What is a grant?
There’s several ways of viewing the definition of a grant — not to be confused with its meaning. We’ll address what a grant can mean to a nonprofit a little later in this discussion. But for now, let’s look at the definition of a grant.
The dictionary tells us that the definition of a grant (the noun) is “a sum of money given by a government or other organization for a particular purpose.” Let’s break that down.
- “A sum of money…”
A “sum of money” can be what we (the nonprofit) asked for, or it can be what the funder can or decides to give. It can be more than what we asked for (highly uncommon), but more than likely it will be less, or the same as what we asked for.
The nonprofit has to justify what sum it asks the funder for, break it down in terms of what exactly it expects the funder to pay for. And those sums have to be aligned with what spending categories the funder “allows.” In other words, if the funder states it will not pay for food, for example, then the nonprofit’s budget breakdown better not include food in the funder’s proposed expenses.
- “…given by a government or other organization…”
The act of “giving” denotes that the sum of money is not a loan, and is not expected to be paid back. A “gift” is given freely, with no expectation of remuneration or reimbursement.
However, a funder does (typically) ask for…
- A signed contract that outlines what the nonprofit stated in its proposal it will do with the gifted funds, and what the expectations are from the funder in terms of timing (usually one year in duration), the return of unused funds, and other details (see below).
- Acknowledgement, meaning either their name or logo is displayed in relation to the program it is funding. Sometime the funder will ask for copies of printed programs, or videotapes, links to the site pages where the funder’s name or logo image would appear. Occasionally a funder will ask for anonymity, which should be respected as well.
- Reporting, either at the close-out of the grant, or sometimes mid-cycle as well. This reporting is best accounted for in the initial design of the program. In other words, account for what you will measure and how you will measure it, to see if your program is making the kind of difference you hoped for. If you design this measurement into your program’s design, then at reporting time, you have your data at hand much more easily.
- “…for a particular purpose.”
Ah yes, the Particular Purpose…
That “particular purpose” is what you described in your initial application to the funder, and it is their expectation that the grant money will be used for that purpose, AND NO OTHER. So, a Word To The Wise: be mindful of what you declare you will do in your grant proposals. Think through (with help from the program staff and the finance folks, and HR, etc.) what you write down in your application, because that is all that funder has to go on, and if they grant you 100% of what you ask for, it stands to reason they should expect 100% of what you said you would do.
The Caveat
Life happens. There’s extenuating circumstances, REASONABLE circumstances. If you tell your prospective funder your new program will be staffed, trained, and up and running six weeks after being awarded, but then staffing shortages preclude you hiring who you need, TELL THEM! Communicate your issues — and also what you plan to do about it, what’s your Plan B, what’s your next idea. They will likely be understanding. But DON’T wait until a year goes by and you’ve only accomplished a fraction of what you promised! Get ahead of the problem and recalibrate, with the funder’s blessing.
The Meaning of a Grant
That’s a breakdown of the Oxford dictionary’s definition of a grant, and Merriam-Webster closely concurs. Now let’s look at what the meaning of a grant is — or could be — to a nonprofit.
Cyndi MacKenzie, GPC (Grant Professional Certified), wrote for the Grant Professionals Association website that her definition is that “a grant is an opportunity.” Fair enough. I can see what she means. Grants can be an opportunity to start a new program and see where it heads. Those grant dollars can be an opportunity to continue a successful program, or make changes to it to make it even more successful.
According to Barbara Floersch of The Grantsmanship Center, a grant award is:
- “a partnership with an organization aimed at accomplishing something specific.”
- “a way to accomplish its mission.”
- “a social investment,” and ”a tool for social change.”
If we look at grants as not just a vehicle to get money, but instead as a partnership with a funder in a mutual mission, it kind of turns grant seeking on its ear, doesn’t it? Grant seeking becomes a means to an end. If we see our grant seeking as less about The Ask Amount, and more about sharing the strength of our program and its alignment with the funder’s mission, then describing the program becomes the heart of our proposals.
The Key
The driver here is actually more effective program planning! If we approach our programs to make them as effective and impactful as possible, then grant seeking becomes program idea sharing. And funders are not being applied to, as much as they are being invited to; invited to partner in addressing a shared mission in an effective way.
So once we are certain about What is a Grant?, we should become super-clear on “How Impactful is our Program?” And then “How Aligned is our Program’s Mission with the Funder’s Mission?” Answer that, and your proposal success rate will climb fast!
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