I have noticed an interesting situation over the past 6-8 months: With the exception of two grant awards, ALL of the grants that have been awarded to my clients recently have been lower than the original requested amount. Of course this does happen frequently and over the past eight years I have experienced the rush of receiving an award and at the same time the disappointment of realizing the awarded amount is lower than the original ask amount. However, the reduction in award amounts seems to be happening more frequently with foundations and corporate giving programs.
In my quest to find out why, I discovered that there is not currently a good answer. At first, I thought that I could blame it on the economy since it is a catch all blame basket for whatever is ailing the country. Then I thought that it was because more giving was diverted from the usual funding areas to help with hurricane relief efforts.
However, the latest statistics show that in 2004 giving increased by 5%. A report released last month by the Foundation Center noted that grants made only by foundation grantmakers increased in 2005. "Giving by the nation's close to 68,000 grantmaking foundations reached a new milestone in 2005. Estimated giving totaled $33.6 billion, up from the previous high of $31.8 billion recorded in 2004" (Foundation Growth and Giving Estimates Current Outlook, p.1).
So if giving is increasing then why are the grant amounts typically smaller? Several factors come to mind. Funding for the natural disasters over the past two years have only slightly diverted funds from other more traditional areas such as education, arts, and research. In addition the number of nonprofit organizations that need grant funding to operate has grown dramatically over the past ten years to over 1 million organizations in the United States alone.
Lastly, corporate and foundation assets have remained relatively flat or only slightly increased over the past three years. Foundations in particular calculate their grant budgets for the next year based on their assets from the past three to five years. When budgeting for 2006 many foundations utilized figures that may have reflected their 2001 assets. If you recall, 2001 was a tough year financially for many including foundations that lost millions with their investments.
More focused giving, higher competition for grant dollars and lack of perceived assets are part of the reasons why many organizations are giving smaller than the requested amount of grant dollars.
Next time, I will explain what to do when you receive a smaller check than expected.
Wednesday, April 12, 2006
Thursday, March 09, 2006
More on Federal Grants
I am one of the few people, I believe, that actually enjoy writing Federal grant proposals. Now before you write me off for good, let me explain why. All Federal proposals that I have worked on have clearly defined instructions that explain in detail exactly what is needed for each section. Most Federal proposals are scored on a point system and typically the higher scored proposals are the ones that are funded. Usually the issuing agency is even kind enough to give you a rubric, which explains how each section in the proposal will be scored. For example under the target population section the rubric may show that 10 points are awarded for services provided to multiple ethnic groups, 5 points for services to one or two ethnic groups and 2 points for services serving only one ethnic group.
Perhaps it is because I thrive when I am organized, but I much prefer this knowing exactly what is expected of you method than to writing only two pages that describe the organization in detail and explain precisely what the organization will accomplish over the next three years with such limited word space. I guess I am a person of many words, as is the case with most writers!
Back to grants. Each Federal agency has its own criteria and instructions, which can sometimes be larger than the proposal itself, for their grant programs. The step after properly planning the program is to get a hold of the RFP or application and sit down with a nice cup of tea or java or whatever you prefer and comb through every word on every page while taking notes about action steps. After you are done with that, go back through your notes and prioritize each action item and create a timeline which assigns responsibility for completion of each action item for each team member. Remember that most organizations applying for Federal funding are collaborationg with other organizations. Keep in mind that you may need to obtain information from other agencies that have different ways of disseminating information than you are used to. Allow extra time when collaborating with others.
Now to the attachments. The Feds are particular about non profit organizations performing lobbying activites, discriminating against people groups, employing criminals and many other such pesky matters. Forms are provided by the government for the agency that is applying for the grant to sign and include as attachments to the proposal. These are pretty straightforward forms, just don't forget to include them.
The EPA in connection with Purdue Univesity has a nice grant tutorial that offers practical grant proposal writing information and a writing activity.
Yes, the Federal proposals are very time comsuming, can be emotionally draining if the program is not properly planned out, and can be donwright frightening for the first time Federal proposal writer, but the payoff can be huge in terms of dollar amounts awarded and people served through the program.
Perhaps it is because I thrive when I am organized, but I much prefer this knowing exactly what is expected of you method than to writing only two pages that describe the organization in detail and explain precisely what the organization will accomplish over the next three years with such limited word space. I guess I am a person of many words, as is the case with most writers!
Back to grants. Each Federal agency has its own criteria and instructions, which can sometimes be larger than the proposal itself, for their grant programs. The step after properly planning the program is to get a hold of the RFP or application and sit down with a nice cup of tea or java or whatever you prefer and comb through every word on every page while taking notes about action steps. After you are done with that, go back through your notes and prioritize each action item and create a timeline which assigns responsibility for completion of each action item for each team member. Remember that most organizations applying for Federal funding are collaborationg with other organizations. Keep in mind that you may need to obtain information from other agencies that have different ways of disseminating information than you are used to. Allow extra time when collaborating with others.
Now to the attachments. The Feds are particular about non profit organizations performing lobbying activites, discriminating against people groups, employing criminals and many other such pesky matters. Forms are provided by the government for the agency that is applying for the grant to sign and include as attachments to the proposal. These are pretty straightforward forms, just don't forget to include them.
The EPA in connection with Purdue Univesity has a nice grant tutorial that offers practical grant proposal writing information and a writing activity.
Yes, the Federal proposals are very time comsuming, can be emotionally draining if the program is not properly planned out, and can be donwright frightening for the first time Federal proposal writer, but the payoff can be huge in terms of dollar amounts awarded and people served through the program.
Wednesday, February 22, 2006
The Maze of the Federal Grant Process
Getting that large federal grant sounds like the answer to all of your agencies problems doesn't it? That evaluation is not always accurate. Government funding, especially at the federal level, can be difficult to obtain, and just as difficult to keep due to arduous reporting requirements, program restrictions, and non-allowable expenditures.
First and foremost your program has to be properly planned for several reasons:
1. Typically Government Request For Proposals (RFP's) are issued and the deadline to submit the proposal is typically within 1-2 months after the RFP is made public.
2. The proposal itself is very detailed and time consuming. An agency can expect to work an average of 100 hours on each proposal, and that is if it is well planned out prior to the RFP release.
3. Generally Federal programs require that you work with one or more other agency to help serve a larger number of people. Cooperative agreements will need to be drawn up declaring which agency will be responsible for each part of the program.
Usually RFP's are issued at the same time each year depending on the agency. For example if HUD issues its SUPERNOFA in the spring of each year, you can usually count on it being released each spring. Of course you don't want to miss an RFP because of the short turn around time, so you can subscribe to the Federal Register, which is published each weekday and contains all rules, executive orders and grant information by agency. Another must see site is the Grants.gov website that allows you to review federal grant opportunities, and in many cases submit your proposal online. Online submissions are now required for many proposals, so if you plan on submitting a federal proposal, familiarizing yourself with this site will be essential. The Grants.gov site is much more user friendly than the Federal Register site.
Check out those sites and next time I will discuss the actual application process included the dreaded attachments in more detail.
First and foremost your program has to be properly planned for several reasons:
1. Typically Government Request For Proposals (RFP's) are issued and the deadline to submit the proposal is typically within 1-2 months after the RFP is made public.
2. The proposal itself is very detailed and time consuming. An agency can expect to work an average of 100 hours on each proposal, and that is if it is well planned out prior to the RFP release.
3. Generally Federal programs require that you work with one or more other agency to help serve a larger number of people. Cooperative agreements will need to be drawn up declaring which agency will be responsible for each part of the program.
Usually RFP's are issued at the same time each year depending on the agency. For example if HUD issues its SUPERNOFA in the spring of each year, you can usually count on it being released each spring. Of course you don't want to miss an RFP because of the short turn around time, so you can subscribe to the Federal Register, which is published each weekday and contains all rules, executive orders and grant information by agency. Another must see site is the Grants.gov website that allows you to review federal grant opportunities, and in many cases submit your proposal online. Online submissions are now required for many proposals, so if you plan on submitting a federal proposal, familiarizing yourself with this site will be essential. The Grants.gov site is much more user friendly than the Federal Register site.
Check out those sites and next time I will discuss the actual application process included the dreaded attachments in more detail.
Monday, January 16, 2006
So you got the grant, great! Now what?
You have done your due diligence and submitted the proposal and have been awarded the grant. Great news. Now you can relax right? Wrong! Your work has just begun.
Now you have to actually do what you said you were going to do in the proposal. Hopefully you set realistic goals, objectives and activities. You need to be able to track those as well as the financial expenditures. The most effective way to do this is to utilize some type of software. For the financial component you may be able to use your organization's current financial software such as QuickBooks, or Quicken. Whatever you have be sure to track each and every penny of the granting agencies funds. Creating a simple excel spreadsheet might be all you need to use to track activities. Use software that will give you the best ability to track your progress. You will need the information at a later date and it can be tedious trying to remember what you did seven months ago.
With the check you will probably receive an award letter that outlines when reports are due, how the funds can be expended and other important information. Review this letter immediately and store in a prominent place in case you need to refer back to it.
There should be an internal process in place to book and track the funds. This process needs to have the capability to differentiate grant funds from individual gifts or endowments. Often times funders will require you to place the check in its own separate account so that interest can be calculated and expenses made specifically for the program or project that they funded. Make sure your bank can do this for you.
After six months or a year, funders normally require an accounting of how you spent their gift in the form of a progress or final report. Since budgets are projections and necessitate educated guesses, sometimes the funds need to be expended in a different way than originally proposed. Some organizations will allow for a certain percentage of the total amount to be moved between line items. For example, lets say the funder gave $40,000 for salary, $2,500 for equipment, $2,500 for consulting and $5,000 for supplies for program X. The director of the program leaves the organization after six months. After two months without replacing the program director you have additional funds available in the salary line, while you have depleted the funds in the consultant line because you have had to rely more heavily on the consultant to meet the constituent needs. Let's say the funder allows you to move 10% of the total grant ($50,000), you may be able to move $5,000 from the salary line to the consultants line to defray the additional cost. Remember that unless the project or program completely stopped when the program director left, someone was doing the work. If another staff member took on the responsibilities of the program, he or she should be compensated with a portion of the grant funds. When in doubt contact the funder to find out what they will allow as far as line item changes.
This brings up a very important point-contact the funder throughout the course of the grant on a regular basis, especially when challenges arise. Invite the program officer to the event they are sponsoring. Send that press release to the funder even if it is not directly tied to the program they are funding. Send your quarterly newsletter, and annual report. You want to use every opportunity to market your entire organization, not just the program they are funding. Making them aware of other programs or projects that your organization is involved in may boost potential interest in those programs from the funder in the future. They may not have time to read the press release or decline your invitation, but contact has been made and that is important. It shows them that you care about their support. Of course, don't harass the funder by sending weekly updates, but don't wait until the final report is due to let them know about the progress that has been made.
A colleague recently wrote an excellent article called Stewardship: What Happens after the Grant is Won that nicely details the relational aspects between granting and recipient organizations.
Now you have to actually do what you said you were going to do in the proposal. Hopefully you set realistic goals, objectives and activities. You need to be able to track those as well as the financial expenditures. The most effective way to do this is to utilize some type of software. For the financial component you may be able to use your organization's current financial software such as QuickBooks, or Quicken. Whatever you have be sure to track each and every penny of the granting agencies funds. Creating a simple excel spreadsheet might be all you need to use to track activities. Use software that will give you the best ability to track your progress. You will need the information at a later date and it can be tedious trying to remember what you did seven months ago.
With the check you will probably receive an award letter that outlines when reports are due, how the funds can be expended and other important information. Review this letter immediately and store in a prominent place in case you need to refer back to it.
There should be an internal process in place to book and track the funds. This process needs to have the capability to differentiate grant funds from individual gifts or endowments. Often times funders will require you to place the check in its own separate account so that interest can be calculated and expenses made specifically for the program or project that they funded. Make sure your bank can do this for you.
After six months or a year, funders normally require an accounting of how you spent their gift in the form of a progress or final report. Since budgets are projections and necessitate educated guesses, sometimes the funds need to be expended in a different way than originally proposed. Some organizations will allow for a certain percentage of the total amount to be moved between line items. For example, lets say the funder gave $40,000 for salary, $2,500 for equipment, $2,500 for consulting and $5,000 for supplies for program X. The director of the program leaves the organization after six months. After two months without replacing the program director you have additional funds available in the salary line, while you have depleted the funds in the consultant line because you have had to rely more heavily on the consultant to meet the constituent needs. Let's say the funder allows you to move 10% of the total grant ($50,000), you may be able to move $5,000 from the salary line to the consultants line to defray the additional cost. Remember that unless the project or program completely stopped when the program director left, someone was doing the work. If another staff member took on the responsibilities of the program, he or she should be compensated with a portion of the grant funds. When in doubt contact the funder to find out what they will allow as far as line item changes.
This brings up a very important point-contact the funder throughout the course of the grant on a regular basis, especially when challenges arise. Invite the program officer to the event they are sponsoring. Send that press release to the funder even if it is not directly tied to the program they are funding. Send your quarterly newsletter, and annual report. You want to use every opportunity to market your entire organization, not just the program they are funding. Making them aware of other programs or projects that your organization is involved in may boost potential interest in those programs from the funder in the future. They may not have time to read the press release or decline your invitation, but contact has been made and that is important. It shows them that you care about their support. Of course, don't harass the funder by sending weekly updates, but don't wait until the final report is due to let them know about the progress that has been made.
A colleague recently wrote an excellent article called Stewardship: What Happens after the Grant is Won that nicely details the relational aspects between granting and recipient organizations.
Wednesday, January 04, 2006
Grant checklist for the new year
I hope that everyone had a wonderful holiday season. Mine was refreshing and relaxing, but now it is time to get back in to the world of grants.
I enjoy setting goals for myself, family and business at the beginning of the year. It helps me to stay focused and I am able to gain a sense of accomplishment when I am able to complete the activities and objectives that correspond with each goal. Grantwriters and other organizational planners can and should create a plan during the year to keep their organization's mission at the center of what they do. The steps to this planning process could include:
1. Work with your organization's key stakeholders to determine organizational priorities for the year. Identify the needs of the people being served by the organization. This will vary from year to year depending on both internal and external circumstances.
2. If a new program is being introduced, the key stakeholders develop a plan and formalize it in the form of a concept paper. If this is an ongoing program, the plan needs to be updated to reflect changes over the past year and anticipated changes over the next year. The concept paper could include the following details:
A. An overview of how the project serves the needs of the constituents
B. Goals, objectives, activities and tasks
C. Staff and equipment needed
D. A three-year preliminary budget (For new programs)
E. Outline of evaluation methods and/or assessment tools to measure outcomes
F. Post grant sustainability plan.
3. With the plan in hand, thoroughly research and identify potential funders. How do you know if granting agencies will fund the program? Know your funders. Start with the city or region that your organization is headquartered. Look at the areas major corporations, nearest community foundation, philanthropic families, and foundations. Many tools are available to research prospects on the internet. A good place to start is the Foundation Center. Check your nearest University, they may have the Foundation Center collection available for your use. There are many other resources available. Do a Google search to find one that meets your specific needs. Research as much as possible to determine if your program fits into their focused area of giving. If the funder is a foundation (Not a corporate giving program) look for their IRS Form 990 on Guidestar, which will give a wealth of information such as their total assets, previous grant amounts and sometimes provide guidelines to submitting a grant.
4. Don't try to fully fund a program with only grant funding. This is dangerous. Diversify your revenue streams with other types of funding such as an annual appeal, special events, individual donations, in kind gifts, and endowments. Generally speaking, only one in three grant proposals are funded. Be prepared to approach more than one potential funder.
5. Begin building relationships with the funder(s) whenever possible. Some granting agencies appreciate face to face visits, others prefer telephone calls or email. A colleague recently mentioned that more and more foundation staff prefer to correspond via email or letter as it gives them the ability to respond to inquiries as their schedule allows. Some organizations do not want to be contacted prior to submitting a Letter of Inquiry or full grant proposal. Follow their guidelines to the T! No use getting off to a bad start with someone you want to help meet your organizational goals.
6. Your program plan can be used to create a grant proposal based on the funder's specific guidelines. Some funders want a two page letter of inquiry, others want a ten page detailed full proposal. Again follow their specific guidelines. Having the program plan pre-written will be extremely helpful when submitting government grant applications. Typically Federal Government agencies only allow a one to two month turnaround time between when their Request for Proposals(RFP') are released and the grant application is due. These government applications can be extremely arduous and time consuming. Without a well though out plan the chances of being awarded a large government grant is very unlikely.
7. Work through the editing process and when possible include the organization's key stakeholders. Again follow those grant guidelines, don't forget the attachments such as your IRS tax-exempt letter and drop it in the mail (or email it if they prefer).
Next time I will discuss what you should do when you get the grant!
I enjoy setting goals for myself, family and business at the beginning of the year. It helps me to stay focused and I am able to gain a sense of accomplishment when I am able to complete the activities and objectives that correspond with each goal. Grantwriters and other organizational planners can and should create a plan during the year to keep their organization's mission at the center of what they do. The steps to this planning process could include:
1. Work with your organization's key stakeholders to determine organizational priorities for the year. Identify the needs of the people being served by the organization. This will vary from year to year depending on both internal and external circumstances.
2. If a new program is being introduced, the key stakeholders develop a plan and formalize it in the form of a concept paper. If this is an ongoing program, the plan needs to be updated to reflect changes over the past year and anticipated changes over the next year. The concept paper could include the following details:
A. An overview of how the project serves the needs of the constituents
B. Goals, objectives, activities and tasks
C. Staff and equipment needed
D. A three-year preliminary budget (For new programs)
E. Outline of evaluation methods and/or assessment tools to measure outcomes
F. Post grant sustainability plan.
3. With the plan in hand, thoroughly research and identify potential funders. How do you know if granting agencies will fund the program? Know your funders. Start with the city or region that your organization is headquartered. Look at the areas major corporations, nearest community foundation, philanthropic families, and foundations. Many tools are available to research prospects on the internet. A good place to start is the Foundation Center. Check your nearest University, they may have the Foundation Center collection available for your use. There are many other resources available. Do a Google search to find one that meets your specific needs. Research as much as possible to determine if your program fits into their focused area of giving. If the funder is a foundation (Not a corporate giving program) look for their IRS Form 990 on Guidestar, which will give a wealth of information such as their total assets, previous grant amounts and sometimes provide guidelines to submitting a grant.
4. Don't try to fully fund a program with only grant funding. This is dangerous. Diversify your revenue streams with other types of funding such as an annual appeal, special events, individual donations, in kind gifts, and endowments. Generally speaking, only one in three grant proposals are funded. Be prepared to approach more than one potential funder.
5. Begin building relationships with the funder(s) whenever possible. Some granting agencies appreciate face to face visits, others prefer telephone calls or email. A colleague recently mentioned that more and more foundation staff prefer to correspond via email or letter as it gives them the ability to respond to inquiries as their schedule allows. Some organizations do not want to be contacted prior to submitting a Letter of Inquiry or full grant proposal. Follow their guidelines to the T! No use getting off to a bad start with someone you want to help meet your organizational goals.
6. Your program plan can be used to create a grant proposal based on the funder's specific guidelines. Some funders want a two page letter of inquiry, others want a ten page detailed full proposal. Again follow their specific guidelines. Having the program plan pre-written will be extremely helpful when submitting government grant applications. Typically Federal Government agencies only allow a one to two month turnaround time between when their Request for Proposals(RFP') are released and the grant application is due. These government applications can be extremely arduous and time consuming. Without a well though out plan the chances of being awarded a large government grant is very unlikely.
7. Work through the editing process and when possible include the organization's key stakeholders. Again follow those grant guidelines, don't forget the attachments such as your IRS tax-exempt letter and drop it in the mail (or email it if they prefer).
Next time I will discuss what you should do when you get the grant!
Monday, December 12, 2005
The year of...
The end of the year always inspires me to look back over the past twelve months and reflect upon my life and noteworthy events. When you look back over this past year what do you think about most? I can't help but think that 2005 will be remembered as the year of disasters. We saw unprecedented disasters such as the tsunami in Asia (Ok I know the tsunami happened in 2004, but it really impacted the beginning of 2005), Hurricanes in Florida and the Gulf Coast, and earthquakes that stopped time for too many.
For as many pictures shown in the media that made me hold my breath and want to turn away for a moment, just as many great stories of people responding to help meet the needs of others were presented. People and organizations around the world have given billions of dollars to charitable organizations, they have given their time, possessions, prayers, and more to help alleviate suffering that the victims of disasters have somehow endured. These gifts do make a difference, nonprofits organizations and businesses as well as individuals have helped to some degree to relieve the burden of those who have suffered.
Through the devastation that flowed through the past year I take heart in the fact that the response was overwhelming and unprecedented. Through further reflection, I will decide whether 2005 will be remembered most for the suffering endured by too many or the generosity to help alleviate the suffering given by many more.
What will you remember most about 2005?
For as many pictures shown in the media that made me hold my breath and want to turn away for a moment, just as many great stories of people responding to help meet the needs of others were presented. People and organizations around the world have given billions of dollars to charitable organizations, they have given their time, possessions, prayers, and more to help alleviate suffering that the victims of disasters have somehow endured. These gifts do make a difference, nonprofits organizations and businesses as well as individuals have helped to some degree to relieve the burden of those who have suffered.
Through the devastation that flowed through the past year I take heart in the fact that the response was overwhelming and unprecedented. Through further reflection, I will decide whether 2005 will be remembered most for the suffering endured by too many or the generosity to help alleviate the suffering given by many more.
What will you remember most about 2005?
Tuesday, November 15, 2005
Speak to the need
Philanthropy is an interesting phenomenon. It amazes me how generous people can be. In 2004 Americans gave over $240 Billion in philanthropic gifts.
I recently watched a popular news show that interviewed people who are literally giving their inheritance away. One person that was interviewed lived a very humble lifestyle by American standards, while giving away a good portion of his yearly income to worthwhile charities. Another young woman is really giving her inheritance away for the greater good.
People will donate most anything-money, their time, blood, their vehicle, jewelry or anything else that is perceived as useful or of value to another person or organization. Why do people donate? What is the motivation behind the gift? I am sure there are teams of sociologists at some institution of higher thinking trying to identify the motivators of giving. The funny thing about human nature is that what motivates one person may not motivate another person.
My very simplistic belief is that people give when they see a need and perceive value in giving to help alleviate that need. This is evident with the recent outpouring of donations for the Katrina/Rita hurricane relief efforts, and Asian Tsunami disaster relief. People could tune in to CNN or Fox News and immediately see the devastation, and decide how they would respond to the need.
According to the American Association of Fundraising Counsel "About 70 to 80 percent of Americans contribute annually to at least one charity. Being a 'philanthropist' does not merely mean making huge gifts; it means giving to any cause that you value." The majority of Americans see a need and respond through charitable giving. The charity of choice varies with each individuals belief system or desire to help a particular cause.
Does this need based giving also hold true for foundations and corporations? I believe it does. When presenting programs to corporate or foundation officers, speak to the need. Help them see the need clearly, and then demonstrate how their help i.e. charitable funds will work to relieve the need. Use statistical data and real life human stories to demonstrate the need. Make it clear and concise and you will have the advantage that motivates the majority of individual Americans to give.
I recently watched a popular news show that interviewed people who are literally giving their inheritance away. One person that was interviewed lived a very humble lifestyle by American standards, while giving away a good portion of his yearly income to worthwhile charities. Another young woman is really giving her inheritance away for the greater good.
People will donate most anything-money, their time, blood, their vehicle, jewelry or anything else that is perceived as useful or of value to another person or organization. Why do people donate? What is the motivation behind the gift? I am sure there are teams of sociologists at some institution of higher thinking trying to identify the motivators of giving. The funny thing about human nature is that what motivates one person may not motivate another person.
My very simplistic belief is that people give when they see a need and perceive value in giving to help alleviate that need. This is evident with the recent outpouring of donations for the Katrina/Rita hurricane relief efforts, and Asian Tsunami disaster relief. People could tune in to CNN or Fox News and immediately see the devastation, and decide how they would respond to the need.
According to the American Association of Fundraising Counsel "About 70 to 80 percent of Americans contribute annually to at least one charity. Being a 'philanthropist' does not merely mean making huge gifts; it means giving to any cause that you value." The majority of Americans see a need and respond through charitable giving. The charity of choice varies with each individuals belief system or desire to help a particular cause.
Does this need based giving also hold true for foundations and corporations? I believe it does. When presenting programs to corporate or foundation officers, speak to the need. Help them see the need clearly, and then demonstrate how their help i.e. charitable funds will work to relieve the need. Use statistical data and real life human stories to demonstrate the need. Make it clear and concise and you will have the advantage that motivates the majority of individual Americans to give.
Subscribe to:
Posts (Atom)
