Chapter 2 introduces the foundational concepts necessary for understanding grants and the grantmaking process. It defines grants in practical terms while emphasizing that grants involve more than receiving money: awards can include resources such as assets, services, land, or other forms of support and typically carry conditions, documentation requirements, and reporting responsibilities. The chapter explains the grant lifecycle and surveys multiple ways grants can be categorized, including allocation method, funder, project type, proposal origin, and business terms. It also addresses the realities of grant writing, particularly the importance of realistic expectations and an understanding that rejection is a normal part of the process. The chapter then turns to the role of the grant writer, expectations for success, and the development of relationships with funders. Strategies for making positive first impressions, responding when funders initiate contact, and engaging in capture management are discussed. Finally, the chapter introduces the letter of inquiry as a concise tool for establishing communication with prospective funders.

The chapter covers: