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Archive for April, 2010

Metrics for Measuring the Success of a Grant Writer

Posted in Metrics for Measuring Success on April 13, 2010 | 2 Comments »

How to measure the performance of a grant professional is a oft debated topic in grant writing circles. Measures, such as # of grants written, # of grants funded, % of grants funded, and total dollars received, are insufficient to measure the total contribution of a grant professional to the development team. After all, the best grant professionals do much more than write proposals. They build long-term relationships. They contribute strategic insights. They guide program and budget development.

So what’s an organization to do?

I like the solution members of the For GrantWriters Only Higher Education Supporters group came up with… tie their performance metrics to the professionals whose work they typically support, who are evaluated based on three things: research, service, teaching/outreach.

How could this work?

    Research: prospect research and lining up needs with funding opportunities, robust research into the need for programs, and research needed to establish a reasonable set of program outcomes

      Qualitative outcomes: high proposal quality, compelling needs statement that supports all aspects of organizational development, quality program metrics
      Quantitative outcomes: # contacts made, # of new relationships established, % awarded based on total proposals submitted

    Service (and I would add: Leadership): participation in administrative, financial, program development and fund development teams, participation in grant professional groups, continuous learning and application of best practices and new technologies, grant management

      Qualitative outcomes: well supported program need statements and clear program descriptions with aligned budgets, strategic program development, diversified funding base, testimonials
      Quantitative outcomes: # meetings with program/teaching staff, # of new programs supported, # of professional development meetings, client satisfaction ratings, # of missed deadlines

    Teaching/Outreach: making connections with other community agencies to satisfy community needs and open up new funding opportunities, sharing knowledge of best practices with internal staff and other members of the development community, managing outside relationships with development consultants

      Qualitative outcomes: enhanced service to the community, opportunities to pursue new projects through collaboration
      Quantitative outcomes: # of new collaborative programs supported, # of professional development presentations, # workshops presented to internal staff

What’s important here? Don’t settle for being evaluated on numbers alone. Be recognized for the full role you play in your organization. And acknowledge that all members of the team have a role in the overall success of the grant seeking program. You don’t work alone.

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Setting Reasonable Goals for Your Grant Seeking Program

Posted in Metrics for Measuring Success, Setting Reasonable Goals on April 13, 2010 | 2 Comments »

Successful grant seeking requires the participation of not only an excellent grant professional but also an active board that is engaged in diversified fundraising and relationship building efforts, a committed staff that can provide detailed program descriptions, outcomes, and measurements of program effectiveness, and organizational leadership that networks within the affected community, facilitates fiscal accountability and transparency, and leads a dynamic strategic planning process for the organization.

If internal organizational factors are strong and the external environment is open to new funding partnerships, overall success is likely to be higher. With all factors in place, you can reach for a success rate (# of grants awarded vs. # of grants submitted) of 60% or higher.

Grant seeking is a collaborative effort, a partnership that continuously evolves. It is important to recognize and set goals for each of the organization’s stakeholders, not for the grant professional alone.

Efforts of your board and staff are just as critical as the research and writing skills of your grant writer in ensuring the long-term success of your grant seeking efforts. So how do you set some goals for grant seeking?

When you are getting started, the most critical elements are establishing strong community connections and establishing an on-going grant seeking effort. It is important to set some reasonable (but stretch) goals in both of these areas.

For example:

    1. We will engage 25 more volunteers in our programs and ensure that their experience is memorable (as measured by a post-volunteering survey or collection of testimonials).
    2. Board members and staff will participate in 10 local (or online) networking groups on a regular basis (determined based on the frequency of events offered by each group) and consistently introduce themselves as board members or staff of the organization. When a member of the group expresses interest in the organization, board members and staff will invite them to participate as a volunteer or attend an upcoming event of the organization.
    3. Board members, staff, and volunteers will host a minimum of one event per quarter that interacts with the community, engages them in volunteer service, and spreads awareness of the organization, its programs and services, and its impact. These events will be connected to the mission of our organization or the constituency it serves.
    4. Our grant professional, in cooperation with board members and staff, will identify a minimum of 6 new major gift prospects (grants of $1,000+) and establish an initial connection.
    5. Our grant professional, in cooperation with board members and staff, will prepare and submit a minimum of 3 grant applications or letters of inquiry per month, maintaining a dynamic list of proposals to be submitted and tracking the status of open requests for funding.
    6. As an organization, we will increase overall program funding by $25,000 to allow for expansion of services to 25-50 more individuals or families. No more than 25% of new funding should originate from grant sources that must be renewed annually.

It is important that goals are set in line with current trends in the nonprofit sector. It is not reasonable to expect that grant funds will continuously fill all gaps in operational funding, regardless of the dollar amount required. Many grant makers set limits on the number of consecutive years you can receive funding from them. Others limit you to applying once every two or three years.

It is also unreasonable to think that a grant writer can write an ever increasing number of grant proposals without sacrificing quality. And in grant seeking, quantity and quality work hand-in-hand. If the proposal doesn’t go out, it can’t get funded, but if it goes out, and it’s poorly written, it leaves questions in the mind of the potential funder, it doesn’t follow the funder’s guidelines, or it doesn’t match up well with the funder’s priorities, it is unlikely to be funded. These limitations are essential to consider as you set goals for the year.

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Are your Expectations for Grant Success Reasonable? How About your Timeline?

Posted in Fundraising Success, Nonprofit Budgeting, Setting Reasonable Expectations, Strategic planning on April 13, 2010 | Leave a Comment »

Does your board have a formula for determining how much of the budget can reasonably be covered by grants? Or do they typically expect grants to cover all expenses not covered by any other revenue source? If your answer is the latter, beware. You may be setting the wrong expectation.

For the average organization, grants typically cover no more than 25% of the operating budget over the long-term.

And if you qualify for government grants, they typically account for no more than 30% of the budget. Why? Because other funders want to know you really need them, and once you get up above that number, you suddenly look like a government supported agency. If you’re government dependent, you’re also a higher risk investment, especially given the current economic climate. One big cut and your organization could shut down. Not a pretty prospect.

The most common type of grant is a program grant; some of these grants allow for program salaries, others do not. That should be taken into account as you build your budget. Every grant agreement forms a contract, an exchange of money for services you provide to the community. It is critical that grant funds are used only as specified by the funder.

The most sought after type of grant is a general operating grant because of the flexibility it provides, but these are far less common than a program grant since they’re harder to tie to specific results. These grants allow your organization to fund any operating expense, including administrative and program salaries.

The size of the grant you are requesting should always be in proportion to your overall operations. As a general rule of thumb, your organization should not request a program or general operating grant greater than 10% of your program or organizational budget. Few organizations want to be the sole supporter of your programs and services; they want to know they are one of many groups supporting your cause.

In today’s competitive nonprofit sector, grant makers are granting funds to organizations that demonstrate the capacity to make a large scale difference in cooperation with other community benefit organizations.

Grant makers would also like to see that you are not solely reliant on grants for your ongoing operations. As such, it is important to demonstrate a relatively diversified funding base that includes support from individuals, program fees, events, endowment income, and/or other sources.

More supporters and diverse sources of revenue show your organization is sustainable over the long-term, and sustainability means that you are a better investment of their limited resources.

Grants are not a quick-fix revenue solution. Most grant makers review grant applications on a quarterly (or less frequent) basis. Government grants may take a year or more to come through. So if you need money quickly, grants are not the way to go. To be successful requires a sustained effort.

Allow up to three years to uncover giving patterns and assess the overall impact of a new grant seeking effort.

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When Is Your Organization Ready to Start Writing Grants?

Posted in Board Giving, Fundraising Success, Getting Grant Ready, Nonprofit Budgeting, Proposal Success on April 13, 2010 | Leave a Comment »

In my consulting practice, I have worked with many organizations at the grassroots and start-up level. And like many business owners, they have the idea that grants will give them the fuel they need to get started or to grow. But this is often false thinking. Why? Because so many other things need to be in place before you can be truly successful.

Before beginning any grant outreach effort, I recommend that most organizations have a minimum of $20,000 in cash set aside for the first year of any grant seeking effort. More would be better. Here’s why …

    1. On-going grant outreach has a higher success rate than one-time grant requests. Your first few grants are usually the hardest to get. New funders like to know that someone else has already supported you and found you reliable, trustworthy, a good investment.

    So how do you show that others have already supported you?

    Usually … individual donors, like members of your board, staff, volunteers, and other community members have already committed support to your mission, either directly or through their participation in events. Individuals provide the unrestricted dollars you need for grant seeking efforts, and their commitment demonstrates to larger funders that you have a solid foundation on which to grow.

    2. Most grants do not provide funding to support fundraising efforts. Your organization needs to have reliable funding available to pay for the services of a grant professional, just as it would for any other part-time or full-time staff position, before you hire someone.

Keep in mind … grants should not be your first or last source of funding. They are inherently short-term and must be renewed annually.

Relationship building is a key element of strategic grant seeking efforts, and you may need to apply multiple times before an organization knows you well enough to consider funding your efforts. In some cases, an organization will commit volunteer resources before they commit financial resources. It is important to remember this as you develop your programs.

Before investing in your organization, grant making institutions also want to see that you have an engaged, well-rounded working board, with capacity for developing key relationships with local community partners. A grant-ready board and staff demonstrates fiscal responsibility, a commitment to raising both dollars and awareness, and a personal financial commitment to your mission.

If these elements are not in place, your time and talent would be better spent on securing them before you begin large-scale grant seeking efforts. This way, when you do get started, you can maximize your chances for success.

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