No Such Thing as a Free Lunch
The Poor Man’s Guide to Getting
Government Grants
Seems everywhere you turn someone is advertising their book on how to get free government money. Kevin Trudeau’s latest tome offers it and for years, Matthew Lesko has sold a number of related books.
Trudeau’s reputation is somewhat shaky and he’s run into problems with Canadian and US authorities. I have reviewed Trudeau's Credit Secrets They Don’t Want You to Know About and I’ll give that book a lot of credit (pun intended). His resources and how-to information is accurate.
Lesko’s work is also good and he’s a funny, hard-working guy (I interviewed him years ago for a piece I was doing on marketing for a syndicated column I wrote).
Although each author alludes to some of the hurdles one encounters when applying for a government grant, much of the complexity, and likelihood of getting a grant, is rather glossed over.
For the most part, getting a grant for an individual is tough.
However, life is like the English language in that there is an exception to every rule. For example, if you’re a low-income senior, there are many grants available, primarily distributed at the state level (funds for fixing up your home, helping to pay your heating costs and so forth). Most senior citizen centers and state reps have that information available.
Another exception lies in the area of women. Many, many outright grants are available in such areas as training and education. Currently, such fields as nursing and veterinarian medicine offer many grant programs, as there is a shortage of both.
Most Grant Seminars are Hype
Why pay $100s of dollars to attend a seminar on obtaining grants when you can take online programs free of charge? For example, use this link to find both paid and free online courses for getting grants.
http://foundationcenter.org/getstarted/training/online/
The Foundation Center has been around a long time and offers the most resources for obtaining both government and private foundation grants. The Foundation does charge for access to its grant makers, but it’s well worth the price as it’s now available online and one successful grant will more than justify itself. Their directory contains everything you need to know about applying…contacts, stipulations, deadlines, format and so on.
A number of years ago I attended their training program and it is amazing just how many foundations there are. That year alone I obtained four grants for several non-profit groups I volunteered for – totaling nearly $120,000. This center also offers several common grant applications, something you can download to use as practice for securing funding.
Another solid how-to resource can be found at:
http://stepbystepfundraising.com/20-free-grant-writing-resources-non-profits/
Avoid such grant websites which promise the world, but charge outrageous sums for their directory. There is one site which offers a “free” disk for $1.95 postage; but when you read the fine print, you’ll discover they charge $50 a month billed to your credit card automatically!
With all this said, there are grants available to individuals. However, most are distributed through non-profit groups and often, you will have to affiliate yourself with such a group in order to receive the funding.
The Best Government Grant Resource
http://www.grants.gov/ -- your best all around source.
Examples of very recent government grants currently available.
The following grant opportunity postings were made on the Grants.gov Find Opportunities service:
NEA
National Endowment for the Arts
NEA American Masterpieces: Visual Arts Touring, FY 2010
Grant
http://www07.grants.gov/search/search.do?&mode=VIEW&flag2006=false&oppId=48228
NEA
National Endowment for the Arts
NEA American Masterpieces: Presenting, FY 2010
Grant
http://www07.grants.gov/search/search.do?&mode=VIEW&flag2006=false&oppId=48229
NEA
National Endowment for the Arts
NEA American Masterpieces: Chamber Music, FY 2010
Grant
http://www07.grants.gov/search/search.do?&mode=VIEW&flag2006=false&oppId=48230
Catalog of Federal Domestic Assistance-the grand daddy of government programs
I’ve included their links to their FAQs and their guide to writing a grant proposal. They also make direct government loans.
https://www.cfda.gov/index?cck=1&au=&ck=
https://www.cfda.gov/downloads/CFDA_writing.pdf
https://www.cfda.gov/downloads/CFDA_FAQs.pdf
Buying their catalog isn’t cheap – about $90 as of this writing. Your local library should have one available in its reference section.
Also, updated information on federal programs and grant programs appears in the Federal Register, also available at your library or online at:
www.access.gpo.gov/nara/
Sample Outline of the Process
Introduction to the Process
Grant writing and fund raising are often combined into one job description, though they are two very different functions. Fund raising is a public, people intense function, involving public relations, networking, and personal relationships. Grant writing is a process involving the following steps:
1. Define the project
2. Research and identify available funding sources- government, private foundations, corporations, and individuals
3. Write the proposal
4. Perform a final check of the proposal packet before submission
Skills involved in grant writing include good organizational ability, research skills, technical and persuasive writing skills, and the ability to follow directions.
Defining Your Project: What is the Problem or Goal?
You’ve just received information on a new grant program being offered to agencies or individuals just like you. You read down through the initial information or request for proposals and you think “I could do this”. So you scroll further down on the screen, looking for contact information for forms and additional information, and you check the deadline for proposals. You’re all set to move on this wonderful
Before even considering responding to an RFP, you need to take several steps and answer some basic questions, both about the project and your organization.
The Project
Identify the problem.
As we all know, there are more social problems, more needs in our community and the world-at-large, than can possibly be addressed by agencies and funding sources at any one time.
Step 1
Brainstorm
Think about the social problems that are currently affecting you, your clients, or people you know. List them all.
Step 2
Review your list.
Of the social problems that appear on your list, are there any that your agency is addressing through current programs?
Of the items on your list, are there any that are closely related to your agency’s mission?
Of the items on your list, are there any that are within your agency’s area of expertise?
Step 3
Eliminate
Eliminate any problem that your agency does not have the expertise to address or that does not fall within your agency’s mission.
Step 4
Expand
Look at each item that remains on your list. Can any of them be broken down into smaller problems? For example, the issue of homelessness could be broken down into categories like: homeless women with children, the homeless mentally ill, the working homeless, young adults without a home.
Defining the Project: Addressing a Need
Step 6
Causation
Once you have isolated social problems that are specific enough to be addressed by your agency, and for which your agency has the necessary expertise, you need to determine the likely causes for the problem.
Again, taking a specific example of young adults without a home, causes might be:
Unemployment- Lack of job skills, lack of education
Mental illness
Breakdown on the family unit
Substance abuse
Determine which of these causative factors could be addressed by your agency. For example, perhaps your agency provides training and job counseling to individuals who have recently been laid off due to loss of jobs in the manufacturing sector. Your agency already has a program in place to address unemployment as a causative factor of homelessness among the young adult population. Therefore, this would be a social problem and causative factor that your agency would be qualified to address.
Step 7
How will the project address the problem?
It is time to think specifics of how you will reach the young people who need assistance, how you will provide them with the training, counseling, and job placement assistance that they will need.
Step 8
Has anyone else ever addressed the same problem?
How did they address the problem?
Were they successful?
Is their program still operational?
If their program failed, why will yours succeed?
Step 9
What results are you seeking?
You need to be specific. In our example, will there be 100 participants of the training program who will no longer be homeless once they have completed training, counseling, and job placement?
Step 10
How will you measure your success?
Will you measure success by the number of individuals who complete the program, or the number who obtain employment, or will you only consider your program a success if the participant is able to obtain and maintain housing once he or she has completed the program?
Almost all funding sources require quarterly, semi-annual, or annual reports of your progress. You may need to report the number of individuals who entered your program, the number who completed, the number who secured employment, and the number who secured housing at the end of the quarter, the end of the year, six-months after completion of the program, or one year after completion of the program.
Step 11
How will you maintain the program once the funding has ended?
Do you have a plan for maintaining this program once the funding source no longer provides dollars for operation? Is there another funding source available?
Why Your Organization?
Who are you?
Are you a nonprofit entity?
How long have you been in existence?
What makes you qualified to respond to this RFP? (What is your expertise?) Be specific. Funding sources will want to know why you and your project are more likely to successfully adress a need than someone else's project.
What is your organization’s mission? Is your mission related to the mission of the funding source?
What accomplishments can you document? Do you have evidence that other programs you have administered have made a difference? Do you have satisfied consumers who might be willing to advocate for your organization?
What current programs/services are you providing? Are these programs operating within budget? Are these programs successful in the eyes of the community and the individuals being served?
What population are you currently serving? Do you specialize in serving children? families? individuals with disabilities? Does the proposed project target this same group? If not, why are you intending to serve a different population?
What other funds are available to you to operate this program? How much of your own organization's dollars will be spent on this new project? Will other agencies and organizations be providing funding or services to help sustain the program and make it a success?
Are you collaborating with any individuals or agencies? If there is a specific skill or expertise that your organization or current staff are lacking, have you made provisions for this?
Searching for Funding
Every year, countless government agencies, private foundations, corporations, and individuals provide funding for charitable purposes. Sometimes these dollars fund research, sometimes they provide equipment and other permanent fixtures, and sometimes they provide funds for operation.
Once you have completed Lesson 1 and defined your project, you need to begin the research process
Federal Funding
If you are planning to pursue funding through the federal government, your primary sources of information will be the Catalog of Federal Domestic Assistance and the Federal Register. Both of these guides are available through public and university libraries, or you can order your own copies of each. In addition, both of these guides are available on the internet, through links available on the NonProfit Guides website (www.npguides.org/guide/links.htm).
Once you have searched through the CFDA and identified grant programs that might provide funding for your specific project, target at least three of these potential funding sources. Contact the funding source for information on who is eligible to apply and when the Request for Proposals (RFP) will be published in the Federal Register.
Instructions for creating a form to assist in managing this information will be provided as part of the assignment that accompanies this lesson.
The Federal Register is a record of all activity happening in the federal government on any given day—executive orders, agency rules and regulations, and any other documents that are required to be published (including RFPs). This is where you will find specific details on what you need to do to apply and be considered for funding.
Searching for Funding
Private Foundations
A private foundation is a nongovernmental, nonprofit organization that has principal, usually from an endowment from an individual or from another foundation, that has its own board of directors or trustees, and primarily makes grants to other nonprofit organizations for charitable, educational, religious, or other purposes that are intended to serve the community.
If you are intending to pursue funding through private foundations, The Foundation Center should be your first stop (www.fdncenter.com). The Foundation Center publishes directories of all foundation and grant programs and, for a small fee, individuals or organizations are given access to these extensive databases.
Search the directories and assemble information on at least six foundations that may be willing to fund programs similar to the project you are proposing. Once you have identified these potential funding sources, it is time to contact each for specific information, i.e., what awards have they made in the past? To whom? How much? What is their area of special interest/mission? What are the guidelines for submission? Some of this information may be obtained from the foundation’s annual report, but others may appear in specialized publications of the foundation.
The best way to obtain this information is to submit a letter to the foundation. A sample letter will be provided in the first assignment of this lesson.
Once this information has been received, you will need to review it carefully to determine whether or not this foundation would likely fund your project. Consider whether your organization and the foundation have related missions or special areas of interest. Also look carefully at the projects that have been funded in the past. It would not be wise to invest too much time on a foundation that is unlikely to approve funding of your project.
Searching for Funding
Recording all Contacts
Create a form that will allow you to track information from telephone contacts with potential funding sources. This form should include the following information:
1) Name of funding source
2) Address
3) Telephone and email address
4) Name of contact person
5) Dates of contact
6) Name of the person spoken to
7) Content of the conversation
Note: This information could also be tracked on a computer spreadsheet or database program.
Requesting More Information
Part 1: Go online to The Foundation Center website (www.fdncenter.com). Explore options for membership that might meet your current needs- individuals $9.95 and organizations $19.95 for 30 days (These rates appear on the website as of the date of this writing and are subject to change.)
If you are seeking funding for a specific project and are intending to write a grant within the next thirty days, purchasing a membership is recommended. However, if you taking this class to learn the basics of grant writing, review the website and make note of the information that is available there. Also, before purchasing a membership, visit the NonProfit Guide website, which provides links that may provide you with the same information—free of charge.
Part 2: Draft a form letter that could be mailed to any foundation, requesting information on the foundation, the programs it has funded, and the guidelines for submitting proposals.
A sample letter follows:
XYZ Foundation
123 ABC Street
Maxx, Wyoming
Dear Ladies and Gentlemen:
I am hereby requesting the following information:
Your foundation’s annual report
A list of programs funded in the past
Guidelines for submission of proposals
A sample successful grant application
Sincerely,
Writing a Proposal
Once you have defined your project and have located potential funding sources, it is time to write your proposal. Information compiled in Lesson 1 will be used to complete the preliminary proposal that many foundations require (which is a 2-3 page letter containing the basic information about your project) , as well as to write the final proposal (which includes the application, the proposal, and all attachments).
The Preliminary Proposal
Many foundations and other funding sources require submission of a preliminary proposal prior to submission of a full proposal. This preliminary proposal is generally 2-3 pages in length and provides an introduction to your organization, its mission, a description of the need or problem to be addressed, a description of your project, a list of other funding sources for the project, reason and amount of funding request, and finally a request for an application. This is your opportunity to persuade the foundation that your project is not only worthwhile, but has achievable results and definitive measures. You must hook the foundation, give them a reason to fund your project versus a project proposal submitted by another organization. Also, keep in mind that it is imperative to be neat, professional, and organized in your presentation. Once the foundation directors have reviewed this preliminary proposal, they will decide whether your project is in line with their mission, would benefit from the amount of funds they have available, and would benefit the segment of the community they are interested in serving.
Writing a Proposal
Starting the Writing Process
Write your preliminary proposal for your project. If you have completed Lesson 1, this should be a simple matter of organizing the information into order indicated by the description above or in the order requested by the funding source.
The Full Proposal: The Narratives
If your preliminary proposal is of interest to them, the foundation will request a full proposal and will provide you with timelines and additional requirements you must meet. The full proposal will be much more comprehensive, including a cover sheet (which is a proposal summary), a needs assessment, specific project goals and objectives, methodology, evaluation, budget/funding requirements, your qualifications to carry out the project, and a conclusion. The conclusion may include information on how the project will continue in the future i.e., funding for future operations.
The needs assessment will include the purpose, goals, measurable objectives and reasons why the proposal should be supported.
The methodology will include the methods and processes of accomplishing the goals and objectives, description of the scope of work and the expected outcomes, the specific activities, and the personnel and their functions.
The method of evaluation includes a description of how the project’s outcomes and results are to be measured. Some funding sources require technical measurements. Others encourage surveys of participants.
Qualifications include credential of the organization and its staff that explains the ability to successfully undertake the proposed effort.
The Budget
Budget projections include how the project will be managed and implemented. The funding sources will want to know whether the project can be accomplished within the budget. Are projected costs reasonable? Is the budget consistent with the activities the organization intends to conduct. Is the proposal and the accompanying budget sufficient in detail and explanation? Are there any additional funding sources, matching or in-kind revenue?
Revenue:
Fee for Service
Donations
Grant Dollars
Total Revenue
Direct Expenses
Salaries
Benefits
Training
Insurance
Occupancy (Rent, Utilities)
Advertising
Travel
Office supplies
Program supplies
Indirect Expenses
Percent of General & Administrative Expenses (may be based on % of total expenses or full-time equivalents - staffing)
Total Expenses
Net income (loss)
It is very important to follow directions when applying for funding, either through the federal government or when applying to private foundations. Therefore, it is recommended that you follow this checklist to verify that you have met all requirements.
Reviewing Your Proposal
Before Submission
The cover letter is typed on the organization’s letterhead and signed by president of the board of directors or the executive director.
The standard grant application has been completed. There are no questions left unanswered.
Have you included an abstract that provides all relevant details regarding your project and your organization?
Do not send the same generic proposal to multiple funding sources.
Review the submissions guidelines, comparing your proposed submission to the requirements established by the funding source.
Use declarative verbs—show action: we will serve x clients, we will feed, house x clients, we will conduct training in x schools.
Submit the correct number of copies with original authorized signatures.
Assemble the following documentation that may be required by the funding source: 1) proof of nonprofit status, 2) organizational brochure, 3) annual report, 4) audited financial statements, 5) list of board of directors, 6) resumes of key personnel.
Your Narratives
Did you include enough information about your organization?
Did you include your organization's history, major accomplishments, current programs, and target population?
Did you not only include your statement of need, but also accompany it with data that demonstrates the existence of the need?
In your description of your project, did you include the purpose, the goals and objectives, measurement, and timeline for implementation?
Did you explain why your organization is qualified to carry out this particular project?
Do you already work with the target population?
Do you have professional staff who have the expertise required to perform the services?
Your Budget
Make sure there is a clear association between dollars you are requesting and activities included in the project. For example, the funding source may wonder why there is a $5,000 allocation for the executive director's salary in the project budget. If the executive director will be providing direct supervision of the project staff, or has some other direct link to your project, be sure to explain this expense. Otherwise, it appears that you are trying to cover agency "overhead" or "general and administrative expenses" with grant dollars.
Do not “pad” your budget with “miscellaneous” expenses. If there are non-specific items that need to be included in the budget, specify exactly what they are. Funding sources are often skeptical of "miscellaneous" expenses.
If the funding source requires matching funds, make sure that you have documented evidence of any commitment for these funds.
Make sure that your budget is adequate to cover the services that you intend to provide. Don’t underestimate expenses, just to make the project look more financially feasible. Your estimates of expenses should be a conservative, but accurate measure of the true cost of operating the program. Include all costs of the program: salary and benefit expenses, insurance, occupancy (either as a direct expense like rent, or as a percentage of occupancy costs, if your organization operates more than one program), utilities, telephone, depreciation, supplies, advertising, training, travel, as well as a percentage of the administrative cost of the organization as a whole.
After Submission
After Submission
Send a thank you note, even if your proposal is not funded.
Write a polite letter requesting comments if your project is not funded.
If funded, celebrate your victory, but remember the funding is temporary. So begin planning for the future.
If funded, report on time as required by the funding source. Most funding sources want quarterly or at least annual reports of the progress you are making with the project.
How are the dollars being spent? Provide documentation, including audited financial statements, if required by the funding source.
Has the project been successful? Provide information on the number of people served, results of any surveys, or data from any technical measurement tools on a regular basis, as required by the funding source.
Other Useful Resources
The Internet NonProfit Center – provides useful information about non-profits with many links and great library and other resources:
www.nonprofits.org
Council on Federations – another non-profit group of grantmaking foundations and corporations…good for those interested in starting a foundation or non-profit as well
www.cof.og
Lastly, other than your reference librarian, another good information resource about government programs is your state and/or national elected representative. Often, a staff member there can track down the information or agency you need to get the ball rolling.
Grants do not materialize overnight, they require patience and time and attention to detail for the various forms, deadlines, etc. one must meet and OBVIOUSLY, don’t apply to an organization for a grant that isn’t appropriate for what you’re seeking. This is where the foundation directories come in handy.
