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.

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.

You know that you need an external evaluator. Maybe your organization doesn’t have the internal expertise or time to conduct a program evaluation yourself, or a grant funder requires a third-party evaluation. Many programs—and organizations—feel that they can’t afford an external evaluation, and funders don’t always pay for program evaluations. However, if you can convince donors and funders that your program is effective and efficient, you’ll be more competitive for future funding. A strong evaluation provides valuable information for data-based decision-making to inform program refinements and continuous improvement. Funders have a limited amount of dollars to award and, therefore, want to fund effective projects.

Strategies for Effective Time and Effort: Estimation, Monitoring, and Reporting Throughout the Grant Lifecycle   Register Now       Accurately managing staff salaries across multiple grants is a challenge for grant-funded organizations. Do you have staff working on programs supported by multiple grants? Are you worried about over-allocating staff costs...

  Did you know that budgets and financial documents are often the first things a grant reviewer will read when considering an organization’s proposal? Sometimes grant professionals leave attachments and budgets for the end, perhaps because these documents can be confusing or intimidating to those of us without an accounting background. This two-part guide will help you correctly identify which attachment the funder is requesting and explain why it is helpful for the funder to have the information contained in each document.

    Grant Budgets Session 7 of the Grant Funding Basics Series Grant budgets seem like they should be so simple, just ask for what you need, right? Instead, they can be very complex with unique terms and phrases all their own. This training will start at the very beginning...

    Federal Grant Management - Financial Requirements Session 11 of the Federal Grant Development Series The most common concerns related to federal grant management are around the financial requirements. These requirements include paying staff, contracting for services, travel, and purchasing materials. This session will discuss the most common policies...

    Federal Research Grant Budget Justifications Session 10 of the Federal Grant Development Series The budget justifications for research have unique requirements which surprise many grant professionals used to foundation grants and even some grant professionals used to writing federal implementation or demonstration grants. This session will talk about...

    Standard Federal Budget Forms Session 8 of the Federal Grant Development Series Many foundation grants allow you to provide your project budget in your own format, but not federal grant agencies. All federal agencies have their own form which must be used to convey the costs associated with...

  Federal Budget Justifications: Reasonable, Allowable, Allocable Session 9 of the Federal Grant Development Series Federal budget forms are not the only part of federal budgets which are different. The information expected in a federal budget justification is also more specific. All of these budget justifications must meet the...