If you have a brilliant idea for a new product, program, or service, writing a funding proposal is one way to raise capital. This proposal explains the rationale and expected outcome of one of the projects, and is distributed to potential sponsors. To create a great funding proposal, use clear and evocative language that expresses why your project is important, and who will benefit from it. Above all, demonstrate that your project goals align with the type of initiative the sponsor wants to support.
Step
Part 1 of 3: Setting Goals
Step 1. Get the reader's attention
A funding proposal is created to persuade and convince a sponsor to fund or adopt your idea. That is, it is important to “pull” it from the start.
- For example, you could start your proposal with an interesting, project-related statistic: “Every year, 10, 5 thousand tons of food is wasted because of one pest: rats.”
- Provide a clear title for the proposal, such as “Lock the Rat Box: An Effective and Humane Rat Outbreak Control,” good for grabbing the reader's attention.
Step 2. Explain why you approached this sponsor
Once you have the reader's attention, the introduction to your proposal should explain how your goals and the sponsor's mission support each other. This shows that you have prepared a proposal carefully and seriously in coming to sponsors.
Try something like: “PT Savco has long been committed to funding projects that improve the quality of life of the masses. We have developed Lock the Rat Box as an easy and low-cost way to reduce disease rates and sanitation costs in the community, and we ask for your support for this project.”
Step 3. Describe the problem raised by the project
The next segment in your funding proposal will contain a few sentences or short sentences for the specific purpose of your project. Describe the problem you want to solve, and describe how you knew it existed.
Step 4. Put the problem in context and explain why it is important
Show how your project relates to the problem, question, or annoyance. Statistics and other numerical data can help make the explanation of the reasons for the importance of this issue seem more convincing. Some readers may also be moved by the narrative or personal story so it's a good idea to include it.
- For example, your proposal could also include statements such as: “In addition to being a nuisance, rats are also a source of diseases such as rabies, and the bubonic plague. Indonesian cities cost hundreds of millions of rupiah a year to tackle this problem.”
- Include references to verify all quoted data.
Part 2 of 3: Explaining How Funding Proposals Work
Step 1. Share the basics of your method
Even if readers feel sure you've identified an important issue, they'll still want to know if you have a way of solving it or investigating it. Take time in the proposal to explain the method to be used.
- For example, your project could involve a building or prototype device to humanely trap mice.
- Your method can also involve activities. For example, you could propose a program that educates the public about the dangers of rats, or send investigators to study the severity of the problem in different areas of the community.
Step 2. Emphasize the uniqueness of your method
Remember that sponsors can receive many funding proposals from many people. To ensure the success of your proposal, explain what sets your proposal apart from other proposals. Ask yourself this question: “What is my project doing that has never been done before?”
Try using statements like: “Despite explaining the dangers of rat plague through posters, radio, and television, the government has not used social media to connect with members of the public. Our project will fill that gap.”
Step 3. Include a timeline
You can't expect sponsors to spend money on open-ended projects. There should be a segment in your funding proposal that describes a projected timeline for project implementation.
For example: “February 2018: signed a lease for a workplace building. Late February 2018: purchased materials for the Lock the Rat Box prototype. March 2018: initial testing of the prototype.”
Step 4. Give an example of a clear project appraisal method
The sponsor only wants to fund projects with a high chance of success so a segment of your proposal should describe how to measure project results. If you're developing a product, for example, the success rate can be measured in units produced, and/or sold.
Other assessment tools that can be used include customer satisfaction surveys, community engagement, and measurement metrics
Step 5. Show the initial budget
Sponsors will want to see a general summary of the estimated costs of your project. This budget describes the funding needs and helps the sponsor determine the appropriateness of the project scope. The funding proposal is an initial proposal so not all the details need to be explained. However, information on basic costs that can be included in the proposal include:
- Personnel, including all assistants
- Raw materials and equipment
- Journey
- Consulting services required
- Workspace (e.g. rent)
Step 6. End with a project summary
Close your proposal with a small paragraph that reiterates the project objectives, underlying action plan, and project requirements. Focus on the important things you want to stick in the sponsor's memory.
Part 3 of 3: Reviewing the Draft
Step 1. Keep your draft proposal short and tidy
Funding proposals are usually short documents of 3-5 double-spaced pages. You should assume the sponsor receives a lot of proposals so a poorly formatted proposal will be rejected immediately.
- If the sponsor asks for a proposal to be made according to a certain format, follow it completely.
- Otherwise, use a standard font at a size that is clearly legible (usually 12 points is sufficient), page numbers, and use reasonable margins. (generally 2.5 cm on all sides).
Step 2. Check the proposal to turn off the action-oriented language used
Sponsors are looking for projects that have been well thought out and can be realized. Avoid covering up proposals or doing anything that makes you seem unsure about the proposed project.
- For example, avoid sentences like “We believe that our product, Lock the Rat Box, has the potential to help certain communities, or at least control the rat epidemic.”
- An even stronger statement would be: “Lock the Rat Box will control a rat plague in a mid-size city, and completely eradicate this pest in most cases.”
Step 3. Use vocabulary that readers will understand
For example, if you are going to submit a proposal to a scientific institution, you may use technical terms. However, if the same project proposal will be read by public organizations, avoid using scientific jargon and explain the essence of the proposal so that the reader can understand it.
If you're writing a proposal for the general public instead of an expert, ask someone who doesn't know your project to read the proposal and tell them the parts they don't understand
Step 4. Include contact information
Make sure your sponsor can contact you by phone, email, and letter. Even if you have included this information in another segment of your proposal form, it is a good idea to include it in your proposal as well in case sponsorship is needed.
Step 5. Proofread the final draft
Even the strongest proposals are useless if they are decorated with errors, misspellings, or incorrect formatting. Show sponsors that you are conscientious, thorough, and diligent by perfecting the final draft before it is submitted.
