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FAQ About Federal Funding
What groups are eligible applicants for Federal grants? Each grant announcement lists the types of organizations that can apply for assistance under that program. Some grants are limited to one or more levels of government (i.e. state, county, regional units, cities, school districts, etc.) while others are open to a much wider range of groups. In most cases, the fiscal agent for a grant must be a governmental unit or an incorporated organization. Many non-profit organizations are also incorporated. Other funding sources may be available through your state, county, city or regional administrative unit. If you are not eligible to be the grant applicant, you may still be able to seek support through collaboration with an eligible applicant agency. What are 501(c)(3) organizations? Internal Revenue Service regulations classify non-profit corporations in many categories. Those non-profit corporations that are exempt from Federal income tax and are eligible to have donations treated as tax deductible gifts are defined in Section 501(c)(3) of the IRS Code. What issues do faith-based groups need to address to be eligible for Federal grants? In most cases, the needs will be the same or similar to those that are addressed by units of government. Some examples include: service to the homeless, low-income housing, rural housing, assisted living conversion, health risk reduction and avoidance, adoption services, family formation and support services, research, health care, mental health, a wide range of food and nutrition programs, international food aid, gleaning programs, water and environmental programs, community service resources, before and after school programs, early learning programs, migrant education, refugee and entrant assistance, literacy programs, technology, job training and other employment development services, abuse prevention, family violence/battered women’s shelters, services to the incarcerated population, and services to children and spouses of those incarcerated. It will be most important to determine your community’s needs and seek the resources that address those needs within the framework of your organizational mission. Where can community and faith-based groups apply? Projects in the Departments of Agriculture, Commerce, Education, Health and Human Services, Housing and Urban Development, Justice, Labor, and Veterans Affairs, as well as in the Agency for International Development, the Corporation for National and Community Service, and the Small Business Administration can found on each department’s Internet home page, along with current grant information. Additional departments may have similar listings as this initiative expands. You can also seek support from local, state and regional governments that have “flow through” funds available or grants made from their own taxing authority. Foundations and corporate organizations are also good locations for seeking support. How much reporting is required? Most grants have either a quarterly or semi-annual reporting system that requires both program and financial information. If there is a research component in the grant, additional reporting data will be required. The program officer assigned to the grant will provide forms and/or a format which guides the reporting of required information. For large grants, the project may be subject to Federal audit. Won’t Federal funding compromise our value system? The type of services that will be delivered, with the resources provided from government sources, should complement the mission of your organization. It will be very important not to engage in proselytizing with government funds. However, the modeling of caring and nurturing behaviors is both appropriate and desirable. Religious symbols do not need to be removed from the site. Must there be collaboration with other groups? Your organization can apply for many grants as an individual entity. However, in some cases it will be necessary to establish linkages with other organizations to meet the requirements of the granting authority. In most cases, you will find that the required collaboration expands the expertise and resource universe that can address your identified need. How complicated is the budget building process? The amount of budget detail will vary from program to program. You will need to carefully link your budget request to the narrative of your application and the intervention strategies you have proposed. It will be necessary to provide “budget notes” which are a justification describing how you arrived at the budget figures. As an example, if you will be buying a computer system for the grant operation, how will you determine the cost of the hardware and software? How will you dispose of the equipment at the end of the grant period? In some cases matching funds are required. The match may be either “hard match,” which denotes actual cash contributions to the effort, or “soft match,” which can be in-kind services such as donated office or program space, donated utilities or materials. Some grants require funding from the granting authority, other governmental contributions, and those from non-governmental units to be listed separately for each budget category. Where do I look to find government grant opportunities? The Federal Register is the most comprehensive source of governmental funding opportunities. Each Federal grant is announced in the Register with a description of the program, eligible applicants, and the deadline for proposal submission included in the listing. Each Federal department has a web page on the Internet that has a variety of information. One of the items on each site is usually listed as ‘funding’ or ‘grant’ opportunities. The site lists currently available opportunities, details, and a link to the application package. However the Federal Register is being gradually replaced by the Grants.gov website as the primary location for grant opportunities. Many State departments of education, health, etc. have web pages similar to those at the Federal level. Can I find examples of successful proposals from other groups like mine? After each grant competition, the winning applicants are listed at the department’s web site. Calling the successful applicant and requesting a copy of the grant is usually the fastest way to obtain a copy, but copies may also be requested from the program office of the department making the grant award. However, in many cases it is necessary to complete a Freedom of Information Act request form. That process tends to be much slower than direct contact with the applicant organization. Does the Federal government have people who can answer my questions about the RFP? A contact person for the grant program will be listed on the department’s web site. That individual can respond to technical questions regarding the requirements of the program. They are especially helpful on budget and compliance-oriented questions. How do I know the review process won’t be biased against me? In almost all cases, there will be three readers from varied backgrounds scoring each grant proposal. Encourage experts with whom you are acquainted to apply to serve as members of grant review teams. Are all grants designated, or are there some with no restrictions or requirements? Although all grant programs have some need or target population that is to be served, most departments also have resources to be used at the discretion of the Secretary that allow unique programs to be supported on an individual basis. Most support highly-innovative designs or address special needs, such as responses to the 9/11 attacks. There are still some requirements for these programs, but the number of regulations is reduced to a minimum. What is the difference between a grant and a contract? In most cases, contracts have specifications for delivering a product and/or service within a defined population or area at an agreed upon cost. Grants can be of several types. A formula grant is distributed to an entity of government based on a formula (i.e. population, poverty or some other demographic) to address a specific issue (i.e. substance abuse prevention education). The receiving agency must design a plan for addressing the defined need and allocate grant funds to fulfill the plan. Program grants are based on a request for proposal (RFP) in which the applicant designs a strategy which addresses the needs/issues defined by the granting agency. Once the proposal is approved for funding, the proposal document becomes a contract that must be followed unless modifications are approved by the funding agency. Cooperative agreements are similar to grants, except that the Federal agency works closely with the applicant organization in carrying out the project. How easy is it to win a Federal grant? Not very easy. It requires hard work and a considerable investment of time. Contrary to what late-night TV hucksters tell you, success is not simple, but the result of sustained attention, preparation, thought and planning. The applicant must pay careful attention to program criteria in deciding which Federal sources, if any, match their needs and goals. While developing the proposal, applicants must establish community support and demonstrate the ability to perform the work outlined. Your proposal must clearly state a problem, a plan of action, the desired outcome, and a way to evaluate them,.... all within a well-thought-out budget and program guidelines. Success isn’t simple, but it is achievable, and an excellent way to expand your ability to serve your community.
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