Understanding USAID's Structure
USAID operates through a complex system of funding mechanisms: Grants, Cooperative Agreements, and Contracts. For NGOs, grants and cooperative agreements are most relevant. Cooperative agreements involve substantial USAID involvement in implementation; grants give organizations more autonomy. Understanding which mechanism you're applying for shapes how you write your proposal.
Read the NOFO Carefully
USAID issues Notice of Funding Opportunities (NOFOs), formerly called APS or RFAs. These documents are detailed and must be followed precisely. Pay close attention to: eligibility requirements, technical evaluation criteria, cost/budget requirements, and submission format.
Demonstrate Local Knowledge
USAID Mission priorities are country-specific. A proposal that demonstrates deep understanding of the local political economy, stakeholder landscape, and cultural context will always outperform a generic one. Include data from local sources, not just global reports.
Address the Evaluation Criteria Explicitly
USAID proposals are scored against published evaluation criteria — usually: Technical Approach, Organizational Capacity, Key Personnel, and Cost. Structure your technical narrative to address each criterion explicitly, even using the criterion headings as section titles.
Past Performance Matters
USAID values track record. Include references to previous USAID-funded work, or other comparable projects. If you're a new organization, partner with one that has USAID experience and highlight their past performance in your proposal.
Budget Compliance Is Non-Negotiable
USAID has strict budget requirements: unallowable costs, cost principles from 2 CFR 200, indirect cost rates, and prior approval requirements. Work with your finance team and consult USAID's Cost Reference Guide before building your budget.
