When writing grant proposals, it’s essential to understand the distinctions between clients, customers, and beneficiaries. While these terms are often used interchangeably, they serve different roles in your organization, and knowing these roles can significantly improve the clarity of your grant applications.

What’s the Difference Between a Client, a Customer, and a Beneficiary?

A customer is someone who buys a product or service. They are essential for generating revenue, particularly in for-profit or social enterprises connected to your nonprofit. In contrast, a client receives ongoing services, usually in a long-term relationship. Finally, a beneficiary is the person or group who directly benefits from your nonprofit’s services, usually without any financial exchange.

Understanding Customers

In for-profit businesses or social enterprises, customers are the individuals who purchase your goods or services. When writing a grant proposal for a project that involves customers, make sure to outline who these people are and how their purchases sustain your organization’s financial health.

Defining Clients

Clients are often engaged in long-term services, whether that’s consulting, healthcare, or legal support. When defining clients in your grant applications, emphasize the ongoing nature of their relationship with your organization and the extended support they receive.

Clarifying Beneficiaries

Beneficiaries are central to nonprofit work. These are the people or communities who directly receive the impact of your work without paying for it. Funders are particularly interested in knowing who your beneficiaries are and how your program will meet their needs.

If you’d like more insights into how these roles affect your nonprofit work, download my free guide, where I expand on these three points with seven additional things you should know when defining customers, clients, and beneficiaries.

Whether you're writing a grant proposal, planning a project, or managing a nonprofit, understanding the differences between clients, customers, and beneficiaries is key to improving communication with funders and stakeholders. Download my free guide to learn even more about these distinctions and how to use them in your work.