Grant Writing vs Fundraising: Which Is Better for Your Organization?

When resources are tight, choosing between grant writing and fundraising is a decision that can shape the future of your organization. Both offer unique paths to funding, but how do you know which one will move your mission forward? At ERI Grants, we help schools, nonprofits, and municipalities navigate these choices every day.

The Difference Between Grant Writing and Fundraising

What Is Grant Writing?

Grant writing is a structured process that involves identifying funding opportunities, drafting proposals, and submitting them to public or private grantmakers. These grantmakers can include federal and state government agencies, foundations, or corporations.

Each grant opportunity typically has strict eligibility requirements, application deadlines, and reporting expectations. A successful grant application aligns the funder's goals with the applicant's mission and presents a clear, evidence-based plan for how the funding will be used to achieve measurable results.

What Is Fundraising?

Fundraising refers to the act of collecting voluntary contributions from individuals, businesses, or groups to support an organization’s goals. It can be carried out through many channels including donation appeals, charity events, online crowdfunding, social media campaigns, major gift cultivation, and peer-to-peer fundraising. Unlike grants, which often come with restrictions and required outcomes, funds raised through donations are generally more flexible in how they can be used. Fundraising also plays a vital role in building relationships and engaging the broader community in your mission.

Aspect	Grant Writing	Fundraising
Source of Funds	Government agencies, foundations, corporations	Individuals, local businesses, events, online donors
Application Process	Formal, detailed proposals with strict guidelines	Informal or semi-structured outreach efforts
Use of Funds	Often restricted to specific programs or objectives	Typically flexible and unrestricted
Time to Access Funds	Weeks to months (after application and review)	Immediate to short-term
Relationship Focus	Project-based partnership with funders	Community and donor engagement
Reporting Requirements	Detailed reporting, outcomes tracking, possible audits	Light to moderate, usually donor acknowledgments
Funding Amounts	Often large and multi-year	Usually smaller, one-time or recurring donations

When Grant Writing Makes More Sense: Grant Writing vs Fundraising

Access to Larger, Long-Term Funding

Grants often provide substantial funding that can support multi-year initiatives. If your organization needs to launch a new program, expand services, or invest in infrastructure, grants are often the better fit.

Ideal for Programs with Measurable Outcomes

Most grant opportunities require clearly defined goals and evaluation metrics. If your organization is prepared to track outcomes and report impact, grant writing can be highly effective.

Works Well for Underfunded Schools and Nonprofits

ERI’s contingency-based model allows clients to access expert grant services with no upfront cost. This makes grant writing accessible to organizations serving at-risk youth, low-income families, veterans, and other underserved populations.

Learn more about our contingency-based services

When Fundraising May Be the Better Fit: Grant Writing vs Fundraising

Flexible and Immediate Funding

Unlike grants, fundraising revenue is usually unrestricted. This makes it ideal for paying for items that grants might not cover, like staff bonuses, utilities, or emergency repairs.

Builds Community Support

Fundraising connects your organization with its supporters. Events and campaigns are opportunities to share your mission, recognize donors, and engage volunteers.

Useful for Small-Scale or Emergency Needs

Need a new printer or emergency supplies? Fundraising can often address these needs quickly without the long approval process that grants require.

Pros and Cons of Grant Writing

Pros

• No upfront cost through ERI’s model, making grant services accessible to organizations with limited budgets. This lowers barriers for schools, nonprofits, and communities that might otherwise be excluded from large-scale funding opportunities.

• Access to large, sustainable funding streams that can support long-term programming, staffing, and infrastructure. Grants often range from thousands to millions of dollars and are often renewable.

• Opportunities to expand and formalize programs with measurable goals, helping organizations grow in a structured and accountable way. Grantors usually require impact metrics, which strengthens the quality and transparency of services.

• Grant proposals often strengthen internal planning by encouraging organizations to clearly define objectives, timelines, outcomes, and evaluation plans. This planning process helps align staff, board members, and community partners.

• Winning a grant often brings increased credibility and visibility, opening the door for new partnerships, collaborations, and additional funding opportunities.

Cons

• Competitive and time-consuming application process that may involve multiple drafts, attachments, letters of support, and budget narratives. Organizations may need weeks or months to prepare a strong application.

• Strict guidelines and documentation requirements can be a barrier for smaller teams without grant experience. Even simple mistakes can disqualify an otherwise strong proposal.

• Requires post-award compliance, such as regular progress reporting, financial tracking, and audits. This creates administrative overhead that some organizations may not be prepared for.

• Not all applications result in funding, and feedback from grantors can be limited or vague. The process can be discouraging for first-time applicants without guidance.

• Funding cycles vary, and delays in disbursement can affect program start dates. Organizations must plan cash flow carefully around grant timelines.

Pros and Cons of Fundraising

Pros

• Immediate and flexible use of funds allows organizations to quickly respond to changing needs, whether it’s purchasing supplies, fixing equipment, or supporting a new initiative.

• Strengthens local community ties by bringing in donors who are personally connected to your cause. Events and campaigns can energize supporters and foster long-term loyalty.

• Easier to launch and manage internally, especially when using peer-to-peer platforms, email appeals, or simple giving tools. Even small teams can start fundraising quickly.

• Great for storytelling and engagement. Fundraising efforts give organizations a platform to share real stories and celebrate wins with the community.

• Can be repeated multiple times a year and scaled up or down depending on capacity. Successful fundraisers often become annual traditions.

Cons

• Revenue can be inconsistent and hard to predict, especially during economic downturns or in communities with limited disposable income.

• Planning events requires significant time, logistics, and upfront investment. Unsuccessful events can result in lost resources and volunteer fatigue.

• Smaller overall funding compared to large grants. Relying only on small-dollar donations can limit the reach and sustainability of critical programs.

• Burnout is common when too much pressure is placed on staff or volunteers to continually organize campaigns without adequate support.

• Donor fatigue may occur if the same audience is asked to give repeatedly, reducing engagement over time.

What ERI Recommends: Integrating Both Strategies

Use Fundraising for Immediate Needs

Fundraising is a strong choice for quick purchases, emergency responses, or community-based programs. It also serves as a great introduction to your organization’s story for potential donors.

Use Grant Writing for Long-Term Impact

For sustainable growth, technology upgrades, social emotional learning initiatives, and safety programs, grant writing is the ideal path. ERI helps clients assess needs, find the right opportunities, and submit competitive proposals.

Read more about our mission and work

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Grant Writing vs Fundraising: Which Is Better for You?

Both strategies can serve your organization well. Fundraising offers immediacy and community connection. Grant writing offers structure and significant resources. At ERI, we often recommend a balanced approach based on your short- and long-term goals. Let us help you build the right strategy for sustainable success.

FAQs

Q: Grant writing vs fundraising: which is better for small nonprofits?A: For small nonprofits, grant writing can provide access to larger funding pools, especially with ERI’s contingency-based model. Fundraising is best for quick or flexible needs.

Q: Can you use both fundraising and grant writing together?A: Yes. Fundraising and grant writing can complement each other, helping cover both short-term and long-term goals.

Q: What makes ERI’s grant writing services unique?A: ERI offers risk-free, contingency-based grant writing, where clients only pay if they win funding.

Q: How long does it take to receive grant funding?A: Timing varies, but ERI helps clients stay on top of deadlines and guides them through the full grant cycle.

Q: Are fundraising efforts tax-deductible?A: In most cases, yes. Donations to 501(c)(3) organizations are typically tax-deductible.

Q: What kinds of grants does ERI help write?A: We support K-12 education grants, social emotional learning grants, school safety, and technology funding.

Q: How do I know if my organization qualifies for grants?A: ERI helps assess eligibility and finds the right grants based on your mission and goals.

Q: Do I need a grant writer or can I do it myself?A: Professional grant writers like ERI can improve your chances of winning with stronger proposals and experience navigating complex requirements.