What you should know about grants

A few weeks ago, near my hometown, this went down.

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BUFFALO, N.Y. (WIVB) - New York Attorney General Eric Schneiderman has charged an ex-felon with stealing more than $200,000 from Buffalo churches, charities, and other community groups by posing as a grant writer.

Christina Sanford Gordon, 47, is charged with grand larceny and scheme to defraud after, Schneiderman said, she convinced 30 community groups to hire her and she would obtain large state grants for them-the largest in excess of $3 million.

See full story here
http://www.wivb.com/news/local-news/atty-gen-phony-grant-writer-brilliant-and-stupid/1083211932

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It is true ~30 community organizations in wesetern new york are out of their money. They were scammed. No doubt about it. I feel for them. I really do.

However – They did not know what to look for when thinking about grants and grant writing. Here is my general advice for those looking for a consultant (yes, I know it is long, but could not control myself. I have to speak out.):

1. Do your homework. Do whatever it is you have to do to be sure that you are working with a reputable firm or consultant... be it referrals, references, professional associations, etc. Most professionals are members of several organizations like Grant Professional Association (GPA) or Association of Fundraising Professionals (AFP). I am a member of GPA, AFP, and the American Evaluation Association (AEA). For my firm, E. B. Howard Consulting, I am adamant that we adhere to those association’s standards and code of conduct with the idea that if we are going to do it, we are going to do it right or not at all.

2. Grant writers CANNOT imply or promise any guarantee that your grant proposal(s) or projects will be funded. They have no control over the outcomes. It sounds like this woman did that. She sold them pie in the sky idea that the lottery ticket for them was guaranteed. Along with providing FAKE award letters.

3. Grant writers WILL charge a fee for service – this means they will bill for developing and coordinating the paperwork for a proposal. If you hire them to write a grant; they are going to charge for it. Regardless of the outcome. We bill for services rendered the day the proposal is submitted to the funder.

4. Grant writers should encourage the organization to submit the proposal. A consultant should NOT be submitting on behalf of the organization (there are rare exceptions to this). That is not to say we won’t help a client submit the proposal. Upon request, we are present day of to hold hands and answer Q’s. We get it. Submitting a proposal can be complex. Ultimately – you, the client, should be one pushing the submit button.

5. Grant writers should provide drafts and solicit input and feedback from you. They should not develop a proposal in a vacuum. The proposal impacts you. You should be involved every step of the way. You should have final copies of what was submitted. For us... we insist on regular project meetings to ensure that project or proposal is on track and speaks to what you are trying to accomplish and ensure that you have final copies.

6. The proposal belongs to you, not the grant writer. Your name will be on the proposal. You should be receiving all correspondence from the funding agency; NOT THE GRANT WRITER. After all, IF it is awarded, you will be the one entering into a contract with the funding agency. Again, be sure you know what you are agreeing to with that proposal.

7. This is a BIG ONE and many people are going to say that she should have been paid after the grants were awarded. Grant writers CANNOT do work on a contingency basis or on spec. Not only is there no control on how the funders award a grant, but there are laws and regulations stating such. Contingency payment or commission payment for grant writing is an un-allowable expense with public dollars and is expressed in detail in the OMB Grants Management Circulars. Additionally, you cannot pay for services rendered after the grant award out of those grant awarded dollars. This goes against Generally Accepted Accounting Principles (GAAP), which state that fundraising services should be paid “at the time services are provided”. Should an organization be audited, the organization would then have to repay the amount paid out to the consultant back to the funder, plus fines, plus possibly lose the grant and/or face federal jail time.