My nonprofit is very small organization. Our annual budget is about $50,000 per year. We have a half-time executive director and all other work is done by volunteers. I just saw an RFP for $150,000 per year for five years that looks perfect for us! Our program “checks all the boxes” in the RFP and seems to be exactly what the funder wants. What are our chances of success with this grant? Can a small nonprofit receive large grants?

I hate to be the bearer of bad news, but it is unlikely you will be awarded a grant that is so much larger than your organization’s overall operating budget. There is a potential special circumstance, however. If the funding source is a private foundation, you and/or someone on your board has a special relationship with the foundation, and the foundation has invited you to apply, you may have a chance. 

That said, the grant world is unpredictable. I try not to say something is impossible, but this one is definitely unlikely to succeed.

Consider this: Every funder wants to know that they are making a sound investment that will lead to positive outcomes. How can they know that you can effectively manage $150,000 a year when you haven’t managed more than $50,000?

My advice in cases like this is to start relatively small (no more than $10,000 if your operating budget is $50,000), and develop a plan to strategically pursue incrementally larger grants as your receive funding and your budget grows. That doesn’t mean that you should only request $10,000 in a year for your small organization. You can submit many requests of up to $10,000 each. The more successful you are, the faster your budget will grow, and the sooner you’ll be able to be competitive for larger grants.

Of course, this doesn’t mean that you can’t go for something bigger, but you have made it clear that your resources are very limited. It makes more sense to use those resources wisely. Smaller proposals don’t take as long to write. Your odds of success will be higher, as will the return on your investment.

I also suggest that you consider taking some of our grant writing training. It will increase your chances of success significantly.

Good luck!  I’d love to hear from you.

Sincerely,
Veronica
The Grant Goddess

If you would like to learn about this subject, please Contact Us!