AI Grant Writing: A Step-by-Step Guide

Are you struggling with grant writing for your nonprofit? You’re not alone! Grant writing can be challenging, especially if writing isn’t your natural talent. Plus, many professional grant writing and research tools are costly.

I get it—I started writing grants in 1994 when the process was tedious and time-consuming, with very limited resources. There were limited databases and resources, and certainly no AI grant-writing tools back then! But today, things are different. We now have innovative tools at our fingertips that can cut down your workload and increase our grant success rate.

In this article, I’ll share step-by-step instructions on how AI can transform your grant writing process. By the end, you’ll know how to leverage AI to streamline your research, craft more compelling applications, and give your nonprofit a greater chance of success.

Step 1: Research Grants with AI Tools

The first and crucial step in successful grant writing is thorough research. Finding the right grants is key to ensuring your organization gets the funding it needs. Luckily, AI can be a game-changer in this area.

There are many tools out there for researching grants, each with different price points. Personally, I like to use Instrumental, which is set to launch its own AI tools this fall. (By the way, if you’re interested, I’ve got a $100 discount code and a 14-day free trial for you—just use the coupon code CAUSESPECIALISTS100.)

But for now, let's focus on how AI can assist in finding, researching, and writing grants – for FREE. I’ll use a hypothetical animal rescue based in Ohio as an example—let’s call it XYZ Animal Rescue.

Step 2: Finding Potential Funders with AI

To kick things off, I jump into ChatGPT and use a simple prompt: "I run an animal rescue nonprofit in Ohio and am seeking funding through grants to support our mission. Could you recommend any foundations or grant funders in the region that focus on animal welfare and rescue efforts?"

ChatGPT responded with a list of eight potential funders based in Ohio. From here, I can drill down into each one, explore their funding priorities, and identify which ones are the best fit for XYZ Animal Rescue.

To get even more detailed information, I switch over to Perplexity. This AI tool not only provides in-depth details about each funder, but it also cites its sources—something I love. With this information in hand, I can pinpoint which grants offer the most potential, including ideal grant amounts based on typical funding for new grantees.

Step 3: Digging Deeper into Grant Requirements

Once I’ve identified a potential funder, I dig deeper. This means visiting their website, reading up on their values, and taking note of their specific requirements.

For example, one foundation I researched uses a detailed online inquiry form with very specific questions. To succeed in grant writing, you need to tailor your application to align with these specifics. It’s not just about asking for money—it’s about showing the funder that your values and mission align with theirs. Gathering this level of detail helps you create a personalized, compelling case that stands out.

Step 4: Crafting Your Application with AI

Now comes the fun part—writing the application! To ensure privacy and security, I use a downloadable AI tool called Ollama, which is free and operates locally on my computer. This allows me to safely input sensitive information without risking data privacy.

Here’s how it works: I create a knowledge base for XYZ Animal Rescue that includes the program description, key achievements, impact statistics, financials, budgets, and any past successful grant applications. I feed this information into the AI to ensure it understands the organization deeply, which is essential for crafting a well-informed and persuasive grant proposal.

From there, I can ask the AI to generate responses to the funder’s questions using the data I’ve provided. For example, I might request help writing the "measurements and outcomes" section of the application.

Step 5: Refining Your Application

Once you have a solid draft, it’s time to refine and polish your grant application. This is where AI can help with further improvements. I often ask ChatGPT or Google’s Gemini AI to critique my application, focusing on clarity, tone, and emotional resonance.

A compelling grant proposal isn’t just about providing the right information—it’s about telling a story that connects with the funder on an emotional level. Make sure your application is factually accurate but also engaging and persuasive. It should convey the passion and dedication behind your nonprofit’s mission.

But remember—AI is a tool, not a substitute for your expertise. You’ll still need to review the AI’s output, humanize it, and fact-check everything before submission.

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Final Thoughts: AI as a Game-Changer in Grant Writing

As the AI landscape evolves rapidly, nonprofits have a unique opportunity to embrace these technologies—not to replace human effort but to augment it. Using AI for grant writing allows you to streamline your workflow, making the process faster and more efficient.

With the right balance of AI and human touch, your nonprofit can enhance its fundraising efforts, giving you more time to focus on your mission.

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