• Needs Statement, Statement of the Problem, or Description of the Problem are names given to sections of proposals where you are asked to provide a convincing case regarding the extent and magnitude of the problem or area of need, including the compelling conditions that lead you to propose a plan of action. 
   

• It does not describe your approach to address the need or problem. The Project Description Section does that.
   

• It provides a strong rationale for why support should be provided and lays out evidence of need.

          Four Requirements of an Effective Needs Statement:

1.  It uses supportive evidence to describe clearly the nature and extent of the need/problem facing those you plan to serve.

2. It illuminates the factors contributing to the problem or the circumstances creating the need.

3.  It identifies current gaps in services or programs.

4. Where applicable, it provides a rationale for the transferability of the “promising approaches” or “best practices” related to your proposal.

                                                  Sections of Needs Statement

                              Section 1: Nature and extent of the problem

                              Section 2: Factors contributing to the problem or condition

                              Section 3: Impact of the Need/Problem

                              Section 4: Promising Approaches for Improved Results