When a Crisis Creates Special Funding

These past few weeks, many foundations are quickly offering grant money to help with the impact of the coronavirus. This is good news since the Federal money will not be coming for weeks or months.

I’ve written a few grants already and read over a few others. The foundations do not require much information. Some grant requests are by invite only and a few foundations are sending money to nonprofits they know are directly impacted without needing a grant request. I expect more foundations will offer money to cover coronavirus related expenses.

There are good and bad things about quick money during any crisis.

The good news is that foundations want to help and they make money available easily long before the federal government can respond. The bad news is that a nonprofit could find it hard to justify receiving money in a crisis, such as the coronavirus, when their programs are not impacted.

For many nonprofits, the impact is a loss of income such as in donations.

Nonprofits should resist the urge to justify receiving coronavirus money unless their programs were impacted. Chasing after crisis money, like coronavirus funding, can force a nonprofit to become what they were not meant to be. When the crisis is over, the nonprofit can be labeled something else, future money cannot be justified, relationships get broken, and the path forward could be lost.

More importantly, the reputation of the nonprofit could be hurt if they received money outside of their mission without a logical reason.

Yes, some nonprofits can readjust their resources to accommodate a specific crisis and they should receive crisis money for doing so. In the end, I think the responsibility is more on the nonprofit than the foundation to rationalize accepting crisis money or not.

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