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This morning my mentee talked with me about a gig she was offered. Here are the parameters the client suggested:
Client needs $11,000 for international travel for the family
Client wants mentee to apply for grant funding for $15,000
Client wants to pay mentee the balance of the grant, after expenses for travel purchase (So, suggesting a $4,000-ish paycheck)
Can you identify the red flags in this scenario?? I see several:
It is extremely unethical for a grant writer to be paid for work in this way. Here are some reasons why:
Misuse of Funds: Grant funds are typically allocated for specific projects or purposes that align with the funder's mission and objectives. Using these funds to pay grant writers diverts money away from the intended project and can be seen as misappropriation of resources.
Conflict of Interest: If grant writers are paid from the grant they helped secure, it can create a conflict of interest. Grant writers might prioritize securing grants that offer them payment rather than those that best align with the organization's mission or needs.
Noncompliance with Grant Terms: Many funders explicitly prohibit using grant funds for administrative costs, including grant writing fees. Violating these terms can result in penalties, the need to return the grant money, or damage to the organization's reputation, making it harder to secure future funding.
Undermining Transparency and Accountability: Ethical standards in grant management emphasize transparency and accountability in how funds are used. Paying grant writers with grant funds can obscure the true costs of running a program and make it harder to demonstrate to funders and stakeholders that funds are being used appropriately.
Impact on Nonprofit Sustainability: Relying on grant funds to pay for grant writers can create a cycle of dependency, where the organization becomes overly reliant on securing new grants to cover operational costs. This can be unsustainable in the long term and divert focus from building a diverse funding base.
Potential Legal Issues: In some cases, using grant funds for purposes not outlined in the grant agreement can result in legal consequences. This misuse can be considered a breach of contract, leading to legal action or the need to repay the funds.
While grant writing is a necessary and valuable service, it should be funded through the organization's operational budget or other unrestricted funds, ensuring ethical compliance and financial integrity.
A couple of other challenges - which aren’t necessarily red flags - include:
Many funders won’t pay for travel - let alone international travel. My mentee will find it difficult to find funders who align. Additionally, I don’t know of ANY funder who will pay for family members who aren’t directly involved in the work to be done in the receiving country. The funder will view this setup as paying for a family vacation. Granted, I’d love for someone to pay for a family vacation - but grant funders will see this as a conflict.
Here is my process for those who might consider hiring Growing Good Consulting for grant research and writing:
Grant research is a set price and gets you a list of 8-10 funders who align with your organization in general or if you are seeking funds for a specific project, then funders who align with your project. When I look for funders and grants, generally speaking, I like to find opportunities for at least ten-fold of what the org needs. This is because a 10% grant award rate is typical.
Growing Good Consulting will start the research process after payment is received.
Grant writing services are more nuanced,
and I price the service based on the specific grant you want written. This is because I don’t want to undercut my time, and I don’t want to overcharge your organization. If the grant is 5 pages with a Community Foundation, then it will be cheaper than if it’s a 40-page grant with the federal government.
In this case, Growing Good Consulting would write the grant and pass it back to the organization to submit and manage. The service would have to be paid upfront, and if you have a deadline that is sooner than 30 days out, the price doubles.
Again, work starts after payment is received.
Do you need grant writing or research done for your organization? Click here to schedule a FREE 15-minute consultation.
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