How do you negotiate contracts with non-profit funders?

1 Know your funder

Before you enter into a negotiation, you should do some research on your potential funder. What are their goals, priorities, and values? How do they evaluate and monitor their grants? What are their reporting and compliance standards? What are their expectations for outcomes and impact? Knowing your funder's perspective and interests will help you tailor your proposal and pitch to match their needs and preferences. It will also help you avoid any misunderstandings or conflicts that could jeopardize the relationship.

2 Know your value

Another important step before negotiating is to know your own value and worth. What are the benefits and advantages of working with your organization? What are the costs and risks of not working with you? How do you measure and demonstrate your impact and effectiveness? How do you differentiate yourself from other non-profits in your field or sector? Knowing your value and worth will help you communicate your strengths and achievements to your funder. It will also help you set realistic and fair expectations for the contract terms and conditions.

3 Know your limits

While you want to be flexible and adaptable in a negotiation, you also need to know your limits and boundaries. What are the minimum and maximum amounts of funding that you can accept or request? What are the essential and negotiable aspects of the contract, such as duration, scope, deliverables, milestones, and payments? What are the deal-breakers and red flags that would make you walk away from the negotiation? Knowing your limits and boundaries will help you protect your organization's interests and integrity. It will also help you avoid wasting time and resources on a contract that is not feasible or desirable.

4 Build rapport and trust

Negotiating a contract is not only a technical and financial process, but also a relational and emotional one. You need to build rapport and trust with your funder throughout the negotiation. How can you do that? You can use active listening, respectful language, positive feedback, and open-ended questions to show your interest and understanding. You can also use stories, examples, and testimonials to show your passion and credibility. You can also use humor, empathy, and appreciation to show your personality and warmth. Building rapport and trust will help you create a positive and collaborative atmosphere for the negotiation. It will also help you establish a long-term and mutually beneficial partnership with your funder.

5 Seek win-win solutions

The ultimate goal of a negotiation is to find a win-win solution that satisfies both parties. How can you achieve that? You can use problem-solving, creativity, and compromise to find common ground and address any challenges or concerns. You can also use trade-offs, incentives, and concessions to balance the value and risk of the contract. You can also use data, evidence, and logic to support your arguments and proposals. Seeking win-win solutions will help you reach a fair and reasonable agreement with your funder. It will also help you foster a positive and productive relationship with your funder.

6 Confirm and follow up

The final step of a negotiation is to confirm and follow up on the contract. You should review and verify the contract details, such as the amount, duration, scope, deliverables, milestones, payments, and reporting. You should also sign and file the contract documents, such as the grant agreement, the budget, and the work plan. You should also thank and acknowledge your funder for their support and cooperation. Confirming and following up on the contract will help you finalize and secure the contract. It will also help you maintain and enhance the communication and trust with your funder.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?