03 Nov Did You Know: What Grants Can and Cannot Pay For? by Roxanne Jensen, Ed.S., GPC

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.

Here is a breakdown of what grants typically cover… and where nonprofits may need to find alternative funding sources.

Now that we have explored what grants DO pay for, let’s look at what grants generally DO NOT pay for:

Key Takeaways:

• Grants can cover many project-related expenses, but you must carefully read the guidelines to know what is allowed by a specific funder.
• Using grant funds for anything outside of the project’s goals or funder restrictions could lead to compliance issues.
• Every funder has different guidelines and restrictions. Always read the request for proposals (RFP), notice of funding announcements, or funder guidelines to ensure that you follow the funder’s specific terms of funding.

It is important to read and follow the budget guidelines for each grant – before and after receiving the grant. Funders have their own expectations of how funds will be utilized, and misusing grant funds—even unintentionally—can damage an organization’s reputation and affect future funding.

You can find other blog posts in this series here. AGS also offers several on-demand webinars on a variety of topics to support the full grant cycle, including grant budgeting, compliance, and grant management to help guide you through the full grant cycle. Visit our website to explore more resources and sign up for our training newsletter.

If you are interested in grant services, training, or federal review services, or are interested in our career opportunities,  Julie Assel, CGMS, GPC, President/CEO will be happy to talk with you about this opportunity and provide you with a quote for grant services.

AGS blogs, funding alerts, and trainings are aligned with the Grant Professional Certification Institute’s Competencies and Skills.

Competency #4: Knowledge of how to craft, construct, and submit an effective grant application

• Skill 4.7: Identify various types of grants and their restrictions.

Competency #5: Knowledge of post-award grant management practices sufficient to inform effective grant design and development

• Skill 5.2: Identify strategies for fiscal management and compliance with funders’ requirements.
• Skill 5.4: Identify methods of establishing transitions to post-award implementation that fulfill project applications.

Competency #8: Knowledge of methods and strategies that cultivate and maintain relationships between fund-seeking and recipient organizations and funders

• Skill 8.3: Demonstrate knowledge of strategies for increasing an organization’s access to unrestricted funding sources.