Statement of Need: How to Write One, With Examples

A statement of need is the section of a grant proposal that proves, with cited data, that a specific problem exists for a defined group of people, and explains why it needs solving now. Also called a needs statement or problem statement, it frames the problem around the community affected rather than the applicant's finances, and every goal and activity later in the proposal must trace back to it. (This page covers grant proposals. The "statement of need" required for some J-1 physician visa applications is an unrelated government document.)

What it has to prove

Reviewers read the need section looking for answers to five questions. A strong statement answers each in order:

1. What is the problem? Stated specifically: not "poverty" but "families in our two-neighborhood service area spend more than half their income on rent."
2. Who is affected, how many, and where? Define the population and geography the project will actually serve.
3. How do we know? Local data with sources and years, compared with a county, state, or national benchmark so the reader can judge severity.
4. Why does it matter? The consequences if nothing changes, supported by research where possible.
5. Why this, why now? The gap in existing services that your project fills, and evidence that people want the service.

The last point separates competent statements from strong ones. Need is the measurable gap; demand is the evidence that the population will use what you propose: waitlists, referral counts, survey results, or pilot enrollment. Reviewers increasingly look for both.

For federal applications, add one rule. Describe the need the funding program was created to address, in the notice's terms, rather than a need you would like funded. If the notice targets opioid overdose deaths in rural counties, your data should be about opioid overdose deaths in your rural counties. Our guide to reading a notice of funding opportunity shows where the program's purpose is stated.

Four examples from different fields

The examples below are illustrative: the organizations, places, and local figures are invented to show structure. Where a real outside study is cited, it is named.

Education: early literacy

At the two elementary schools we serve, 148 of 240 students entering third grade (62 percent) scored below benchmark on the district's spring reading screener, compared with 41 percent districtwide. Neither school has had a reading specialist since 2025 budget reductions. The stakes are high: a national longitudinal study found that students not reading proficiently by the end of third grade are four times more likely to leave high school without a diploma (Annie E. Casey Foundation, Double Jeopardy, 2011). Our spring pilot at one school filled its 40 places in a week and closed with a waitlist of 63.

Why it works: local data, a comparison, a cited consequence, and demand, in five sentences.

Health: diabetes care in a medically underserved area

The east side of Northgate has one primary care practice for 24,000 residents and no public transit route to the regional hospital. The adult diabetes rate there is 18.2 percent, against 11.4 percent statewide, and county data show that 61 percent of diagnosed adults had no HbA1c test in the previous 12 months. Residents are not unwilling to seek care; the barriers are distance, cost, and clinic hours. The same residents visit one of four neighborhood food pantries an average of 2.3 times a month, which gives a practical place to reach them.

Why it works: it identifies the cause of the gap, not just its size, and the last sentence sets up the intervention.

Housing: eviction prevention

In Ashford County, landlords filed 3,140 eviction cases last year, a 38 percent increase over two years, and 71 percent of tenants facing eviction had no legal representation at their hearing, according to county court records. Our tenant hotline received 1,260 calls in the same period and could refer only one in five callers to an attorney. Tenants who lose an eviction case carry a court record that makes it harder to rent again, so a single filing can lead to repeated moves or homelessness.

Why it works: it shows a trend, not just a snapshot, and uses the applicant's own call data to prove unmet demand.

Workforce: young adults out of work and school

In the Harbor Point neighborhood, 27 percent of residents aged 18 to 24 are neither working nor in school, nearly double the county rate of 14 percent. Meanwhile, the two hospitals and five long-term care facilities within three miles report more than 140 open entry-level patient care positions, many vacant for over 90 days. The problem is not a lack of jobs but a lack of paths into them: entry-level healthcare roles require certifications that cost more than most of these young adults can pay up front.

Why it works: it pairs the problem with an opportunity, and names the specific barrier the project will remove.

A weak need statement, rewritten

Before:

Our organization desperately needs funding to continue our vital work. Hunger is one of the most serious problems facing America today, and many families in our community struggle every day. Without your support, we may have to reduce our hours.

What is wrong: it describes the organization's need for money, offers no data, defines no population, and threatens reduced service instead of describing the problem.

After:

Eastside Community Pantry serves 640 households a month in a service area where 19 percent of residents live below the poverty line, compared with 12 percent countywide. Fresh food is what our clients most often go without: in our spring survey, 71 percent said they had skipped fruits and vegetables in the past month because of cost. Yet last year we turned away 18,000 pounds of donated perishable food because our only cold storage is two household refrigerators.

Where to find the data

Credible, current, local data is what makes the section persuasive. Common sources:

• U.S. Census Bureau, American Community Survey (data.census.gov): income, poverty, housing cost burden, education, language, and disability down to the census tract level
• CDC PLACES: local estimates of chronic disease and health behaviors for counties, cities, and census tracts
• County Health Rankings and Roadmaps: county comparisons on health outcomes and factors
• Bureau of Labor Statistics: local unemployment and wage data
• State education department report cards: test scores, graduation rates, and chronic absence by school and district
• Your own records: intake data, waitlists, referral logs, and client surveys

Cite each figure with its source and year. Use the most recent release, and use the smallest geography that matches the area you serve: county data can hide a neighborhood's need.

Three to five well-chosen figures that build one argument work better than a page of statistics. A short quote from a client or partner can make the numbers concrete, as long as it supports the data rather than replacing it.

Connecting the need to the rest of the proposal

The need section sets up everything after it. Each measurable objective should close part of the gap you described, and each indicator in the evaluation plan should measure change in the population you named. If an objective addresses something the need never established, reviewers notice the disconnect. Mapping the chain in a logic model for grants makes gaps easy to spot before submission.

The same need also appears in compressed form elsewhere: two or three sentences in the executive summary, and a sentence or two in a foundation inquiry letter. To see a need statement in a complete document, read our full grant proposal example, and for the rest of the writing process, see how to write a grant proposal.

If you would rather have the need section and the full proposal written for you, request a quote.