grant writing

RISK

When a foundation funds a grant request, they are making more than an investment in the nonprofit’s mission. The foundation is also investing their reputation in the success of the nonprofit.

When a nonprofit receives grant money, they receive more than money. They make a commitment to the foundation that the money would achieve success.

Investment and commitment come with risk that success is achievable. While reputations are at risk (including the money), it is the nonprofit who stands to lose the most if some measure of success is not found.

I think most foundations know about risk. It is usually a determining factor when awarding grants. However, I discovered some nonprofits do not understand that their future investments are at risk when receiving a grant.

If a nonprofit achieves success, the foundation will likely continue with future funding. Also, other donors are likely to invest in the nonprofit’s mission. How is success determined?

People evaluate success, not facts and data. The nonprofit staff should ask themselves if the mission caused positive change in people’s lives. I hope it did.

In a follow up post, I will write about measuring success. Most of the time, success is hard to determine and it is never absolute.

Yes, I missed a blog post last week (for December 9). My problem is that I write a blog post on the weekend with a Monday posting. I have ideas to use, but nothing prepared if life envelopes my time. This is what happened last week with a trip to a wedding, painters in the house, and volunteer stuff. I should have several posts ready ahead of time, but I don’t. You think I would learn.

One of the Best Relationships

The best relationships between a foundation and nonprofit are long lasting. This involves years of sharing in the success and accomplishment of the nonprofit’s mission with the foundation’s goals. Many times, this is a challenge to achieve.

Foundation members want to tell their stakeholders how they helped the nonprofit. Staff on the nonprofit want to tell board members how they got money. Both organizations may have a shared belief in the mission, but the goal becomes to promote themselves.

While foundations and nonprofits should use the grant process to self-promote, the mission can become a lower priority. Egos get involved.

People want credit for their efforts. They want others to know they accomplished something positive. While self-promotion provides motivation, the mission should not be lost in the bragging.

Of course, there can be success with only egos. I experienced this while working in the Pentagon. This type of self-relationship assumes a strong level of cruelty and coldness. There can be some level of limited success, yet it is never long lasting.

When egos and self-promotion become too important, the relationship becomes strained and can end. It is a benefit for two organizations to know and understand each other with the intent that both will be around for many years.

A good, long lasting relationship is the most important asset of any organization.

How I learned to write grants

When I worked for the U.S. Defense Department, each fall I helped build the defense budget for the next fiscal year. Me and thousands of others. The process we used was identical to writing and submitting grants.

It began with military organizations (like a nonprofit) identifying their unfunded needs. I summarized the unfundeds in issue papers, which had almost the same format as a grant request. I submitted the issue papers to the comptroller organization who considered funding the request (like a foundation would).

After many years, I learned to marry the unfunded needs with current politics and projected Defense Department requirements. In the issue papers, I put in key words the comptroller organization and politicians were looking for and addressed the new priorities of the administration. I altered the unfunded needs only enough to be acceptable to the comptroller organization. Yet, not enough to change the submitting organization’s ability to complete the mission. I use this process today.

The most important thing I learned in the Defense Department, which I apply to writing grants, is that the process is not about numbers and words. It is all about people and relationships. Whenever there is money involved, there are a lot of competition. The perfect issue paper or grant request may not be enough.

A nonprofit should communicate with a foundation with more than some pieces of paper. Like it was for me in the Defense Department, many times personal contact can determine success or not.

Let me know how you, as a grant writer, started your career or livelihood writing grants.

Too Much Money

Some nonprofits rely on donations and the occasional fund-raising event to cover their expenses. They maintain the same level of funding each year that is enough to meet their needs. Then, either the need changes or a board or a staff member decides they want additional funding.

I am cautious about submitting a grant for a nonprofit who never submitted one before (or it has been a long time) and their funding has been steady for years. Additional money is not always a good thing. Once they receive the money, the nonprofit must spend it and the process to do so (tracking, reporting, etc.) can be overwhelming.

Increasing a nonprofit’s funding above their normal operating budget should be carefully planned. When submitting a grant request, I usually do not let the funding increase the nonprofit’s budget by more than a third. Past this amount, the expenditure of funding becomes increasingly difficult to manage for a nonprofit. Sometimes more people need to be hired. (A substantial increase is also more difficult to justify in a grant request.)

Besides managing the money, excess funding can lead to personnel conflict among board members, staff, and volunteers. However, a nonprofit can benefit from submitting a grant. The submission process forces them to get organized.

Any major funding changes to an organization, nonprofit or a business, can lead to disaster if not planned carefully. A grant writer should consider the impact additional funding will have on the nonprofit and advise the nonprofit if you have concerns. Sometimes it is better to not increase funding and look at other resources, such as in-kind donations, to satisfy additional needs.