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!

Please note: I reserve the right to delete comments that are offensive or off-topic.

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