Because grant writing is one of my services, I often talk with people about their expectations regarding grants. Through these conversations, I have come to realize that grants are somewhat misunderstood by both for-profit companies and nonprofits. However, you will have a much easier time writing a grant proposal (and will be more likely to get funded) if you clearly understand what grants can and cannot do for you. Here are some myths I’ve heard, and the truth behind them.
Myth #1: The Federal government has grant funds available to help your for-profit business.
The Federal government may offer grant funds for a business to carry out certain specific tasks, but does not provide funding to help you start or grow your business. They may, however, issue loans for this purpose. For more on this topic, see this Grants.gov article, “Who Is Eligible for a Grant?” If you want to investigate government grant funding, check out the Grants.gov home page. You can look for grant opportunities outside of those offered by the Federal government at the Foundation Center website.
Myth #2: Once you have secured grant funding, you can access it year after year.
Typically, you need to reapply for funding each year, and funders can (and do) deny funding after awarding it in previous years.
Myth #3: Once you have secured funding, the hard part is over.
Throughout the grant period, you need to manage funds so that the money is spent in the way it is spelled out in the grant. You also need to prepare and submit financial and other types of reports, some of which may be fairly extensive. If you are managing several grants, reporting can take up a good portion of your time.
Myth #4: Grants provide the majority of funding for nonprofits.
Savvy nonprofits know that grants can provide a certain portion of funding, but that a strong donor base is the best and most consistent source of revenue available. The ideal arrangement is a combination of the two.
Myth #5: You can specify what you want a grant to cover.
You cannot create a grant to suit your needs. Funders have goals, and create grants to meet them. They look for organizations that can carry out the work necessary to do so. Potential grantees should look for funders whose goals they can meet through their programs.
What other grant myths can you think of? Let me know in the comments!
About the Author: Karen Marcus, M.A. is a Northern Colorado copywriter who has been helping clients in a wide range of industries to put their best word forward for 13 years.
Need assistance with a grant? Karen can help! Click here for contact info.
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