When Should Your Nonprofit Pursue Grants?

Grants can be a game-changer for nonprofits, providing funding to expand programs, serve more people, and create long-term impact. However, not every nonprofit is ready to pursue grants right away. At Flagship Equip, we specialize in helping nonprofits navigate this process, ensuring they are well-positioned for success.

So how do you know when it’s time to pursue grants? 

Here are some key signs that your organization is grant-ready.

1. You Have a Clearly Defined Mission and Programs

Funders want to invest in organizations that have a clear mission and established programs. If your nonprofit is still figuring out its purpose or trying to launch its first initiative, it may be too early to pursue grants. 

Before applying, ask yourself:

✔ Can we clearly articulate our mission, vision, and impact?

✔ Do we have defined programs with measurable goals?

✔ Can we explain why our work is needed and how it changes lives?

If the answer is yes, you’re on the right track.

2. Your Organization Has a Proven Track Record

Most funders want to see evidence that your programs work. If your nonprofit has been operating successfully for a few years and has collected data or testimonials demonstrating impact, you’ll be in a stronger position for grant funding. 

Things to consider:

✔ Have we successfully run programs for at least a year?

✔ Do we have data, success stories, or testimonials that prove our impact?

✔ Can we provide financial reports showing responsible management?

If you can demonstrate results, funders are more likely to trust you with their investment.

3. You Have a Strong Organizational Infrastructure

Grants require strong internal systems. Many funders will ask for audited financials, detailed project budgets, organizational policies on financial management and governance, etc. 

Before pursuing grants, make sure you have:

✔ A well-organized board of directors providing oversight

✔ A detailed budget and financial reports

✔ A designated person or team to manage grant compliance and reporting

4. You Can Commit to Grant Compliance and Reporting

Winning a grant is just the beginning. Don't underestimate the reporting and accountability required after receiving funding. Funders expect you to track spending, measure outcomes, and submit reports on time. 

Ask yourself:

✔ Do we have the capacity to track how grant funds are spent?

✔ Can we measure and report on the outcomes required by the grant?

✔ Do we have someone dedicated to grant management?

5. Your Nonprofit Has Diverse Funding Streams

Relying solely on grants is a risky strategy. Most funders prefer to support nonprofits that have multiple revenue sources, such as donations, sponsorships, or earned income. If grants would be just one part of your funding mix, that’s a good sign. 

Consider:

✔ Do we already have donors, sponsorships, or earned revenue?

✔ Would a grant complement, not replace, our existing funding?

If you’re financially stable without grants, you’re in a strong position to pursue them wisely.

6. You’re Ready to Build Relationships with Funders

Grant writing isn’t just about filling out applications—it’s about relationships. 

Before applying, consider:

✔ Have we researched funders that align with our mission?

✔ Are we willing to reach out, introduce our work, and build relationships?

✔ Do we have time to tailor each application to the specific grant requirements?

If you’re ready to invest in relationship-building, your grant success rate will be much higher.

Is Your Nonprofit Ready? Let’s Talk.

If your nonprofit checks these boxes, now might be the right time to pursue grants! We have successfully secured grants for a variety of nonprofits.  

Here are some success stories from our clients.

Reach out to get the conversation started!

info@flagshipequip.com