This post contributed by Linda Peia

1. Look for a PARTNER, Not a Donor

If you are going to invest time in grant proposals, get the biggest bang for the buck. Seek out those institutions that have the potential to offer you more than a simple check. Besides weathering you from impersonal, shortlived donor relations, a partner-type relationship also allows you to differentiate yourself from the hundreds of other candidates, and gives you more leverage at the negotiation table.

So, first ask yourself:

• What key assets am I missing? In our case, we seek ready access to leading companies, a resource that is much scarcer than a $30K check.

• Which institution can best provide those assets? Look beyond the surface and rhetoric. We initially approached an institution that in theory was supposed to propose innovative business models to private companies, but what we found was an institution void of creativity and genuine drive for social change. Our current partner, on the other hand, was bursting with energy and an inspiring leader set on big things and highly connected to the private sector.

• Does the institution have a clear-cut strategy of its own? If so, is it in line with my strategy? Look for institutions that are (re)inventing themselves. Our current partner was, for example, looking to go beyond traditional philanthropy. If there is anything that we do extremely well, it is developing cutting-edge solutions. Pull the magnifying glass of those institutions towards you.

2. Offer a JOURNEY PASS

Remember how you feel when you look at pictures taken by others on their journeys; compare that to what you feel when you look at pictures from your own travels. If you are like most of the people I know, the latter
surely gets you more excited. Make your partner feel they co-own the journey. If they see themselves in the driving seat, they have a bigger incentive to do everything they can do to make it to the destination.

Use words like:

• “We see you as a long-term strategic partner”
• “With your assets, you can play a critical role and set the tone for others to come”
• "You are a natural partner for us”

All in all, sketch out a brighter future for the person in front of you and point to the key tools they can bring on the journey to make it a success. That also gives you more leverage at the negotiation table because it sets you apart from the hundreds of other typical applicants and lets you re-frame the negotiation discussion from a whole new angle.

3. Negotiate FIRMLY

By now, the person in front of you is ready to say “when do we start?” Watch for body cues; face lightens up, body is in a straight-up, forward leaning position, eyes are alert, and arms are in an open position. This is the moment to start negotiating. At this point, you are no longer one of the hundreds of unknown applicants asking for money. You have now stepped out of the typical process. You want the other person to think “this is a new situation”.

And that means you can set the rules of the game. For example, do not get intimated by pre-established grant amounts, if what you need to generate high-impact effort requires more than that. Positioning your proposal outside the typical process also allows you to negotiate the concepts of the budget, for which generally donors set specific ranges. Stay firm, confident that you have done your job well and shown that this is not the typical case.

Two final points to remember:

• Understand what will take to make your effort big. Don’t get intimated by pre-established grant amounts or the typical way of doing things. Determine where you want to get, and in accordance to that, pin down the budget and concepts that are required to do that. This is the time to defy standard microeconomics, which teaches you to maximize preferences based on a given budget. Instead, set your preferences, and solve for the budget!

• Stay firm throughout the negotiation process. If you have done your job well and succeeded in getting them excited about your offer, the opportunity cost of them saying “no” will be too high to ignore.