Who doesn’t want free monies? Grant money for nonprofits plays a crucial role in fulfilling their noble mission. But, not all of them get funds from the government and private institutions.
There are myths that surround grant money. If you are a nonprofit looking for fund, why is it important to know them? These deceits warn you to be cautious and thoughtful in vying for the grant.
Myths about Grant Money for Nonprofits
1. Everyone can get the fund.
If you have a project, yes you can get funding. But you have to work hard for it. Funders do not give free monies to anyone automatically. Nonprofits seeking funding should first qualify to the requirements of donors and the government.
For instance, Eileen Fisher Foundation provides capital to business owners. But they only finance women entrepreneurs. This proves that despite readiness of grant, you should first meet the requirements of the foundation.
2. Monies are always free.
No matter how they look like, funds are never free. This is because applicants still need to pay for various expenses and costs related to your application. Nonprofits, for example, pay for postages, printing, and documentation of their applications.
Meanwhile, other funding agencies may require you to match their giving in kind or money. Meaning, they would only match your current funds. Let’s say, if you have $500,000, the funder will match it with a $500,000 worth of grant.
3. You can spend the fund any way you want.
This is the common mistake of nonprofits. They spend the fund for purposes not stated in the budget plan. Doing so will just earn you a bad reputation. Such imprints can ruin your group eventually. The next time you ask for grant, it will be hard for you to get one. Keep in mind that the funder trusts you. They believe that the money will cover the cost of your project.
4. You can pay your grant writer through the grant.
The myths say that you can request a budget for your grant writer. Wrong. Donors are not that strict, and allow you to hire a writer. But to include his fee in your budget plan is a big no-no. Besides, foundations will question and will not give you the fund if you include payment for grant writers. Moreover, paying your writer from the award shows an intention that you’re not serious of giving the whole fund to your beneficiaries.
In fact, getting funding are easy. Just understand and avoid these myths. You can address these issues by asking on the requirements of a funding source. With the right knowledge and skills in proposal writing, you can increase your chances of getting the fund.