Funding

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.

    As a grant professional, are you asked to identify performance measurements for your organization or clients? Evaluating the performance of a grant department or grant professional is a nuanced task. Yet data helps leadership and the board of directors quantify the year-to-year success and progress toward department goals. All too often, an organization will set unrealistic goals without adequate resources or available opportunities or set unreasonable expectations for the number of applications an individual needs to submit. Looking at a “success rate” can fail to consider the organization's readiness, quality of program design, or ability to identify strong opportunities and stewardship. So, how can an organization effectively evaluate the performance of a grant department and set realistic goals? How can grant professionals articulate their skills and achievements to those who are data-minded?

Federal prize competitions are a means for federal agencies to crowdsource ideas and engage public innovators to develop innovative ideas and solutions to societal problems (referred to as competitions, prize competitions, challenge, or competition). According to Challenge.gov, the primary platform for managing competitions, “Longitude and ship navigation, Lindbergh’s transatlantic flight, even initial designs for the U.S. Capitol and White House—all resulted from open prize competitions. Even those self-driving vehicles got their start in federal prize competitions too!” Other notable concepts derived from challenges include the “lunar loo” (space toilet), digital wallet interface, protections for fish from water infrastructure, opioid detection in the mail, and “getting out the count” for the most recent census. These competitions, organized by Federal agencies, encourage participation from individuals, businesses, and organizations, driving them to create groundbreaking solutions to complex problems. This blog post delves into the world of federal competitions, exploring their significance, impact, and considerations for interested organizations.

Fundraising is not always easy. Some causes more easily tug on donors’ or funders’ heartstrings more than others. I am sure you can picture the TV commercial with sad music and malnourished children urging you to donate just $2 per month to help feed them. As a mother, I feel physical empathy for mothers of infants who do not have enough formula, diapers, and clothes to care for their children. Causes like this produce a warm, fuzzy vibe that you just cannot say no to. Not all organizations naturally evoke such strong emotions. In some cases, the emotions may be negative and that can make fundraising tricky. What if your cause (or organization) is the big elephant in the room blocking funders from seeing the impact you can/do have? Perhaps you are part of a national organization involved in a scandal, a school district that has recently failed accreditation, or a local nonprofit perceived to serve only wealthy people. Each of these situations can make it challenging to raise the money needed, because donors and funders may be blinded by the media or personal bias. How do you overcome that hurdle?

March Madness is in full swing, and all this talk about competition and brackets makes me think about how grant writing relates. Grants, much like professional sports, are competitive, and increasingly so. We can’t come in on gameday and put together a proposal without any preparation and expect to win big. To be competitive, your grant team must train and prepare to advance through the rounds and win awards. So, while building out/reviewing your bracket for college basketball, consider how these strategies can help your grant team gain a competitive edge.

Diversifying a portfolio of funding opportunities can be more than seeking foundation and federal grants. In the current funding landscape, organizations have the capacity to add legislative affairs to their ongoing activities in the pursuit of additional funds to achieve their mission. Did you know that nonprofits are eligible to pursue Congressional Directed Spending and/or Community Project Funding?

Nonprofits and not-for-profits share many similarities and, in practice, the terms are often used interchangeably. The key similarities and differences between these types of organizations are nuanced. Nonprofits and not-for-profits are mission-driven organizations with a shared purpose of serving the public or charitable needs. They are...