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.

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.

Too often, grant management is seen as a scary, messy aspect of grant funding, and we have a vague understanding of the requirements or components. 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. These are common scenarios, and while they may be new or unknown, taking steps to understand how grant funds should be managed is critical to the nonprofit’s success.

When the email from the Grant Professionals Association (GPA) came at the beginning of 2024 congratulating me on twenty years of membership, I called one of my fellow Gen-X colleagues and joked, “I don't know whether to feel exuberant about a career milestone or join the AARP.” In many ways, 2004 doesn’t feel so very long ago. In other ways, twenty years feels like two hundred. Since 2004, I’ve experienced learning to balance marriage, motherhood, graduate school (twice, because I’m a glutton for punishment), and countless career ups and downs. I’ve been part of creative teams, navigated ever-changing technology, learned valuable leadership skills, and taken professional paths that “2004 me” would never have imagined. I’ve witnessed civic unrest, a new age of social activism, and survived a global pandemic. And I’ve seen the nonprofit sector and philanthropy step up and evolve to continue to meet the community's needs.

Over the past year, you may have overheard grant professionals discussing potential OMB Uniform Guidance updates. If you are wondering what that means and what may apply to you or your organization, here is a quick look at what changes occurred and what you should know. What is Uniform Guidance? Office of Management and Budget (OMB), an agency within the Executive Office of the President, issues government-wide grants-related guidance for federal departments and agencies and is responsible for the maintenance of this document. Before 2013, federal grant requirements were located in multiple OMB circulars. OMB developed a comprehensive guide for the Federal government’s Administrative Requirements, Cost Principles, and Audit Requirements for federal awards that became effective in 2014. In essence, this updated, reorganized, and consolidated federal grant management requirements into a single document.

    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?