Statement of Need

Although this is one of the most important parts of any grant application, it also tends to be one of the most poorly written. One of the reasons for this may be that many grant writers just assume that the need for the project is obvious. Do not assume anything. The grant writer must make the case for both the need for the project and the need for financial assistance to do the project in a very clear, comprehensive, concise, and compelling manner. These are the four C’s for writing any grant application. This section is no place for vague, general, weak, or “stretching” statements.

Grant reviewers are not fond of flowery language. They tend to regard this type of verbiage with suspicion. It is as if the grant writer does not really have anything substantial to say and relies upon words designed to disguise the fact that there is no substance to the proposal. Whenever I read something like that, I feel rather insulted, as if I had been confronted with a particularly bad sales pitch. What counts with grant reviewers is a simple, direct statement of the facts. Please let your facts shine through and speak for themselves. They do not need to be embellished or exaggerated. Do not, under any circumstances, tell falsehoods in your application. This will damage your credibility with the funding agencies and word will get around. Your success rate will plummet rapidly. At the risk of sounding redundant, I will say it again: it is not worth the risk.

As I have said before and will certainly say again, it is very important to be specific. The use of statistics, when available, makes a very compelling case. Individual histories and anecdotes are also helpful. In short, anything which can help the reviewer to get a clear picture of the project should be added to this section of the narrative. The basic elements of a well-written project need section are just commonsense. They are as follows: general description of the situation, the number and type of people affected, the extent to which these people are affected, and what will happen if the project is not done.

It is also extremely important to discuss the need for financial assistance in order to carry it out. The applicant must clearly demonstrate that without grant funding, the project will not move forward. If the applicant has been turned down by other potential sources, it is necessary to specify that and to include copies of the letters rejecting the request for funds. It is always helpful for agencies to know that they are not the only source which is being requested to provide funding. An applicant will have more credibility if it can be demonstrated that potential funding sources were carefully researched and a funding strategy was well thought out.

Another angle to demonstrate financial need is to show the allocation of funds in an organization’s total budget in order to demonstrate that no applicant monies are available. This information will show that all available funds are going toward operating costs and cannot be used for new projects or that other needed projects are consuming the entire budget of the organization. In many cases, a copy of the applicant’s most recent audited financial statement must be submitted along with the application.

In the case of municipalities or counties, information regarding the economic situation of the community is critical. If an area is considered to be economically disadvantaged and demonstrates high unemployment, low median income, and a high rate of poverty, then the assessable base or value of the real estate upon which taxes are calculated is low. This dictates that the local government has only a limited ability to raise taxes and thereby realize additional revenue. It may very well be that the population of this political jurisdiction cannot afford to pay additional taxes which could fund new programs.

In the case of nonprofits, financial need may be demonstrated by a statement that the organization has a small donor base or that a reduction in donations over a certain period of time has occurred. Information should also be given on the nonprofit’s operating costs in order to show the amount of money which is being spent to keep the organization going.