Institutional donors—including private foundations, public trusts, bilateral and multilateral aid agencies, and government entities—represent a consistent and significant source of funding for NGOs. Globally, there are over 250,000 foundations and trusts providing financial support to development initiatives. These donors often prioritize well-structured projects aligned with their thematic areas and offer not only funding but also technical assistance. However, securing such funding is highly competitive, requiring NGOs to follow a strategic and systematic approach grounded in credibility, compliance, and relationship-building.

Two primary approaches exist for securing institutional funding: Bid Proposal Submission and Direct Approach to Donors. Each requires a distinct yet complementary set of processes and preparations.

1. Fundraising Through Bid Proposal Submission

International donors typically follow structured funding mechanisms aligned with their cooperation programs and policies within specific regions or countries. The funding process often consists of three stages:

1) Expression of Interest (EOI)
2) Concept Note Submission
3) Full Proposal Submission

To prepare a strong bid, NGOs must first ensure full understanding of donor guidelines, eligibility criteria, and thematic priorities. Internal evaluations are essential to determine readiness and organizational fit. This includes reviewing prior experience, available data, technical capacity, relevant case studies, and alignment with Sustainable Development Goals (SDGs).

Key preparatory steps include:

1) Analyzing national and sectoral context through secondary research.
2) Consulting with in-house experts and peer organizations.
3) Developing a theory of change and defining realistic goals and outcomes.
4) Customizing organizational profiles to match donor expectations.
5) Designing interventions based on evidence and organizational experience.
6) Aligning proposal strategies with donor policies and implementation approaches.

Proposal quality is critical. A technically sound and contextually relevant proposal should reflect rigorous planning, a feasible implementation strategy, monitoring and evaluation (M\&E) mechanisms, and value-for-money considerations. Participating in pre-bid meetings, joint planning sessions, and responding to donor feedback enhances competitiveness.

2. Fundraising Through Direct Approach to Institutional Donors

Many institutional donors, especially foundations, corporate entities, and private trusts, operate with flexible funding policies and accept unsolicited proposals. Successful engagement with such donors begins with donor mapping and market research to identify funding priorities, geographic focus, and preferred communication channels.

To approach these donors effectively:

• Prepare tailored communication packages highlighting your organization’s expertise, impact, and alignment with donor priorities.
• Identify and initiate contact with relevant focal persons or departments.
• Use personalized emails, follow-up calls, and digital presentations to build rapport.

Upon gaining donor interest, NGOs should follow this sequence:

1) Submit a Customized Concept Paper: Tailored to donor interests and thematic focus, this serves as the initial pitch.
2) Present the Program Proposal: Use virtual or in-person meetings to deliver professional PowerPoint presentations and a concise program brief.
3) Facilitate Donor Field Visits or Virtual Tours: In-person visits enhance trust. For overseas donors, use video documentaries and website content to showcase your work.
4) Develop and Submit the Full Proposal: After discussions, prepare a comprehensive proposal adhering to donor templates and guidelines.
5) Finalize Proposal Through Consultations: Engage donors and stakeholders to align expectations and strengthen proposal quality.
6) Negotiate and Finalize the Grant Agreement: Address key contractual elements—particularly financial and legal terms. Host a signing ceremony to highlight the partnership.

Institutional fundraising is not merely about submitting proposals—it involves building trust, demonstrating accountability, and aligning NGO programs with donor values. By following structured approaches, continuously investing in organizational capacity, and maintaining open communication with donors, NGOs can successfully secure and manage institutional grants to advance their mission.

The article was written by Md. Humayun Kabir, an Independent Consultant, and Director, Creative Services Limited. Email: humayun@cslbd71.com