Key Term

What is Request For Proposal (Rfp)?

Definition

A Request for Proposal (RFP) is a formal document issued by a foundation, corporation, or grant-making organization that solicits detailed proposals from potential grantees or service providers. It outlines specific requirements, objectives, timelines, and evaluation criteria for a particular funding opportunity or project. RFPs typically include background information, scope of work, budget parameters, and submission guidelines.

Significance

RFPs play a crucial role in the charitable giving landscape by creating a structured, competitive process that helps funders identify the most qualified and capable organizations to achieve specific philanthropic goals. They enable donors to clearly communicate their priorities and expectations while allowing nonprofits to demonstrate their expertise and approach. This process promotes transparency, fairness, and accountability in charitable giving while helping ensure that limited philanthropic resources are allocated effectively to achieve maximum social impact.