Federal Grant Writing 101

1. Before You Start

Before you can apply for a federal grant, your organization needs a few things in place. Start these early because some steps take weeks to complete.

Register at SAM.gov

SAM.gov (System for Award Management) is the federal government's official registration system for organizations that want to do business with the government, including receiving grants. Every applicant must have an active SAM.gov registration before submitting a federal grant application. Registration is free but takes 7 to 10 business days to process, so do not wait until the last minute.

Need help? Follow our step-by-step SAM.gov Registration Guide →

Get Your UEI

The Unique Entity Identifier (UEI) is a 12-character alphanumeric ID assigned to your organization during the SAM.gov registration process. It replaced the old DUNS number in 2022. You do not need to apply separately -- it is generated automatically when you register at SAM.gov.

Have Your EIN Ready

Your Employer Identification Number (EIN) is a 9-digit number issued by the IRS. It identifies your organization for tax purposes. If you do not have one, you can apply for free on the IRS website (Form SS-4). Most nonprofits and businesses already have an EIN.

Create a Grants.gov Account

Grants.gov is the central portal where most federal grant opportunities are posted and where many applications are submitted. Create an account, link it to your SAM.gov registration, and designate an Authorized Organization Representative (AOR) who can officially submit applications on behalf of your organization.

Get Board Authorization

Most organizations need formal authorization from their board of directors (or equivalent governing body) to apply for and accept federal funds. This often takes the form of a board resolution. Check your bylaws and get this in place before you begin writing.

2. Finding the Right Grant

What Is a NOFO / FOA?

A Notice of Funding Opportunity (NOFO), also called a Funding Opportunity Announcement (FOA), is the official document published by a federal agency that describes a grant program. Think of it as the "job posting" for grant money. It contains everything you need to know: who can apply, how much money is available, what the agency is looking for, how applications will be scored, and the deadline.

Types of Federal Grants

• Competitive grants -- The most common type. Organizations submit applications that are reviewed and scored by a panel. The highest-scoring applications receive funding. Most grants on Grants.gov are competitive.
• Formula grants -- Funding is distributed to eligible recipients (usually state or local governments) based on a formula set by law, such as population or poverty rates. There is no competitive review; you qualify or you don't.
• Entitlement grants -- Similar to formula grants, these provide funding to any entity that meets the eligibility criteria defined in the authorizing legislation. Medicaid is an example at the state level.

Matching Your Organization to Eligible Grants

Not every organization can apply for every grant. Eligibility is typically restricted by organization type (nonprofit, government, tribal, university, small business), geographic location, and project focus area. Use Grant Pro's grant search and eligibility checker to find grants that match your organization.

Reading the Fine Print

Before you invest weeks writing an application, carefully review the NOFO for:

• Eligibility requirements -- Confirm your organization type qualifies
• Application deadline -- Note both the submission deadline and any letter-of-intent deadlines
• Match requirements -- Many grants require "cost share" or "match," meaning your organization must contribute a percentage of the total project cost (cash or in-kind)
• Funding ceiling and floor -- The minimum and maximum award amounts
• Period of performance -- How long the grant funds the project (typically 1-5 years)

3. Writing the Application

Standard Sections Every Federal Grant Requires

While every NOFO is different, most federal grant applications include these core sections:

• Project Abstract / Summary -- A 1-page overview of your project: what you will do, who benefits, how much it costs, and the expected outcomes. Reviewers read this first.
• Statement of Need -- Make the case for why this project matters. Use data, statistics, and community context to demonstrate the problem your project addresses.
• Project Description / Narrative -- The heart of the application. Describe your approach, activities, timeline, staffing, and how you will achieve the stated objectives. This is typically 10-15 pages.
• Budget and Budget Justification -- A detailed, line-by-line budget showing how every dollar will be spent, plus a narrative explaining why each cost is necessary.
• Evaluation Plan -- How you will measure whether the project is successful. Include specific metrics, data collection methods, and reporting plans.

The Budget: Standard Cost Categories

Federal budgets follow a standard format with these categories:

• Personnel -- Salaries and wages for staff working on the project
• Fringe Benefits -- Health insurance, retirement, FICA, workers' comp, etc. (typically 25-40% of salaries)
• Travel -- Project-related travel for staff, including conferences if required
• Equipment -- Items costing $5,000+ per unit with a useful life of one year or more
• Supplies -- Consumable items under $5,000 per unit
• Contractual -- Subcontracts, consultants, and contracted services
• Other -- Anything that does not fit the categories above (rent, utilities, printing, etc.)
• Indirect Costs -- Overhead expenses (see below)

What Is an Indirect Cost Rate?

Indirect costs (also called Facilities & Administrative costs, or F&A) are expenses that support your organization's operations but cannot be tied to a single project -- things like rent, utilities, accounting, and IT. The federal government allows you to recover a portion of these costs on grants.

If your organization has never negotiated an indirect cost rate with the federal government, you can use the de minimis rate of 15% of your Modified Total Direct Costs (MTDC). Larger organizations often negotiate higher rates through a NICRA (Negotiated Indirect Cost Rate Agreement).

What Is MTDC?

Modified Total Direct Cost (MTDC) is the base used to calculate indirect costs. It includes all direct costs except equipment, capital expenditures, rental costs of $25,000+, subawards beyond the first $25,000, and participant support costs. In simple terms: add up your direct costs, subtract the exclusions, and multiply by your indirect cost rate.

Letters of Support and MOUs

Letters of support are written by partner organizations, community leaders, or elected officials endorsing your project. A Memorandum of Understanding (MOU) is a more formal document that spells out the roles and responsibilities of each partner.

Who to ask: partner agencies, local government officials, school districts, community organizations, and anyone who will collaborate on the project. Each letter should specifically describe how the writer will support or benefit from the project -- generic endorsements carry little weight with reviewers.

4. Submitting Your Application

Online Submission

Most federal grants are submitted online through one of these portals:

• Grants.gov -- The main portal for most federal agencies
• JustGrants -- Used by DOJ (Department of Justice) programs
• Research.gov -- Used by NSF (National Science Foundation)
• eRA Commons -- Used by NIH (National Institutes of Health) and some HHS programs

Check your NOFO carefully for which portal to use. Each has its own account setup, file format requirements, and submission procedures.

Paper Submission

A small number of programs still accept or require paper applications, usually mailed to the funding agency. The NOFO will specify the mailing address, number of copies required, and whether originals or copies are needed. When in doubt, submit electronically -- paper submission is increasingly rare.

What Happens After You Submit

After submission, your application goes through several stages:

1. Validation -- The portal checks that your application is complete and properly formatted (1-2 business days)
2. Agency receipt -- You receive a confirmation email with a tracking number
3. Peer review -- A panel of reviewers scores your application against the evaluation criteria in the NOFO (typically 2-6 months after the deadline)
4. Award decisions -- The agency makes final funding decisions based on reviewer scores and programmatic priorities
5. Notification -- You are notified whether your application was selected or not (typically 3-9 months after the deadline, depending on the agency)

5. If You Win

Award Notification and Negotiation

If your application is selected, you will receive a Notice of Award (NOA) from the funding agency. This document specifies the award amount, project period, terms and conditions, and reporting requirements. In some cases, the agency may negotiate modifications to your budget or project scope before finalizing the award. You may not receive the full amount you requested.

Reporting Requirements

Federal grants come with significant reporting obligations:

• Financial reports -- Typically quarterly, using the SF-425 (Federal Financial Report)
• Performance / progress reports -- Usually semi-annual or annual, describing what you accomplished with the funds
• Final report -- A comprehensive summary due at the end of the project period

Keep meticulous records from day one. Track every expense, maintain timesheets for grant-funded staff, and document all project activities.

Single Audit Requirement

Organizations that spend $1,000,000 or more in federal funds in a fiscal year are required to undergo a Single Audit (also called an A-133 audit, after the old OMB Circular). This is an organization-wide audit of your financial statements and federal award expenditures, conducted by an independent auditor. It is a significant compliance requirement -- plan and budget for it if you expect to cross the threshold.

Glossary of Federal Grant Terms

Common terms you will encounter in federal grant applications, explained in plain English.