Designing a Grant Application Process That Works for Everyone

For foundations and nonprofits alike, the grant application process can be a time-consuming hurdle. Nonprofits often dedicate significant resources to crafting applications, while foundations juggle evaluating numerous proposals, many of which may not align with their goals. A well-designed application process ensures your foundation receives the information it needs while respecting applicants’ time and resources.

In the updated “Foundation Guidebook,” we provide tools to create an efficient, thoughtful grant application process that benefits both funders and nonprofits. Here’s how to refine your process to achieve clarity, reduce administrative burdens, and build stronger relationships with applicants.

Why Streamlining Applications is Important

Streamlining your grant application process isn’t just about saving time—it’s about creating a fair and transparent system that fosters collaboration with nonprofits. Here’s why it matters:

• Saves Time: A clear, efficient process reduces the administrative workload for both your foundation and applicants. Nonprofits can focus more on delivering impact, while your team can dedicate energy to making thoughtful funding decisions.
• Improves Applicant Pool: Providing detailed, upfront guidelines attracts applications that align with your foundation’s mission and goals, reducing the number of mismatched submissions.
• Strengthens Relationships: Respecting applicants’ time by creating an accessible process demonstrates your foundation’s commitment to equity and mutual respect.

A thoughtful application process is not just a logistical necessity—it’s a tool to strengthen your foundation’s reputation and impact.

Steps to Create a Grant Application Process

A clear, efficient grant application process helps your foundation identify aligned partners while respecting applicants’ time and resources. The following steps offer practical guidance to design a process that balances transparency and flexibility.

1. Decide Between Receptive or Proactive Grantmaking

The first step in designing your application process is determining how grantees will engage with your foundation:

• Receptive Process: In this approach, nonprofits initiate the application process by submitting proposals. It’s ideal for foundations that want to remain open to diverse ideas and projects. However, it requires clear communication of your guidelines to minimize irrelevant submissions.
• Proactive Process: Here, your foundation identifies potential grantees and invites them to apply. This works well for foundations with a defined focus or limited capacity, but it may limit your exposure to innovative ideas outside your network.

Many foundations use a hybrid approach—remaining receptive to new ideas while proactively seeking partners for key initiatives.

2. Use a Screening Step

Implementing a screening step, such as a Letter of Inquiry (LOI) or exploratory call, is one of the easiest ways to save time for both your foundation and applicants.

• What is an LOI? A short document—typically one to two pages—that summarizes the applicant’s mission, project goals, and funding request.
• Why use it? LOIs help you quickly assess whether a project aligns with your foundation’s focus before inviting a full proposal.

By requesting LOIs, your foundation can focus on evaluating a smaller pool of relevant applicants, while nonprofits avoid spending unnecessary time on detailed proposals that may not be a fit.

3. Ask for What You Need

Resist the temptation to ask for extensive documentation upfront. Tailor your application requirements to align with your foundation’s goals. Consider requesting:

• A clear project description, including objectives, timeline, and intended outcomes.
• A detailed budget that explains how funds will be used.
• An IRS determination letter, but only once for new applicants.

Avoid asking for information you don’t plan to use in your decision-making process. Simplicity not only reduces the burden on applicants but also ensures your team can review applications more efficiently.

4. Leverage Technology

Technology can streamline your application process, making it easier for both your foundation and applicants.

• Online Portals: Consider using grants management software to allow applicants to submit materials online. Look for platforms that enable applicants to save their work and return later.
• Emailed Submissions: If an online portal isn’t feasible, accept emailed applications in standardized formats. Ensure all forms are accessible, easy to complete, and compatible with common software.

Tips for Building Strong Grantee Relationships

An effective application process isn’t just about logistics—it’s an opportunity to build trust and collaboration with your applicants.

• Be Transparent: Publish clear, detailed guidelines on your foundation’s website. Specify eligibility criteria, funding priorities, and the timeline for application review.
• Provide Feedback: For declined applicants, consider offering brief, constructive feedback. Even a simple explanation—such as “this project didn’t align with our current priorities”—helps nonprofits refine their future applications.
• Foster Two-Way Communication: Use site visits or informal conversations to deepen your understanding of applicants’ challenges and opportunities. This builds relationships and positions your foundation as a supportive partner.

Discover More in the Updated “Foundation Guidebook”

Your Roadmap to Effective Foundation Management
Whether you’re starting from scratch or refining an existing process, the updated “Foundation Guidebook” provides detailed guidance on every step of the grant application process. From sample LOIs and grant guidelines to tips on leveraging technology, the guidebook is your resource for making grantmaking easier and more impactful. Learn how to design a process that works for your foundation—and everyone you fund. Buy it here!

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