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Funding and SustainabilityGrant Funding

Federal Funding: Should We Apply?

By August 10, 2023No Comments

Organizations often search for federal grant funding, and, indeed federal grants are often large and can provide revenue needed to delivery high quality services. However, before applying for a federal grant, organizations must take into account the following considerations.

Ensure your organization is eligible

Take the time to read through the grant guidance to determine if your organization is eligible for a funding opportunity. The introductory information and will provide the list of eligible organizations. However, it is still necessary to read the grant guidance. Often, buried deep in the guidance, there will be a statement or two further delineating who is eligible to apply. For instance, I was recently contacted by an organization that was a perfect fit for a funding opportunity; until a requirement, not found anywhere else in the document, was discovered on the 47th page of the grant guidance. Had I not read through the entire document, I would have spent unnecessary time and effort applying for a grant for which the organization was not eligible.

Even when it seems your organization is “the perfect fit,” there may be language that excludes you. Sometimes terms stipulate that nonprofits are not eligible entities, but instead only government units are eligible. Before spending a lot of time working on a proposal, be certain your organization is eligible to receive funding through the opportunity. Note: Every organization can apply; however, only those types of organizations delineated in the eligibility section are actually eligible to receive the funding.

Determine if you have the time to adequately respond

Federal grant opportunities are challenging, even for the most experienced grant professional. A federal grant opportunity can take an experienced professional 40 to 60 hours to complete. Before beginning to work on a proposal, determine if the organization has the time and resources to apply. For a large opportunity, this may mean devoting full-time hours for a month or more to develop a competitive proposal. Additionally, if the grant requires partners or collaborations, it often takes time to hold meetings and come to an agreement about who will do what within the project. And don’t think you can do everything on your own. Funders mentioning partnerships in the RFP, expect to see real partnerships in the proposal.

Glance at the funding requirements

More and more federal opportunities are requiring matching funds. Some are requiring a “dollar for dollar” match; this means for every federal dollar received, the organization must contribute a dollar toward the program. For many organizations, this is a challenge. Read the grant guidance carefully to determine what can be used toward this requirement. Sometimes, the organization can use salary costs or other expenses as part of its match. If there are partners, sometimes their services can be used. Think creatively to identify qualifying expenses and strategies to obtain those funds. For instance, could the proceeds from the annual fundraiser be designated to the program? Just know, in most instances, funds from another federal grant cannot be used as part of the match.

Alignment with Organizational Mission

Occasionally, a well-meaning board member or other individual connected with the organization may suggest applying for a grant. But, when the opportunity is reviewed in detail, it is a bit of a stretch to align it with the organizational mission. It is in your best interest to skip this opportunity and wait for one that is a perfect fit. Federal grant reviewers are peer reviewers; this means that they are just like you, they work in organizations or have some expertise in the field. Because of their experience, it is easy for them to recognize when organizations are stretching an opportunity to meet the mission and their scores will negatively reflect this reality. Second, even if your proposal gets by the reviewers, you will start down the slippery slope of mission drift.

Federal funds can be a great opportunity for organizations to be able to fulfill their mission. However, organizations must think through the process and determine if they can really fulfill the submission requirements outlined in the grant guidance.


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