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.

“When the money keeps rolling out, you don’t keep books. You can tell you’ve done well by the happy, grateful looks. Accountants only slow things down, figures get in the way.” – Evita by Andrew Llyod Weber. In actuality, did you know that nonprofits are accountable for impact measurement? Impact measurement is a critical process for nonprofits to assess their effectiveness in achieving their mission and making a positive difference in the communities they serve. By measuring and evaluating their impact, nonprofits can determine whether their programs and initiatives are successful and identify areas for improvement. Impact measurement is a critical aspect of nonprofit management. This aspect involves assessing and quantifying the outcomes and effectiveness of a nonprofit's programs and initiatives in relation to its stated mission and goals. By measuring the impact of their work, nonprofits can demonstrate accountability to their stakeholders, including donors, beneficiaries, partners, and the public.

Grant writing evaluation is the systematic process of assessing the effectiveness and impact of your project or organization. Evaluation is not merely a formality but a critical aspect of the grant application process. Funders want to know that their investment will lead to positive outcomes and measurable results. Grantmaking organizations want assurance that their funds will be used wisely. A well-planned evaluation strategy showcases your commitment to being accountable for the resources you receive. While quantifiable metrics such as the number of people served are essential, they are just the tip of the iceberg when it comes to grant evaluation.

In the realm of program planning, evaluation, and development, two widely used tools are logic models and theories of change. While both are valuable for understanding and guiding interventions, they differ significantly in their approaches and purposes. Let’s examine the main distinctions between a logic model and a theory of change by exploring their characteristics and providing practical examples to illustrate their applications.

Writing a successful grant proposal is a challenging task that requires careful planning, a clear vision, and a well-structured approach. Among the essential components of a grant proposal are goals, outcomes, outputs, and objectives. These terms are often used interchangeably or confused with one another, leading to misunderstanding on the funder’s part and potential rejection of the proposal. In this blog, we will delve into the distinctions between these concepts and explore their significance in the context of grant applications.

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...

Did you know that while there are two main types of 501(c)(3) organizations, the IRS has set nine different activities to qualify as a 501(c)(3) organization? Organizations with 501(c)(3) status play a vital role in serving communities and advancing various charitable causes. Known for their tax-exempt status, they are eligible to receive tax-deductible donations, making them appealing avenues for philanthropy. While most of us are aware of these organizations' existence, there might be some intriguing facts yet to be uncovered. In this blog post, we will explore the two main types of 501(c)(3) organizations and delve into the nine different activities outlined by the IRS that qualify for 501(c)(3) status.

Volunteerism has become a vital component to supporting community needs throughout the United States. Volunteers are engaged in critical activities at virtually every level from direct service delivery to data collection and reporting to board-level involvement and fundraising. Without volunteers, many nonprofits would not be able to implement their programming or serve their clients.