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A project rationale is an argument in favor of implementing the proposed project by your organization. It gives a detailed explanation of why the project is required in the area. In other words, it describes the issues and problems the community is facing and how your organization and the proposed project will address them with the funding support expected from the donor.
This section of the proposal can be very crucial because it is here that you need to convince the funder that why it is absolutely necessary to get the grant for implementing the project.
This section of the proposal is also referred to as project background since it gives an idea of what has been happening in the area prior to implementing the project. You can also refer to this section as the ‘problem statement’ since it analyzes the problem in an in-depth manner.
An important part of this section should be a short description of your organization. After the donor has read and understood the problems and issues of the area, it may want to know why your organization is the best choice for addressing them. In the description of the organization, make sure you refer to your previous projects implemented similarly and/or you can highlight the innovative idea you have for this project.
For example: if a donor is interested in child health, then in the project rationale the NGO needs to prove a child health crisis exists in their community and that the project can solve it.
The project rationale should:
- State the problem as clearly and precisely as possible.
- Reflect the donor goals and guidelines.
- Summarize relevant background information about the region, community and resources available.
- Include specific information regarding the focus area and beneficiaries, including input from the community.
- Refer to research data, live examples, past projects, quotes and media articles to build a case for support.
- Explain the organizational strength and capacity in addressing this problem and achieving long- term impact.
The project rationale uses all of these tools to convince the donor of just two things:
- The problem the donor is interested in exists in the NGO’s community.
- The proposed project can solve the problem the donor is interested in.
Proving the Problem
While most NGOs feel the problems and challenges they face are obvious, this is not so for donors who may live half a world away. Many donors are very knowledgeable on the issue areas they fund, but others might need to be educated on the basic problems faced by the NGO’s community. Providing relevant background information, definitions, pictures, statistics and personal testimonials can help educate the donor on the issues.
Additionally, it is not enough to just prove that the problem exists; NGOs also need to convince donors that the problem is critical and needs immediate attention. Donors have to choose between many competing proposals, so proving to the donor that one project will have the greatest impact is an important way to stand out.
Proving the problem requires good research and a good understanding of the problem at hand. Proper identification of the problem is key to finding the solution, however identification of a single problem can be difficult in real-life where multiple factors are at play.
For example, suppose there is a high child mortality rate in a community and an NGO wants to address it. The NGO cannot treat child mortality as the basic problem because child mortality is in fact a result of other problems. In this case, there could be a prevalence of diarrhea due to low hygiene standards which leads to high child mortality. Thus, the NGO may propose to solve the prevalence of diarrhea by improving knowledge in the community about proper hygiene and sanitation.
A problem can have many causes and effects. The best way to understand the cause of an issue is to ask “Why” continuously. This is a basic exercise, but often works.
Proving the Solution: How to Convince the Donor for Funding Your Project
The above example not only points to the underlying problem of high child mortality, but also points to the solution, which is the second part of the project rationale. Once the NGO proves to the donor that the problem is real and important, the NGO also has to prove that the solution is with the NGO.
While most solutions seem like basic common sense, it is still important to explain them and prove they are the most effective means of solving the problem. Additionally, the applicant still has to prove that they are capable of implementing the project. For this, NGOs often use SWOT analysis.
The SWOT (strengths and weaknesses, opportunities and threats) tool below comes in handy for discussing the pros and cons of the organization and environment that could impact the project. Strengths and weaknesses are internal issues occurring within the organization, while opportunities and threats are external issues NGOs have less control over but still need to make contingency plans for, in the case they appear.
Clearly, more experienced NGOs with long histories of success are in a better position to prove themselves capable of implementing projects. However for some projects, small grassroots organizations are ideal implementers because they can respond quickly and have close ties with the project beneficiaries. Larger organizations tend to be more bureaucratic, slow-moving and distanced from the beneficiaries.
In this section, it is important to prove the NGO is best placed to implement the project. However, many NGOs spend too long praising their organization. While it seems unfair to all the NGOs doing great work, most donors care more about the project results and the beneficiaries reached than the implementing organization. This is especially true for first-time donors.
It is generally best to keep the organizational description short, with a weblink for more information. Additionally, a longer organizational description can be included at the end of the proposal or in an annex.
It is also important for NGOs to research their own organizations before writing the organizational description. Since staff come and go, it is often the case that fundraisers and even program officers are not aware of important facts about their own organizations. Make sure the information is accurate and up to date.
