Grant Writing Business Overview
A grant writing business offers specialized writing services that help organizations obtain funding for research projects, aid efforts, community projects, training, education, or new products. Typically, these clients are non-profits, educational institutions, and small businesses seeking to apply for grants from governmental agencies, private foundations, and other sources. While excellent writing skills are essential, you’ll also need strong research capabilities to identify suitable grants and an understanding of budgeting and project management to help your clients successfully implement their grant-funded projects.
Grant writers handle the entire grant application process, from identifying opportunities to submitting polished proposals. They transform complex organizational needs and goals into clear, compelling narratives demonstrating why their clients deserve funding. Many grant writers also handle post-award reporting and maintain relationships with funding organizations to increase future success rates.
Although a degree is not necessary, grant consultants have typically earned an undergraduate degree at a minimum. You can also add to your credentials by attaining a grant writing certification and developing a portfolio of successful grants awarded.
The most common business models in this field include:
- Independent Consultant: Individual grant writers who work directly with multiple clients on a contract basis
- Grant Writing Agency: Companies employing multiple grant writers serving various organizations
- Nonprofit Specialist: Firms focusing solely on serving nonprofit organizations and charitable groups
Related: Checklist To Start A Business
How Do Grant Writers Make Money?
Grant writers earn income by charging fees for researching, writing, and submitting grant proposals on behalf of their clients. Many charge a flat project rate based on the grant’s requirements and complexity, typically ranging from $1,500 to $5,000 per proposal. Others work on an hourly basis, with rates between $50 and $150 per hour, depending on their experience and location.
Success fees, while sometimes requested by clients, are discouraged by professional associations due to ethical considerations and regulations from many funding organizations.
Industry Statistics
Grant writing services fall under NAICS code 541990: All Other Professional, Scientific and Technical Services. This classification represents professional writing services and specialized consulting activities. Let’s examine some statistics about the grant writing industry.
Grant Writing Industry Size & Growth: The grant writing industry is closely connected to the nonprofit sector and correlates with the availability of government and private funding opportunities. As social issues receive more attention and the nonprofit sector expands, the demand for grant writing services continues to grow. The projected job growth rate for grant writers is 6% from 2018-2028. (Zippia)
Grant Writing Profit Margin: Grant writing businesses typically see profit margins between 30-40% after accounting for operational expenses.
Startup Stories
Costs To Start a Grant Writing Business
Starting a grant writing business can be very affordable if basic office equipment isn’t needed. The cost can range between $500 and $10,000, with the typical expenses needed include:
Office Setup: A dedicated workspace with appropriate furniture costs between $1,000 and $3,000. This includes an ergonomic chair, desk, filing cabinets, and storage solutions for managing multiple client documents and proposals.
Technology and Software: Computer equipment and software costs range from $800 to $2,500. Grant writers need reliable computers, backup systems, grant tracking software, and proposal management tools. Many also invest in specialized grant database subscriptions to access funding opportunities.
Professional Development: Initial training and certifications cost between $500 and $2,000. While not required, professional certifications from recognized grant writing organizations help establish credibility with potential clients.
Website Development: A professional website typically costs between $500 and $1,500. The site should showcase writing samples, explain services, and provide contact information for potential clients.
These estimates represent general ranges based on starting a home-based operation, and actual costs will vary.
Resources:
American Grant Writers’ Association
Grant Professional’s Association