Yay! Grants. We can apply and get a few bucks that will cover our expenses for the next quarter or year. This is a super way for organizations to get money. Free money is good.
The truth is, obtaining a grant is not really easy and the money is not really free. You actually need to spend many hours and months working to earn the grant. Locating a grant for your organization is similar to shopping for shoes. Some are too small. Others a too large and controlled. Some fit just right. And, just like shopping for shoes, shopping for a grant is time-consuming.
It is an involved process and it can take several months of applying and waiting for a response. It will take you months of researching to locate and select grants that match your organization’s mission and needs. You must be patient and keep trying.
The Good
The good thing about grants is that there are many granting groups. Several of these entities offer large sums to support your cause. Many organizations and foundations distribute funds year-around.
The good news is that the money is out there. You just need to know where to look, and how to complete the applications with the information the grantor is seeking.
A great starting point when looking for available grants is GrantWatch.com. It is free to search the expansive database but not all grantors will be available to the unsubscribed user. Be sure to explore the website while you are there, it is an outstanding resource for all the aspects of the grant funding process and you can decide if subscribing to the site will be useful to your organization.
Bigger is not always better. There is a tendency for charities to go after the big grantors -- international groups or government funders. Unfortunately, this is a high-competition area. You actually have a better chance of success if you start small and local. Local granting organizations can see the impact of their funds in the community and your competition to win the grant is much better. Afterall, sometimes the best gifts come in small packages.
After you earn a grant or two, it will be easier to apply for others because many applications ask for the same information. While you will want to personalize each grant to the foundation you are applying to, you will not have to reinvent the most important information on the application: what your organization stands for, what your mission is, and how you would use the grant money.
The Bad
OK, so there is nothing BAD about receiving funds for your organization. BUT, you cannot go blindly into seeking a grant. You need to take time and contemplate the down side of the proposition. Grants are a supplement to your usual funding activities and should never be considered as the only source for funding your project.
Relying on grant money to sustain your organization is the bad side of earning a grant because organizations often get so wrapped-up in running their programs that they forget to plan for the next year. Grant money has a short-term impact. That said, it is imperative you keep in mind that contributions and program income (sales, admissions, tuition, membership) are the main generators of funding. Also plan to re-apply for grants in advance so you are not scrambling to meet the deadlines.
The Ugly
Granting organizations often want to retain control over the use of the funds. The word “control” is paramount here.
As you prepare your grant applications, you will notice that many grantors stipulate the areas on which you will invest the money or what social cause you will use the money to support. For example, some foundations might specify that the funds go for programs for youth aged 10 to 15 years; for veterans of the Vietnam War; or for feeding the homeless.
Adhering to these particulars can cause your organization to wander from its original mission to meet these mandates. It is best for your organization to seek grants that support your mission -- rather than change your mission to meet stipulations of the granting group.
Shifting your intent is an ugly outcome of a grant. Think about why your organization exists and what it is doing for the greater good of the community. Seek grant opportunities that align with your cause.
Grants should be one tool in your arsenal of funding. Go forth and use all approaches to gathering money for your cause. Do not rely only on one option. Grants are part of your plan -- but don’t make it your only plan to fund your mission.
Start Ups and Grants
Without analyzing the ins-and-outs of grants, they may appear to be a good choice for a new nonprofit organization. However, grant-making organizations typically look for established organizations with experience in using gifted funds. Grantmakers prefer organizations with a track record of success and substantiated results to ensure that their gift is not wasted or squandered.
Of course, nonprofit grants do exist for new organizations -- but they are few. Your start-up organization would be better served if it did not hang its funding hopes on grants.
Beyond The Grant -- Raising Funds
Keep in mind, one grant will probably not keep you going. Grantors realize this, and their applications ask you how you are sustaining your work after the grant. Including on your grant application that you have other funding available adds to your organization’s credibility and lets it stand out from other applicants.
Ways to get money in the bank can take several forms. Consider your foundation of donors and supporters. Think about those interested in your cause and get them involved with your efforts.
Funding your mission is a project that should always be adapting and evolving with the times. As society changes, so should the your focus on how and where funds are coming from. So go out and get your grants but don’t stop there. Keep going. Tap into other sources of income as well. Good luck, may your well be deep and ever flowing.
If you have questions about grants and applications, just keep in touch with our blog. We have ideas to share and solutions to fundraising, management and organizational questions. When you have questions about any other not-for-profit industry topics, contact our not-for-profit team leader at trent@tbfosteraccounting.com.
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