In House vs Outsourced Grant Writing

Pros and Cons for Nonprofits Deciding How to Build Capacity

Every nonprofit eventually reaches the same crossroads. Grants feel essential. Funding diversification becomes a board level priority. And then the practical question surfaces.

Do we build grant writing in house, or do we outsource grant writing to a consultant?

There is no universal right answer. But there are very real tradeoffs. This is not a hiring decision. It is a systems decision. You are choosing how your organization manages strategy, workload, risk, and institutional knowledge.

Let’s break it down.

Option One

In House Grant Writing

An in house grant writer is an employee, or sometimes a shared internal role, responsible for grant research, proposal development, and often reporting.

The Upside

In house grant writers develop deep organizational knowledge. They understand your programs, your language, your constraints, and your history. That makes alignment easier and storytelling more authentic.

Over time, internal grant writing builds lasting capacity. Templates, calendars, funder relationships, and institutional memory stay inside the organization.

Internal access is also faster. In house staff can attend program meetings, track changes in real time, and gather data without layers of coordination.

The Tradeoffs

The biggest challenge is fixed cost. Salary, benefits, onboarding, and training add up quickly. Many nonprofits struggle to fully utilize the role year round or end up overloading it during peak cycles.

There is also risk concentration. When one person holds the knowledge and they leave, momentum often disappears with them.

Finally, perspective can be limited. An internal grant writer sees one organization. They may not have broad exposure to evolving funder priorities or competitive trends across the sector.

Option Two

Outsourced Grant Writing

Outsourced grant writing typically means working with a consultant or firm that supports multiple organizations.

The Upside

Outsourcing brings immediate expertise. Consultants recognize patterns, understand current funder expectations, and know where applications commonly fail.

Support is scalable. You can increase or decrease effort based on deadlines and funding goals without committing to a full time position.

Strong consultants also provide objective alignment checks. Being told not to pursue a grant can save months of wasted effort and protect against mission drift.

The Tradeoffs

Consultants are not embedded by default. They need onboarding, context, and clear communication to avoid generic proposals.

While often more flexible than a hire, outsourced grant writing still requires consistent budget allocation to be effective.

There is also dependency risk. If outsourcing replaces internal readiness rather than supporting it, organizations can stall when the relationship ends.

The Question Most Nonprofits Overlook

The real decision is not in house versus outsourced.

The real question is whether grant writing is treated as a task or as part of a funding system.

If your programs are evolving, your data is scattered, or leadership alignment is unclear, an in house hire will struggle. If your strategy is defined but capacity is thin, outsourcing can create immediate traction.

Many stable nonprofits eventually land in a hybrid approach.

An internal point person owns readiness, data, and relationships. An external consultant supports research, writing, and strategy during high impact moments.

A Quick Reality Check

Ask yourself honestly.

• Do we have clean program data and measurable outcomes ready today

• Do we know which funders align with our mission and which do not

• Do we have leadership commitment to pursue grants consistently

• Do we want to prioritize internal systems or speed and outside expertise

If those answers feel uncertain, the direction becomes clearer.

Grant writing is not just about who writes the proposal. It reflects how prepared your organization is to compete.

Choose the structure that strengthens your system, not just the one that fills the gap.