A great opportunity for students to learn Italian in the birthplace of the Renaissance through a study abroad program in Florence, Italy. More information available at: http://www.GSEAbroad.com

United Way of Decatur and Mid-Illinois, Hickory Point Bank & Trust and Caterpillar encourage Volunteerism.

Day of Action is a brand new United Way initiative that will mobilize volunteers to help local non-profit organizations during this time of budget cuts, delayed payments and staffing decreases.  The first ever Day of Action will be held on September 25, 2010 from 8am to 5pm.

Earlier this week the IRS issued guidance (http://www.irs.gov/charities/article/0,,id=225705,00.html) providing relief to small charities who had missed the deadline to file Form 990-N or Form 990-EZ for the past three years. Under this voluntary compliance program, small charities following the procedures announced by the IRS may be able to maintain their charitable status if they file the form prior to October 15th, complete a checklist and pay a small fee (between $100-$500). This guidance may be welcome news to some of your smaller grantees who missed their filing deadlines.

In issuing the guidance, the IRS also posted a list (http://www.irs.gov/charities/article/0,,id=225889,00.html) on its website of organizations at risk of automatic loss of their tax exempt status due to failure to file any of the Form 990 series (Form 990-N, Form 990-EZ, Form 990, Form 990-PF) as required. We recommend that you take this opportunity to make sure the IRS does not have your community foundation on the list. Check for your affiliated entities as well. For example, you may want to verify that trusts that you may have kept open in anticipation of any lingering testamentary gifts, community foundation affiliates that have incorporated and obtained charitable status, or supporting organizations that you established are not on the list. While you are not likely to find a problem, it doesn't hurt to verify that fact on the publicly available list. Note that the IRS includes some warnings about its list. In particular they state: "The list may be incomplete, as certain organizations may be at risk even though their names do not appear. In addition, the list may include organizations that were required to file Form 990 or Form 990-PF and are not eligible for the relief program, and organizations whose filing dates have not yet occurred." While the list may not be perfect, it will give you a good idea of what the IRS records show.

For more information on the program and for the at risk list see: http://www.irs.gov/charities/article/0,,id=225702,00.html

It includes indicators for education, employment and economics, natural resources and recreation, growth an housing, health, infrastructure, public safety, and social indicators.

netfiles.uiuc.edu/xythoswfs/webui/_xy-38364393_2-t_3vSVUuO5

1.  How much total money does my project need, and for what things will the money be spent?
(General idea – does not have to be exact)

In order to determine whether to even pursue a grant opportunity, you have to have a general idea of your budget.  Is it around $10,000 or around $500,000?  Will I need equipment or only salaries? 

2.  What is the maximum/minimum funding for the grant? In this case, “Maximum” is the most you can request; and “Minimum” is the least you can request.

Too small a grant opportunity
Some grant opportunities may be too small for your project.      For example – if the White Foundation has a $10,000 maximum, but you need $100,000 for your project, then it is probably not a fit, and vice versa.  But, also keep in mind that you may be able to fund a portion of the big picture.  For example, if you need $3,000,000 for water lines, but the grant will only fund $500,000, then maybe you can do only the most critical section of the project.

Foundations may not specify a minimum amount, but you can check the 990 Form (instructions below*) for what are the normal lowest grant awards.  If it is a large foundation, they may not want to mess with a very low request since it usually has similar paperwork.

Often federal or state grants may have an official minimum.  If you don’t ask for at least the minimum, it won’t be considered.  See the grant instructions.

Maximum may not be the usual maximum
For foundations, the maximum listed on the grant instructions may not be what they usually fund.   Ex. If the maximum is $20,000, that does not mean they usually give that much.  Sometimes they might, but their usual grant might be closer to $10,000.  It totally depends on the agency/foundation.  Study the list of previous grantees and funding amounts. 

*To find past amounts awarded
For federal or state grants, check their web sites, or ask the grant contact for a list.   For foundation grants, try www.fdncenter.org  choose “Find Funders” then choose “990 Finder.”

 3.    What are the eligible expenditures?

There is usually a section that tells eligible expenditures.  For state and federal, the instructions may be so long that you will want to search the grant instructions for the word “eligible.”  Most grants are very specific about what they fund - ex. no buildings, yes computers, yes program fees, only prevailing wage work, only American made products, etc.

Just as a side note – it is hard to get “bricks and mortar” grants for buildings.  It is not impossible, but difficult.  For state and federal grants, look for unique tie-ins like transportation history, architectural history, storm shelter capabilities, tourism, etc. that might open up options.  Also, if it is a state of federal source, there are strict rules about ADA, prevailing wage, etc.  You may be more likely to get funding for building projects through foundations. 

For rural entities, there are long-term low interest loan possibilities through such agencies as USDA Rural Development.

 4.  Is there matching required? 

Matching requirements are a roadblock for many organizations. Ex. Some grants are a 50/50 match which means you have to come up with half the $$.  Does that work for you? 

Some grants will not specify a match requirement, but may give points if there is a match.  Some don’t have a match requirement and don’t want to deal with the paperwork of a match. Just ask.

If there is a match, can it be in-kind?  In-kind may include donated goods or services.  Usually the donated goods or services must be eligible expenditures in the grant instructions. 
Some grants allow in-kind and some don’t.  Usually you can’t match federal funds with federal funds. Usually the match can only start being counted after the formal grant contract is accepted. 

5.  Is it a reimbursement grant, and is that okay? 

With reimbursement, you have to pay for your project upfront and get repaid later, sometimes with a delay.   Do you have the reserve cash, or do you have the ability to borrow it?  Is your board okay with that process?

 6. If necessary, are the engineering, environmentals, estimates, building permits, and architect plans completed, or can they be completed in a timely fashion?  Are there funds available to do those? 

You will need to weigh the potential benefits.  I have had clients spend thousands of dollars on engineering estimates because they felt the grant was worth it.  I have also had clients that refuse to spend a few hundred dollars to mail required surveys because they did not feel it was worth it.   It totally depends on your situation.

If you truly want to do the project at some point in the future even if you don’t get grant money, it is good to get some of these requirements done so that you do not have to be in a rush if grant funding becomes available.  Many times federal and state grants have a very short turn around time.

Sample grants

Examples of grant budgets:  Page 2, Page 8, Page 56

Tips on Writing a Grant Proposal
www.epa.gov/ogd/recipient/tips.htm

What do Winning Grant Proposals Have in Common
www2.scholastic.com/browse/article.jsp?id=4173

Need help with a federal grant proposal?
www.illinoisresource.net

Free Nonprofit Grantwriting Guide
www.npguides.org/