How to Write a Statement of Need for Grants [With Template]

When applying for a grant, your Statement of Need is one of the most critical sections of your proposal. It explains why your project is necessary, who it will benefit, and how it addresses a pressing issue. But whether you’re applying for grants for the first time or you’re simply looking to refresh your current grant-seeking strategy, learning how to write a statement of need for grants can be an overwhelming task.

In this guide, we’ll walk you through the key elements of writing a compelling Statement of Need, provide tips for making your case persuasive, and even offer a ready-to-use template to streamline the process. Specifically, we’ll cover:

• What is a Statement of Need?
• How does a Statement of Need help secure grants?
• Steps for writing a Statement of Need
• Free template: Statement of Need for grants

All in all, a well-crafted Statement of Need can make your application stand out by clearly demonstrating the urgency and significance of your cause. Dive in to explore our best practices and a step-by-step walkthrough of the process.

Let’s begin!

What is a Statement of Need?

A Statement of Need is a crucial component of a grant proposal that explains why your project or program is necessary. It provides a clear, evidence-based argument that highlights the problem your organization aims to address and demonstrates the urgency of the issue.

Essentially, a Statement of Need answers the question: Why is this funding needed?

For the best results, a well-written Statement of Need should include:

• A clear definition of the problem – Describe the issue your project seeks to solve and who is affected.
• Data and evidence – Use statistics, research, and real-world examples to support your claims.
• Relevance to the funder – Show how your project aligns with the grantmaker’s mission and priorities.
• Potential impact – Explain how your project will create meaningful change and why it’s the right solution.

This section sets the stage for the rest of your proposal, helping funders understand the significance of your work and why they should invest in your cause.

A compelling Statement of Need can make the difference between securing funding or being overlooked, so it’s essential to craft it with clarity and persuasion.

How does a Statement of Need help secure grants?

A Statement of Need plays a crucial role in securing grants. Why? it persuades funders that your project is both necessary and impactful. Grantmakers generally receive a wide array of applications, so your proposal must clearly communicate why your initiative deserves funding over others.

A strong Statement of Need helps in the following ways:

1. Demonstrates Urgency – It highlights a pressing issue that requires immediate attention, showing funders why action is needed now.
2. Establishes Credibility – By including well-researched data, statistics, and testimonials, you prove that your project is backed by evidence and a deep understanding of the problem.
3. Aligns with the Funder’s Mission – Grantmakers want to support projects that fit their goals. A well-crafted Statement of Need connects your organization’s work to their priorities, increasing your chances of approval.
4. Shows Real-World Impact – Funders want to invest in initiatives that create measurable change. By outlining how your project will address the issue and benefit the target audience, you make a compelling case for why your work matters.
5. Builds an Emotional Connection – While data is essential, storytelling can make your need more relatable. Including real-life examples or success stories helps funders connect with your cause on a deeper level.

Ultimately, a persuasive Statement of Need convinces funders that your project is a worthwhile investment. When written effectively, it not only justifies your request for funding but also inspires confidence in your organization’s ability to create meaningful change.

Steps for writing a Statement of Need

Crafting a compelling Statement of Need requires careful planning, thorough research, and a clear structure.

Here are the essential steps that your team can follow to secure more grant funding.

1. Identify the Problem

Start by clearly defining the issue your project aims to solve. Describe who is affected, how they are impacted, and why the problem is urgent.

For the best results, use precise language to paint a compelling picture of the needs your organization and its constituents are facing.

2. Support with Data and Evidence

Grantmakers want to see factual proof that your issue is significant. Incorporate relevant statistics, research studies, community assessments, or real-world examples to validate your claims.

Remember: reliable data strengthens your credibility and makes your case more persuasive.

3. Explain the Root Causes

Beyond stating the problem, explain why it exists. Identify contributing factors and systemic issues that your project will address. This demonstrates a deep understanding of the challenge and a strategic approach to solving it.

4. Connect to the Funder’s Mission

Every funder has specific goals and priorities. Research their funding guidelines and tailor your Statement of Need to align with their mission. Show how your project fits within their focus areas and contributes to their overall impact.

5. Highlight the Consequences of Inaction

Emphasize what will happen if the problem is not addressed. Will the issue worsen? Will more people be affected? Creating a sense of urgency can make your request more compelling and motivate funders to take action.

6. Present Your Solution

While the Statement of Need focuses on the problem, briefly introduce your project as the solution. Explain why your organization is uniquely positioned to address the issue and how your approach is the most effective.

7. Keep It Clear and Concise

Avoid jargon or overly technical language. Keep your writing clear, structured, and to the point. Funders review many proposals, so a well-organized and easy-to-read Statement of Need will make a stronger impression.

By following these steps, you can craft a persuasive and well-supported Statement of Need that effectively communicates the urgency and significance of your project, increasing your chances of securing grant funding.

Free template: Statement of Need for grants

The following template provides a structured approach to writing a Statement of Need that is clear, data-driven, and compelling. Feel free to customize it to fit your own specific mission and project goals while ensuring alignment with the intended grantmaker’s priorities!

[Organization]
[Date]
[Grant or Funder’s Name]

1. Introduction: The Problem at Hand

In [community/location], [describe the problem in one sentence]. Currently, [X number] of individuals are affected by [specific issue], leading to [negative impact]. Despite existing efforts, [highlight gap in current solutions].

2. Supporting Data and Evidence

According to [source], [statistic or key finding]. Additionally, research from [reliable organization] shows that [supporting data]. These figures highlight the growing need for immediate action to address [specific problem].

3. Root Causes and Contributing Factors

The primary reasons for this issue include [list key causes, such as lack of resources, systemic barriers, or economic factors]. Without intervention, these challenges will continue to worsen, affecting even more individuals in [target community].

4. Consequences of Inaction

If no action is taken, [describe potential adverse outcomes], leading to [larger-scale social, economic, or health impact]. This makes it crucial to implement sustainable solutions now.

5. Connection to the Funder’s Mission

Our mission at [Nonprofit] is to [state mission]. This aligns with [Funder]’s commitment to [funder’s goal or mission], making this partnership an ideal opportunity to create meaningful change.

6. Proposed Solution (Brief Overview)

Through [program name or initiative], we will provide [services/resources] to [target population]. Our approach includes [key strategies], which have been proven to [impact/outcome].

7. Call to Action

With the support of [Funder], we can take meaningful steps toward solving [problem]. This funding will help us [specific action, e.g., expand services, reach more people, improve resources] and create lasting change for [beneficiaries]. We look forward to the opportunity to work together and make a real impact.

---

Wrapping up & additional resources

A strong Statement of Need is the foundation of a successful grant proposal. By clearly outlining the problem, providing data-driven evidence, and connecting your project’s goals to the funding organization’s mission, you can make a compelling case for support.

Just remember to keep your writing clear, concise, and impactful. With the right approach⁠—and the template we provided⁠—you’ll be well on your way to securing the funding needed to bring your next project to life.

Interested in learning more about corporate giving strategies and beyond? Check out these additional resources:

• Maximizing Impact With Corporate Volunteer Grant Programs. Volunteer grants (also known as Dollars for Doers) are some of the most widely available forms of corporate giving. Learn everything you need to know about getting started with these programs in our complete guide.
• The Complete Guide to In-Kind Donations for Nonprofits. Grants don’t have to be solely monetary, either. Many companies and other donors are willing to provide in-kind support, too, through goods and services offered. Learn more about these in-kind donations here!
• Free Download: Developing a Workplace Giving Plan. Discover other types of corporate giving programs⁠—and how your organization can make the most of them⁠—with our guide to developing a workplace giving plan. From matching gifts to VTO hours, this resource covers it all.