Several years ago, I worked with a nonprofit client who had received funding from a particular foundation many times in the past. The client felt confident putting the funder on their own grant calendar for the upcoming year, allowing me to focus my time on another funding priority because they were sure that the foundation would continue its support. Despite my recommendation, the client did not want to approve any research time for current funders. However, when the rejection letter came, they were surprised. After reviewing the foundation’s recent priorities, it became clear that their focus had shifted, and the grant proposal they submitted no longer aligned with their new direction. That experience was a costly lesson for the client, reinforcing how critical it is to research every funder, even returning ones, before applying. This extra step can make the difference between receiving funding and being rejected.

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.

Observation is a method to gather data by watching events or behaviors that can give information beyond what you can draw from numbers and is helpful in several situations:
  • To collect data that is unavailable through other methods. People are sometimes unable or unwilling to participate in surveys or interviews.
  • To understand an ongoing situation or process. For example, you want to identify efficiencies/inefficiencies in the process of college registration process as students meet with advisors to create a semester schedule.
  • To know more about a physical setting. For example, you want to determine if a residential rehabilitation center’s facilities are conducive to recovery.
  • To understand more about interactions. For example, you want to determine if a motivational guest speaker sparks interest in at-risk youth in a college preparatory program.

Have you been tasked with evaluating a program and don’t know where to begin? If so, you aren’t alone. Many people struggle with program evaluation. This new three-part series on evaluation will prepare you to design and implement a strong evaluation comprised of quantitative and qualitative data analysis. You will also understand how to secure a third-party evaluator, if you need one. This post focuses on how to conduct an environmental scan and needs assessment.

It’s not news that grant professionals are often underrecognized for their vast knowledge, technical and subject matter expertise, and contributions to organizational success. It’s also not infrequent that grant professionals are excluded from project planning or meetings with potential funders until late in project development when they are asked to “just” find funding or write a grant. For many individuals, that lack of validation can often be internalized as a lack of acceptance or value. For others, the recognition received is passed on to others they believe are more worthy than themselves. This is especially true for women, BIPOC professionals, and those who have been subjected to microaggressions in their community and workplace (but that’s an entirely separate subject worthy of its own time and space). When highly qualified, high-achieving professionals question their value, competence, or adequacy to successfully perform work that they are 100% capable of performing, it leads to self-doubt, negative self-image, burnout, and workplace toxicity. While not a recognized mental health disorder – you won’t find this in the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders – the common term for these unfounded feelings of inadequacy is imposter syndrome.

In grant seeking, fundraising professionals sometimes refer to low-hanging fruit as the donors who give year after year with little effort, synonymous with “easy money.” While the term is often tossed around, it can be frustrating to funders and grant professionals. Funders may have fewer requirements to increase accessibility to nonprofits or value the longevity of relationships. The funder is still striving to make an impact in the community. Grant professionals understand the nuances of grant seeking and can see the industry landscape increase in competitiveness as more organizations apply for funding and foundations give conservatively in response to volatile markets. Fundraising strategies that rely on these dollars without stewardship may find themselves in the midst of a drought.