The Benefits and Pitfalls of Grant Funding

We often recognize grants and grant funding as a resource for diversifying our funding base and pursuing new avenues of resources. Sometimes grants are a positive contribution to our revenue stream, sometimes they can be difficult to manage, report on, and maintain. In pursuing grant funding it is important to determine whether or not a specific grant is worth your time and effort. As you may have inferred, not all grant opportunities are necessarily good opportunities for a particular cause or program. Not all results from a grant database search based on a keyword are necessarily good or ‘right’ opportunities as well.

To determine whether or not a grant opportunity is worth your time and effort, in addition to looking at a particular opportunity’s eligibility requirements, geographic restrictions, guidelines, and funding timelines, it is very important to view what a group has funded in the past. The grants previously given (available through 990 tax reports which are considered public information) can provide a road map to what a group has given towards, the types of groups they give to, and how much they traditionally give. Viewing the previous contributions can often assist greatly in determining whether or not your center is likely to receive a grant from this group.

Simply put, no matter how great your center and your projects are, if a group does not give to religious organizations and gives $10,000 in capital campaigns requests bi-annually in Minnesota for example, and you would like a grant in the amount of $50,000 towards the operational costs of the Arkansas men’s home, it simply is not worth your time and effort in pursuing this opportunity because your request will not be approved.

Finding those grants that are ‘the best fits’ for your center, cause, and project is key in successfully finding and obtaining grant funding. Within this, it is also important to understand what a group who gives grants requires in return. Some groups want their donation to be anonymous, some groups want to be noted on a website or in an annual report, some want to be recognized publicly as supporting a particular event or project, some want lengthy financial and programmatic reports at the end of funding, some simply ask for a letter indicating what was accomplished by the grant.

Knowing these types of guidelines and expectations can also assist in narrowing down potential grant donors. There are also certain groups (such as the Federal Government) that require with large federal grants that various religious elements be separated from activities supported by federal dollars. Clearly, for most Teen Challenge programs, this would be difficult if not impossible to do with the residential program for example. A federal grant then that poses such restrictions likely is not in your or your center’s best interest. Take a close look at the funding agency’s guidelines carefully and clearly understand what is expected of you if funded before applying.

Finally, remember in narrowing down the best grant options, that if you are approved for funding you will be required to implement everything you said you would implement or do. There have been several high-profile faith-based charities that have been asked to re-pay grant dollars because they were utilized ineffectively or inappropriately. Therefore, be reasonable with what you need and what can be accomplished with the funds received. If a certain opportunity does not fit your need, look for others that do!

Christina Ryder, MA is the CEO of The Grantwell, LLC. The Grantwell LLC provides non-profit social service groups (including faith-based, community-based, and grassroot groups) with quality and affordable grant support, grant writing, and technical assistance. Christina has assisted various Teen Challenge centers across the country with grants and grant-related efforts.

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