A funding call lands in the inbox. Someone forwards it with the words "proposal opportunity". Two weeks later the organization submits, and is disqualified before anyone reads the technical content.
The work was good and the organization was capable. The team had simply answered a request for proposals as though it were an open grant call, and the two are judged by different rules.
Proposals take different forms, because they do not follow a one-size-fits-all principle. The first step with any call is to review it and decide whether to apply, and you cannot make that decision well until you know what kind of solicitation you are holding. This article sets out the main types.
What is the difference between a grant and a bid?
A grant is funding awarded to support work that you have defined, assessed on whether your mission, need and approach align with the funder's strategy. A bid is a competitive response to work the funder has already specified, scored against published evaluation criteria, with compliance requirements that are checked before the technical content is assessed. In a grant proposal you argue for your idea. In a bid you show how you will deliver the funder's.
Most of the confusion comes from the fact that both are usually called "proposals". The useful distinction is who defined the work and how the submission will be judged.
The main types of proposal, side by side
Most proposals are either solicited (the funder asked for them) or unsolicited (you sent them without being asked). Within those two families, these are the forms you will meet:
| Type | Who initiates | What the funder wants | How to treat it |
|---|---|---|---|
| Request for Proposals (RFP) | Funder, formally | A response to detailed specifications, judged on published evaluation criteria | A bid. Compliance first, then technical quality |
| Request for Applications (RFA) | Funder, formally | Ideas for how available grant funding could be used, within stated eligibility | A grant call. Fit and quality of idea matter most |
| Request for Quotation (RFQ) | Funder, formally | Price quotes, mostly cost data with brief narrative on issues such as quality control | A bid decided largely on price and specification |
| RFI or Expression of Interest (EOI) | Funder, formally | Information to qualify organizations interested in providing services | Answer exactly what is asked; it is not a proposal |
| Informally solicited proposal | Funder, after contact | A proposal invited after an introductory letter, discussion or courtesy visit | Relationship-led. Ask about size, format, budget and timeframe |
| Pre-proposal (LOI, concept paper, concept note, white paper) | Funder or you | A short document to decide whether a full proposal is worth inviting | One clear case, not a compressed full proposal |
| Renewal or continuation proposal | You, near the end of a grant | Continued funding for an existing project | Treat it as a new proposal, routed and approved the same way |
| Collaborative proposal | Two or more organizations | One unified project, usually led by one organization with sub-awards | Define roles, management arrangements and the added value of working together |
| Unsolicited proposal | You | Nothing yet. The funder did not ask | Strongly discouraged. Send an introductory letter or short concept paper instead |
What is a formally solicited proposal?
A formally solicited proposal responds to a specific programme and must conform to the solicitation guidelines issued by the funding agency. The request may come as a Request for Proposals (RFP), a Request for Applications (RFA) or a Request for Quotation (RFQ).
In a formal solicitation the funder dictates the format, the technical content and often the award terms. There is usually a hard deadline, and most such solicitations are one-time calls to meet a specific need that is not expected to recur. That last point matters: if you miss it, there is often no next round.
What is the difference between an RFP, an RFA and an RFQ?
These three are often confused, and each asks for something different.
An RFP provides detailed specifications of what the funder wants, directions for preparing the proposal, and the evaluation criteria that will be used to assess offers. This is the instrument that behaves most like a tender, and it is the one where compliance failures are most costly. We cover it in depth in our bid writing guide for African NGOs.
An RFA announces that grant funding is available and invites organizations to propose how it could be used. It typically sets out which programmes are eligible, what the funder expects, and how applications will be submitted and reviewed. The idea still belongs to you, within the funder's boundaries.
An RFQ asks for price quotes for goods or services. RFQs can be detailed, but a response is generally much shorter than an RFP proposal and consists mainly of cost data, with brief narratives addressing matters such as quality control.
What is an RFI or Expression of Interest?
A Request for Information (RFI) is issued to qualify the organizations interested in providing services or products before, or alongside, a full solicitation. Many funders and public bodies call the same step an Expression of Interest (EOI).
Treat it for what it is. It is not a proposal, so do not answer it with one. Read exactly what is asked, answer that directly, and let the qualification decide whether you are invited further.
What is an informally solicited proposal?
An informally solicited proposal is one the funder requests after you have sent a letter of introduction, held informal discussions, or made a courtesy visit. Nobody published a call. The relationship created the opportunity.
When you are invited this way, find out as much as you can before writing: the preferred size of the request, the format, the budget range and the timeframe. The funder has already signalled interest, so the risk is no longer being ignored. The risk is sending something that does not match what they had in mind.
What is a pre-proposal or concept note?
A pre-proposal is a short document requested when a funder wants to spare applicants the effort of a full proposal at the first stage. Depending on the funder it may be called a preliminary proposal, a white paper, a letter of intent (LOI), a concept paper or a concept note.
Its purpose is to inform and catch the interest of the funder so that they request a formal proposal with full technical and budget information. A good pre-proposal lays the foundation for discussion and later negotiation, and the funder may use it to judge how well the project fits their priorities before deciding who proceeds.
Its job is to catch interest, not to carry the full proposal. Make one clear, well-evidenced case for why the idea deserves a longer look.
Should an NGO send an unsolicited proposal?
Usually not. An unsolicited proposal is sent to a potential funder without any prior request or engagement, and it stands a high chance of never being read.
The better practice is to send a short introductory letter or a brief concept paper on what you intend to do, and let the funder respond. That turns a cold, unread document into the start of a conversation, and it can lead to an informally solicited proposal, which has far better odds. This is the practical side of how to get donors to fund your project: build the relationship first, and the invitation often follows.
Some funders only accept proposals by invitation
Some resource partners publish calls that any eligible organization may answer. Others want to know an organization before they will consider supporting it, and they only accept proposals upon invitation.
With invitation-only funders, there is no call to wait for. The work is to establish the relationship so that you receive the opportunity to submit in the future. That is why donor mapping should record not only what a funder supports, but how it accepts proposals.
How do you tell which one you are looking at?
Ignore the covering email and whatever the person forwarding it called it. Read the document and ask five questions:
- Has the funder specified the work in detail? Detailed specifications of what the funder wants point to an RFP.
- Are evaluation criteria set out for assessing offers? Another RFP signal, and a sign of administrative review before technical review.
- Is it asking mainly for prices? A request dominated by cost data, with brief narrative on matters like quality control, is an RFQ.
- Is it announcing available grant funding and inviting ideas? Stated eligibility plus an invitation to propose how the funding could be used is an RFA.
- Did it arrive after contact with the funder? A request that follows an introductory letter, discussion or visit is an informally solicited proposal.
And the guidelines govern, always.
Why getting this right matters
Each type of proposal fails for different reasons, so preparing for the wrong one wastes the preparation.
RFPs are most often lost at administrative review, on format, length, budget ceilings, deadlines and missing documents, before the technical content is scored. RFAs and grant calls are lost when the proposal is not aligned with the funder's objectives, does not clearly show how the resources will solve the problem, or presents an unclear budget. Unsolicited proposals are mostly lost because nobody reads them.
We look at the most common grant-side failures in why grant proposals get rejected.
Whatever the instrument, the decision that matters most comes before the writing. Review the call, decide whether to apply at all, identify the right partner if you need one, and set up a team to go through every requirement. Only then start the proposal.
Once a partnership is agreed, it is usually formalised through an agreement or Memorandum of Understanding that sets out the procedures on procurement, financial management, audit, reporting and termination. Knowing which instrument you answered tells you what kind of obligations will follow.
I cover proposal types, and how to prepare for each, in The Art and Science of Designing Projects and Writing Winning Proposals.
Frequently asked questions
What is the difference between a grant and a bid?
A grant is funding awarded to support work that you have defined, assessed on whether your mission, need and approach align with the funder's strategy. A bid is a competitive response to work the funder has already specified, scored against published evaluation criteria, with compliance requirements checked before the technical content is assessed. In a grant proposal you argue for your idea; in a bid you show how you will deliver the funder's.
What is the difference between an RFP, an RFA and an RFQ?
An RFP, or Request for Proposals, gives detailed specifications of what the funder wants, instructions for preparing the proposal, and the evaluation criteria that will be applied. An RFA, or Request for Applications, announces that grant funding is available and invites organizations to propose how it could be used within stated eligibility. An RFQ, or Request for Quotation, asks for price quotes, and the response consists mainly of cost data with brief narratives on matters such as quality control.
What is an Expression of Interest in development funding?
A Request for Information, which many funders and public bodies call an Expression of Interest, is issued to qualify the organizations interested in providing services or products. It is not a proposal. Answer exactly what it asks, directly and completely, and let the qualification decide whether you are invited further.
What is a concept note and how is it different from a proposal?
A concept note is one form of pre-proposal, alongside the letter of intent, concept paper, white paper and preliminary proposal. It is a short document meant to inform and interest a funder so that they invite a full proposal with complete technical and budget information. Its job is to catch interest rather than carry the whole proposal, so make one clear case for why the idea deserves a longer look.
Should NGOs send unsolicited proposals to donors?
Usually not. Unsolicited proposals are sent without any prior request or engagement and have a high chance of never being read. A better approach is to send a short introductory letter or brief concept paper, which can open a conversation and lead to an informally solicited proposal, where the funder has already signalled interest.
How can I tell whether a funding call is a grant or a tender?
Read the document itself, not the covering email. Detailed specifications of the work plus evaluation criteria for assessing offers indicate an RFP, which behaves like a tender. A request dominated by price quotes is an RFQ. An announcement that grant funding is available, with eligibility rules and an invitation to propose how to use it, is an RFA, which behaves like a grant call. And whatever it is called, the guidelines govern.
Dr. James Ngungu Njagu, PhD is a resource mobilization and fundraising advisor with more than 25 years of experience, and the author of The Art and Science of Designing Projects and Writing Winning Proposals. Resmob Solutions runs proposal and bid writing training in Kenya for NGOs, universities, corporates and government agencies.
Not sure which instruments your team is equipped to respond to? Take the free resource mobilization health check. Ten minutes, scored instantly.