The Statement of Need or $$Problem Statement$$ as it is sometimes referred to is a very critical aspect of the grant proposal. It is critical to the grant proposal because it identifies to the funder the specific problem you intend to solve and serves as the foundation upon which you will build your proposal. The problem also needs to align with the mission of the funding organization. If the problem you intend to address connects with the interests of the funder$/$grant maker, then there is a chance that they may consider investing in your project. This requires some research on your part in understanding the interests of the funder. The problem statement should be defined and clarified before moving forward in writing the proposal. In writing the problem statement you should include who is affected by the problem, the causes of the problem, current data$/$statistics to support the problem and how the organization is able to respond to the need. Some funders require an extensive need or problem statement, while others may just require $1-2$ pages. It is important to follow all the instructions provided by the funding organization, so that the organization will not be disqualified or penalized.