Five Indicators of Grant Competitiveness
By Melanie Priest, Hedges Director of Grants Services
You just heard about a new grant that sounds like a perfect opportunity for your nonprofit. The funding could expand your programs, strengthen your team, and help you serve more people. Excitement builds as you start outlining your proposal. And then you realize you’re not sure where to find your program budget… or if one even exists.
It’s a familiar moment for many fundraising professionals and nonprofit leaders: the opportunity is there, but the organization may not be truly ready to compete for it.
In today’s environment of shrinking public dollars and shifting philanthropic priorities, nonprofits are under increasing pressure to diversify revenue. Grants often rise to the top of the list. But applying for them isn’t the same as being competitive for them.
Grant readiness is what makes an organization competitive. Grant-ready organizations don’t just chase opportunities; they are positioned to win them. They have done the foundational work to demonstrate strong leadership, sound finances, clear strategy, measurable results, and community connection.
And while being grant ready doesn’t guarantee funding, it means you’ve done everything possible to strengthen your position and to compete confidently for increasingly competitive dollars.
Here are five key areas that show your organization is truly grant ready and positioned to compete for funding.
1. Strong Legal and Governance Structure
Grant-ready nonprofits demonstrate stability and accountability from the top down. That means having current 501(c)(3) status, an active and engaged board of directors, up-to-date bylaws, and clear governance policies. Funders want to see that leadership is organized, informed, and involved in oversight.
Grant-ready takeaway: A solid legal and governance structure gives funders confidence that their investment will be well-managed.
2. Financial Health and Transparency
Funders expect organizations to have systems in place that demonstrate financial accountability and transparency. That means more than having money in the bank. It’s about maintaining complete and accurate documentation. Competitive organizations have current operating and program budgets, up-to-date financial statements (like balance sheets and cash flow reports), and written accounting policies and procedures that guide decision-making.
Grant-ready takeaway: Clear financial documentation and strong fiduciary practices signal responsibility, accountability, and readiness to manage external funding.
3. Strategic Vision and Plan
A strong mission and vision are essential, and so is a clear plan for achieving them. Funders look for organizations with strategic plans that outline goals, measurable objectives, and alignment between programs and mission. This shows that you’re proactively pursuing a defined path.
Grant-ready takeaway: A current, actionable strategic plan shows funders that you know where you’re going and how their support fits in.
4. Measurable Impact and Strong Communication
Grant-ready organizations can prove the difference they make. Funders expect to see outputs (what you do) and outcomes (what changes as a result). Beyond the numbers, strong communication matters too. An updated website, active social channels, and a cohesive brand all help funders see that you’re visible, relevant, and invested in transparency.
Grant-ready takeaway: Data demonstrates your effectiveness, while communication amplifies your impact. Both are essential for competitiveness.
5. Collaboration and Community Connection
Organizations don’t achieve impact alone. Funders look for nonprofits that understand their ecosystem, aren’t duplicating services, and work collaboratively to address community needs. Partnerships, volunteer engagement, and in-kind contributions all strengthen your case for funding. They show that your organization is respected and connected in the community, and positioned for sustainable impact.
Grant-ready takeaway: Collaboration expands your reach, and funders will take notice when you’re part of something bigger.
Start with a Grant Readiness Check
Being grant ready is a process that strengthens your funding opportunities and your overall organization. To help you begin, Hedges offers a free Grant Readiness Checklist based on our in-depth assessment tool.
If you would like to learn more about our grants services, please email us. We would love to connect with you.
