Some grant proposals have a stated grant award amount, making it clear how much you are applying for. However, many funders do not specify the grant award amount. Or, they may stipulate a maximum grant award, but that doesn’t mean you should ask for the full amount.
So, what is the best way to know how much money to ask for?
If you ask for too much, you may be denied if a funder perceives that there won’t be a big enough impact or if the grant award is a high percentage of your project budget.
If you ask for too little, you may miss out on money, or the funder may not think you need the money for an impactful project.
The best way to determine your ask amount is to speak with the grant funder and get their feedback. If you don’t have a relationship with them or they are not accessible, there are other ways.
I use a loose formula I developed over the years to find the sweet spot ask amount.
Grant Writing Tip of the Day
Avoid using jargon and technical terms that could confuse or alienate grant reviewers who may not be familiar with your non-profit’s area of work.
The first thing I consider is that grant givers do not want to fund more than 20% of your budget. If you are writing a grant for a project costing $150,000, do not ask for more than $30,000.
If you are writing a grant for general operations and your annual budget is $1,200,000, don’t ask for more than $240,000.
There are, of course, exceptions to this, and some applications will state that they will fund a higher percentage. If nothing is stated, I use 20% as a general rule to follow, which is the highest my ask will be.
Once I have an idea of my project budget and have calculated 20% as the most I will ask for, I look at the grants they funded in the past. Digging into their 990 form will help this process. I head to Instrumentl to easily access 990s and other data about historic grants awarded.
I scan through the 990 to find organizations that are similar in size and mission. I throw out all research grants because those are typically high and not aligned with the organizations I write for. I quickly determine an average size grant based on previous funding and compare that to my max.
For example, if their average grant is $50,000 and my max (based on the 20% number) is $30,000, I will ask for $30,000. If their average grant is $10,000, I won’t ask for the full $30,000. I may ask for $15,000.
I also do a quick Google search to learn about any recent changes in the foundation. One time, I learned that one of the founders died and left a large amount to the foundation to be used for grant giving. I added 10% to my ask and was awarded in full.
If I don’t have a pre-existing relationship with the funder, I will err on the side of a low ask. In this case, my goal is to start low, deliver results, and then ask for more the following year.
I don’t always get it right. I have had many funders award less than my asking amount and a few more than my asking amount.
Considering all things, I feel this formula has the best chance of setting me up for grant success.
Until next time,
Write Epic Grants