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.

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.

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.

All the time and effort you put into designing a great project and developing a clear, well-written grant proposal has paid off and you’ve received a notice of award from the funder. Now, it’s time to ensure that you are a great steward of the grant funds that you have received.

    Grant Ethics: Grant Ethics for Consultants Session 8 of the Ethics Series While all nonprofit professionals have many ethical issues to consider as they conduct pre-award and post-award grant activities, grant consultants have additional areas of which to be mindful because they run their own businesses instead...