Right Sizing Grant Applications

Have you ever spent way too long on something?

My mind goes to a meal I spent hours preparing, that received a lackluster reception from the family. "It's okay..." they say as they push it around the plate with their forks. Sometimes, the easy, quick, healthy meals are better than the elaborate homemade ones. You have know your audience!

Having spent time in philanthropy as well as assisting nonprofits with grant writing, I see the tension in right sizing grant requests. How much information is necessary and how much is too much?

Both philanthropists and nonprofits have their own strategic goals, and are responsible for stewarding their resources well:

• Philanthropy exists to serve nonprofits, and the public, through grantmaking and direct charitable activities.
• Nonprofits exist to serve the general public through programs and services.

Understanding Philanthropy

Philanthropists come in all shapes and sizes, so generalizing is difficult. There are large private foundations with specialized staff, smaller private foundations, community foundations, corporate givers, donors operating primarily through donor advised funds, individual donors, giving collaborations, and the much maligned government sector.

According to Money Well Spent: A Strategic Plan for Smart Philanthropy, some donors will be major funders, and others minor contributors. Funders who are value based, small-operations will often operate more in a supporting capacity, funding good work through smaller grants and lighter due diligence. Donors who want to be more strategic in their approach (for example, shaping a nationwide solution by addressing root causes) are less casual and emotional in their granting since "...high-impact philanthropy is not a one-person, part-time operation. It usually requires at least some professional staff." Both approaches are valid - as are the many in between.

Minor contributor donors are responsible for managing their funds in alignment with their values and budget. They may often have a niche focus, closely related to the values or passion of their original donors. They are more likely to have shorter application processes and only extend applications to established connections.

Larger donors are often accountable to boards and budgets. Not only are they interested in the theory of change of their grantees, they have their own theory of change and endeavor to operate strategically through grantmaking. Submitted proposals will thus need to provide some data points for connecting with the grant maker's theory of change. Proposal content can be shaped by many stakeholders: board or committee desires for certain information, legal due diligence needs, program staff due diligence needs. It's easy for a proposal to become a bit unwieldy!

Understanding Nonprofits

Nonprofits also come in all shapes and sizes.

Larger organizations have robust staff able to quickly handle and pull up needed information: Executive Director, CFO, Grant Writer, Foundation Relationship Manager, Program Staff, etc. Though they accept individual donations, a large portion of their operations and programs are funded through large and mid-sized donors - both individuals and institutions.

Smaller organizations are often the most cash and time strapped. The founder is also the Executive Director who manages the budget, the staff, and the programming, and attends fundraisers and oversees the writing of grant requests, if they are ready for grants.

Mid-sized organizations lie somewhere in between. They may get sizable grants, but also rely on smaller grants and smaller donations. Several of their staff wear multiple hats, but no one person does it all.

As nonprofits manage their many priorities, they must weigh and balance grant writing. How much is this request likely to result in? How many hours will it take to complete? How burdensome is the reporting? Is this likely to be a repeat funder? Are our missions in alignment?

So how can philanthropists right-size a grant application?

PEAK Grantmaking (excellent organization for grant makers!) published an article "Rightsizing Application and Reporting" with some of the following suggestions:

1. Know the net grant. If your grant request takes 10+ hours to complete, and nets less than $5,000, nonprofit staff may be spending more time on your application than it's worth.
2. Figure out what information you really need. Do you really need all of the information from all grantees? Should you be collecting in stages to avoid a burdensome process for someone not likely to receive a grant?
3. Simplify the application process for certain grantees. Are there some grantees based on size, funding type, or relationship, that could use a simpler process?

In the next article, we can look at some of the creative ways grant makers have simplified their process for grantees, while still capturing the information they need for due diligence.

Before moving on, consider asking yourself, what type of philanthropist are you?

Do you have the time, expertise, and staff to act as a strategic philanthropist? Or are you a supporting, minor contributor? Both are valuable, but it's important to identify which one you are.