GrantCraft for Board Members: Understanding Grant Readiness

Why Board Members Need to Understand Grants

As a nonprofit board member, you are responsible for the financial health and strategic direction of your organization. Grants are likely one of your organization's most significant revenue sources, yet many board members have limited understanding of how the grant process works, what funders expect from grantee organizations, or what role the board plays in grant success. This knowledge gap can lead to unrealistic expectations, inadequate oversight, and missed opportunities.

You do not need to become a grant writer. But you do need to understand grant readiness: what it means, how to assess it, and what your organization needs to have in place before pursuing competitive grants. The GrantCraft Proposal Builder provides a window into the grant writing process that helps board members understand what goes into a competitive application and what organizational infrastructure is required to support it.

What Is Grant Readiness?

Grant readiness refers to an organization's preparedness to successfully apply for, receive, and manage grant funding. It encompasses several dimensions:

Mission Clarity

Funders invest in organizations with clear, focused missions. If your board has not engaged in strategic planning recently, or if your organization's programs have drifted from its stated mission, you are not grant ready. Every grant application must demonstrate that the proposed project aligns with and advances the organizational mission. A board that has led a thorough strategic planning process gives the grant writer a clear foundation to build on.

Financial Management Capacity

Funders examine your financial health and management practices before awarding grants. Key indicators include clean annual audits or reviews, up-to-date IRS filings including Form 990, documented financial policies and procedures, adequate internal controls, board-approved annual budgets, and a track record of responsible financial stewardship. For guidance on post-award financial management, see our guide on post-award grant management and compliance.

Program Infrastructure

Do you have the staff, facilities, technology, and partnerships needed to deliver the programs you want to fund? Funders are wary of organizations that propose ambitious programs without the infrastructure to support them. As a board member, you can assess whether the organization has adequate staffing for proposed projects, realistic program budgets, data collection systems for tracking outcomes, and the operational capacity to add new programs without compromising existing ones.

Governance Strength

Your board itself is an indicator of grant readiness. Funders look for active, engaged boards with relevant expertise, documented governance policies, regular meeting attendance, diversity that reflects the communities served, and clear roles and responsibilities. A board that meets sporadically, lacks financial oversight, or has conflicts of interest sends a red signal to funders. See our guide on organizational capacity and partnerships for more on how funders evaluate governance.

The Board's Role in the Grant Process

Board members support grant success in several specific ways:

Strategic Direction

The board sets the organizational priorities that guide which grants to pursue. A grant writer should never have to guess whether a funding opportunity aligns with the organization's strategic direction. Your strategic plan should be specific enough to guide these decisions.

Relationship Building

Board members often have professional and community connections that can open doors with funders. Many foundation boards and corporate giving programs are influenced by personal relationships. Your network is an asset for the grant process, whether through introductions, letters of support, or direct advocacy. For a deeper understanding of how funder relationships work, see our guide on the grant landscape and ethical foundations.

Approval and Oversight

Many funders require board authorization for grant applications, particularly for large or multi-year grants. Ensure your board has a clear process for reviewing and approving grant applications, including timelines that accommodate the board's meeting schedule without creating bottlenecks for staff working against funder deadlines.

Fiduciary Responsibility

When grants are awarded, the board has a fiduciary duty to ensure that funds are used as specified in the grant agreement. This means reviewing financial reports, understanding grant restrictions, and ensuring that the organization complies with all funder requirements.

Assessing Your Organization's Grant Readiness

Use this checklist to assess whether your organization is prepared to pursue competitive grants:

• We have a current strategic plan approved by the board within the last three years.
• Our annual audit or review has no material findings.
• We have documented financial policies and adequate internal controls.
• Our programs have clearly defined outcomes and systems for tracking them.
• We have staff with grant writing experience or the resources to engage a qualified consultant.
• Our board meets regularly and maintains documented minutes.
• We have the operational capacity to manage additional grant-funded programs.
• Our organization has liability insurance and adequate risk management practices.

How GrantCraft Helps Board Members

Even if you will never write a grant yourself, walking through the GrantCraft Proposal Builder helps you understand what a competitive application requires. Review the steps to see the level of organizational information, data, and planning that goes into a successful proposal. This understanding will make you a more effective board member when it comes to supporting your staff's grant-seeking efforts and ensuring your organization has the infrastructure to back them up.

Learn more about grant writing strategies at Subthesis.

Ready to build a complete grant writing skill set? The Complete Grant Architect course covers everything from needs assessment to budget construction to post-award management.