AI is transforming the grant writing process, helping writers get past the blank page, streamline their work, and draft applications faster than ever before. However, if you’ve ever tried using AI for grant writing, you’d know that getting a quality draft isn’t automatic. It can be downright frustrating to produce a quality first draft with chatGPT. Quality work from your AI all hinges on one crucial factor: context!
When using AI to write grants, understanding and structuring the right context is what makes the difference between a high-quality draft and one that misses the mark. Using context is the difference between saving you time and pulling your hair out in frustration.
Let's dive into what context means for grant writing, and why it’s so critical to successful AI-generated drafts.
Breaking it Down: Four Simple Steps You Need to Build Context With AI
Context is everything in AI-driven grant writing! Without the proper background, guidance, and structure, an AI-generated draft can feel like a shot in the dark, lacking focus and relevance. But with the right context, you can guide the AI to produce a draft that’s accurate, meaningful, and tailored to the needs of both the fundee and the funder.
When we talk about context in grant writing, we’re basically talking about two types: fundee context and funder context. Think of context in AI-driven grant writing like packing for a trip. Imagine preparing for two very different destinations—a tropical beach and a snowy mountain.
If you don’t know where you’re going (that is, your context), you’re just tossing random items into your suitcase, with no idea if they’ll suit the destination. The fundee context is like knowing who you are as the traveler. It’s all about the essentials your nonprofit brings to the table: its mission, program details, and specific goals.
Funder context, on the other hand, is like knowing your destination. This is where you understand the grantor’s focus and values—whether they prioritize healthcare, education, or environmental impact. Just as you wouldn’t show up on a beach with a snow coat, you wouldn’t want an AI draft that’s off the mark.
With both fundee and funder contexts packed and ready, you guide the AI to deliver a draft that’s perfectly suited to both sides. However, here’s a step-by-step guide to building context using AI to help you get started with precision and efficiency.
If you’d like a broad overview on maximizing AI in grant writing get your AI toolkit here.
Step 1: Build Your Fundee Context
First, the AI needs to understand the organization or nonprofit seeking funding—this is what we call the “fundee context.” This includes essential information about the organization’s mission, objectives, target population, and project or program goals.
Think of this as setting the foundation. By spending just 20% of your time on this step, you can get 80% of the way to a good draft. Here’s how to approach this stage:
Prepare Your Organization’s Background: Start by inputting essential information about your organization (your history, impact, and the likes) into ChatGPT or a custom AI model. This includes your mission, vision, values, and any recent accomplishments. AI models like ChatGPT have a “Custom Instructions” option where you can describe these details.
Upload Specific Project Information: If you’ve conducted a kickoff call with the organization’s team, record and transcribe the call. This transcript can be uploaded to your AI tool to give it insights into the project’s goals, intended impact, timeline, and other relevant details.
Request Drafts Based on Specific Prompts: Now, prompt your AI to create different components of your grant application, like a project description or goals statement. The AI will generate responses tailored to the organization’s unique context, saving you time on initial drafts.
Step 2: Build Your Funder Context
The second layer of context is what we call the “funder context,” and it’s where things get more challenging. The funder is the entity awarding the grant, and their priorities, mission, and values must be reflected in your application.
Unlike fundee context, which requires a smaller initial effort, funder context demands a deep understanding of the grant’s eligibility criteria, scoring metrics, and specific priorities. It’s the 80% of effort that adds the final 20% polish to a grant draft, making it truly competitive. Here’s a practical approach:
Gather Relevant Grant Information: For each grant opportunity, start by collecting details such as eligibility requirements, focus areas, and any specific language the funder uses. Federal grants often have more standardized language and criteria, but for foundation grants, you may have to gather information from various sources.
Use AI to Analyze and Summarize Grant Details: If you have a lengthy document or application guidelines, input this into your custom AI. Trained models can extract key pieces of information like eligibility requirements, objectives, and selection criteria, condensing 100 pages of information into a handful of essential points.
Create a Grant Profile: Once you’ve summarized the grant information, compile it into a single document that your AI can reference. This grant profile will serve as a go-to source of funder context when drafting proposals.
Step 3: Merge Fundee and Funder Contexts for Draft Creation
Now that you have both the fundee and funder contexts, it’s time to use these combined insights to generate high-quality drafts. This step is all about synthesizing both sets of information to create a tailored, impactful proposal.
Upload Both Contexts to Your AI Tool: Combine the fundee’s background and project information with the grant profile you created in Step 2. This provides the AI with a complete picture of the application’s needs.
Request Specific Draft Sections: Ask the AI to generate specific sections of the grant, such as the project overview, objectives, or impact statement. Since it has both the fundee’s context and the funder’s requirements, it will be able to craft a response that aligns closely with what the grant is looking for.
Refine and Customize: Even with well-prepared context, the first draft from the AI might need tweaking. Use this opportunity to refine language, add any missing details, and ensure the narrative aligns with both the funder’s goals and the fundee’s mission.
Let’s say you’re applying for the “Business Scale-Up Grant” for Federic Farms, an innovative farm in Canada. After loading the fundee and funder contexts into a custom AI, you can prompt it to “write a project description for Federic Farms to apply for the Business Scale-Up Grant.”
The AI will leverage all the context it has on the farm’s goals and the grant requirements, producing a focused and relevant draft that you can then refine.
Step 4: Customize and Reiterate with Advanced AI Techniques
For more complex grant applications, you may need additional steps or iterations. Here are some advanced tactics to enhance the quality of your AI-generated drafts:
Build Custom AI Models: As you gain experience, consider building custom AI models for different grant types or funders. These models can be trained to use specific terminology, structures, and examples that align with each funder’s unique requirements.
Use a Sequence of Prompts: Instead of relying on one prompt for the entire draft, break down your prompts into logical steps. For instance, start with an organizational background, then move to the project overview, followed by alignment with the funder’s objectives. This sequential approach allows the AI to focus on each component individually.
Integrate Multiple AI Tools: Sometimes, combining multiple tools enhances the outcome. For example, you might use one AI for research and another for drafting, then integrate the outputs for a comprehensive final draft. Experimenting with different tools and techniques will help you refine your process.
Whoosh! That was a handful, right? Interestingly, it’s not all! You can dive deeper into our AI toolkit if you’re thinking about how to build a custom GPT in 2025. We dissected everything you need to know about grant writing and AI.
Final Thoughts: The Real Key to AI Success
AI is a powerful tool for grant writers, but its effectiveness comes down to how well you set the stage with context. When you take the time to structure fundee and funder information, guide the AI through sequential prompts, and integrate multiple tools effectively, you can turn an AI draft from something unpolished to a strong foundation for a winning grant proposal.
Ultimately, AI won’t replace the grant writer, but it will help free up time for what matters most: shaping the application into a persuasive, compelling story that speaks directly to the funder’s priorities. In grant writing, it’s not about using AI for shortcuts; it’s about enhancing your ability to connect, align, and communicate effectively with those who have the power to fund your mission.
Want to bring your grant writing to the cutting edge? Our AI toolkit is here to make it happen! Lately, AI has been a game-changer in our community—think live webinars, hands-on resources, and even a custom-built GPT designed exclusively for grant writers. We're dedicated to helping you stay ahead in a fast-evolving field. Join the collective today and get in on the action!
