Craig Wise

Whether you’re trying to sell an idea or product, or if you’re trying to raise funds for a non-profit cause, understanding the nuances between proposals and grants can only help your success. Both documents aim to persuade buyers or investors about your solution; both open the door for partnerships, funding, and new business. However, they are tailored for distinct contexts, and recognizing their similarities and differences strengthens your communication strategies. 

This post breaks down what makes business proposals and funding grants unique, where they overlap, and how employing clear, persuasive messaging is fundamental regardless of the format. 

What is a Proposal? 

A proposal is typically a document presented by one entity to another business or individual with an identified problem. The goal of this document? To offer a solution or propose a course of action that benefits both parties. 

Types of proposals include:

• Business Proposals: Aimed at acquiring clients, projects, or partnerships
• Project Proposals: Focused on outlining strategies or plans for executing a specific initiative
• Sales Proposals: Designed to convince a prospective buyer to select a particular product or service 

Many proposals stem from a prospect’s request for a proposal (RFP), meaning they’ve identified a need and are looking for the best option. These proposals often target decision-makers in business or organizational settings and rely heavily on research, analysis, and a persuasive narrative to demonstrate why the proposed solution should be selected. However, the sales teams I’ve worked with often provide unsolicited proposals as a long form introduction to their solutions–I recommend brochures and videos in these instances.

What is a Grant? 

Grants, on the other hand, are highly specific appeals, often written by nonprofits, researchers, or community organizations, aimed at securing funding from foundations, governments, or corporations. 

Unlike proposals, where the focus is on selling a solution for mutual benefit, grants are usually about proving need and showcasing alignment with a funder’s mission. For example, a nonprofit working to improve literacy rates may apply for a grant from a foundation dedicated to educational initiatives. 

Key sections in grants often include:

• The problem or issue being addressed 
• Details about how the funding will be used 
• A clear impact statement demonstrating the measurable benefits of the project 

While persuasive messaging is important in grants, they must also meet specific criteria outlined by funders and adhere strictly to guidelines. Much like an agency’s RFP, the direction and guidelines defined within the grant request must be carefully followed–meaning your application can be disqualified for lack of adherence. 

How Are Proposals and Grants Different? 

Purpose and Audience 

• Proposals aim to persuade clients, customers, or collaborators to invest in or approve a specific solution or course of action. The audience may range from business executives to hiring managers. 
• Grants, on the other hand, are requests for resources (often funding) based on mission alignment. The intended audience is typically funders such as foundations, government agencies, or philanthropists. 

Structure and Content 

While both grants and proposals require a well-organized structure, unsolicited proposals tend to be more flexible, adapting to the needs of the audience or client. Proposals are often conversational while maintaining professionalism. 

Proposals in response to specific requests and grants, by contrast, are more technical and rigid, with strictly dictated formatting guidelines. For example, many government agencies will require print versions of a grant with wet signatures, while some RFPs prefer digital versions only. Deviating from these guidelines can result in outright rejection. 

Metrics for Success 

For proposals, success can often be immediate—the client saying yes to the project or signing a contract. For grants, outcomes are tied to the funder’s evaluation of need and alignment and may not always result in funding, no matter how compelling the case. 

How Are Proposals and Grants Similar? 

Despite their differences, proposals and grants share several similarities when it comes to execution and goals. 

Problem and Solution Focus 

Both proposals and grants are ultimately about identifying a problem and providing a clear, impactful solution. For a proposal, this might involve pitching a product or service. For a grant, it’s demonstrating how the organization’s services specifically address the mission or critical issue identified in the agency’s request. 

Narrative and Persuasion 

At their core, both documents require strong storytelling abilities. Whether it’s convincing a business how a new software will save money or persuading a funder that your nonprofit will have measurable impact, you need a compelling and easily grasped narrative. 

Keys to effective messaging include:

• Clarity: Avoid jargon and make your case easy to follow 
• Impact: Explain the benefits or outcomes as clearly as possible 
• Credibility: Use data, testimonials, and specific examples to build trust 

Professionalism 

Both grants and proposals must be detail-oriented and polished. Typos, formatting errors, or vague language can destroy credibility in any context. 

Strategic Customization 

Cookie-cutter templates won’t work. Whether writing a proposal or a grant, tailoring the content to the recipient’s pain points, interests, or funding priorities is critical. 

Why Messaging Matters More Than Format 

No matter how polished your proposal or grant looks, its impact ultimately hinges on the messaging. Here are three principles to elevate your impact, regardless of format. 

1. Start with Research 

Before drafting anything, research your audience. For proposals, understand the client’s pain points, objectives, and decision-making process. For grants, analyze the funder’s mission, priorities, and eligibility criteria. Insightful research builds credibility and ensures relevance. 

2. Show, Don’t Tell 

Whether pitching a solution in a proposal or making a case for funding in a grant, don’t settle for empty promises. Use visuals, data, and real-world examples, such as testimonials, to illustrate potential outcomes. 

3. End with a Call to Action 

Finally, guide the reader toward the next step. For proposals, this might mean prompting a follow-up meeting to discuss details further. For grants, it could involve emphasizing your organization’s readiness to implement the project. 

Final Thoughts 

While proposals and grants have distinct structures, audiences, and purposes, they share a reliance on strategic communication, problem-solving, and persuasive language to achieve their goals. For businesses, nonprofits, and other organizations, honing these skills is essential—not just to secure clients or funding, but to build lasting relationships based on shared solutions and impact. 

Are you looking to elevate your grant or proposal writing? Whether you need help crafting a persuasive bid or strategizing your next grant application, I specialize in creating effective, tailored messaging. Contact me here to get started!