| Your ministry will likely continue or develop a need | | | | ministries to offset general operating costs. Many |
| to count on foundation grant support for your | | | | government funders allow for this type of |
| programs and projects. Yet funding is not easy to | | | | expense but most private funding sources do not. |
| come by at this time. This makes expanding your | | | | Acceptable indirect rates usually range from two |
| grant writing capacity all-important. You need a | | | | percent to 20 percent per grant. Ten percent is |
| strategy. The following are four key components | | | | about average. But often this rate must be |
| of an effective strategy. | | | | prearranged with the funding source. |
| Explore collaborative grant writing opportunities for | | | | For private funding sources, it is best to submit a |
| joint and/or regional grant applications. Partnering | | | | highly itemized budget that makes a strong tie |
| with local stakeholder organizations improves your | | | | between items that may be considered indirect |
| ministry’s chances of gaining funding and | | | | and your direct program related expenses. |
| reduces your grant writing costs. | | | | Indirect expenses can often be accepted by a |
| Foundation support specifically for collaborative | | | | funding source when they are tied to the |
| efforts is rising partly as a result of the economy. | | | | program. For example, it is often impossible to |
| But even before the economy turned downward, | | | | implement a program without appropriate staff. A |
| foundations were supporting collaboration. | | | | computer may be essential for student to use for |
| Collaborative efforts are by no means easy and | | | | research or for job searches. |
| they can be quite difficult. Done right, it is well | | | | Another strategy is to turn to long time funders, |
| worth the efforts and can result in a significant | | | | those you have a relationship with and those who |
| win-win situation for ministries concerned. The | | | | know your ministry well enough to have |
| reason is simple -- collaborating organizations | | | | confidence in it and its programs. Family |
| address problems more effectively as a team | | | | foundations and individuals in your community are |
| rather than as independent organizations. Their | | | | the top candidates to support operating costs. |
| programs benefit from more diverse expertise | | | | Use your board to play a leading role in |
| and ideas, from more people being involved in the | | | | encouraging this support. |
| program, and from more people lobbying for the | | | | And there may be good news concerning the |
| program in the community and enlisting others to | | | | future of operating support. Encouragement is |
| do the same. | | | | coming from various quarters. The Independent |
| Under collaboration, your ministry avoids assuming | | | | Sector urged foundations to “opt for general |
| all the grant development costs as the expenses | | | | operating support over project support when |
| can be divided among all the partnering | | | | feasible and when the goals of the two |
| organizations. It is a cost efficient way to grow | | | | organizations are substantially aligned.” |
| the funding pie for the ministry and local partners | | | | As well, the Center for Effective Philanthropy |
| engaged in like-minded efforts. | | | | urged foundations to fund not only projects and |
| Budget appropriate funds for grant writing related | | | | programs, but to provide “larger, long-term |
| expenses. For many ministries a grant writing | | | | operating grants” of unrestricted funds, those |
| budget will include a fully staffed grant | | | | that support the entire mission of the organization. |
| development office along with all of the | | | | The Center for Effective Philanthropy also urged |
| appropriate tolls, resources, and research | | | | foundations that provide project support to pay |
| databases. However, it is not always necessary | | | | “the fair share of administrative and |
| or most cost effective to employ a full-time grant | | | | fundraising costs necessary to manage and |
| writer and associated staff. Often a grant writing | | | | sustain whatever is required by the organization |
| consulting agency can meet your needs while | | | | to run that particular project.” |
| provide a significant savings to the ministry. But it | | | | Say “No” Sometimes. Some nonprofits |
| is a mistake for ministries not to make a | | | | apply for as many grants as possible, becoming all |
| budgetary commitment to grant writing. Avoiding | | | | things to all funders. They think that if they throw |
| this commitment may save money now, but it | | | | enough proposals out there something is bound to |
| will rob your ministry of the grants it needs now | | | | stick, that this is the best way to win grants. |
| and later. | | | | This is a fallacy and a trap too many organizations |
| Having resources to secure grant writing | | | | fall into. You have heard it said, “Watch out |
| expertise is especially important because the | | | | what you wish for.” In this case, watch out |
| economic slump, depressed stock market, and | | | | who you send proposals to. You may end up |
| government budget crisis have reduced | | | | winning grants with fulfillment requirements that |
| government, foundation, and individual funding. This | | | | go far beyond the scope of services currently |
| means that only the most well developed grant | | | | provided and/or do not fit in with the |
| strategies will see success. | | | | organization’s mission or vision. It is a zero |
| When possible, maximize opportunities for | | | | sum game. The organization gets more money |
| operating funds in grant applications. Ministries | | | | but it also has to provide more services. The |
| generally have access to two types of grants: 1) | | | | funding pie grows but so does the mandate. This |
| project-specific funding; and, 2) general operating | | | | is the time for the ministry to say “no,” |
| support. Funders tend to like the first, but not the | | | | that winning this particular grant is not worth it. |
| second. | | | | Keep in mind that having a grant writing strategy |
| Nonprofits need operating support. An out-of-date | | | | is critical to getting the funds your ministry needs. |
| computer, for instance, hinders your ability to | | | | Yes, the funding environment is challenging right |
| make your programs and projects run effectively | | | | now. But the funds are out there and foundations |
| and efficiently. But funders prefer project funding | | | | are eager to partner with ministries such as yours |
| because it lends itself more readily to measurable | | | | to do what you were both created to do – to |
| results and outcomes. | | | | change your community and the world for the |
| One option is to include an indirect cost line item in | | | | better. Follow the advice above and foundations |
| your budget for all grants and RFPs that allow | | | | will begin to see your ministry as a more appealing |
| indirect cost reimbursements such as general | | | | funding candidate. |
| operating support. Including indirect costs allow | | | | |