Working with Grantees

What to Require of Grantees

council-webteam — Sun, 10 Nov 2013 19:50:03 +0000

What to Require of Grantees council-webteam Sun, 11/10/2013 - 14:50

What to Require of Grantees

Good relationships between grantmakers and grantees promote more effective philanthropy. But there's nothing that can mess up a good partnership faster than an overzealous lawyer. In seeking to protect their foundation clients, lawyers can sometimes impose excessive requirements on grantees, forcing them to spend unnecessary time and money. While grantmakers should always pay attention to their lawyers' advice, here are some legal recommendations you might want to question.

Requiring grantees to "re-certify" tax-exempt status

Most grantmakers wisely ask potential grantees to provide a copy of their determination letter from the Internal Revenue Service (IRS). The letter, sometimes called "the 501(c)(3) letter," states the IRS has determined that the organization is exempt from federal income tax under Section 501(c)(3) of the Tax Code. Alternatives to asking for the determination letter include verifying charitable status through IRS publication 78, IRS Business Master File, or by using a third-party provider such as GuideStar that receives information directly from the IRS. All of these online sources will actually provide more updated information than an IRS letter of determination and reduce the burden on the grantee.

Some attorneys unwisely suggest that if a grantee's determination letter is more than a few years old, the foundation should require the organization to request an updated letter from the IRS. But in addition to being a time-consuming and expensive undertaking, in most cases, it is absolutely unnecessary. Generally, determination letters are valid until the IRS acts to revoke them. This is true whether the letter is from 1992, 1952 or even 1922. And it's true even if the Tax Code section referred to in the determination letter is Section 101(6), the predecessor to Section 501(c)(3).

A more thoughtful approach is to insert a provision in any grant agreement that the grantee (1) affirms its tax status is as set forth in its determination letter, and (2) pledges to notify the grantmaker if there is a change in this status. In addition, it may be prudent to periodically check continued charitable status with the IRS through one of the online sources noted above. If using IRS Publication 78, be sure to also check the lists of recent revocations for the most current information.

Requiring grantees to sign lengthy grant agreements for small, general purpose grants

Not all grants require extensive documentation. A small, general purpose grant to an established 501(c)(3) organization probably does not require much more than a cover letter that sets out, for public acknowledgement purposes, (1) the grant amount, (2) the purpose of the grant, and (3) the name of the grantmaker. However, public charities report that they often receive dense, multipage agreements in connection with such grants.

And while there may be nothing objectionable in these agreements, the grantee's managers may not wish to commit to the terms of the agreement without checking with a lawyer, because such a consultation may cost more than the grant itself! Foundation managers, in turn, report that their lawyers demand they use these complicated forms.

Foundations that regularly use grant agreements should have their counsel review those agreements periodically and should seek legal advice when a particular proposed grant raises complicated issues (ownership of intellectual property, for example).

Part of the advice that foundation counsel can, and should, provide is guidance on when extensive grant agreements are not necessary.

Requiring grantees to sign overly restrictive "no lobbying" grant agreements

Too often, grant agreements that accompany foundation grants to 501(c)(3) public charities bar recipients from using any of the funds to lobby government officials. In most cases, this restriction is not necessary and creates an accounting headache for the grantee.

While private foundations are quite restricted in the types of lobbying they can do and the subjects on which they may try to "influence legislation," public charities are much freer to communicate their positions on a variety of issues. A private foundation may not earmark a grant for lobbying efforts, but it certainly may provide a general support grant to a public charity that lobbies. Generally, these grant funds may be used for lobbying without the foundation being penalized. A foundation may even make a special purpose grant to a public charity for a project that involves lobbying, so long as the foundation's funding does not exceed the nonlobbying portion of the proposed activity's budget.

When a grant agreement forbids the recipient from using any funds for lobbying, the grantee must carefully segregate the foundation dollars in order to comply with the terms of the grant. The result may be that such a restriction can discourage a charity from getting involved in public policy debates on issues relevant to its charitable mission.

There are very limited circumstances in which a private foundation’s grant agreement must prohibit lobbying with grant funds. This occurs when a private foundation makes a grant to an organization that is not a 501(c)(3) public charity or when the private foundation makes grants to certain types of supporting organizations.

In these limited cases, the private foundation, generally, must exercise expenditure responsibility in connection with the grant. Part of this process is executing a grant agreement that bars the recipient from using grant funds for a number of noncharitable purposes as well as influencing legislation. In general, however, there's no reason to import this prohibition on lobbying into a general purpose (non-expenditure-responsibility) grant agreement.

As public charities, community foundations and public foundations have much more flexibility in funding lobbying activities. Community and public foundations may earmark grants for the purpose of lobbying so long as the grantor foundation counts the earmarked grant as its own lobbying expense. In addition, community and public foundations may take advantage of the general support and project grant rules described above to make grants to public charities that may engage in lobbying without counting such grants against the foundation’s own lobbying limit. In any of these cases, the grant agreement does not need to prohibit the use of grant funds for lobbying.

Ensuring that grantees are freed from unnecessary administrative burdens is a first step in establishing a good working partnership between grantmakers and grantees. The foundation's legal counsel can play an important, positive role in making this happen.

Grant Agreements: the Basics

In most cases, it would be perfectly legal for a foundation to put a check into an envelope and send it off to a charitable 501(c)(3) organization without any further paperwork. But sending a check by itself is not necessarily a good idea. Here are some thoughts on what a minimal cover letter should contain and suggestions on what a well-drafted grant agreement will address.

The Bare Bones Approach

At the very least, a foundation should include, with its check, a cover note that identifies the foundation, notes the amount of the check and specifies the purposes for which the grant is made (general support, scholarships, etc.). If there are any simple grant conditions in the letter (for example, that the grantee must inform the foundation if there are any changes in its tax-exempt status or that the grantee must return any funds that are not spent for the purposes of the grant), the letter may state explicitly that by cashing the check the grantee agrees to such conditions. Generally, this will eliminate the need for the grantee to countersign and return a copy of the letter. Such a transmittal letter might be all that is required for a general support grant to a long-established, publicly supported charity.

A More Expansive Approach

Other grants may benefit from more extensive documentation that clarifies the terms of the relationship between the grantmaker and grantee. While every grantmaking situation will be different, it is possible to generalize about the areas that a well-drafted grant agreement will cover. The basic goal is to describe the extent of the grantmaker's commitment and inform the grantee of its responsibilities. Following is a listing of essential provisions that a grant agreement should almost certainly contain as well as some provisions that may be appropriate depending on the situation.

Essential Elements

A description of the purposes for which the grant funds are to be spent, including a reference to all or part of the grant proposal (activities, budgets, timetables, etc.), if appropriate. May explicitly limit use of funds to charitable purposes. May also bar use for carrying on propaganda and influencing the outcome of any specific public election (note that as a general rule and in connection with general support grants, lobbying and influencing legislation need not be barred).
Provisions that state the amount and timing of payments.
A clear description of any conditions that need to be met to secure the entire amount of funding under this agreement.
Provisions relating to repayment of unexpended or misdirected funds.
A summary of reporting requirements, including financial accounting provisions. If necessary, attach a model report and specify that reporting must be substantially in this format.
Description of conditions under which the grant may be terminated and the consequences of such termination.
Designation of responsible individuals at grantmaker and grantee organizations.
A statement in which the grantee affirms that its tax status is as set forth in its determination letter from the IRS and pledges to notify the grantmaker if there is a change in status.
Language that provides that by signing the agreement, the grantee agrees to be bound by its terms. May also add that the agreement represents the entire understanding between grantmaker and grantee and supersedes all prior writings and understandings.

Provisions that May be Desirable Depending on the Situation

Restrictions on re-granting, including grants to individuals.
Information about the grantmaker's own evaluation process.
Discussion of how the grantmaker wishes press releases or other publicity about the grant to be handled.
Treatment of copyrights and other rights in materials produced as a result of the grant.
Information about the grantmaker's expectations regarding grantee's organizational behavior, commitment to inclusiveness/nondiscrimination in employment, and/or provision of services.

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IRS Search Tool: Select Check

council-webteam — Thu, 07 Nov 2013 21:47:57 +0000

IRS Search Tool: Select Check council-webteam Thu, 11/07/2013 - 16:47

IRS Search Tool: Select Check

Grantmakers searching for more detailed information about the charitable status of their potential grantees may find the answers they need in the IRS Select Check tool.

This IRS online search tool allows the user to:

(1) search the IRS public charity list, known as IRS Publication 78, for data to determine if an organization is charitable;

(2) determine if an organization has filed a Form 990-N (required for smaller charities); or

(3) identify if an organization has had its tax-exempt status automatically revoked because it has not filed its Form 990 for three consecutive years.

This search portal also allows grantmakers to search organizations by a number of categories. An added bonus is that the data is updated monthly, instead of quarterly. This should provide grantmakers access to more timely and accurate information.

Help for Grantmakers to Supporting Organizations
One updated feature expected to be popular with many grantmakers is the ability to see the IRS classification of a grantee’s supporting organization status. Previously, grantmakers often could not learn a supporting organization’s exact type through Publication 78. Using Select Check, grantmakers are able to view whether a potential public charity grantee is a (1) Type I, Type II, or functionally integrated Type III supporting organization; (2) a non-functionally integrated Type III supporting organization; or (3) a supporting organization of an unspecified type. Unfortunately, many supporting organizations will be listed as “unspecified type.“ Despite this limitation, the new data may allow foundations to avoid having to search the more cumbersome EO Business Master File to determine whether a grantee is a supporting organization. This is important for private foundations and public charities making grants from donor-advised funds because grants to some of these types of public charities require the grantor foundation to follow the expenditure responsibility rules and not count the grants toward their minimum distribution requirement. These restrictions apply if the grantee is:

A Type III non-functionally integrated supporting organization
Any type of supporting organization, if one or more disqualified persons of the private foundation control directly or indirectly either the supporting organization or an organization supported by the supporting organization.

Users may rely upon the data in Select Check to determine if these additional steps are required. The Council's online Pension Protection Act resources provide additional background on these rules.

Reliance on Search Tools
IRS guidance (Revenue Procedure 2011-33) provides that grantors may rely on the data found using Publication 78 data, or the Exempt Organizations Business Master File data to determine if the organization is a charitable organization and whether or not it is a supporting organization. However, the guidance is clear that grantors cannot rely on such data if the IRS has subsequently publicly announced the change in status through the Internal Revenue Bulletin, its website, or other means. For this reason, grantors should consult the automatic revocation list available from Select Check when conducting their due diligence. The one caution with the automatic revocation list is that once an organization is placed on that list, it will not be removed from the list even if its charitable status is later reinstated by the IRS (unless the initial listing was erroneous). For this reason, if a potential grantee appears on the automatic revocation list, and believes its public charity status has since been reinstated, prior to making a grant, foundations should obtain documentation of the grantee's reinstatement. Such documentation could include evidence that the grantee is currently listed on Publication 78, a ruling date in the Business Master File, or on the grantee's new letter of determination that is dated later than the automatic revocation date. Foundations can also confirm an organization's status by calling the IRS (toll-free) at 1-877-829-5500.
IRS guidance also confirms that organizations may continue to rely on data obtained from third parties like Guidestar so long as the grantor receives and retains a report that includes:

(A) the potential grantee's name, employer identification number, foundation status under § 509(a)(1), (2), or (3) (including supporting organization type, if applicable), and whether contributions to such organization are deductible;

(B) a statement that the information is from the most current update of the Exempt Organization's Business Master File (BMF) extract and the BMF extract revision date; and

(C) the date and time the information was provided to the grantor.

The Council encourages all private foundations and public charities making grants from advised funds to understand the rules for grants to supporting organizations and put due diligence procedures in place to determine when expenditure responsibility is required. Hopefully, this new tool will make the process a little easier.

For more information, see the IRS’s Select Check Frequently Asked Questions.

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How Foundations Can Partner with USAID

JasonLudwig — Thu, 14 Mar 2024 20:34:11 +0000

How Foundations Can Partner with USAID JasonLudwig Thu, 03/14/2024 - 16:34

How Foundations Can Partner with USAID

Foundations have been partnering with USAID in a variety of ways to advance locally led development, and below are how some of those partnerships are being executed. For member foundations interested in working with USAID on their own locally led development initiatives, Council on Foundations staff is available to help connect those foundations with USAID staff to begin exploring ways they can work together.

In 2023, 15 global foundations joined with bilateral donors to endorse a Donor Statement on Locally Led Development. Since then, we've seen steadily growing momentum for establishing both informal and formal partnerships between philanthropy and government aid agencies.

Establishing a Formal Partnership with USAID

Foundations are increasingly establishing formal partnerships with USAID, utilizing Memorandums of Understanding (MOU) to collaborate on a range of activities. Some examples of these partnerships between foundations and USAID include:

Conrad N. Hilton Foundation: Through this agreement, USAID and the Hilton Foundation will identify and apply their respective organizational strengths to advance locally led efforts in areas of shared interest, such as early childhood development, youth empowerment, disaster response and humanitarian assistance, safe water systems, and engagement with faith-based and community organizations. The two organizations will leverage their convening power, share networks, and coordinate outreach to mobilize U.S.-based and global philanthropies, civil society, and other stakeholders to prioritize elevating local leadership of development and humanitarian assistance.
Hewlett Foundation: USAID signed a Memorandum of Understanding with the William and Flora Hewlett Foundation and the Center for Global Development (CGD) focusing on approaches to evaluation and evidence-generation. The partnership launches USAID’s Evidence Localization Initiative, to begin in Africa, and contributes to USAID, CGD, and Hewlett's broader priorities on advancing evidence-informed policy and locally led development.
Humanity United: Humanity United signed an MOU with the USAID’s Center for Conflict and Violence Prevention establishing a three-year collaboration to work towards advancing best practices related to locally led development and inclusive peacebuilding; facilitating information gathering and sharing through structured feedback sessions with local peacebuilders and USAID Missions; and creating a network of domestic and civil society organizations to provide input and guidance as locally led development practices evolve.
Skoll Foundation: USAID and the Skoll Foundation signed an MOU to explore and evaluate innovative, efficient, and, where appropriate, joint approaches for locally led development, particularly around (a) engaging local intermediaries who serve as fiscal agents or provide administrative support (e.g., payroll, award management, human resources, etc.) to a local network of organizations; and (b) identifying, coaching, and elevating local actors to be better positioned to receive awards from USAID and other donors. Additionally, USAID and Skoll will strengthen collaboration at the local level in USAID partner countries and build multi-stakeholder partnerships, including with additional foundations and likeminded donors, to support health, climate, and gender equality and equity, and optimize investments to address information manipulation, strengthening the resilience of information and media environments. USAID works in tandem with the Skoll Foundation in countries such as Brazil, where they aim to expand the abilities of local actors to execute projects that push forward climate action, biodiversity conservation, and thriving communities in the Brazilian Amazon.

USAID and Locally Led Development

USAID has doubled down on locally led development during the Biden Administration. In November 2021, agency Administrator Samantha Power announced two targets in pursuit of these goals: (a) by Fiscal Year (FY) 2025, USAID will direct a quarter of its funding directly to local partners; and (b) by 2030, at least half of USAID programs will create space for local actors to exercise leadership over priority-setting, activity design, implementation, and defining and measuring results. USAID's FY22 progress report notes that it reached $1.6 billion in direct local funding – a step in the right direction, but far from its targets.

USAID has also released a Local Capacity Strengthening Policy and an updated Risk Appetite Statement, clearly communicating how it intends to support its local partners.

Learn more about how USAID is supporting research and initiatives around locally led development.

Democracy Delivers Partnerships

The Democracy Delivers initiative was launched in 2022 by Administrator Power and U.S. Secretary of State Antony Blinken to bring together partners across sectors that can surge resources to countries undergoing moments of democratic renewal to maximize the likelihood that their democratic gains endure. Foundations who have made commitments to support Democracy Delivers include:

The Ford Foundation, which committed $20 million in new grants to support civic engagement in Moldova and Zambia and to advance the work of democracy-oriented actors in Tanzania and Nepal.
The Rockefeller Foundation, which committed up to approximately $28 million to benefit the Democracy Delivers cohort through rural electrification, climate resilience, food security, and more.

Additionally, in 2023, the following foundations announced investments supporting Democracy Delivers countries and objectives: The Chandler Foundation, The Conrad N. Hilton Foundation, Google.org, Humanity United, The International Chamber of Commerce, The Mott Foundation, The David and Lucile Packard Foundation, The Skoll Foundation, The Tent Partnership for Refugees, The Tinker Foundation, The UPS Foundation, The Vodafone Foundation, and WINGS.

Read more about how foundations have supported global efforts to advance locally led development and democracy in Inside Philanthropy.

Additional Resources About Partnering with USAID

Interested in Partnering with USAID?

The Council can help. Contact govt@cof.org.

Go Back

Return to Locally Led Development Hub

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Shifting Practices, Sharing Power? How U.S. Philanthropy is Responding to the 2020 Crises

emily.moses@cof.org — Tue, 15 Sep 2020 18:29:23 +0000

Shifting Practices, Sharing Power? How U.S. Philanthropy is Responding to the 2020 Crises emily.moses@cof.org Tue, 09/15/2020 - 14:29

Shifting Practices, Sharing Power? How U.S. Philanthropy is Responding to the 2020 Crises

The public health, racial justice, and economic crises of 2020 have affected millions of Americans and laid bare the glaring inequities in our systems and institutions.

A new report from Council on Foundations, Philanthropy California, and Dalberg Advisors outlines how the US philanthropic sector is responding to the 2020 crises — and the opportunities to shift practices and share power to enable communities and the industry to #BuildBackBetter.

We surveyed 250 foundation leaders and conducted more than a dozen in-depth interviews to assess how the sector is changing in three ways: resourcing, priorities, and internal operations. Across all three, we found shifts in practices yet few examples of increases in power sharing.

Download Report

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Sample Agreement for Converting Project Grants to General Operating Support

council-webteam — Thu, 26 Mar 2020 20:44:44 +0000

Sample Agreement for Converting Project Grants to General Operating Support council-webteam Thu, 03/26/2020 - 16:44

Sample Agreement for Converting Project Grants to General Operating Support

In these unprecedented times, grantors may decide that converting previously awarded project-specific grants to general operating grants is the best way to support grantees and enable them to respond to the needs of their respective communities. While current grant agreements can be revised or amended, many project-specific grant agreements contain numerous restrictions and other language that may be inconsistent with the idea of a general support grant. Revising or amending such an agreement may be cumbersome and not ideal for the situation. Another option for grantors is replacing the original project-specific grant agreement with a simpler general support that clearly states its intent to replace and supersede the project-specific grant agreement. Grantors are encouraged to edit this sample agreement to suit specific needs.

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Sample Agreement for Converting Project Grants to General Operating Support

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Grantmaking Application Process Resource Guide: A Grantmaking Primer

council-webteam — Mon, 09 May 2016 19:04:50 +0000

Grantmaking Application Process Resource Guide: A Grantmaking Primer council-webteam Mon, 05/09/2016 - 15:04

Grantmaking Application Process Resource Guide: A Grantmaking Primer

The grantmaking application process is a big lift for foundations and nonprofits, alike. This primer takes a look at streamlining the application process from RFP to grant agreement. Found in the guide is a how-to on creating RFPs, questions to ask during the grant application review, sample acceptance letter, sample declination letter, and a sample grant agreement. Highlighted here, you will also find an innovative example a group of funders from New Mexico (SHARE New Mexico) took in reevaluating their long standing grantmaking application process and the steps they took in creating and implementing a common application. Finally, we invite you to explore the resources and tools available through PEAK Grantmaking's Project Streamline initiative, an effort to assist funders in right-sizing application and reporting requirements, reducing the burden on grantseekers, and seeking feedback to improve grantmaking practices.

Creating a Request for Proposal
Grant Application Review
Innovative Example: New Mexico Online Common Application
Sample Proposal Application Checklist
Sample Grant Acceptance Letter
Sample Grant Declination Letter
Sample Grant Agreement
Project Streamline

Creating a Request for Proposals

Join the Discussion on RFPs for large scale grants

Grantmaking wouldn’t be possible without input from nonprofit organizations in the form of grant applications – but in order to understand what projects are out there, you might need to issue an RFP (request for proposals). An RFP is an invitation to submit a proposal, and may be issued broadly and pushed out through widespread communications, or might be targeted towards nonprofits working on a particular issue area. Especially as you are getting started, you may consider using an RFP to let nonprofits know that your foundation is now open for grantmaking business.

What are the typical items addressed in an RFP?

What is the foundation’s mission?
What is the purpose of the grant program?
Is there background or contextual information about your foundation’s interest in funding this area that would be helpful for potential applicants?
Who and what types of organizations may apply? Do groups need to be 501(c)(3) organizations?
What is the target population for the grant program?
What is the target geography for the grant program?
What is the typical range of grants?
Are there limitations on the grant amounts, terms, or types of funding provided?
What is the deadline to submit applications?
What is the specific process to submit an application? What additional documents are needed?
What will the decision making process encompass?
Who at the foundation will be able to answer questions about the application process?
Is there a website link that you could provide potential applicants with answers to commonly asked questions about the grantmaking process?

Grant Application Review

Learn more about Board Committee Roles and Responsibilities

Reviewing grant applications for the first time can be a difficult and even worrisome process for many board members and foundation staff. How do you ensure that you are funding the right projects? How do you weigh the merits of one project against another? How do you help ensure that projects will be successful? While there are no absolute ways to guarantee a project’s success, the grant proposal should clearly convey to you that the project’s goals are worthwhile, its project plan defined and realistic, and its goals achievable in the defined time frame. The questions below will help you think logically about the project and its goals.

What is the project the applicant is proposing?

What are the project’s goals, and are the proposed activities likely to meet these goals?
Does the proposal clearly describe the project's ongoing activities?
Does it offer insights into how the project will be structured, staffed, and managed?
Does the scope of the project seem realistic and the timeline achievable?

Why is the project being proposed?

What community needs will it address? Who will it serve?
What evidence establishes these needs?
What benefits will the target population derive from the project?
Are there any unplanned impacts to the community that might occur as a result?

Where and when will the project take place?

Why was this area selected? When will the project take place?
Will the project have influence or repercussions elsewhere in the community? If it is successful, could it be duplicated elsewhere, or scaled to serve more people?
What is the timeline for accomplishing the work? What are the crucial deadlines that must be met? What will happen if those deadlines are not met?

Who will participate in the project?

Who will the program serve, and is it the right target group given the project's goals?
Who will provide the services, and what are their capabilities?
Does the organization have a strong track record of serving this population or working in this community?
Who on staff will oversee the project, and what are their qualifications?
Are there other organizations working on similar projects, and if so, would the groups consider collaborating?

How will the applicant maximize the project’s success?

Is the project's approach practical and based on best practice?
Have other organizations achieved success with similar projects?
Are there any crucial difficulties the proposal has not anticipated?
At what periods will evaluation be performed, and by whom? How is success defined?

How much will the project cost?

Is the budget adequate to carry out the program?
Is the organization using any of its unrestricted resources to support the project?
Have other funders committed their support?
Does the organization seem financially stable, based on its 990?
How will the project continue after your funding has ended?

Innovative Example: New Mexico Online Common Application

Join the discussion on coordinating grantmaking process with other local funders

Funders are aware of the time and energy nonprofits expend on grant applications—and as funders, we should be looking at creative, innovative, and collaborative ways to ease the application process for nonprofits. Recently in New Mexico, eight of the state’s largest funders, including Council member, the Albuquerque Community Foundation, banded together to create an easy-to-use, online common application that is aimed to improve the grant application system for New Mexico nonprofits. The new process is unique to New Mexico and its ability to prefill grant application forms is innovative to the nonprofit industry.

How did it start?

In early 2015, a group of funders convened at the Albuquerque Community Foundation to discuss ways that funders could best answer the needs of community organizations. A resounding theme that resulted from that first meeting was the need for a common application that organizations could use when applying for funding. While recognizing that funders will require information specific to their grantmaking, all funders also understood that basic information, such as organizations’ mission statements, background information, contact information, board listings, and financial statements would be uniform for any grant request.

In an effort to be most efficient in funding approaches, the group determined to work together on developing an online common grant application that could be universally accessed by both nonprofits and the funders. The first step was finding a site that could develop and maintain such an application.

The Platform: SHARE New Mexico

SHARE New Mexico is an accessible statewide website, which consolidates public and private sector information about a wide range of issues which impact the quality of life of New Mexicans. Initially envisioned by leaders from PNM and the PNM Resources Foundation, United Way of Central New Mexico, and the Bureau of Business and Economic Research at UNM, SHARE New Mexico was created to provide a platform for sharing information and data in New Mexico.

Today, major philanthropic and private institutions have committed funding for SHARE New Mexico; the funding is used to enhance and sustain the website to ensure it is a valuable and reliable resource. Put simply, SHARE New Mexico is a holistically collaborative online hub where organizations, funders, and the general public can freely access information about their communities throughout the entire state.

To this end, SHARE New Mexico hosts Initiatives Pages focusing attention to Early Childhood, Hunger/Food, Housing/Homelessness, Community Health, Aging, and Returning Citizens. In addition, SHARE hosts a community information page for each of the 33 counties in New Mexico and the South Valley of Albuquerque. Since one of SHARE’s goals is to facilitate and support local collaborations, each SHARE County and Initiative pages provide special recognition and resources to support collaborations.

Additional portals include access to available grant opportunities, a public events calendar, volunteer opportunities, socioeconomic data, and a resource directory for the state. Feedback from the community has been strong, with thousands of nonprofits and service providers already registered on the site and thousands of their programs represented. Many funders are also now requiring that nonprofits are registered on SHARE New Mexico in order to receive grants.

Given the technological capacity and the frequency with which nonprofits and funders use SHARE New Mexico, SHARE quickly emerged as the leading candidate to host a statewide common grant application.

The How

To create a common application that was universal while also allowing room for customization, funders met for months prior to the application’s launch and reviewed examples of local grant applications and national grant applications. Through the process, the funders determined questions that were most frequently asked and attachments that were commonly required for any grant proposal. These questions and attachments would serve as the fundamental basis for the common grant application.

Because the funders’ priority was to simplify the grant application to reduce the amount of time involved for nonprofit applicants, the general information required by all funders only needs to be filled in or updated annually at the sharenewmexico.org site. This information auto-populates in any grant opportunity available through the common application, reducing at least one application step for nonprofits. Additionally, administrative attachments – 990 forms, audits, financial statements, board lists, and IRS determination letters – only need to be uploaded once a year and will be available in the SHARE database for any grant opportunity that leverages the common application.

Each funder then has the opportunity to log into the user end of the SHARE grant portal and customize their grant opportunity by adding specific questions or attachments, relevant to that grant request. Additionally, a calendar for all grant cycles is featured with the common application, allowing nonprofits more access to and education of available grant opportunities throughout the state.

The Partners

Efforts like this can never be developed or completed in a vacuum. The list below illustrates the funders who collaborated for months on launching this idea:

Albuquerque Community Foundation
Intel Corporation
McCune Charitable Foundation
Nusenda Foundation
PNM
PNM Resources Foundation
Sandia Foundation
United Way of Central New Mexico

The Outcome

This online common application represents a new consolidated effort to ease the paperwork burden for nonprofits and increase the number of nonprofits applying for the grants available for tackling a wide variety of social, financial and economic issues throughout New Mexico. The online common application process brings innovation to what has been a labor intensive process for nonprofits seeking grants. These efforts are also expected to improve funders’ grantmaking and provide better transparency of their efforts.

Next Steps

By developing the common application, the New Mexico funders took the first step in what they anticipate will be a much larger process in leveraging technology to make it easier for nonprofits and funders to do the important work we do in the community. This includes, sharing resources, data, content and eventually, offering an online grant reporting portal, which the group aims to have developed in 2017.

Sample Proposal Application Checklist

When accepting applications from nonprofits, there are a number of documents and supplemental material they will most likely need to submit. Below you will find a checklist of each of those required documents that are typically requested in an application.

Proposal cover sheet
Proposal
IRS determination letter of 501(c)(3) status
List of board members and their relevant experience
Profiles or resumes of key staff members
Description of staff and board composition
Most recent annual report, if not already provided
Most recent publications, news articles, or other relevant materials about your organization or the funded project
Support letters from outside people or organizations that will participate in the project

Sample Grant Acceptance Letter

Once you have reviewed all of the grant applications that have been submitted and have made your final decisions, you will need to communicate your decisions in writing to the applicants. This sample grant agreement letter can be customized to your foundation.

Download the Sample Grant Acceptance Letter

Sample Grant Declination Letter

Once you have reviewed all of the grant applications that have been submitted and have made your final decisions, you will need to communicate your decisions in writing to the applicants. This sample grant declination letter can be customized to your foundation.

Download the Sample Grant Declination Letter

Sample Grant Agreement

Once you have accepted an application for a grant, you will need to formalize a grant agreement between the foundation and the nonprofit. This sample agreement can be customized to your foundation.

Download the Sample Grant Agreement

Project Streamline

P EAK Grantmaking and a cohort of partners set out to answer two questions: Are nonprofits drowning in paperwork and distracted from purpose as a result of grantmakers' application and reporting requirements? Do the same practices that grantmakers use to increase effectiveness end up over-burdening both grantmakers and grantseekers—and diminishing their effectiveness? The initial report on these questions, Drowning in Paperwork, Distracted from Purpose, examined grantmakers' application and reporting practices and their impact on grantmakers and grantseekers. This report formed the basis for Project Streamline and continues to be used by grantmakers to better understand the flaws in the current system, barriers to change, and principles that grantmakers can adopt to improve their practices.

Project Streamline's Four Core Principles are:

Take a fresh look at information requirements: request only what is used in decision-making.
Right-size requirements: align application and reporting to the size and type of grant.
Reduce the burden on grantseekers: reduce unnecessary and onerous practices.
Have straightforward and clear communication with grantseekers.

PEAK offers 5 Principles for Peak Grantmaking to help grantmakers interested in moving toward more sensible and streamlined application and reporting practices.

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Working with Grantees

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Tips for Effective Grantee Relations

council-webteam — Mon, 16 Dec 2013 21:47:38 +0000

Tips for Effective Grantee Relations council-webteam Mon, 12/16/2013 - 16:47

Tips for Effective Grantee Relations

This checklist for developing effective grantee relations was prepared by Jane Kendall, president of the North Carolina Center for Nonprofits and a trustee of the Kathleen Price Bryan Family Fund.

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Tips for Effective Grantee Relations

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Sample Decline Letter

council-webteam — Tue, 19 Nov 2013 19:03:59 +0000

Sample Decline Letter council-webteam Tue, 11/19/2013 - 14:03

Sample Decline Letter

This sample declination letter can help you inform grant applicants that their grant proposal was not accepted.

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Sample Decline Letter

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Sample Grant Completion Report

council-webteam — Tue, 19 Nov 2013 19:01:59 +0000

Sample Grant Completion Report council-webteam Tue, 11/19/2013 - 14:01

Sample Grant Completion Report

This sample grant completion report may be customized and provided to your grantee partners.

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Sample Grant Completion Report

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Sample Grant Proposal Application Checklist

council-webteam — Tue, 19 Nov 2013 18:26:09 +0000

Sample Grant Proposal Application Checklist council-webteam Tue, 11/19/2013 - 13:26

Sample Grant Proposal Application Checklist

This sample grant proposal application checklist can be customized to your foundation's processes, allowing you to check off each step of the grant application process.