Identify and prioritize major problems and goals. Go through the list of strengths, weaknesses, opportunities, and threats and identify your goals and the problems that might prevent your program from reaching those goals.
• Design major strategies (or programs) to address problems and goals.
• Design or update your mission statement (some organizations may do this step first).
• Establish action plans (e.g., objectives, resource needs, roles, responsibilities for implementation).
• Compile your strategic plan. A strategic plan contains all the documentation assembled so far and records problems, goals, strategies, an updated mission statement, action plans, and any identified strengths, weaknesses, opportunities, and threats.

How to Write a Partnership Proposal [Examples + Template]

Published: June 18, 2024

Partnerships generate $3.9 billion per year in the U.S. and supercharge the revenue of companies like Microsoft, Atlassian, and Shopify. Teaming up with another professional or company can multiply your capacity, expertise, and growth.

With so much at stake, approaching a potential partner can be intimidating. Whenever I make a business pitch, there are three items I work to perfect. First, an underlying relationship to build on. Second, a stellar verbal presentation for a pitch meeting. And third, a killer partnership proposal.

A partnership proposal is a powerful tool to showcase your professionalism and convince your potential partner why they should collaborate with you. I’ve compiled what you should include in your proposal, plus four partnership proposal templates to give you a head start.

What is a partnership proposal?

• Types of Partnership Proposals

Components of a Partnership Proposal

How to write a partnership proposal, partnership proposal template, partnership proposal examples, partnership proposal tips.

A partnership proposal is a document outlining the benefits, scope, and structure of a future collaboration between two businesses or individuals.

Most partnership collaborations begin with an idea and verbal discussions. “ Hey, here’s a crazy idea. What if we…” If you don’t know the person, start with a warm intro email or phone call first.

A partnership proposal is the next step in the process, formalizing concepts to align goals and gain buy-in. While it isn’t a legal contract, it’s often a precursor to one.

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Types of Business Partnerships

Before creating a business partnership proposal, it’s important to understand which type of partnership you want to pursue.

General Business Partnership

When two or more individuals enter a business agreement and share unlimited liability, you have a general business partnership. A proposal for a general business partnership should include the share of ownership, contributions of each partner, the distribution of profits and losses, and the terms for dissolution.

Joint Venture

A joint venture (JV) is an agreement between two companies to combine resources and expertise for a specific purpose. For instance, a global company might form a JV with a local company when bringing a product to a new country.

Limited Partnership

A limited partnership (LP) is a business partnership that includes at least one general partner and at least one limited partner. Limited partners have minimal liability and management oversight of the operations. An LP is common in single-purpose scenarios like a real estate transaction.

Limited Liability Partnership

The LLP structure is common in professional service fields such as law firms, doctor’s offices, and accounting. Similar to an LLC, a limited liability partnership (LLP) is an agreement between partners that grants them limited liability. LLP requirements vary by state.

Influencer Partnership

An influencer partnership is a limited-scope agreement between an influencer or creator and a brand to create and publish branded social media content.

Sponsorship Partnership

A sponsorship is a collaboration between businesses, nonprofits, or media companies where one company pays for access to promote their goods and services to the other company’s audience.

When I write proposals, I always aim to personalize each one and find the right balance between personable and professional. While the nuances of each partnership model vary, there are a few common elements that every partnership business proposal should have.

Executive Summary

Hook your reader’s attention with a summary explaining the partnership concept, key benefits, and a table of contents.

List each partner with their contact and background information. Specify the role each will have, and whether they are a general or limited partner. Make it visual, with photos or logos.

Goals and Objectives

All good partnerships start with shared goals. Explain your goals and dreams for the partnership, from a high-level vision to specific objectives.

Share who your audience is and any key demographics. Make sure that your audience will fit with the partner’s audience, and vice-versa. An audience is a key selling point for partners, especially with influencer or sponsorship partnerships. Some brands go as far as account mapping to identify customer overlap, but general audience data can be as effective.

Scope of Work

Next, define the scope of work and projects to be covered with the partnership. If this is for a limited-scope project like an influencer collaboration, give a precise breakdown of project steps. If this is for a general partnership, JV, or LP, list target activities and deliverables and who is responsible for each. Give timelines as appropriate.

Benefits and Challenges

If you’ve ever written a business plan, you’re likely already familiar with the SWOT analysis (strengths, weaknesses, opportunities, threats). Similar to this, give an abbreviated analysis of:

• Challenges that will need to be tackled.
• Benefits to the collaboration.
• Market research and industry analysis.

Legal and Financial Information

Propose terms and conditions for the partnership, like payment and revenue-sharing structures. Spell out who will own intellectual property generated by the company and how royalties will be distributed. Address how disputes or a partnership dissolution would be handled. ​​

To test this out, I wrote a general partnership proposal between a web designer and a web developer who want to team up to start a website studio. I used HubSpot’s partnership business proposal template to build a professional proposal outlining the partnership benefits and structure.

Creating a compelling partnership proposal requires a clear understanding of your potential partner's needs and how your collaboration can meet those needs. To simplify this process and ensure you have all the required information, consider using HubSpot Sales Software . This tool can help you gather insights, track interactions, and manage your proposal process more efficiently.

Here are the steps I took to create the proposal.

1. Outline the Benefits

To convince your partner, make the case why it’s worth them sharing their time (and profits) with you.

I started my proposal with an executive summary envisioning why the partnership would appeal to future clients. That leads into a “Benefits of Collaboration” section where I clearly outline the mutual advantages.

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IRS enters next stage of Employee Retention Credit work; review indicates vast majority show risk of being improper

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Highest-risk claims being denied, additional processing to begin on low-risk claims; heightened scrutiny and review continues as compliance work tops $2 billion; IRS will consult with Congress on potential legislative action before making decision on future of moratorium

IR-2024-169, June 20, 2024

WASHINGTON — Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service today announced plans to deny tens of thousands of improper high-risk Employee Retention Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.

“The completion of this review provided the IRS with new insight into risky Employee Retention Credit activity and confirmed widespread concerns about a large number of improper claims,” said IRS Commissioner Danny Werfel. “We will now use this information to deny billions of dollars in clearly improper claims and begin additional work to issue payments to help taxpayers without any red flags on their claims.”

“This is one of the most complex credits the IRS has administered, and we continue to ask taxpayers for patience as we unravel this complex process,” Werfel added. “Ultimately, this period will help us protect taxpayers against improper payouts that flooded the system and get checks to those truly eligible.”

The review involved months of digitizing information and analyzing data since last September to assess a group of more than 1 million Employee Retention Credit (ERC) claims representing more than $86 billion filed amid aggressive marketing last year.

During this process, the IRS identified between 10% and 20% of claims fall into what the agency has determined to be the highest-risk group, which show clear signs of being erroneous claims for the pandemic-era credit. Tens of thousands of these will be denied in the weeks ahead. This high-risk group includes filings with warning signals that clearly fall outside the guidelines established by Congress.

In addition to this highest risk group, the IRS analysis also estimates between 60% and 70% of the claims show an unacceptable level of risk. For this category of claims with risk indicators, the IRS will be conducting additional analysis to gather more information with a goal of improving the agency’s compliance review, speeding resolution of valid claims while protecting against improper payments.

At the same time, the IRS continues to be concerned about small businesses waiting on legitimate claims, and the agency is taking more action to help. Between 10% and 20% of the ERC claims show a low risk. For those with no eligibility warning signs that were received prior to the last fall’s moratorium, the IRS will begin judiciously processing more of these claims.

The IRS anticipates some of the first payments in this group will go out later this summer. But the IRS emphasized these will go out at a dramatically slower pace than payments that went out during the pandemic period given the need for increased scrutiny.

As the additional IRS processing work begins at a measured pace, other claims will begin being paid later this summer following a final review. This additional review is needed because the submissions may have calculation errors made during the complex filings. For those claims with calculation errors, the amount claimed will be adjusted before payment.

The IRS also noted that generally the oldest claims will be worked first, and no claims submitted during the moratorium period will be processed at this time.

No additional action needed by taxpayers at this time; await further notification from the IRS

The IRS cautioned taxpayers who filed ERC claims that the process will take time, and the agency warned that processing speeds will not return to levels that occurred last summer. Taxpayers with claims do not need to take any action at this point, and they should await further notification from the IRS. The agency emphasized those with ERC claims should not call IRS toll-free lines because additional information is generally not available on these claims as processing work continues.

“These complex claims take time, and the IRS remains deeply concerned about how many taxpayers have been misled and deluded by promoters into thinking they’re eligible for a big payday. The reality is many aren’t,” Werfel said. “People may think they are on safe ground, but many are simply not eligible under the law. The IRS continues to urge those with pending claims to use this period to review the guideline checklist on IRS.gov, talk to a legitimate tax professional rather than a promoter and use the special IRS withdrawal program when there’s an issue.”

Werfel also cautioned taxpayers to be wary of promoters using today’s announcement as a springboard to attract more clients to file ERC claims.

“The whole world has changed involving Employee Retention Credits since the deepest days of the pandemic,” Werfel said. “Anyone applying for this credit needs to talk to a trusted tax professional and closely review the eligibility requirements, not someone playing fast and loose and trying to make a fast buck off well-meaning taxpayers. People need to be cautious of promoters trying to take advantage of today’s announcement to drive more business. People should remember the IRS continues to be very active in our compliance lanes on Employee Retention Credits.”

Steps taken since September 2023 when processing moratorium on new ERC claims began

During the ERC review period, the IRS continued to process claims received prior to September 2023. The agency processed 28,000 claims worth $2.2 billion and disallowed more than 14,000 claims worth more than $1 billion.

The ERC program began as a critical effort to help businesses during the pandemic, but the program later became the target of aggressive marketing well after the pandemic ended. Some promoter groups may have called the credit by another name, such as a grant, business stimulus payment, government relief or other names besides ERC or the Employee Retention Tax Credit (ERTC).

To counter the flood of claims being driven by promoters, the IRS announced last fall a moratorium on processing claims submitted after Sept. 14, 2023, to give the agency time to digitize information on the large study group of nearly 1 million ERC claims, which are made on amended paper tax returns. The subsequent analysis of the results during this period helped the IRS evaluate next steps, providing the IRS valuable information to change the way the agency will process ERC claims going forward.

The findings of the IRS review confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERC claims.

The claims followed a flurry of aggressive marketing and promotions last year that led to people being misled into filing for the ERC. After the moratorium was put in place on Sept. 14, the IRS has continued to see ERC claims continuing to come in at the rate of more than 17,000 a week, with the ERC inventory currently at 1.4 million.

In light of the large inventory and the results of the ERC review, the IRS will keep the processing moratorium in place on ERC claims submitted after Sept. 14, 2023. The IRS will use this period to gather additional feedback from partners, including Congress and others, on the future course of ERC.

“We decided to keep the post-September moratorium in place because we continue to be concerned about the substantial number of claims coming in so long after the pandemic,” Werfel said. “These claims are clogging the system for legitimate taxpayers. We worry that ending the moratorium might trigger a gold rush by aggressive marketers that could lead to a new round of improper claims, which would be a bad result for taxpayers or tax administration. We will use this time to consult with Congress and seek additional help from them on the ERC program, including potentially closing down new claims entirely and seeking an extension of the statute of limitations to allow the agency more time to pursue improper claims.”

Special IRS Withdrawal Program remains open for those with unprocessed ERC claims

Given the large number of questionable claims indicated by the new review, the IRS continues to urge those with unprocessed claims to consider the special IRS ERC Withdrawal Program to avoid future compliance issues.

Businesses should quickly pursue the claim withdrawal process if they need to ask the IRS to not process an ERC claim for any tax period that hasn’t been paid yet. Taxpayers who received an ERC check — but haven’t cashed or deposited it — can also use this process to withdraw the claim and return the check. The IRS will treat the claim as though the taxpayer never filed it. No interest or penalties will apply.

With more than 1.4 million unprocessed ERC claims, the claim withdrawal process remains an important option for businesses who may have submitted an improper claim.

IRS compliance work tops $2 billion from Voluntary Disclosure Program, withdrawal process, disallowances

The IRS also announced today that compliance efforts around erroneous ERC claims have now topped more than $2 billion since last fall. This is nearly double the amount announced in March following completion of the special ERC Voluntary Disclosure Program (VDP), which the IRS announced led to the disclosure of $1.09 billion from over 2,600 applications. The IRS is currently considering reopening the VDP at a reduced rate for those with previously processed claims to avoid future compliance action by the IRS.

Compliance work on previously processed ERC claims continue, and work continues on a number of efforts to counter questionable claims:

• The ongoing claim withdrawal process for those with unprocessed ERC claims has led to more than 4,800 entities withdrawing $531 million.
• The IRS has determined that more than 12,000 entities filed over 22,000 claims that were improper and resulted in $572 million in assessments. This initial round of letters covers Tax Year 2020. Thousands more of these letters are planned in coming months to address Tax Year 2021, which involved larger claims. Congress increased the maximum ERC from $5,000 per employee per year in 2020, to $7,000 per employee for each quarter of the year in 2021.
• More than 2,600 applications for the special ERC Voluntary Disclosure Program (VDP) , which ended in March, disclosed $1.09 billion.

The IRS is currently assessing whether to reopen the special ERC Voluntary Disclosure Program to help taxpayers get into compliance on paid claims and avoid future IRS compliance action, including audits. If the program reopens, the IRS anticipates the terms will not be as favorable as the initial offering that closed in the spring. A decision will be made in coming weeks.

The IRS also reminded those with pending claims or considering submitting an ERC claim about other compliance actions underway:

Criminal investigations: As of May 31, 2024, IRS Criminal Investigation has initiated 450 criminal cases, with potentially fraudulent claims worth nearly $7 billion. In all, 36 investigations have resulted in federal charges so far, with 16 investigations resulting in convictions and seven sentencings with an average sentence of 25 months.

Audits: The IRS has thousands of ERC claims currently under audit.

Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.

Help for businesses with eligibility questions and those misled by promoters

Some promoters told taxpayers every employer qualifies for ERC. The IRS and the tax professional community emphasize that this is not true. Eligibility depends on specific facts and circumstances. The IRS has dozens of resources to help people learn about and check ERC eligibility and businesses can also consult their trusted tax professional . Key IRS materials to help show taxpayers if they have a risky ERC claim include:

• ERC Eligibility Checklist (interactive version and a printable guide PDF ) includes cautions about common areas of misinformation and links to facts and examples.
• 7 warning signs ERC claims may be incorrect outlines tactics that unscrupulous promoters have used and why their points are wrong.
• Frequently asked questions about the Employee Retention Credit includes eligibility rules, definitions, examples and more.
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Watch CBS News

Trump is proposing a 10% tariff. Economists say that amounts to a $1,700 tax on Americans.

By Aimee Picchi

Edited By Alain Sherter

Updated on: June 20, 2024 / 1:13 PM EDT / CBS News

Former President Donald Trump is pledging to supercharge one of his signature trade policies — tariffs — if he's re-elected this November, by imposing 10% across-the-board levies on all products imported into the U.S. from overseas. The idea, he has said , is to protect American jobs as well as raise more revenue to offset an extension of his 2017 tax cuts.

But that proposal would likely backfire, effectively acting as a tax on U.S. consumers, economists spanning the political spectrum say. If the tariffs are enacted — with Trump also proposing a levy of 60% or more on Chinese imports — a typical middle-class household in the U.S. would face an estimated $1,700 a year in additional costs,  according  to the non-partisan Peterson Institute for International Economics. 

Meanwhile, the left-leaning Center on American Progress has also crunched the numbers  and projects roughly $1,500 per year in extra costs for the typical household. The reason, according to experts: Companies in the U.S. that import goods from abroad typically pass the cost of tariffs onto American consumers; relatedly, domestic manufacturers then often raise their own prices. 

Who would pay the price?

The biggest impact of higher import tariffs would likely fall on low- and middle-income consumers because they spend a larger share of their income on goods and services than wealthier Americans, according to Kimberly Clausing and Mary Lovely of the Peterson Institute. 

"If you are an economist, you know right away that tariffs are taxes. If you put a tariff on imported goods, it means they become more expensive" and competitors can raise their prices, Clausing told CBS MoneyWatch. 

Trump is selling "snake oil," added Lovely. "It's really on steroids, and you have to speak a little louder and say, 'This is really going to affect you'." 

The bottom line, both Clausing and Lovely said, is that Trump's tariff proposals would likely boost consumer prices, a concern after two years of surging inflation. The typical American household would feel the biggest pinch through materials and goods bought by U.S. companies, such as lumber for construction, and which would be passed onto them through $610 in additional annual costs, the Center on American Progress analysis estimated. 

Middle-class households would also pay $220 more a year for cars and other vehicles, $120 more for gas and other oil products, and $90 a year in additional food costs, according to the policy analysis firm. 

Trump campaign spokesman Steven Cheung didn't respond to requests for comment.

Tariffs have long been used to advance U.S. trade policies by both the right and left, as well as to curry favor with labor unions. And Americans generally support tariffs because they believe they protect U.S. jobs from overseas manufacturers.

In practice, policymakers tend to apply targeted tariffs that serve to protect a specific industry or product. For instance, President Joe Biden last month instituted a  new tariff on Chinese electric vehicles, semiconductors, batteries, solar cells, steel and aluminum. The goal is to prevent China from  undercutting U.S. companies  and threatening domestic manufacturing jobs, according to the Biden administration. 

"The basic thing is that people view tariffs as job saving, and say, 'It'll cost me a little more and I want to do that because I want to help steelworkers'," Lovely said. But, she added, "We see a lot of misunderstanding about how trade works and what tariffs mean for people."

Do tariffs protect jobs?

Lovely and Clausing point to existing evidence about the impact of tariffs enacted by Trump during his presidency, when he put  levies on Chinese goods as well as Mexican products.  But rather than protect employment, offshoring of U.S. jobs continued during the Trump presidency, according to Reuters, citing Labor Department data. 

"People are being sold a bill of goods, but the data shows it's not helping them in their daily lives," Clausing said. "That's the hard thing about being an economist — everything lines up and people say, 'No, tariffs seem good'."

Noted MIT economist David Autor and his co-authors  said  in a January research paper that Trump's 2018-2019 trade war "has not to date provided economic help to the U.S. heartland," failing to raise employment in protected sectors. In fact, retaliatory tariffs from countries targeted by the Trump administration had the effect of "clear negative employment impacts, primarily in agriculture," Autor found. 

The one success of Trump's trade war, Autor concluded, was political. "Residents of regions more exposed to import tariffs became less likely to identify as Democrats, more likely to vote to reelect Donald Trump in 2020 and more likely to elect Republicans to Congress," the researchers wrote. 

It's likely that many Americans didn't notice the price increases during the Trump 2018-19 trade war because they were more targeted than a 10% across-the-board tariff would be, Lovely and Clausing said. 

"If you look at set of imports targeted by Trump in his presidency, it was maybe one-tenth of trade, and companies like Walmart might have spread out some of that pricing increase across goods, so it's really non-transparent," Clausing said. "My prediction is that if the worst happens and he puts a 10% tariff on everything, people will notice that."

• Donald Trump

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

More from CBS News

How to watch the first presidential debate between Biden and Trump

Trump's plans could reignite inflation, Nobel Prize-winning economists say

Biden campaign, DNC highlight democracy, Jan. 6 in lead-up to debate

Former Republican Rep. Kinzinger endorses Biden

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Applications for New Awards; Promise Neighborhoods (PN) Program

A Notice by the Education Department on 06/27/2024

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Office of Elementary and Secondary Education, Department of Education.

The Department of Education (Department) is issuing a notice inviting applications for fiscal year (FY) 2024 for the PN program.

Applications Available: June 27, 2024.

Deadline for Notice of Intent to Apply: July 29, 2024.

Date of Pre-Application Meetings: The Department will hold pre-application meetings via webinar for prospective applicants. Detailed information regarding pre-application webinars will be provided on the PN website at https://oese.ed.gov/​offices/​office-of-discretionary-grants-support-services/​school-choice-improvement-programs/​promise-neighborhoods-pn/​ .

Deadline for Transmittal of Application: September 10, 2024.

Deadline for Intergovernmental Review: November 12, 2024.

For the addresses for obtaining and submitting an application, please refer to our Common Instructions for Applicants to Department of Education Discretionary Grant Programs, published in the Federal Register on December 7, 2022 ( 87 FR 75045 ) and available at www.federalregister.gov/​documents/​2022/​12/​07/​2022-26554/​common-instructions-for-applicants-to-department-of-education-discretionary-grant-programs .

Rich Wilson, U.S. Department of Education, Start Printed Page 53596 400 Maryland Avenue SW, Room 3W101, Washington, DC 20202. Telephone: (202)453-6709. Email: [email protected] .

If you are deaf, hard of hearing, or have a speech disability and wish to access telecommunications relay services, please dial 7-1-1.

1. Purpose of Program: The PN program is authorized under the Elementary and Secondary Education Act of 1965, as amended (ESEA). The purpose of the PN program is to significantly improve the academic and developmental outcomes of children and youth living in the most distressed communities of the United States, including ensuring school readiness, high school graduation, and access to a community-based continuum of high-quality services. The program serves neighborhoods with high concentrations of individuals with low incomes; multiple signs of distress, which may include high rates of poverty, childhood obesity, academic challenges, and juvenile delinquency, adjudication, or incarceration; and adverse childhood experiences; and also serves schools implementing comprehensive support and improvement activities or targeted support and improvement activities under section 1111(d) of the ESEA. All strategies in the continuum of solutions must be accessible to children with disabilities and English learners.

Assistance Listing Number: 84.215N.

OMB Control Number: 1894-0006.

2. Award Information:

Type of Award: Discretionary grant.

Estimated Available Funds: $4,000,000.

Contingent upon the availability of funds and the quality of applications, we may make additional awards in FY 2025 or in subsequent years from the list of unfunded applications from this competition.

Estimated Range of Awards: $400,000 to $500,000.

Estimated Average Size of Awards: $450,000.

Maximum Award: We will not make an award exceeding $500,000 for a single budget period of 12 months. The Department plans to fully fund awards made under this notice with FY 2024 funds.

Estimated Number of Awards: 4-5.

The Department is not bound by any estimates in this notice.

Project Period: Up to 24 months.

Under section 4623 of the ESEA, a grant awarded under this competition will be for a period of not more than 2 years.

3. Eligible Applicants: Under section 4622 of the ESEA, an eligible entity must be one of the following:

(a) An institution of higher education (IHE), as defined in section 102 of the Higher Education Act of 1965, as amended (HEA) ( 20 U.S.C. 1002 );

(b) An Indian Tribe or Tribal organization, as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ); or

(c) One or more nonprofit entities working in formal partnership with not less than one of the following entities:

(i) A high-need local educational agency (LEA).

(ii) An IHE, as defined in section 102 of the HEA ( 20 U.S.C. 1002 ).

(iii) The office of a chief elected official of a unit of local government.

(iv) An Indian Tribe or Tribal organization, as defined under section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ).

Note: If you are a nonprofit organization, under 34 CFR 75.51 , you may demonstrate your nonprofit status by providing: (1) proof that the Internal Revenue Service currently recognizes the applicant as an organization to which contributions are tax deductible under section 501(c)(3) of the Internal Revenue Code; (2) a statement from a State taxing body or the State attorney general certifying that the organization is a nonprofit organization operating within the State and that no part of its net earnings may lawfully benefit any private shareholder or individual; (3) a certified copy of the applicant's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or (4) any item described above if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate.

4. Background: A Promise Neighborhood is a place-based, collective impact approach to improving results for children and families. The transformative vision of the Promise Neighborhoods initiative is that all children and youth growing up in Promise Neighborhoods have access to great schools and strong systems of family and community support. Promise Neighborhoods weave together people, services, and organizations to create a seamless cradle-to-career pipeline, along which community members have access to high-quality early care and education, smooth and effective transition to kindergarten, excellent K-12 schools, and pathways to achieve postsecondary and career success.

The PN program's successes in helping communities respond to the COVID-19 pandemic highlight the importance of ensuring place-based supports for children and families. When the pandemic hit, Promise Neighborhoods became an important source of funding for local governments to quickly respond to community needs and have confidence that available resources would benefit the hardest hit community members.

Promise Neighborhoods is particularly apt for addressing issues that worsened during the pandemic, such as chronic absenteeism and community violence, due to three key characteristics: (1) a strong backbone organization to support families, which can take years to build; (2) flexible funding targeted for year-round K-12 interventions; and (3) networks of partnerships that draw on the internal resources of the community, such as local organizers, trusted elders, and youth leaders, to guide services to those who need them most. Those with deep community relationships can inform practice, act nimbly, and respond to community needs as they arise. Importantly, the PN program also allows grantees to use the first two years of funding for both implementation and planning activities. Planning activities have been particularly important for organizations that have not previously had a Federal PN grant and are working to establish a foundation to implement the program.

One recent study of chronic absenteeism found that the number of public school students who are chronically absent—meaning they miss at least 10 percent of days in a school year, whether excused or unexcused—nearly doubled between the 2018-19 and 2021-22 school years, [ 1 ] from about 15 percent to around 30 percent. The greatest increase has been in kindergarten, with the rate of chronic absenteeism now as high as 40 percent in some communities. [ 2 ] Research suggests that children who are chronically absent for multiple years between preschool and second grade are much less likely to read at grade level Start Printed Page 53597 by the third grade. [ 3 ] As of the 2021-22 school year, over 14 million students nationwide were chronically absent, missing crucial instructional time and posing serious implications for students' overall academic success and wellbeing. [ 4 ]

The Biden-Harris Administration has made addressing chronic absenteeism one of the focal points of its Improving Student Achievement Agenda  [ 5 ] and is using several strategies to help schools and communities address this issue. These efforts include: disseminating grants that can fund interventions and supports in schools; offering technical assistance to States and districts, including the Department's Student Engagement and Attendance Center, [ 6 ] which supports States and schools in designing and implementing evidence-based strategies to improve student attendance and engagement, and the Department's National Center on Safe Supportive Learning Environments, [ 7 ] which provides technical assistance focused on improving school climate; investing in comprehensive mental health programs for students, including through the transformational investments of the Bipartisan Safer Communities Act;  [ 8 ] and establishing and strengthening the National Partnership for Student Success, [ 9 ] which marshals evidence-based supports such as tutoring and mentoring to help keep students engaged and on-track.

Additionally, the Promise Neighborhoods incorporates the unique insights of young people to better address their needs and circumstances. PN grantees and like-minded cross-sector initiatives have been successful in engaging children and young people in K-12, college students, recent college graduates, and young adults pursuing employment. Youth engagement is used to improve school climate, consistent attendance, college preparedness, and leadership development among older youths. Because such engagement activities directly address the youth populations they involve, they can be adapted and applied to many contexts. In this instance, program grantees are encouraged to engage young people in the planning and implementation of these two-year grants.

Promise Neighborhoods also provide a unique opportunity for communities to create a comprehensive approach to help prevent and address violence in their neighborhoods. Funds can support a broad approach that allows grantees to coordinate mental health professionals, the criminal justice system, economic or workforce development organizations, and community leaders to intervene in areas with high rates of violence. Current grantees have engaged with Parks Departments, Departments of Justice, and local community organizations to focus on creating safe public spaces such as parks and more walkable communities, improving both safety and wellness in their neighborhoods, and creating a safe passage for students to get to school. Grantees have also focused on increasing attendance and graduation rates as well as community mentoring to mitigate violence among teens.

5. Priorities: This notice includes three absolute priorities, three competitive preference priorities, and one invitational priority. Absolute Priorities 1 and 3 are from the Final Priorities, Requirements, Definitions, and Selection Criteria for this program published in the Federal Register on January 19, 2021 ( 86 FR 5009 ) (PN NFP). Absolute Priority 2 is from the Administrative Priorities for Discretionary Grant Programs published in the Federal Register on March 9, 2020 ( 85 FR 13640 ) (Administrative Priorities). Competitive Preference Priorities 1 and 3 are from the Secretary's Supplemental Priorities and Definitions for Discretionary Grants Programs published in the Federal Register on December 10, 2021 ( 86 FR 70612 ) (Supplemental Priorities). Competitive Preference Priority 2 is from the Administrative Priorities.

Absolute Priorities: For FY 2024 and any subsequent year in which we make awards from the list of unfunded applications from this competition, these priorities are absolute priorities. Under 34 CFR 75.105(c)(3) , we consider only applications that meet one or more of these priorities. Absolute Priorities 1, 2, and 3 each constitute separate funding categories. The Secretary intends to award grants under each of these absolute priorities provided that applications submitted are of sufficient quality. An applicant may address no more than one absolute priority in its application. To ensure that applicants are reviewed under the absolute priority most relevant to their proposed project, applicants must clearly identify the specific absolute priority that the proposed project addresses.

These priorities are:

Absolute Priority 1—Non-Rural and Non-Tribal Communities.

To meet this priority, an applicant must propose to implement a PN strategy that serves one or more non-rural or non-Tribal communities.

Absolute Priority 2—Rural Applicants.

Under this priority, an applicant must demonstrate one or more of the following:

(a) The applicant proposes to serve an LEA that is eligible under the Small Rural School Achievement (SRSA) program or the Rural and Low-Income School (RLIS) program authorized under Title V, Part B of the ESEA.

(b) The applicant proposes to serve a community that is served by one or more LEAs with a locale code of 32, 33, 41, 42, or 43.

(c) The applicant proposes a project in which a majority of the schools served have a locale code of 32, 33, 41, 42, or 43.

(d) The applicant is an IHE with a rural campus setting, or the applicant proposes to serve a campus with a rural setting. Rural settings include any of the following: Town-Fringe, Town-Distant, Town-Remote, Rural-Fringe, Rural-Distant, Rural-Remote, as defined by the National Center for Education Statistics (NCES) College Navigator search tool.

Note: To determine whether a particular LEA is eligible for SRSA or RLIS, refer to the Department's website at https://oese.ed.gov/​offices/​office-of-formula-grants/​rural-insular-native-achievement-programs/​rural-education-achievement-program/​ . Applicants are encouraged to retrieve locale codes from the NCES School District search tool ( https://nces.ed.gov/​ccd/​districtsearch/​ ), where LEAs can be looked up individually to retrieve locale codes, and the Public School search tool ( https://nces.ed.gov/​ccd/​schoolsearch/​ ), where individual schools can be looked up to retrieve locale codes. Applicants are encouraged to retrieve campus settings from the NCES College Navigator search tool ( https://nces.ed.gov/​collegenavigator/​ ), where IHEs can be looked up individually to determine the campus setting.

Absolute Priority 3—Tribal Communities.

To meet this priority, an applicant must propose to implement a PN strategy that serves one or more Indian Tribes (as defined in this notice). Start Printed Page 53598

Competitive Preference Priorities: For FY 2024 and any subsequent year in which we make awards from the list of unfunded applications from this competition, these priorities are competitive preference priorities. Under 34 CFR 75.105(c)(2)(i) , we award up to an additional 15 points to an application, depending on how well the application meets one or more of these priorities; the total possible points for each competitive preference priority are noted in parentheses.

Competitive Preference Priority 1—Strengthening Cross-Agency Coordination and Community Engagement to Advance Systemic Change (up to 5 points).

Projects that are designed to take a systemic evidence-based approach to improving outcomes for underserved students in coordinating efforts with Federal, State, or local agencies, or community-based organizations, that support students, to address community violence prevention and intervention.

Competitive Preference Priority 2—Applications From New Potential Grantees (0 or 5 points).

Under this priority, an applicant must demonstrate that the applicant has never received a grant, including through membership in a group application submitted in accordance with 34 CFR 75.127-75.129 , under the program from which it seeks funds.

Competitive Preference Priority 3—Promoting Equity in Student Access to Educational Resources and Opportunities (up to 5 points).

Under this priority, an applicant must demonstrate that the applicant proposes a project designed to promote educational equity and adequacy in resources and opportunity for underserved students—

(1) In one or more of the following educational settings:

(i) Early learning programs.

(ii) Elementary school.

(iii) Middle school.

(iv) High school.

(v) Career and technical education programs.

(vi) Out-of-school-time settings.

(vii) Alternative schools and programs.

(viii) Juvenile justice system or correctional facilities.

(ix) Adult learning;

(2) That examines the sources of inequity and inadequacy and implements responses, and that includes establishing, expanding, or improving the engagement of underserved community members (including underserved students and families) in informing and making decisions that influence policy and practice at the school, district, or State level by elevating their voices, through their participation and their perspectives and providing them with access to opportunities for leadership ( e.g., establishing partnerships between civic student government programs and parent and caregiver leadership initiatives).

Invitational Priority: For FY 2024 and any subsequent year in which we make awards from the list of unfunded applications from this competition, this priority is an invitational priority. Under 34 CFR 75.105(c)(1) we do not give an application that meets this invitational priority a competitive or absolute preference over other applications.

This priority is:

Addressing Chronic Absenteeism.

Projects designed to increase regular student attendance and engagement and reduce chronic absenteeism through evidence-based strategies such as—

(1) Developing and implementing family- and child-centered effective engagement, messaging, and communication plans with parents, families, and students;

(2) Strengthening relationships with families, including through strategies such as home visits;

(3) Using multitiered systems of support and intervention, including through strategies such as an early warning system; or

(4) Creating and sustaining positive and inclusive school climates, including those designed to build strong, trusting relationships.

6. Requirements: For FY 2024 and any subsequent year in which we make awards from the list of unfunded applications from this competition, applicants must meet the following application and program requirements from section 4624 of the ESEA and the PN NFP.

Application Requirements: The application requirements are as follows:

(a) A plan to significantly improve the academic outcomes of children living in the geographically defined area (neighborhood) that is served by the eligible entity by providing pipeline services that address the needs of children in the neighborhood, as identified by the needs analysis, and that is supported by effective practices.

(b) A description of the neighborhood the eligible entity will serve.

Note: Applicants may propose to serve multiple, non-contiguous geographically defined areas. In cases where target areas are non-contiguous, the applicant should explain its rationale for including non-contiguous areas.

(c) An applicant must demonstrate that its proposed project—

(1) Is representative of the geographic area proposed to be served (as defined in this notice); and

(2) Would provide a majority of the solutions from the applicant's proposed pipeline services in the geographic area proposed to be served.

(d) An analysis of the needs and assets of the neighborhood, including:

(1) The size and scope of the population affected;

(2) A description of the process through which the needs analysis was produced, including a description of how parents, families, and community members were engaged in such analysis;

(3) An analysis of community assets and collaborative efforts (including programs already provided from Federal and non-Federal sources) within, or accessible to, the neighborhood, including, at a minimum, early learning opportunities, family and student supports, local businesses, LEAs, and IHEs;

(4) The steps that the eligible entity is taking at the time of the application to address the needs identified in the needs analysis; and

(5) Any barriers the eligible entity, public agencies, and other community-based organizations have faced in meeting such needs.

(e) A description of all information the entity used to identify the pipeline services to be provided, which shall not include information that is more than three years old. This description should address how the eligible entity plans to collect data on children served by each pipeline service and increase the percentage of children served over time.

(f) A description of how the pipeline services will facilitate the coordination of the following activities:

(1) Providing early learning opportunities for children, including by:

(i) Providing opportunities for families to acquire the skills to promote early learning and child development; and

(ii) Ensuring appropriate diagnostic assessments and referrals for children with disabilities and children aged 3 through 9 experiencing developmental delays, consistent with the Individuals with Disabilities Education Act (IDEA) ( 20 U.S.C. 1400 et seq. ), where applicable.

(2) Supporting, enhancing, operating, or expanding rigorous, comprehensive, effective educational improvements, which may include high-quality academic programs, expanded learning time, and programs and activities to Start Printed Page 53599 prepare students for postsecondary education admissions and success.

(3) Supporting partnerships between schools and other community resources with an integrated focus on academics and other social, health, and familial supports.

(4) Providing social, health, nutrition, and mental health services and supports, for children, family members, and community members, which may include services provided within the school building.

(5) Supporting evidence-based programs that assist students through school transitions, which may include expanding access to postsecondary education courses and postsecondary education enrollment aid or guidance, and other supports for at-risk youth.

(g) Each applicant must submit, as part of its application, a preliminary memorandum of understanding, signed by each organization or agency with which it would partner in implementing the proposed PN program. Within the preliminary memorandum of understanding, all applicants must detail each partner's financial, programmatic, and long-term commitment with respect to the strategies described in the application. Under section 4624(c) of the ESEA, applicants that are nonprofit entities must submit a preliminary memorandum of understanding signed by each partner entity or agency, which must include at least one of the following: A high-need LEA; an IHE, as defined in section 102 of the HEA ( 20 U.S.C. 1002 ); the office of a chief elected official of a unit of local government; or an Indian Tribe or Tribal organization as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ). [ 10 ]

(h) A description of the process used to develop the application, including the involvement of family and community members. In addressing this paragraph, an applicant must provide a description of the process used to develop the application, which must include the involvement of an LEA(s) (including but not limited to the LEA's or LEAs' involvement in the creation and planning of the application and a signed Memorandum of Understanding) and at least one public elementary or secondary school that is located within the identified geographic area that the grant will serve.

(i) A description of the strategies that will be used to provide pipeline services (including a description of which programs and services will be provided to children, family members, community members, and children within the neighborhood) to support the purpose of the PN program.

(j) An explanation of the process the eligible entity will use to establish and maintain family and community engagement, including:

(1) Involving representative participation by the members of such neighborhood in the planning and implementation of the activities of each grant awarded;

(2) The provision of strategies and practices to assist family and community members in actively supporting student achievement and child development;

(3) Providing services for students, families, and communities within the school building; and

(4) Collaboration with IHEs, workforce development centers, and employers to align expectations and programming with postsecondary education and workforce readiness.

(k) Measurable annual objectives and outcomes for the grant, in accordance with the metrics described in the Promise Neighborhoods Performance Indicators for each year of the grant.

(l) An explanation of how the eligible entity will continuously evaluate and improve the continuum of high-quality pipeline services to provide for continuous program improvement and potential expansion.

(m) In addressing the application requirements in paragraphs (d), (e), and (f), an applicant must clearly demonstrate needs, including a segmentation analysis, gaps in services, and any available data from within the last 3 years to demonstrate needs. The applicant must also describe proposed activities that address these needs and the extent to which these activities are evidence-based (as defined in this notice). The applicant must also describe its experience, or its partner organizations' experience, if applicable, providing these activities, including any data demonstrating effectiveness.

Program Requirements: Each applicant that receives a grant award for the PN competition must use the grant funds to implement the pipeline services and continuously evaluate the success of the program and improve the program based on data and outcomes. Section 4624(d) of the ESEA. Applicants may use not less than 50 percent of grant funds in year one, and not less than 25 percent of grant funds in year two, for planning activities to develop and implement pipeline services.

Each eligible entity that receives a grant under this program must prepare and submit an annual report to the Secretary that includes the following: (1) information about the number and percentage of children in the neighborhood who are served by the grant program, including a description of the number and percentage of children accessing each support service offered as part of the pipeline of services; and (2) information relating to the metrics established under the Promise Neighborhood Performance Indicators.

In addition, grantees must make these data publicly available, including through electronic means. To the extent practicable, and as required by law, such information must be provided in a form and language accessible to parents and families in the neighborhood served under the PN grant. Data on academic indicators pertinent to the PN program already will be, in most cases, part of statewide longitudinal data systems.

7. Selection Criteria: The selection criteria are from 34 CFR 75.210 , the PN NFP, and the notice of final priorities, requirements, definitions, and selection criteria published in the Federal Register on July 6, 2011 ( 76 FR 39589 ) (2011 PN NFP). Each selection criterion includes the factors that reviewers will consider in determining the extent to which an applicant meets the criterion. The maximum score for each criterion is included in parentheses following the title of the specific selection criterion. Points awarded under these selection criteria are in addition to any points an applicant earned under the competitive preference priorities in this notice. The maximum score that an application may receive on the selection criteria is 100 points.

The selection criteria are as follows:

(a) Need for project (up to 20 points).

In determining the need for the proposed project, the Secretary considers the following factors:

(1) The magnitude or severity of the problem to be addressed by the proposed project ( 34 CFR 75.210 ).

(2) The extent to which specific gaps or weaknesses in services, infrastructure, or opportunities have been identified and will be addressed by the proposed project, including the nature and magnitude of those gaps or weaknesses ( 34 CFR 75.210 ).

(b) Quality of project services (up to 30 points).

The Secretary considers the quality of the services to be provided by the proposed project. In determining the quality of the project services, the Secretary considers: Start Printed Page 53600

(1) The quality and sufficiency of strategies for ensuring equal access and treatment for eligible project participants who are members of groups that have traditionally been underrepresented based on race, color, national origin, gender, age, or disability ( 34 CFR 75.210 ).

(2) The extent to which the proposed project involves the development or demonstration of promising new strategies that build on, or are alternatives to, existing strategies ( 34 CFR 75.210 ).

(3) The likelihood that the proposed project will result in system change or improvement ( 34 CFR 75.210 ).

(4) The extent to which the services to be provided by the proposed project involve the collaboration of appropriate partners for maximizing the effectiveness of project services ( 34 CFR 75.210 ).

(c) Quality of project design (up to 20 points).

In determining the quality of project design for the proposed project, the Secretary considers the following factors:

(1) The extent to which the applicant describes a plan to create a complete pipeline of services, without time and resource gaps, that is designed to prepare all children in the neighborhood to attain a high-quality education and successfully transition to college and a career (PN NFP).

(2) The potential and planning for the incorporation of project purposes, activities, or benefits into the ongoing work of the applicant beyond the end of the grant ( 34 CFR 75.210 ).

(3) The extent to which the proposed project will integrate with or build on similar or related efforts to improve relevant outcomes (as defined in 34 CFR 77.1 €), using existing funding streams from other programs or policies supported by community, State, and Federal resources ( 34 CFR 75.210 ).

(d) Quality of the management plan (up to 15 points).

The Secretary considers the quality of the management plan for the proposed project. In determining the quality of the management plan for the proposed project, the Secretary considers the following factors:

(1) The adequacy of the management plan to achieve the objectives of the proposed project on time and within budget, including clearly defined responsibilities, timelines, and milestones for accomplishing project tasks ( 34 CFR 75.210 ).

(2) The adequacy of procedures for ensuring feedback and continuous improvement in the operation of the proposed project ( 34 CFR 75.210 ).

(3) The experience, lessons learned, and proposal to build capacity of the applicant's management team and project director in collecting, analyzing, and using data for decision making, learning, continuous improvement, and accountability, including whether the applicant has a plan to build, adapt, or expand a longitudinal data system that integrates student-level data from multiple sources in order to measure progress while abiding by privacy laws and requirements (2011 PN NFP).

(e) Adequacy of resources (up to 15 points).

The Secretary considers the adequacy of resources for the proposed project. In determining the adequacy of resources for the proposed project, the Secretary considers:

(1) The potential for continued support of the project after Federal funding ends, including, as appropriate, the demonstrated commitment of appropriate entities to such support ( 34 CFR 75.210 ).

(2) The extent to which the applicant identifies existing neighborhood assets and programs supported by Federal, State, local, and private funds that will be used to implement a continuum of solutions (2011 PN NFP).

(3) The applicant's capacity ( e.g., in terms of qualified personnel, financial resources, or management capacity) to further develop and bring to scale the proposed process, product, strategy, or practice, or to work with others to ensure that the proposed process, product, strategy, or practice can be further developed and brought to scale, based on the findings of the proposed project ( 34 CFR 75.210 ).

8. Performance Measures: The Secretary has established performance indicators ( i.e., performance measures) for the PN program under section 4624(h) of the ESEA and 34 CFR 75.110 . Performance indicators established by the Secretary include improved academic and development outcomes for children, including indicators of school readiness, high school graduation, postsecondary education and career readiness, and other academic and developmental outcomes. These outcomes promote data-driven decision-making and access to a community-based continuum of high-quality services for children living in the most distressed communities of the United States, beginning at birth. All grantees will be required to submit data annually against these performance measures as part of their annual performance report.

The Secretary establishes, in Table 1, the following performance indicators under section 4624(h) of the ESEA and 34 CFR 75.110 :