In FY2020, the federal government spent $6.6 trillion in Medicare, Social Security, defense and veterans, debt interest, support to businesses, health, education, social services, and assistance like stimulus and unemployment plus assistance to States.
Did you know, $600 billion is awarded each year in federal grants?? The new OMB Uniform Guidance Administrative Requirements place tremendous emphasis on grantee internal controls. So, what are they? Why should you care? How do they impact your grants and your organization?
President Biden signed the American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021, which provides $1.9 trillion funding state and local governments to respond to the public health and economic crisis.
Many grant applications are stronger when a team is working together. There are two
primary types of grant teams:
1. A team of internal individuals working on the same project together. They all work for
the same institution and each fulfill different roles.
Describing Library Problems that Need Funding
In my last post, I shared about the importance of aligning your grant application to a funding agency’s
priorities. In this post, I will discuss how to describe problems for funding.
It is important that the grant application you submit have a clear problem that needs solving. Most grant
applications will require that you write a statement of the problem. The statement of your problem is
the “hook” and should, therefore, peak the grant reviewers’ interest.
The problem statement should have one clear sentence and supporting data. This section needs to
clearly describe the problem your proposed activity will solve. The problem should be supported by
data.
For the purposes of illustration, let’s say that you plan to apply for funds to create a youth literary
magazine. Your statement of the problem needs to clearly describe the problem the magazine will solve.
Include data on how the youth in your community are looking for a place to express themselves and feel
that they belong. Include data on how writing helps youth succeed in school and gain important life
skills.
To locate data relevant to your project, review sites such as:
Local school district
City government
Chamber of Commerce
Department of Education
State
County
Regional Councils
Original published research
Bureau of Labor Statistics
Census data
Institute of Museum and Library Services
Others specific to your project
Once you have described the problem and supported it with data, you should clearly explain how your
proposed activity will address the problem. In other words, your proposed activity is your method for
solving (or partially solving) the problem.
Reach out to PKS Grant Management and Accounting Solutions, LLC for additional ideas on writing a
problem statement.
In my last post, I shared about where to locate library grants. In this post, I want to discuss topics that may be of interest to funding agencies. Now, one of my grant-writing friends has always said we should not chase the money. I agree with this statement. Grants we write need to be good fits for the mission and visions of our libraries.
Finding Library Grants
I worked in libraries and archives for 10 years, and during that time had the opportunity to be part of numerous grant projects. The work I was able to accomplish with the help of grants was some of the most rewarding work I did during those 10 years. Despite the enjoyment, the process of finding and writing grants did not come easily. I spent a lot of time researching and even more time writing. This is the first post in a series about library grants, and in this post, I want to focus on where to search for grants.
These sites include many different library grants:
Grants.gov (search for library)
GrantWatch (search for libraries)
Specific companies/organizations that provide grants to libraries include:
I also suggest researching local foundations in your area.
Reach out to PKS Grant Management and Accounting Solutions, LLC for additional ideas on locating library grants.
“Books are a uniquely portable magic.” This quote comes from one of my favorite books by Stephen King, On Writing: A Memoir of the Craft. If you read one book on the art of writing, I suggest this one. Banned Books Week was September 27 to October 3, 2020 and is conducted by the American Library Association Office for Intellectual Freedom.
According to the Center for Disease Control and Prevention, the novel Coronavirus disease is spreading nationwide and the best way to prevent illness is to avoid being exposed to the virus. As an organization, the best thing you can do is to communicate and educate your employees, volunteers, and stakeholders.
As we all work from home during this crucial time; we are assisting our clients by scheduling virtual parties once a week on Wednesday from 11 am to 12 pm and 1 pm to 2 pm. If you would like to be part of the fun, networking, communication, and challenges we are all facing — then register using Eventbrite. We look forward to seeing you.
Oh! Wear a funky hat or not when you come to the party. See you soon.
Grants Management is crucial for your organization if you would like to continue receiving grants. The focus on performance, accountability, and transparency play a major role as you manage the grants. To continue receiving grant dollars we highly encourage you to consider the grants lifecycle- it will allow you to streamline your organizational processes.
Join us the for the Internation Grant Professionals Day #LearnGrants Online Summit. The FREE event is hosted by DH Leonard Consulting & Grant Writing Services and Foundant Technologies.
We all know professional development opportunities are highly important in today’s world. So why not secure your spot today for this free online summit. This #LearnGrant Summit will surely enhance your career and give you the opportunity to learn, grow, and develop as a grant professional.
Three Reasons Why You Should Attend?
Free Online Professional Development
Presenters are Grants Professional Association Approved Trainers
Access to all the recordings after the summit
Bonus: I am one of the presenters on What, Why, How’s of an Indirect Cost Rate
When: March 13, 2020 (9 am to 1 pm PST) & (12 pm to 4 pm EST)
Don’t Miss——-Sign up Today. Hope to see you there.
The process of receiving a grant consists of a series of fairly consistent steps. The grant application process is standardized to a certain extent, which means that the overall timelines for applying and receiving a grants will typically be similar in nature. However, the process is by no means one-size-fits-all. Therefore, it is important to consider that when you apply for a grant, the process and requirements of that specific grant will vary slightly from those of other grants.
In all cases, the first step of the process will always be to research the different grants available to your organization. This research process will include finding and reviewing the application guidelines and annual reports for each potential funder. This step is crucial because at this point you will want to be sure that the funder is a good match for your organization and that your organization is a good match for the funder. You will also be able to begin to organize the materials and information needed to complete the grant application.
At this point, depending on the funder, it may be appropriate to place a phone call or send an email or letter to the organization so as to introduce your organization and the program for which you are seeking funding. This communication will also provide you with a chance to gather additional details about the funder and the funder’s application process. This step will vary by funder and is dependent on two factors: whether or not the funder has provided contact information, and what steps the funder has outlined as being the initial approach in the application guidelines. Some funders may require an introductory phone call, while others may explicitly state that they will only respond to requests sent in writing.
The next step in the grant application process is to fulfill the initial approach requirements laid out in the application guidelines provided by the funder. Typically this consists of your organization writing and sending a Letter of Inquiry (LOI) to the funder. The letter should strictly adhere to the structure laid out in the guidelines. The step of submitting an LOI is not necessarily always required by all funders, which means that in some cases this step can be skipped.
If the initial approach guidelines do not require the submission of an LOI, then you may go ahead and submit either a letter of request or the completed grant application. If an LOI is required, then you should wait to submit either piece until you have been notified by the funder of their interest in your program and their desire to receive either a letter of request or a completed proposal. This step is also funder dependent. Therefore, you should be sure to familiarize yourself with funder guidelines and requirements so as to ensure that your organization provides meets the funder’s expectations in an accurate, appropriate, and timely manner.
After you have submitted all documents required, you will wait to hear from the funder whether or not your organization will be receiving the requested funding. If your organization does not receive the funding, then at this point it would be appropriate and beneficial to contact the funder to discuss why your organization’s request was declined. This part of the process can prove extremely helpful as it is a chance to receive feedback on your organization’s submission. This feedback can benefit your organization as it completes applications for other funders, or if your organization decides to submit a second application to the funder during the proceeding funding season.
If your organization does receive the requested funds, then you should be sure to quickly send the organization a thank you email and a hard copy thank you letter via the mail. These pieces of communication should be well-written and carefully proofread. The final step of the process is to complete any followup or final reports required by the funder. These will also vary by funder and will also differ based on the type of program or project for which you have received funding.
The process of receiving grant funding can be lengthy but incredibly rewarding. As your organization seeks out funding, it is important to keep in mind the overall steps of the process in addition to the specific steps and requirements outlined by individual funders. This will help to ensure that your organization and its programs receive funding in a timely manner.
In the previous article, we learned “Why Your Organization Needs A Negotiated Indirect Cost Rate?” As mentioned, in this post, we are going to share how your nonprofit can apply and negotiate an indirect cost rate proposal so that you can have a higher return on your grant programs. This particular blog will focus on various types of indirect cost rates, who will receive your proposal, who is your cognizant agency, and different methods of cost allocation plans. Let’s begin.
Provisional rate - A temporary rate which is only applicable for a specified time period and is subject to adjustment pending the establishment of a final rate. .
Predetermined rate - This is applicable to a specified current or future periods which is usually the organization’s fiscal year and is based on an estimate of costs to be incurred during the period. Predetermined rates are not subject to adjustment.
Fixed rate - This bears the same characteristics as a predetermined rate except it is subjected to an adjustment. The difference between the estimated base period indirect costs and actual indirect costs is carried forward as an adjustment to the rate computation of a subsequent period.
Final rate - This is applicable to a specified past period which is based on the actual costs of the period. Final rates are not subject to adjustment.
The cognizant agency will receive your completed indirect cost rate proposal to further negotiate a rate for your nonprofit. Per 2 CFR 200, cognizant agency is defined as the Federal agency who is responsible for receiving, reviewing, negotiating, and approving indirect cost proposals.
The Federal agency from whom your nonprofit receives the largest dollar value of Federal awards will be designated as your cognizant agency to negotiate and approve your indirect cost rate. Cognizant agencies for indirect costs may not necessarily be the same as the cognizant agency for the audit. See 2 CFR 200.19 for further information on identification of cognizant agencies for indirect cost rate negotiations.
The three methods for calculating indirect costs per 2 CFR 200 are as follows:
Simplified Allocation Method
Multiple Allocation Base Method
Direct Allocation Method
A proper analysis of your grant programs will help you decide what method is best for your nonprofit. For an organization whose major programs benefits from its indirect costs in similar proportions, the simplified allocation method may be best. In the simplified allocation method, there is one distribution base for calculating the indirect costs rate. Both the indirect and direct costs must exclude capital expenditures and unallowable costs. Nonprofits who receive more than $10 million in direct Federal funding in a fiscal year, must breakout components into two broad categories “Facilities” and “Administration”.
According to 2 CFR 200, “Facilities” is defined as depreciation on buildings, equipment, and capital improvement, interest on debt associated with certain building, operations and maintenance expenses. “Administration” is defined as general administration and general expenses such as the director’s office, accounting, personnel, and all other types of expenditures not listed under “Facilities”.
The multiple allocation base method is generally used when an indirect cost benefit nonprofits major functions in various proportions. With this method, indirect costs must be gathered into separate costs groupings such as depreciation, interest, operation and maintenance expense, general administration and general expenses.
The direct allocation method is used by nonprofits when they treat all costs as direct costs except general administration and general expenses. In most cases, the nonprofits split their costs into three basic categories described below:
General Administration & General Expenses
Fundraising
Other Direct Functions which includes projects funded with grants
Costs, such as rent, depreciation, maintenance, in this method are allocated as direct costs to each category and federal award utilizing a base that is most appropriate for the cost being pro-rated (e.g. square footage)
According to 2 CFR Appendix IV, a nonprofit organization which has not previously established an indirect cots rate with a Federal agency must submit its initial indirect cost rate proposal immediately after the organization is notified that a Federal award will be made. Per the guidelines, the proposal must be prepared and submitted no later than three months after the effective date of the Federal award.
On the other hand, nonprofit organizations who have previously established indirect cost rates must submit a new indirect cost rate proposal to the cognizant agency within six months after the close of each fiscal year.
The indirect cost rate approval will be formalized by a rate agreement signed by the Director of the Cognizant agency and authorized representative of the organization. The agreement will include:
The approved rate and information that pertains to the rate such as type of rate, effective period, and base.
The treatment of fringe benefits direct vs. indirect or an approved fringe rate.
The agreement will include general terms and conditions along with any special remarks.
We hope your organization will benefit from this post and provide you some guidance on how to go about negotiating an indirect cost rate proposal. If you need further assistance or guidance, please reach out to us. Thank you
Jasmine Markanday, CGMS, RPO, MBA
President/Owner
Olathe, KS 66061
Phone: (913) 961-8957
