In today’s ever-changing grant landscape, securing funding for small businesses requires a strategic approach, particularly as DEI initiatives face new challenges.

Despite federal funding freezes and shifting priorities, a wealth of grant opportunities is still available, with private, community, and corporate foundations contributing approximately $189 billion annually.

The Current State of Grants

Recent changes in grant funding priorities have made it essential for small businesses to adapt their approach. While federal grants may be limited, private foundations and corporations continue to provide robust funding opportunities. However, the key to success lies in understanding how to align your business goals with the specific priorities of grantmakers. Many organizations are reframing their DEI strategies to focus on measurable impacts, such as supporting underrepresented business owners, enhancing cross-cultural workforce development, or improving workplace communication and cultural understanding.

Reframing Diversity and Inclusion

The term “diversity” has become a buzzword, often misunderstood or misapplied in grant applications. Instead of using broad DEI language, small businesses should focus on the tangible outcomes of their initiatives. For example, instead of stating that your business promotes diversity, demonstrate how your programs specifically support economic growth for minority-owned businesses or improve organizational communication and inclusivity. Using specific, outcome-oriented language will help your grant application stand out in a competitive field.

 Key Strategies for Grant Success

1. Meet with the Funder: One of the most important actions an organization can take in the grant process is to meet with the funders. Foundations should be seen as partners, and establishing a connection early in the application process is vital.
2. Niche Down Your Services: Clearly define your unique value proposition. Whether your business offers diversity training, cultural seminars, or other specialized services, grantmakers want to see a clear and specific impact.
3. Prepare Thoroughly: Before applying for grants, ensure your business is grant-ready. This process includes organizing essential documents, such as your EIN, financial statements, and a detailed operating budget. Having a well-defined mission statement and a straightforward impact narrative is also crucial.
4. Develop SMART Goals: Grant applications should include Specific, Measurable, Attainable, Relevant, and Timely goals. These demonstrate to funders that your business has a structured plan to achieve measurable results.
5. Leverage Community Partnerships: Collaborate with local organizations to strengthen your grant application. Partnerships not only increase your visibility but also add credibility and demonstrate your business’s community involvement.
6. Engage in Continuous Grant Writing: Do not be discouraged by current events or misinformation about grant availability. Many corporations, such as Spotify, Delta, and Costco, continue to support diversity initiatives, even if they are less vocal about it.

Avoiding Common Grant Writing Pitfalls

A common mistake in grant applications is failing to align your proposal with the funder’s mission. Take the time to research potential grantmakers thoroughly, tailoring each application to match their specific goals and priorities. Additionally, always provide concrete data and real-world examples to support your claims. Generic or vague statements are less likely to resonate with grant reviewers.

Using Artificial Intelligence to Enhance Grant Writing

Incorporating technology into your grant writing process can significantly improve efficiency and accuracy. Tools like AI-driven writing assistants can help with drafting and proofreading grant proposals. However, while AI can streamline the process, it is essential to maintain your unique voice and ensure that the mission, need statement and impact statement are written from a place of authenticity and passion.

Conclusion: Take Action and Stay Persistent

The current state of grants may be complex, but small businesses can still access vital funding with the right strategies. By reframing DEI initiatives, preparing thoroughly, and focusing on measurable impacts, you can make your grant applications more competitive. Remember, securing grants is not just about funding—it’s about building relationships, demonstrating your business’s impact, and showing your commitment to making a difference in your community.

If you are ready to take your grant writing to the next level, consider enrolling in a structured grant writing course or attending a grant boot camp. These resources provide invaluable insights, templates, and support to help you confidently navigate the grant writing process.

Your small business can thrive even in a challenging grant environment with determination and a strategic approach.

 A native of Cleveland, Ohio, in 2008, Linda Peavy founded LiPav Consulting, L.L.C., a grant services and communications company. Communications clients have included the Biden for President and Harris/Walz presidential campaigns.

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