Grant proposals in the age of AI
October 16, 2025
With fewer federal grants available to not-for-profit organizations, the competition to qualify for funding — from all sources, including foundations — has become more intense. Now, more than ever, your nonprofit needs to submit sharp, clear and attention-getting grant proposals to potential funders. Many organizations are enlisting AI tools to generate proposals. However, it remains critical to understand the fundamentals of proposal writing.
Grantmakers have mixed feelings
A recent survey of foundations by nonprofit data company Candid found that only 10% of funding foundations accept or plan to accept applications created by generative AI. However, most of the survey’s respondents admitted they didn’t necessarily know if they’ve received AI-assisted proposals.
Many funders say they welcome tools that enable a more level playing field, but they’re also understandably concerned about the potential for ethical issues. And for many foundations, grant proposals are only one piece of a larger application process that also involves such elements as interviews, site visits and a review of financial statements.
Customizing your content
Even if you use generative AI for grant applications, you’ll need to edit any content to help ensure its accuracy and specificity to your nonprofit. You also need to ensure it’s customized to the grantmaker. Familiarize yourself with grantmakers’ primary goals and objectives, the types of projects they have funded in the past, and their processes and procedures.
Performing such research enables you to determine whether your programs are a good fit with a grantmaker’s mission. If they aren’t, you’ll save yourself the time and effort of preparing a proposal. If they are, you’ll be better able to tailor your proposal to your audience.
Structuring your proposal
Every grant proposal has several essential elements, starting with a single-page executive summary. Your summary should be succinct. You also should include a short statement of need that provides an overview of the program you’re seeking to fund and explains why you need the money for your program. Other pieces include a detailed project description and budget, an explanation of your organization’s unique ability to run this program, and a conclusion that briefly restates your case.
Support your proposal with facts and figures but don’t forget to include a human touch by telling the story behind the numbers. Offering case studies in your own words is an excellent way to augment AI-generated content and engage your reader.
Following the rules
Review grantmaker guidelines as soon as you receive them. That way, if you have questions, you can contact the organization in advance of the submission deadline. Then, be sure to follow application instructions to the letter. This includes submitting all required documentation on time and error-free.
To that end, double-check your proposal for common mistakes such as excessive length, math errors and missing signatures. Also watch out for overuse of industry jargon.
Be candid
As with most people, grantmaking decision-makers are likely to become more accepting of AI-assisted applications as they become more familiar with the technology. Some grantmakers may ask about the use of AI in your proposal. Be sure to answer honestly to avoid repercussions if the funder later learns you didn’t respond truthfully. Contact us for advice if your nonprofit is having trouble meeting its funding goals.
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