Living on the Edge

When collecting data in surveys, there have to be cutoffs. It's the nature of the game. So if there are categories for organizations with budgets of up to $500,000, then $500,000 to $1 million, and then $1 million and up, you might feel a bit out of place when your organization has a budget a tad bit more than $1 million, since you're lumped in with huge organizations with budgets of $10 million+. But that's where the survey and data puts you.

The same sense of awkwardness may also manifest when applying for grant opportunities with either a minimum or maximum annual operating budget requirement. What do you do when your organization is the biggest fish in a small pond, or the smallest fish in a big pond?

The main mindset you need to adopt is that whatever your position on the budget range, that number is your strength. If you are one of the smallest organizations, you are a scrappy up-and-comer with room to grow. If you are one of the largest organizations, you have the resources and experience to implement your program or project efficiently and effectively.

Forbes took a look at how smaller nonprofits can compete among the giants. Here are some advantages that many small nonprofits have:

Responsiveness: Large organizations often have very specific processes that they need to follow, or many levels of internal approval they need to acquire. Many small organizations are built for speed; they can make decisions and pounce on opportunities much quicker than some of the behemoths.

Ability to expand: Many large nonprofits have already used up much of their growth potential. Smaller nonprofits have plenty of room to grow. How will this grant help your organization scale up its operations? How will the grant help your organization meet its five-year plan?

Passion: While large organizations definitely care about their work, there is just something exciting about an organization in the growth phase. How does this passion help your organization meet its needs? How are you leveraging your upstart nature to inspire your volunteers and staff and to make a difference in your community?

Focus: Many large organizations expand their mission focus as they grow. Smaller organizations often don't have the resources to be broad in their missions and can use that to their advantage. What exactly is your organization's expertise? How are you uniquely attuned to the issue you are working on?

Even if you are competing for grants against larger organizations, you still have a shot. Your organization can function in ways that are often more cumbersome for large organizations. Use that to your advantage as you go through your grant application.

Organizations sitting at the top of a budget range will have different issues to deal with. If a funder sets a budget cap, they clearly want to target smaller organizations. However, as long as your organization is below that limit, you qualify. How do you best position your organization against other grantseekers who at a quick glance might seem more in need?

Don't forget your roots: If the budget cap is $1 million, it's pretty likely your organization didn't start right at that level. You had to grow to get to that point. What knowledge do you still maintain from those startup days? How does the early passion for your mission area still manifest in your organization's vision and work?

Show how you fit: You meet the criteria for a small organization. So how are you filling that role in practice? What are the specific groups you are targeting? And what special expertise do you have to help those groups? You can elaborate on how an organization the size of yours is a good fit to tackle the issue and show the advantages you might have over larger and smaller organizations.

Stability: Your organization has already gotten some of the growing pains out of the way. Explain your path to stability in your application. What did you learn from that experience? How have your organization's early days helped make it a more effective organization right now?

What's next?: While some small organizations find a size that works for them and stay fairly stable, others are looking to expand. Most funders understand that not every small organization will stay that way forever. Even if you are near the top of the budget range, how does this funding set you up for your next steps? How does your organization plan to strengthen and improve itself?

If a funder sets budget limits, there is always a way to use that limit to your advantage. Make your relative position a part of your story: how you got there and where you are going. Whether you are small or large in relation to other grantseekers, the right presentation of your organization's size can help you stand out, the most distinctive fish in a pond of choices.