The Grant You Cannot Afford To Win

The Grant You Cannot Afford to Win

Many grant professionals know this scene: Your team spends weeks preparing an application, then months waiting for a decision. Just when hope begins to fade, the award notice arrives. The congratulations begin. The team celebrates. The board is thrilled. For a moment, the long hours feel entirely worthwhile.

During the grant award review, someone asks the question that should have been answered before submission: Can we actually afford to implement this grant?

Months may have passed since the budget was developed. Inflation may have increased the cost of transportation, supplies, or salaries. The approved indirect-cost rate may cover only a fraction of the organization’s administrative burden. A reimbursement-based award may require the nonprofit to carry payroll and program costs for months before receiving payment.

I have seen clients fall behind on vendor payments due to delayed government reimbursements. One organization had to open a line of credit simply to meet daily operating expenses while waiting for funds it had already earned. That should not be considered a routine cost of accepting a grant, yet too many organizations find themselves financing their own awards, without (the ability to recoup those costs by) charging interest or late fees to the awarding agency.

Read the rest of the article in the Grant Professionals Association Weekly Newsletter