Many smaller NGOs, often grass-roots, with small budgets, have difficulty finding funds for their projects. Their capacity to research donors is limited. They also feel that most donors prefer giving large grants to well-known NGOs. At the same time, thousands of small NGOs around the world are successfully attracting small grants from interested donors. How do they manage this?

This guide is a valuable resource for individuals and organizations seeking to secure funding through small grants. Whether you are a grass-roots organization or an individual seeking support for a specific project or activity, this guide can help you to navigate the grant-seeking process and apply for small grants.

What is a small grant?

Although there is no formal definition of a small grant, for the purpose of this guide we will assume small grants range from $100 to $25,000. A small grant is a type of funding that is typically provided to non-profit organizations, community groups, or individuals for specific projects or activities. These grants are usually smaller in size and scope compared to larger grants and are often provided to support projects or activities that have a local or community focus. We can assume that small grants are typically earmarked for small local NGOs with limited budgets.

Small grants can be an important source of funding for non-profit organizations, community groups, and individuals, and can help to support a wide range of initiatives and activities, promoting positive change on a local and global level. Small grants play an important role in supporting a wide range of initiatives and activities and can help to build stronger communities and promote positive change on a local and global level.

Why would funders give to small NGOs?

It is a common perception among small NGOs that they are at a disadvantage when it comes to fundraising compared to large high-capacity NGOs. This perception is often based on the belief that donors are more likely to support larger, more established organizations with a proven track record of success. Small NGOs may feel that they lack the resources, expertise, and capacity to compete for funding with larger NGOs. Our research indicates that this is not necessarily the case and that donors around the world are providing small grants to NGOs (see below).

What could be some of their reasons?

• The donor has limited resources and only gives away small amounts
• The donor is interested in helping small NGOs that work at the grassroots level
• The donor feels small organizations are more nimble and can work more effectively
• The donor feels they will be more influential in funding a smaller NGO
• Smaller NGOs work in the specific area the donor is interested in
• The donor wants to spread its wealth (give small amounts to many NGOs) and many more…

Where do I start?

What do I need funding for?

When seeking funding for your NGO, it is essential to clearly develop the program that requires funding. Without a well-defined program, it can be challenging to identify a good donor and submit a successful application.

To develop a program that is attractive to potential donors, you need to be very clear about what it is you are going to implement and what results (impact) the program is going to achieve. This means being specific about the target population you will be serving, the problem you are seeking to address, and the activities and strategies you will be using to achieve your goals.

In order to clearly develop your program, it can be helpful to follow a structured process. Here are some steps you may consider taking:

• Assess the Need: Start by conducting a needs assessment to determine the specific social or environmental problem you want to address. This will help you identify the target population and the root causes of the problem.
• Set Goals and Objectives: Once you have identified the problem, set clear goals and objectives for your program.
• Develop a Logic Model: A logic model is a visual representation of how your program will work. It should show the relationship between inputs (resources), activities, outputs (products or services), and outcomes (short-term, medium-term, and long-term). Developing a logic model can help you refine your program and ensure it is logically structured and coherent.
• Define Your Budget: Determine the cost of implementing your program, including the costs of staff, materials, equipment, and other expenses. Make sure that your budget is realistic and aligned with your goals and objectives.
• Develop a Monitoring and Evaluation Plan: A monitoring and evaluation plan outlines how you will track and measure progress toward your goals and objectives. It is important to include this plan in your program to demonstrate to donors that you have a clear plan for assessing the impact of your program.

How much do we need?

Determining how much funding you need for your NGO depends on several factors, including the specific goals and objectives of your program, the target population you will be serving, and the resources required to implement your program successfully.

Here are some steps to help you determine how much funding you need:

• Develop a Budget: The first step is to develop a detailed budget that outlines all the costs associated with implementing your program. This includes personnel, materials, equipment, travel, and other expenses. Include both direct and indirect expenditures, as appropriate.
• Estimate Cash Flow: Cash flow refers to the timing of your expenses and income. Estimate when you will receive funding and when expenses will be incurred. This will help you determine how much funding you need upfront and how much you will need over time.
• Consider Risks and Contingencies: When developing your budget, it is essential to consider any risks or unforeseen events that could impact the success of your program. Include a contingency fund to cover unexpected expenses or delays.
• Look for Matching Funds: Many donors require NGOs to provide matching funds or in-kind contributions as a condition for funding. Be sure to factor in any matching funds or in-kind contributions when determining how much funding you need.
• Review Other Funding Sources: Consider other funding sources that may be available to you, such as grants from foundations, government programs, or corporate sponsors.

Research

Although it is challenging to locate precise data on the ratio of small to large funds, an examination of US Foundation grants to Tanzanian NGOs is useful. Nearly 60% of the 490 grants awarded to NGOs in Tanzania since 2003 were small grants (under $5,000, under $10,000, under $15,000, and under $25,000 for 8%, 19%, 41%, and 58%, respectively). Although there are numerous donors who effectively give small amounts to NGOs, only one example demonstrates this.

So now we know that donors do give small grants, but how do we find them?

• Check websites and annual reports of NGOs that are of a similar size and scope to your NGO to check who funds them
• Check databases of funders (e.g. the Foundation Center Directory of Foundations in the US)
• Check donor websites for guidelines and funding criteria
• Ask peers and colleagues for suggestions
• Sign up for newsletters that provide funding information on small grants

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