Finishing The Grant Cooperative Documents, Budgets And Forms

While the narrative is very important, it is often developed at the expense of the rest of the grant application. Critical items, such as the budget, are often overlooked. This post will look at the other items of a successful grant application. While I am using the federal grant process as a guide the items discussed below are typically included in most grant applications.
The first and most important consideration is to plan in advance. Some of the processes and procedures described below involve both the cultivation of relationships and (possibly) lawyers and bureaucracy.
The Power (and Consequences) of Collaboration
Most grant applications need some form of collaboration with other organizations or groups. While collaboration has become a grants “buzzword” it is important to discuss this matter further. The basic rule is that every partner should add something distinctive and competitive to the project. Partners are not simply your friends; they are reputable, financially stable groups that add value. Another important consideration is whether you want to do business together. For a variety of reasons, personalities sometimes clash and some folks just simply do not play well with others. For some reason, there is a segment of the non-profit world that believes that their mission is so socially important that basic social norms need not apply. Simply put, if groups do not share a vision and value for a particular project, they should not work together. In this time of tight budgets, there is a strong temptation to abandon mission to chase dollars. Such an approach is counterproductive and usually unsuccessful.
There are many ways to formalize these relationships in the application. These are listed below in order of formality and time investment.
Memorandum of Understanding or Agreement (MOU or MOA): This is basically a contract and sets out the specific obligations of each party. While the grant application may offer a sample and/or specify what such a document should contain, this process often involves lawyers and is thus time-consuming, especially when dealing with government agencies or school districts. Like most government employees in the current climate, legal staffs are often overworked. It is thus important to begin this process as early as possible. One important hint is to make sure that the document contains language stating that the agreement is not effective unless the grant application is successful. In the past, I used to create an “agreement to agree” MOU when pressed for time. This MOU simply stated that the parties agreed to come together for purposes of this grant to provide the following services. The full details of those services would be negotiated upon award. However, recent changes in federal proposal (RFP) language often rule out this type of approach.
All parties sign the MOU/MOA together and present it as one document.
Letter of Commitment: The letter of commitment is provided by each partner and outlines what each partner will specifically offer to the project. While less formal than a contract, it is still a writing presented to a funder that specifically outlines the work of each partner. This letter is a strong statement that the partners are serious about the project and have given the matter significant thought
Letter of Support: This is simply a letter that tells the funder that organization signing it believes the project is valuable and needed in the community. This type of letter is typically written by a politician or other important figure with a tangential relationship to the project. While not as strong as a letter of commitment, it is important that this letter be specific to the project. Under no circumstances, should one take a general letter of support, make copies, and include it in every grant submitted. Such an approach communicates a lack of interest and/or preparation to the funder and suggests a lack of sophistication. (While sometimes a perceived lack of sophistication can work in the favor of an organization, this is not one of those times).
It is important to note that the grant writer typically prepares these documents as they are most familiar with the terms of the RFP. Also, as grant applications are often submitted electronically, please remember to scan the signed documents into a .pdf file for inclusion in the final package.
As the federal government continues to move away from block or formula grants towards a more competitive process, it is likely that this trend will continue.
Budgets and Budget Narratives
There are two basic rules here. The first is that “things cost what they cost”. Every organization has reasonable and fair costs they are looking to cover. In preparing the budget, most grant applications have designated categories for use in preparing budgets. These can include personnel, fringe, travel, equipment etc. It is VERY important to follow the sample budget that is typically provided.
Unfortunately, sometimes the desire to submit a competitive proposal pushes organizations to undercut themselves. This approach creates the unusual situation whereby winning a grant can be the worst thing possible because there is no way to complete the project with the funds requested. Funders will NOT typically provide additional funding in such instances. In extreme cases this approach can bankrupt an organization. At a minimum, it can ruin your reputation in the funding community.
The converse of this situation is “gold plating”. In this scenario, an organization looks at receiving a grant as winning the lottery. Even if such an application is funded, an organization engaging in this type of activity runs a serious risk of failing an audit or receiving negative publicity. Potential red flags for funders include any cost item that exceeds what is typical for the area of the field. While most funders have mechanisms or rules in place to catch such expenses, it is important for any organization to do a reality check. For example, very few funders will let recipients use their funds for fancy meals or luxury hotels.