Unsolicited proposals are funding applications submitted to a donor without the donor’s specific prior request. USAID, one of the largest bilateral development donors, actively encourages such applications. But should an NGO spend valuable time and effort in preparing an unsolicited proposal to USAID? If yes, what can the NGO do to increase its chance of success? Make your own decision for your circumstances after reading this article.

This article uses our own personal insights and experiences to make suggestions in conjunction with information from the official USAID website, which outlines how NGOs can submit an unsolicited proposal to USAID and what is often looked for.

To see the official information, visit: http://www.usaid.gov/work-usaid/get-grant-or-contract/unsolicited-proposals

What is USAID?

According to the website, USAID tries to “further America’s foreign policy interests in expanding democracy and free markets while also extending a helping hand to people struggling to make a better life, recover from a disaster or striving to live in a free and democratic country.”

USAID does this by providing billions of dollars to a wide range of organizations through competitive bidding. On very few occasions USAID will also provide funding directly to an organization through direct negotiation. Most unsolicited proposals submitted will be on that track.

Competition for Funding

Before spending any time on developing and submitting a proposal it is important to know that obtaining any funding from USAID is extremely unlikely and only a small percentage of NGOs will ever find success. Although little data is available, research indicates that some USAID grant competitions have a success rate of only around 1%. We can assume that the success rate for unsolicited proposals will likely be much lower still, for while unsolicited proposals are accepted, USAID specifically states that it only very occasionally actually funds them. Our best guess is that out of each 1000 applications, only a handful will be selected for a detailed review, and out of those perhaps only 1 will be successful.

If you still want to go for it, read on!

Eligibility

The next step is to ensure that you are eligible. USAID will only provide a grant to an NGO making an unsolicited application if it:

• Is a unique, innovative, or proprietary program
• Is a good use of USAID money
• Fits with USAID objectives

Additional requirements include:

• The NGO needs to be the developer of the application
• USAID cannot have been involved in the preparation of the proposal
• The proposal needs to be sufficiently detailed
• The application cannot be a proposal that is linked to an ongoing or upcoming USAID grant competition
• The application cannot be used to extend existing USAID-funded programs

If you are eligible then the next step is to ensure that the program you are proposing closely fits with what USAID is trying to achieve. In other words, the problem you are addressing should be the problem USAID is trying to solve.

Fit & Relevance with USAID Goals

The proposal should outline how it will support USAID’s goals. To find out more about these goals it is useful to review both the USAID website and click the relevant “where we work” and “what we do” sections. It is also worth reviewing USAID’s Annual Program Statements (APS) that cover certain programs or countries. If an application fits under an APS it is no longer considered an unsolicited application but instead competes with other organizations that have submitted an application under that APS.

Also worth a look is the Development Experience Clearinghouse, an online database of USAID-funded programs.

Required Format

Your proposal needs to follow a specific format and have all the required content to be considered.

• Follow the rules at all times
• Include all the items asked for.
• Pay very close attention to requirements.

You can be sure your proposal will not be reviewed if you do not strictly follow the guidelines. Do not forget to include:

• A concise proposal title that clearly summarizes the program
• The name, contact person, address, telephone number, and type (e.g. profit, nonprofit, educational, small business, etc.) of your organization
• The names of other US Government agencies receiving the proposal or funding the program (if any)
• The date of submission
• An executive summary of no more than 200 words
• A short description of the NGO and previous experience
• The names and bios of key staff
• A program overview that includes the objectives, the approach, the activities, the expected results, and how the program will support USAID goals
• Program length
• The timeframe and duration
• The total budget in USD ($)
• A detailed budget
• The type of support needed from USAID
• The type of contact preferred (e.g. grant)
• The period of time for which the proposal is valid (e.g. six months)
• Your signature