Online Grant Application Tips - Part Two

Special Characters

Many online applications do not allow the use of use bullets or other special characters or formatting you would otherwise use in a proposal sent by mail. Worse, some applications still do not warn you about this feature.

Some applications do not allow the use of apostrophes. In some cases, when the apostrophe is indicating a possessive (i.e. John's dog), you may have to waste those valuable characters with wording that spells out the relationship, if the relationship is critical to reader understanding (the dog owned by John). Replace your bullets with hyphens or asterisks before you paste your copy into the online application.

Charts and Graphs

If you depend on a graphic to present statistical data or your methods, you must often translate the graphic to text. Prepare to do this well in advance of your deadline.

Keywords

Your grant may be initially reviewed by a computer program, in the same way that search engines look for keywords. Include words that are commonly understood to present your mission. For instance, "hungry" is better than food-insecure, "domestic violence" is better than spousal assault, and so on. One clue to look for is the language the website uses to present the RFP or present the grantor's message. One tell-tale sign that your failed this "SEO test" is when you receive an "application declined" message and the submission deadline just passed a day or two ago. I can almost guarantee you no human ever looked at that application, assuming of course that your mission is within the grantor's parameters.

Templates

Some applications give you a link to download a template. You must use the specific template provided. Some templates will allow you to add lines up to a limit, many will not. Be prepared to combine and condense items such as staff salaries. Some downloads in pdf format still do not give you a fillable form, so be prepared to convert it if necessary, using a pdf converter program.

Attachments

Most online applications do not allow you to add anything that isn't already contained in the online application. If they do, it will say so, usually at the end of the application and will indicate what formats are accepted. Convert word documents to pdf if required.

Images, logos and letterheads

In general, online applications can't read them and won't accept them. If your board member list is on a marketing handout or letterhead, cut and paste the pertinent information into a plain Word document, instead of pasting it with an image. Most online applications will tell you what formats they can accept if they are permitted.

Saving the in-process application.

Many applications will have buttons at the bottom of the page that say, "Save and return later" and "next". Always save the page, even if saving it takes you clear back to the login screen. There is nothing quite as frustrating as losing the application you just spent hours assembling because of a server or power glitch.

Review, Review, Review

Review once as you write, once just before you are about to submit it and if given the option to print your applications when you hit submit, review the print format document, copy it and paste it into a word document, and then review that against the document entries you already have. Note it as the submitted version with the date and grant ID number, because many online applications still do not send you a copy of the application.

Save the "as submitted" version

While many online applications will email you a copy of your application, some only allow you to print the document. After you select the Print button, copy and paste the entire text into a clean Word processor document, and add the date and time you submitted it. You can also review it at this time to be sure that nothing was left out. (A common finding at this point is that some language overflowed its assigned text box and is not visible.) Then you can go ahead and submit it. 

Online grant application tips - Part One

The use of online applications is increasing each year, particularly by larger foundations and corporate philanthropic departments, and once adopted they replace the old paper submission format. In spite of our electronically connected world, some nonprofits still prefer the paper submission approach, and avoid online applications.

Many nonprofits feel that online applications are cold, remote and remove the passion element from the equation. That is probably what they are meant to do. Large foundations and corporations can receive as many as 5,000 applications for one grant. They are going to eliminate any application that even remotely fails to meet their criteria, and the online application makes that easier. In some cases, awards don't come down to whose mission is most deserving, but whose program negotiates the online application most efficiently.

Foundations, corporations and government grant opportunities  provide up to 50% of all nonprofit income, so simply crossing online applications off your funding opportunity list just isn't a smart business decision. Learning to live with the format is a necessity today.

It should go without saying, but read the RFP and the grant instructions completely, including any location limitations. There is no single, standard online application format. Online applications vary from fillable pdf documents used by small foundations to various regional so-called "common grant applications", to well designed and fairly user-friendly custom cybergrant applications. Each requires the grant writer to adapt your information to the format. You will have to create a login and password for each organization, and sometimes for each application.

Save your login information in-house, including passwords. That way if something happens to the person originally submitting the grant, the new person can access the application. While most logins will give you the "forgot your password" prompt, not all of them do. Save the grant ID number as well, since you may apply to more than one program area. Once submitted, you cannot edit anything or submit further information unless requested to do so.

Condensing your information

Online applications normally have character or word limitations for each question you must answer. Commonly those limits are 250-, 500-, or 750-words or 500-2,500 characters. The underlined sentence is 105 characters including spaces using 11-pt Arial. Some applications require the use of specific fonts, or they will convert whatever font you are using to the preferred format, usually Arial, Times New Roman or Courier. In general, use one of these three if there is no requirement stated. This is not the place for style points. Know the limits in advance, and be prepared to condense your copy to fit the character limitations. That carefully crafted, board-approved boilerplate probably will not work. Remember that spaces are characters, and some applications may not indicate whether they count spaces as characters. Create your responses in a word or plain text document before you actually fill out the application, and get a count.

If you just can't reduce your text to the limit, have a professional editor or grant writer review it. Some online applications are still simply not providing enough room, but in most cases, someone who isn't so emotionally involved with the text can still get the message out there without losing the context.

Unless they specifically say that spaces are excluded from the count, assume the worst. The Microsoft Word character/word count function does not always count characters in the same way as online applications, and you may have to expand the word count box (by clicking on it) to access the "character with spaces" count. I always try to err on the side of slightly shorter text instead of pushing it right to the character limit. 

Part Two will discuss specific formatting traps and flow.

The strategic (mini)plan

I have mentioned before that many of my clients have an aversion to strategic planning. While some board members and/or founders are simply not sufficiently committed to the organizational aspects of a nonprofit, many more simply see themselves as being too small to need one.  

There is some truth to that viewpoint. First, the plans take time and often money to develop. Second, they require ongoing review and maintenance. Third, there may literally not be enough people to do the plan while trying to accomplish the mission. Having been on the inside, and looking at the long-term effectiveness of some strategic plans, I can understand why they aren't a terribly popular topic around the boardroom table. From the outside looking in as a grant writer, I see the consequences of having no plan to accomplish the mission.
  
Strategic plans for nonprofits differ from business plans in that they are more vision oriented, versus profit or investor oriented.  Some nonprofits wouldn't pass the financial scrutiny of a first year finance student, but they somehow are very effective in accomplishing the mission. Others have all the right formulas in place but never seem to achieve the desired charitable results.

The strategic mini-plan provides a bridge between the two extremes. It provides a structural framework, without requiring an economist to understand and implement. In the last five years, no nonprofit I have ever developed a mini-plan for has ever said it was a waste of time.
  
The mini-plan simply puts down on paper the brainstorming sessions and identifies the obstacles as well as the successes toward mission achievement. The basic act of writing things down will often pinpoint areas that increase funding, while identifying programs, philosophies or shortcomings that are holding you back. It still has a financial component, but doesn't attempt to forecast five or ten years into the future.

One nonprofit I worked with had four programs, and each had its passionate supporters. All had worthwhile goals, but upon reviewing them, it was obvious that one was not pulling its own weight. It was vague in concept, required a very high financial input, results were hard to measure, grantors didn't understand it and wouldn't fund it, and most importantly, it wasn't helping the people it was supposed to help. By sitting down and actually putting all the pros and cons down on paper, even its supporters could see that it needed to be folded into one of the other programs. It became obvious why, despite having a pretty decent profit and loss statement, the nonprofit was struggling to pay its bills.
  
Another nonprofit did a mini-plan after initially being very hostile toward the idea. Three months after we finished it, the executive director left with no notice. By having a mini-plan, they were able to set goals and provide history for the new ED, and they hardly missed a beat. 
If a full-fledged plan isn't an option for your organization, the mini-plan may a reasonable alternative. 

Is now the time to give up government grants?

At a time when our national government seems bent on converting as many people as possible into government wards through free money and programs, many nonprofits are discussing ways they can reduce their dependency on government grants. 

Historically, the motivation to fund nonprofit ventures by the government has been highly politicized, i.e. the funding mirrored a current administration's own interests and/or motives. Whether that is good or bad is a matter of personal judgment, but it is a fact. 

Savvy nonprofit funding managers watch the trends and new nonprofits spring up like weeds in an abandoned field whenever the focus changes, waiting to access the "new money". 

The problem with that mindset is that when an administration goes out of power, the funding for their priorities usually goes with them. For example, a quick look at the grants.gov website shows many new grant openings related to setting up the health exchanges required by the Affordable Care Act. This legislation is still highly politicized, and remains a target for reform or repeal. If there is a significant change in Washington in the next two to four years, the funding for health exchanges will change as well. The general economic condition of the country is also a defining factor. When times are good, the government tends to commit more funds to grants. When they are bad, the funding goes away.  

The problem facing far too many nonprofits is that their whole existence depends on some level of government funding.  Efforts to reduce their dependency on government funding generally fall far short of replacing the federal dollars, and so the system perpetuates itself.  

At present, the prevailing attitudes in Washington seem to be favoring maximizing the amount of personal and business wealth that can be removed from the private sector and transferred to the federal coffers. With the historical trends in mind, that would seem to indicate now is the time to step up your efforts to apply to any and all Federal offering that you can even remotely write a program to access. 

The problem is, we do seem to have a bit of a problem with paying the government's bills. Grant funding is discretionary spending, and that is currently the most probable avenue for shifting money to pay those bills. The backlash against the current administration's penchant for awarding funding to its favored causes instead of paying down existing debt is growing. As a matter of practical economics, even if the current party stays in power in 2014 and 2016, there may simply not be enough inflow to continue to keep the floodgates of public funding fully open. 

Now is not the best time to change your funding strategies, but now may be the only time you have to diversify your funding sources.  Accessing more foundation and corporate funding and cultivating major gifts could lessen the shock when the Federal funding slows to a trickle. 

Low or no-cost nonprofit advertising

New and small nonprofits need money to survive, yet far too many think of formal public relations and marketing as something only for-profits or huge nonprofits do.  Some are actually almost antagonistic about the concept, seeing it as a waste of time and money.

If you are very new, local donations may be your only source of income for quite a while. When I am approached to work with a nonprofit, one thing I do is look for local publicity on the organization.If I stood on a street corner in your town and asked 100 people if they had ever heard of your organization, how many affirmative responses do you think I would get?

You can have the noblest mission in the world, but if no one knows about it, it won't attract donors. Donors in the nonprofit world are the equivalent of investors in the for-profit sector.  People invest in for-profits because they see a chance for a good return on their dollars.  Private donors, including foundations and corporations, support nonprofits because they see a good return on their emotional attachment to a cause.

Social media and a web presence are fine and an integral part of marketing for many nonprofits, but it isn't the only option for publicity.

The trouble with social media is that people have to have a connection with you before they will go to your page or read your tweets.  Very few people enter "nonprofits supporting X in my community" in search engines on social media sites.

PR campaigns seem unbelievably expensive when you don't have much money to invest in it. The good news here is that there a lot of free or nearly free ways to get your name out locally.

Broadcast media often have a budget for free advertising, because they are required to provide public service announcements.  Local stations and newspapers usually have a weekly "what's happening" page and it's nearly always free to list an event on that page.  Call the station or paper for information, and mention that you are a nonprofit.  Be prepared to tell them what you support and how in as few words as possible.

Do you have a particularly compelling mission, or are you connected with a high profile cause, such as cancer or heart disease? Ask the radio and TV stations if they will do an interview on an event you are hosting or participating in.  If you are just opening, send out professional looking press releases to the local media.  Often, stations are looking for filler between the headline stories they are covering and will mention you or even offer to interview you, if it's a particularly slow news cycle.

 

Other strategies are less direct.Go to local business meetings.If you will have any paid positions, attend a job fair.  Join any nonprofit organizations in your area or state.  Is the local art council having an open exhibit?  Go there and mingle with the crowd, and introduce yourself to anyone that even makes eye contact. Your introduction should be short but informative. "Hi, I'm Mary Doe, the executive director of the XXX organization."  If they show any interest, hand them a business card which should include your website URL.  Most people will at least look at the card and that cements your name in their consciousness better than a simple introduction, even if they toss the card later.

None of this will break your budget, and it may lead to contacts that you can develop.  At the very least more people will know who you are, which leads to increased credibility when you do ask for money.  

It isn't your money

Grant funding, by definition, is to be used "for the public good".  That is the definition of a nonprofit.  If the money were yours to use when and where you wish, you would be a for-profit.

You may feel that any money you receive will ultimately go toward accomplishing your mission, but there are normally very specific expectations for how the funds are used. 

Struggling nonprofits sometimes fall into a habit that at the very least will assure they lose support in the future.  They receive a restricted grant, but spend the money for things other than what they outlined in their grant application.

 

If you need operating funds, that is what your grant application should request.  If you applied for funding to purchase specific items, or provide specific services, you absolutely can't use it to pay your other bills without the grantor's permission. 

Even some supposedly "unrestricted" grant funding should usually be related to mission-specific spending.  If you suddenly find that you don't need all of the money for the specific purpose for which it was requested, you can either return the excess to the grantor, or apply to them to shift it to another program.  If you have any doubts about what the grantor or donor meant by "unrestricted" you should be sure that you clarify the meaning.

Aside from losing the trust of your grantor, you may also be criminally liable, if the grantor can prove you "knowingly and deliberately" received funds that you knew you were going to spend on something else.  Most courts view that as fraud. 

Tracking the uses of grant funding is a necessity.  Be sure you can prove that you spent it on the right things. 

Can You Fund Raise Without Being a 501(c)(3)?

The short answer to this question is "yes".  Please note that there is a difference between "raising funds" and applying for grants from a foundation or government entity.  The latter does require the 501(c)(3) status almost without exception. 

Many very new or small nonprofits have community fundraisers, or solicit small donations from the general public, and do not have the Internal Revenue Service (IRS) determination letter. Many smaller charities raise funds online without the formal IRS determination letter.   I always suggest to prospective clients that they develop a complete fundraising strategy, and this is where most of them start, or have started previously.  It's the "baby-steps" part of being a successful nonprofit. 

You WILL need to register as a nonprofit corporation with your state, or apply to an approved 501(c)(3) for a "fiscal sponsorship".  As an non-sponsored, state-registered-only nonprofit you are not allowed to state that donations are tax-deductible, which may affect your ability to accept large donations.  

Since each state may have different regulations regarding fundraising and nonprofit registration, you should consult your state attorney general's office or a knowledgeable attorney concerning the requirements for your specific state. 

Fiscal sponsorship allows you to solicit funds, including grant funds from some donors, by utilizing the larger nonprofit's 501(c)(3)status.  In general, you apply for affiliate status with the charity. Some of them will list the requirements on their website, while you may have to approach others with a letter of inquiry, and many do not accept affiliates at all. 

The larger NPO will have basic requirements that may include furnishing them with documentation related to your activities, including program descriptions and budgets, governance, organizational and fiscal history, board member list and proof of state registration. In addition, they may require you to relinquish some control of the program(s) to them, or at least allow them to inspect or review your procedures and provide them with proof of success or impact.  

Again, do your due diligence. There are very specific requirements from both a tax and legal standpoint that you should investigate thoroughly, as well as investigating the fiscal sponsor  to be sure they are reputable, well-run, and representative of your goals.  If possible, try to meet personally with them, since you will be working very closely with their staff. As in any relationship, the chemistry has to work for both sides.