Five Reasons Faith-Based Organizations Fail to Get Federal Funds

When I started writing grants 16 years ago I was very intimidated. I wanted to do a good job for the organizations I worked for because I wanted them to get the funding.

In this industry, practice makes the difference. The more grants I wrote, the more confident I became. But what gave me the most confidence was reviewing grants. It taught me what to do and what not to do. It also gave me invaluable insights into the competition, which I used to help my clients.

Over the years, I noticed there was a disparity in the successful applications. In particular, among the faith-based organizations (FBO). It’s not that the federal government doesn’t want to fund faith-based organizations, they do. It had more to do with the quality of their proposals.

My initial motivation for entering the grant writing field was to help faith-based organizations, especially churches, gain the skill sets to obtain federal funding. So, I can’t overlook this teaching opportunity.

There are five common mistakes I find among the proposals from FBO.

  1. Lack Capacity –one of the fundamental things the Feds want to see is whether or not an applicant has the capacity to implement the programs at the level expected. They measure capacity from an organizational standpoint as well as a fiscal standpoint. Applicants need the human resources and financial resources, and many FBO lack both.
  1. No Structure – Feds want to ensure the organization is sound and has competent leadership in place. Many FBOs fail to demonstrate the competency and relevant experience of their board of directors. Whether the board is a governing board or an advisory board,  they need to possess the right skill sets and experience to ensure the success of the organization. Feds want to see executive level experience and the financial qualifications necessary to manage a substantial, and many times, multi-million dollar budget. Therefore, it’s important to demonstrate who is on your board and why, and their roles and responsibilities. Many FBO have a board of directors on paper only. They were only chosen to fill the mandated slots as recommended by the Secretary of State, not to have any key role in the decision making process.
  1. No Strategy – many FBO cannot demonstrate they have a strategy for the long term. Typically, they form out of necessity to meet an immediate need in their community. They operate from survival mode and rarely take the time to develop a viable strategy. Feds want to see your goals and objectives, which must lead to sustainable, measurable outcomes. If you don’t have a strategy, then it’s hard to ensure a positive outcome.
  1. No Funding – part of demonstrating fiscal capacity is the availability of multiple streams of revenue. If you’re solely dependent on the funding in which you’re applying, that doesn’t assure the feds of fiscal capacity. Grantees must be able to demonstrate that their programs can function as intended until the funding is available for drawing down. Federal grant funds are reimbursable, which means you have to perform the work first and then get paid.  It’s also not a good idea to be solely dependent on grant funds – fed money or otherwise- to operate your organization. It helps to consider other means for generating revenue. Many FBO don’t diversify their funding streams, so when the grant funds expire, so do their programs. No funder wants to invest in an organization that is not going to be able sustain itself beyond grant dollars.
  1. No Programming – Feds want to see that organizations are implementing programs that have been proven to work, especially among their proposed target population. They typically require their grantees to utilize evidenced based programs and strategies. Unfortunately, many FBO confuse ministries with programming. They’re not the same. Programs are strategic and structured. They also yield an expected, sustainable outcome. Ministries generally operate from a need-based approach, and often times their efforts aren’t evaluated.

Now, having identified these common mistakes, please know there is hope. There are many faith-based organizations getting federal funds. I just want to ensure that even more organizations can access those funds.

I’m opening registration this week for a new coaching program that specifically targets faith based organizations. I’ll work with 10 faith-based leaders who are ready to elevate their organization and programs to the next level.

Check out this link to get more information.

Until next time…

Peace & Blessings!

It Takes a Village to Run a Successful Nonprofit Organization

One of the most valuable lessons I learned while working in substance abuse prevention is that good prevention programs can’t operate in silos. What that means is you can’t work alone. You need others to be successful.

Yet, I’ve too often encountered nonprofit leaders who don’t want to work with other organizations. They don’t usually say that, but their actions do. This lack of cooperation becomes extremely detrimental when they pursue grant funding. Funders want you to play nice with others. The technical term they use is to “collaborate.” Every request for proposal you read will ask you to describe your community partners.

Community partnerships take on various forms. The most common form is the use of volunteers. They’re primarily used for programmatic and administrative purposes. Helping kids with homework, setting up for events, making calls, answering phones, making copies, etc.

Volunteers also function in more official capacities like serving on boards of directors. Unlike most for-profit corporations, nonprofit organization’s board of directors are comprised of volunteers. However, these roles require a greater depth of expertise and credentials.

You should also consider going a step further to form steering committees and advisory boards. These can work in conjunction with your board of directors. Many board of directors are for governing purposes, but advisory boards can help set guidelines for programmatic activities.

As the CEO or Executive Director of your nonprofit organization you want to set yourself up for success. There is no better way to do that than by recruiting the right people to help you.

Here are some suggestions to help you do this effectively:

  1. Set some goals. What are three to five key things you need to accomplish with the organization. Think big picture. Consider the long-term, not just immediate needs.
  2. Determine the expertise necessary to accomplish those goals. Who are the experts in your field that you will need to accomplish your goals?
  3. Identify key sectors that need to be involved. Which stakeholders must be at the table? (i.e. schools, law enforcement, churches, parents, etc.)
  4. Develop a recruitment strategy. Check your sphere of influence. What people do you know that can help attract the people needed from each sector?
  5. Articulate what’s in it for them. It could be a big picture appeal or an individual appeal. Some people care about service and making a difference, others are motivated by personal agendas. Find out what those reasons are for each person you approach.
  6. Set the expectations. Knowing what they will be asked to do and for how long will facilitate the decision-making process for them. Most people are already over committed to projects, so their time is valuable. Show the value of your program/organization.

Most people won’t pass up the opportunity to get involved in something worthwhile and that will yield a positive return. Your job is to make sure you demonstrate why your project is worthwhile. Give them a reason to want to help you.

Remember, when it comes to making an impact at the community level, it really does take a village.

What to Consider BEFORE Responding to an RFP

When the federal government releases a Request For Proposals (RFP) it can spark a variety of emotions, including excitement, intimidation and fear. Most people get excited about the amount of money available. But, depending on the size of your organization, and your capacity, it can also incite fear.

I want to help you overcome your fear and anxiety, and help you make an informed decision. So, in this week’s video message I discuss some critical things you need to consider before you decide to respond to an RFP.

The Key to Sustainable Outcomes

If you have worked in the nonprofit sector for an extended period of time you know that times are changing. With more and more nonprofits forming every day, the competition for funding is tight.

So, funding agencies are looking more closely at results. In particular, they want to know that any organization they fund will be around for the long haul. If a funder is giving money to your program or organization, they want to ensure you are yielding results – positive, sustainable results.

Unfortunately, for many organizations that doesn’t come easily. There’s a reason for that. It has to do with how they start off. Having a successful end game, has everything to do with how you start.

In this week’s video blog, I share the one thing that is tripping up many nonprofit organizations and preventing them from getting the funding, and ultimately, the outcomes they need.