Contributor: Lauren Kilbourne, Manager
Securing grant funding is a critical component for organizations looking to finance their projects. By following best practices and understanding the key steps involved, organizations can increase their chances of success in securing funding through resources like the New Markets Tax Credit (NMTC) program.
NMTC is a federal tax credit program designed to incentivize investment in low-income communities (LICs) and can be a powerful tool for organizations looking to capitalize community projects. The program provides tax credits to investors who support qualified community development entities (CDEs) that, in turn, invest in qualified active low-income community businesses (QALICBs) located in LICs. In addition to NMTCs, there are many grant funds organizations can apply for to help bolster their organization.
Applying for funding can be a daunting task for many organizations, especially smaller ones. Organizations can follow certain best practices, including outlining key steps, to simplify the grant writing process and increase the chances of success in securing funding and bolstering resources.
Defining Success
Before beginning the grant writing process, it is essential to have a clear understanding of the project’s scope, partners and budget. This will help determine the type of funding required and the sources that are most suitable for the project. The project’s goals and outcomes must also be clearly defined, as this will be an important factor in appealing to the funder and securing funding.
Grant Writing Best Practices
One of the key factors in securing grant funding is the ability to tell a compelling story that marries data with narrative. The grant application must be well-structured, with clear goals, outcomes and a reasonable budget. It is important to have a clear understanding of the grant’s requirements and eligibility criteria, as well as the organization’s capacity to manage the grant, fulfill reporting obligations, and deliver the project in an efficient and timely manner.
Considering Financial Risks
When evaluating grant funding sources, it is essential to consider the added costs and benefits of the funding source. This includes the additional reporting and other work required to receive and manage the grant, as well as whether the grant funds will cover all the added costs. Balancing the financial risks and rewards is crucial to ensure the project’s sustainability.
Building the Team
The success of a project often depends on the people involved. When building the team, consider who the applicant is, who controls the money and what levers they can pull to ensure the correct employees are brought onto the project. Additionally, this will help determine whether team members will work together or on separate parts of the venture.
Understanding the NMTC Debrief
The NMTC debrief process can be a valuable learning tool for CDEs, providing insights into the evaluation process and the areas where improvements can be made. This information can be used to refine the NMTC application and improve the chances of success in securing allocation.
Navigating the Strategic Financing Services Ecosystem
Navigating the grant writing process can be challenging, but there are resources available to help organizations succeed. Cherry Bekaert’s Strategic Financing Services team offers a range of services to help organizations raise, deploy and manage capital, providing support at every stage of the process.
Serving as Your Guide Forward
Cherry Bekaert’s strategic consulting and management services help organizations access grant, and other, funding by building a solid organizational foundation, providing NMTC application support and effective management of projects. These services include CDE and CDFI certification support, capital planning, compliance activities, asset management and project financing. Our professionals provide in-depth research, analysis and packaging, so organizations can position their projects to attract the necessary funding to achieve their goals.
Related Insights
- Webinar Recording: Demystifying the Grant Writing Process to Access New Markets Tax Credits
