Last week, Michigan Governor, Jennifer Granholm, ordered a moratorium on payment of the majority of state funded grants in order to help alleviate the nearly $1 billion State budget deficit. Grant expenditures, with a few exceptions will be deferred through the fiscal year, which ends on September 30th.
Many times, state granted funds are awarded to agencies on a reimbursement basis meaning that the organization must first pay for the goods or services and then seek reimbursement for these qualifying expenses on a monthly or quarterly basis. For already cash strapped non-profit organizations that typically do not have a cash reserve, this moratorium could be catastrophic. Especially to those organizations that rely heavily on grant funding. I am concerned for the organizations that I work with in Michigan as well as the people they serve, who will ultimately be the ones that loose the most out of this deal.
Probably the only good thing about this bold move by the Governor is that it will add more validity to the point that I always emphasize to the non-profits I work with, which is to make sure that their funding comes from diverse sources. For agencies that have varied revenues streams this moratorium may be challenging, but will not likely cause them to close up shop. I fear for the others who heavily rely on this state grant funding. One thing is for certain in the world of grants-they are never guaranteed.
The full article is available at Crain's Detroit Business.
Monday, April 16, 2007
Saturday, March 31, 2007
Spring Planning
I can't believe it is the last day of March already. I still have a few things on my to-do list , but I do not feel too bad about that because it has been a productive first quarter of the year.
I have been very involved in planning with several organizations over the past few months and it has been both exhilarating and exhausting! Creating and going through the process of planning new organizations, programs and projects is like watching the tulips push through the soil this time of year. I look at them and wonder if they will survive through the still cold nights, what color they will be when they bloom, and how long they will last. In a similar way, I brood over the organizations I work with to help them through the grant development process.
Many times people will come to me asking for help in writing grant proposals, but what they really need is help in strategically planning for their programs. There are many different ways to approach planning. Planning might include:
- Identifying constituent needs
- Creating organizational goals and objectives to meet those needs
- Crafting a reasonable time line
- Assigning personnel and monetary resources
- Targeting potential donors
Tuesday, March 13, 2007
Different Types of Funding
When researching potential funders you will likely see interesting terms for the various categories of support they like to give. It is important to understand what the jargon means so that you are not asking an organization for an in-kind gift when you really want to ask for funding for an endowment fund. You also want to make sure you are not asking an organization for seed money that only gives to building renovations.
I can imagine your heart beating faster and your palms starting to sweat at the thought of these bizzare terms. Don't worry, you will probably catch on quickly, well at least more quickly than say... learning Greek.
Some of the more common terms include the most sought after and most elusive type of funding-General Operating Support. This will pay for pretty much anything you want in your organization. It is typically granted for general rather than specific purposes, and is least likely to be given by funders because they like to give to specific projects that will have specific results.
Building/renovation money is used for construction or renovation of buildings. These funds may be part of a Capital Campaign, which typically takes place over a longer period of time and typically is supported by a multitude of organizations and people for large causes-such as a new science building at a university.
An Endowment is typically a large gift or several small to mid size gifts that are invested to provide income for ongoing support of a particular program or other organizational expenses. Ideally, organizations grow their endowment fund (s) so that a portion of their expenses can be paid through the earned interest while the principal stays in the fund.
Seed Money is used to start a new organization or new program within an established non-profit. Ongoing or Continued Support are pretty much what they sound like-grants to help maintain the work of an established organization or particular project.
Finally, funders understand the importance of organizations exploring what/how their programs are doing and sometimes offer Program Evaluation grants to measure the effectiveness of a program.
There now...you don't have to say that grant lingo is "All Greek to me."
I can imagine your heart beating faster and your palms starting to sweat at the thought of these bizzare terms. Don't worry, you will probably catch on quickly, well at least more quickly than say... learning Greek.
Some of the more common terms include the most sought after and most elusive type of funding-General Operating Support. This will pay for pretty much anything you want in your organization. It is typically granted for general rather than specific purposes, and is least likely to be given by funders because they like to give to specific projects that will have specific results.
Building/renovation money is used for construction or renovation of buildings. These funds may be part of a Capital Campaign, which typically takes place over a longer period of time and typically is supported by a multitude of organizations and people for large causes-such as a new science building at a university.
An Endowment is typically a large gift or several small to mid size gifts that are invested to provide income for ongoing support of a particular program or other organizational expenses. Ideally, organizations grow their endowment fund (s) so that a portion of their expenses can be paid through the earned interest while the principal stays in the fund.
Seed Money is used to start a new organization or new program within an established non-profit. Ongoing or Continued Support are pretty much what they sound like-grants to help maintain the work of an established organization or particular project.
Finally, funders understand the importance of organizations exploring what/how their programs are doing and sometimes offer Program Evaluation grants to measure the effectiveness of a program.
There now...you don't have to say that grant lingo is "All Greek to me."
Tuesday, February 27, 2007
What is in a Name?
..."That which we call a rose. By any other word would smell as sweet." Said young Juliet to Romeo. What might this theatrical prose have to do with grant proposal writing? Mm mm nothing really except the vague connection when you are first attempting to gain employment in the non-profit world or writing your first proposal, some of the language might sound a bit Shakesperian.
If you don't know the difference between an input or outcome or a community foundation vs. an operating foundation-don't fret. Like most professions, non-profit organizations have their own lingo. You might think that you need a secret decoder ring in order to understand a grant application or have a conversation with a development officer. Not so. All you need is a little help understanding the lingo and you can feel extremely confident that you will wow your colleagues at the water cooler tomorrow with your new found knowledge.
First and foremost and the one phrase that I have seen too many people get hot under the collar about is the term "Grant Writer." We do not write grants. That would imply that I have the power to actually write out grant checks. Ahh that would be wonderful. Oh the power, the prestige the....ahem, pardon me. Anyway, most of us refer to our type of work as being Grant Proposal Writers. Off my soapbox now.
Lets look at the different types of grant making organizations. First you have your Government agencies. Typically Federal government agencies receive their funding through the Federal budgeting process. The money goes to particular government agencies to run specific programs. Sometimes these funds trickle down to the regional or state level and every so often make it to the county or city level. One non-profit group usually does not obtain federal funding via the Feds. Typically, your non-profit needs to belong to a group or consortium of other non profits that do similar or complimentary type of work in the same region in order to receive Federal government grants.
According to the Foundation Center a foundation is a non-government, nonprofit organization with its own funds, and program managed by its own trustees and directors that was established to maintain or aid educational, social, charitable, religious or other activities serving the common welfare, primarily by making grants to other non-profit organizations. Whew, that's a mouthful!
Types of foundations include:
If you don't know the difference between an input or outcome or a community foundation vs. an operating foundation-don't fret. Like most professions, non-profit organizations have their own lingo. You might think that you need a secret decoder ring in order to understand a grant application or have a conversation with a development officer. Not so. All you need is a little help understanding the lingo and you can feel extremely confident that you will wow your colleagues at the water cooler tomorrow with your new found knowledge.
First and foremost and the one phrase that I have seen too many people get hot under the collar about is the term "Grant Writer." We do not write grants. That would imply that I have the power to actually write out grant checks. Ahh that would be wonderful. Oh the power, the prestige the....ahem, pardon me. Anyway, most of us refer to our type of work as being Grant Proposal Writers. Off my soapbox now.
Lets look at the different types of grant making organizations. First you have your Government agencies. Typically Federal government agencies receive their funding through the Federal budgeting process. The money goes to particular government agencies to run specific programs. Sometimes these funds trickle down to the regional or state level and every so often make it to the county or city level. One non-profit group usually does not obtain federal funding via the Feds. Typically, your non-profit needs to belong to a group or consortium of other non profits that do similar or complimentary type of work in the same region in order to receive Federal government grants.
According to the Foundation Center a foundation is a non-government, nonprofit organization with its own funds, and program managed by its own trustees and directors that was established to maintain or aid educational, social, charitable, religious or other activities serving the common welfare, primarily by making grants to other non-profit organizations. Whew, that's a mouthful!
Types of foundations include:
- Independent foundations-These are usually established via an endowment from a beloved, departed family member and often referred to as a "Family Foundation."
- Company Foundations-Funds are gained from a profit making company, but the foundation is independent of the parent company. For example PepsiCo is a company and maintains a foundation in order to do good in the community.
- Corporate giving programs are slightly different than corporate foundations as the company gives direct charitable gifts to non-profits without sending the funds through a foundation.
- Community Foundations-manage funds from many different people or groups and disperse grant awards based on the donors wishes.
- Operating foundations provide direct services to clients or other non-profit organizations. These foundations rarely give funding to one, if any other non-profits.
Next time we will discuss the definitions of the different types of support grantmaking organizations give.
Tuesday, February 20, 2007
Feedblitz
I recently came across an interesting service that melds blog and email services together. Through Feedblitz readers can sign up for free to receive new blog entries via their e-mail. This convenient service garnered my attention because:
1. It is free.
2. It is easy to sign up.
3. Now readers don't have to remember to come back to my blog site every now and then to check out new entries on the wonderful world of grants.
4.Did I mention it is free?
If you would like new Take It For Granted articles delivered right into your inbox, just scroll down a bit on the left and insert your email address where it directs you to subscribe. This will take you to another nice site that asks you to put in a super secret code word in order to fight spam, and voila you will now receive the most up to date, important information about grants that you could ever imagine. Plus I promise not to sell your email to anyone!
1. It is free.
2. It is easy to sign up.
3. Now readers don't have to remember to come back to my blog site every now and then to check out new entries on the wonderful world of grants.
4.Did I mention it is free?
If you would like new Take It For Granted articles delivered right into your inbox, just scroll down a bit on the left and insert your email address where it directs you to subscribe. This will take you to another nice site that asks you to put in a super secret code word in order to fight spam, and voila you will now receive the most up to date, important information about grants that you could ever imagine. Plus I promise not to sell your email to anyone!
Monday, January 22, 2007
First Quarter Submissions
Grant cycles and deadlines tend to be cyclical-meaning they usually occur at the same time each year. Knowing when the funder you targeted accepts applications is crucial. If possible, try to submit your application during the first funding cycle of the year. Why? Typically, the first quarter of the grant year is when the largest pot of money is available. This is not always true, but properly researching your potential funder might reveal some interesting information.
Read the funding guidelines carefully. Call someone at the organization if possible and ask if their Board prefers to receive grant proposals during a certain season. Look at the organizations latest form 990 at Guidestar where you can register free, or purchase a package for higher-level access to non-profit information. Look at several different years and study the dates (if given) to determine if there is a specific giving pattern that favors giving more or larger grant awards during a specific time of year.
Whenever you decide to submit your grant request, make sure it is a well thought out part of your organization's overall fundraising plan. Submitting scattershot proposals without properly assessing your needs, or researching and targeting potential funders will likely prove to be very unfruitful.
Read the funding guidelines carefully. Call someone at the organization if possible and ask if their Board prefers to receive grant proposals during a certain season. Look at the organizations latest form 990 at Guidestar where you can register free, or purchase a package for higher-level access to non-profit information. Look at several different years and study the dates (if given) to determine if there is a specific giving pattern that favors giving more or larger grant awards during a specific time of year.
Whenever you decide to submit your grant request, make sure it is a well thought out part of your organization's overall fundraising plan. Submitting scattershot proposals without properly assessing your needs, or researching and targeting potential funders will likely prove to be very unfruitful.
Tuesday, December 12, 2006
Half of a Check
You are sorting the day’s mail when you come across an envelope from the XYZ foundation that you sent a proposal to three months ago. You had already wondered twice this week when you would hear back from them. You eagerly rip open the envelope, and unfold the creased three-page letter. Great news-your organization has been awarded the grant! In the amount of… Hey, wait a minute. This is only for half the amount that we asked for. What is going on? What are we supposed to do with half the money-give half of a meal or half of a winter coat to our clients?
Why would they do this you might ask? The fact is that many times foundations and other funding agencies do not award all of the grant funds that you need for a project. The hard truth is that you need to submit grant applications to more than one funder for the same project.
Funders are not out to shake your world up. Typically, they have several focus areas (such as education or youth development) that they are trying to promote change in as well as funding multiple organizations. I read recently that many foundations can only fund approximately 5-10% of the grant requests that they receive. One way of helping more people is giving yours and other organizations a lesser amount than requested. Funders expect you to work collaboratively with other organizations including other funders. The more community support that an organization has, the more stable they will appear. The old saying “Don’t put all of your eggs in one basket” applies to both funders and the organizations they support. You want more than one donor for your project.
Even though it might not feel like it at the time, getting less funding than you asked for is really a great opportunity to create a relationship with a new funder or build on an existing relationship with a current funder.
Why would they do this you might ask? The fact is that many times foundations and other funding agencies do not award all of the grant funds that you need for a project. The hard truth is that you need to submit grant applications to more than one funder for the same project.
Funders are not out to shake your world up. Typically, they have several focus areas (such as education or youth development) that they are trying to promote change in as well as funding multiple organizations. I read recently that many foundations can only fund approximately 5-10% of the grant requests that they receive. One way of helping more people is giving yours and other organizations a lesser amount than requested. Funders expect you to work collaboratively with other organizations including other funders. The more community support that an organization has, the more stable they will appear. The old saying “Don’t put all of your eggs in one basket” applies to both funders and the organizations they support. You want more than one donor for your project.
Even though it might not feel like it at the time, getting less funding than you asked for is really a great opportunity to create a relationship with a new funder or build on an existing relationship with a current funder.
Subscribe to:
Posts (Atom)
