It is challenging for many nonprofits to find the right grant opportunities. It can be tempting to go after every grant opportunity. However, being selective is important. Not every grant is going to be the best fit for your organization. Choosing the wrong grant opportunity can potentially waste organizational time and resources.

This past year, I have been diving into my career goals with a renewed focus, and the GrantSummit 2024 was a key step on that path. First, joining the Grants Professionals Association (GPA) opened new opportunities, which led me to pursue a position with Assel Grant Services (AGS). Then, with the support of the Grants Professional Foundation, I earned my grant professional certified (GPC) credential. Needless to say, when AGS offered me the opportunity to travel to Denver, I felt both excited and grateful for the chance to connect, learn, and grow alongside others in the grants field.

In working with nonprofit organizations, I have been a part of numerous conversations with organizational leadership who have seen grants as the solution to all their revenue shortfalls. Grants are part of the revenue mix for many nonprofit organizations, providing a source of funding for various projects. However, grant recipients need to have a clear understanding of what grants can and cannot pay for as they build this revenue into their budgets. Let us explore the possibilities and limitations of grant funding.

Funder relations can sometimes feel tricky to navigate. Is it okay to reach out? What’s an appropriate amount of time to wait? It’s important to remember that funders are people, too. Even though they hold the purse strings, you can approach them respectfully unless the opportunity prohibits them from talking individually with applicants. Let’s discuss timing, communication strategies, and what to do if you get ghosted.

Too often, there is confusion between grants and donations in nonprofit organizations. When it comes to nonprofit funding, these two terms are often used interchangeably. Additional confusion can be found when major individual donors begin making donations in amounts similar to what an organization can expect to receive as a grant from a foundation. Nonprofit professionals know that both funding streams mean revenue for their organization but may only have a vague understanding of the distinct characteristics and requirements of each. Understanding the key differences between the two helps nonprofit professionals make informed decisions on funding strategies.

Before I began working as a grant consultant, I did not understand all the details and intricacies of grant budgets, including the difference between restricted and unrestricted funds. I remember working with one nonprofit that was thrilled to receive a significant grant for program staff salaries, only to realize later that they could not move those funds elsewhere when a staff member unexpectedly left the position, and it took three months to find a replacement. They could not use any of that money for other programming or general operating expenses, which made the organization feel they had missed out on money on which they previously budgeted. This experience taught both me and the nonprofit the benefits and challenges of having restricted funding in their budgets. If you are working with grants as a consultant, or even working as a grant professional within a nonprofit, getting a handle on the differences between restricted and unrestricted grants is going to make a big impact on how you approach funding and budget development.

You know that you need an external evaluator. Maybe your organization doesn’t have the internal expertise or time to conduct a program evaluation yourself, or a grant funder requires a third-party evaluation. Many programs—and organizations—feel that they can’t afford an external evaluation, and funders don’t always pay for program evaluations. However, if you can convince donors and funders that your program is effective and efficient, you’ll be more competitive for future funding. A strong evaluation provides valuable information for data-based decision-making to inform program refinements and continuous improvement. Funders have a limited amount of dollars to award and, therefore, want to fund effective projects.

Many organizations lack the qualified staff to conduct a program evaluation. While some organizations do have the capacity and expertise, many need to contract with an external evaluator for one or several reasons. For instance, using an external evaluator can be more economical and efficient, can provide a more credible report due to objectivity, and is sometimes a grant requirement.

If you have ever flinched at the mention of policies and procedures, conflict of interest, or grant reporting, we may be able to help take the fear out of grant management. Too often, grant management is seen as scary and messy, with staff hesitant to learn because they may uncover more than they know how to handle. In the nonprofit field, it’s common for staff to be put in a role where they manage grants but might not have the knowledge or resources to understand what that entails. With this grant management series, we aim to outline some of the commonly seen issues and provide resources to learn more. Check out the previous post on conflict of interest policies and procedures! Now, we are diving into time and effort reporting and staff allocation.