When is the Price of Grant Funding Too High?
Image: Matt Blease
In over ten years of writing and managing grants I have learned how important it is to help clients determine when to walk away from a grant opportunity. I know that might sound like heresy coming from a fundraiser! But believe me - there are times when it’s right to say no, thanks. Here are the two questions I ask clients most frequently when they’re grappling with a funding opportunity that just might not be right for their organization.
The donor wants to fund your grassroots organization. Do they understand and respect your capacity limitations?
This issue has risen to the top of a long list of grievances I’ve developed with the way institutional philanthropy sometimes works. I am happy to say that over the last couple of years, I have witnessed a shift in the valuation of nonprofit needs (namely, to be able to pay employees a living wage). But the trend still skews toward a model wherein the power rests with the donor. In this model, the donor (foundation / corporation / government entity) gets to decide which causes are most worthy of funding, while the implementation team (nonprofit organization) gets to mold itself to the donor’s desires in order to collect the funds that move their work forward.
The situation tends to look like this:
Hey, nonprofit org. We would love to give you $X to implement XYZ program in ABC region. You’ll just need to track the grant in this specific way, report on it through this specific platform at these specific intervals, and join us at this specific convening (where we will share your name alongside ours). Oh, and we won’t be able to cover any administrative costs associated with this. But it’s a big grant and a great opportunity!
When something like this presents itself, it can be hard to push back. But if the opportunity comes with too many expensive entanglements - for example - it requires that you hire additional help to meet all of the deliverables or track all of the funding requirements…it might be time to reevaluate. In a world where funds are often in short supply, it’s never easy to walk away. But sometimes it ends up being more expensive to do everything a donor requires instead of moving on to the next opportunity in search of the right fit.
Do you want to align your brand with this partner?
I think it’s important for nonprofits to remember that they alone have the power to implement the work donors are mandated to fund (through foundation charters or corporate giving strategies, etc.).
For example: You are working to expand the accessibility of clean transportation in your region, and you find a donor who needs to give away $X per year to organizations working to find solutions for clean and accessible transportation. You would do well to remember that the donor cannot fulfill their mandate without organizations like yours.
Institutional giving should be a two way street. When it doesn’t feel that way, that’s a red flag. In short - know your value. Ask for what you need. Clearly share your reasons for those needs. Be open to opportunities for partnership. But don’t deviate from your mission just to check someone else’s box.
So the next time you’re asked by a donor to do something that feels out of alignment with your mission or beyond your capacity, remember your value and what you’re fighting for. Don’t sell yourself short. The right fit is out there!
