I get a lot of calls and emails from folks who have a great idea for a service they want to provide to the community, but for various reasons I advise them that as a start-up they have almost no chance of attaining grant funding. The typical response is, “How does any nonprofit get started if no grant-maker is willing to us?!” So I thought I would do a little comparison based on organizational attributes based  on the perspective of a grant-maker.

The bottom line is something like this – grant-makers want a return on their investment (definition of this kind of ROI: benefit to the community). Start-ups are inherently risky investments in both the for profit and nonprofit sectors. There are some foundations willing to support start-ups, however, they want to mitigate the risk involved by supporting organizations most likely to succeed. Funders value initiative, perseverance and most importantly, outcomes. If they are going to take a risk on you they need to know you are also willing to absorb some of that risk, and do whatever it takes to generate positive results in the community you are serving. If you are waiting for a handout to get underway, you will be waiting a long time. Don’t wait for someone else to give you the green light! Start small if you have to, with whatever resources you can muster. Ask for donated items, hold car-washes, Work out of your basement or ask the local YMCA or community center if you can use their space. Once you have some experience under your belt you are much more likely to attract outside funding.