Top 10 Grant Money Myths: Do You Think You Know What You're Doing While Looking for Grant Money? Or, Do You Know That You Don't?!

Top ten myths about grant money: The myths are in red font. (I'm going to stretch this to twenty...)

20. Grants are free Nope. Grants are given because your mission statement is fulfilling a specific need in your community that the grant donor believes is important. You are investing your organization's capital, staff, volunteers, and resources in your mission statement's goal. Also, grant writing, like all fundraising requires investments. Time, money, research, planning, team work, writing, etc. are needed. For further information read my post, "Why Do Donors Give Grants At All?"

19. Our organization needs to just go get a grant, or two, and we'll be set Uh uh. Grant writing must be a part of a diversified, long term, supported fundraising (or development) plan. For example, your fundraising could include grant writing, an annual appeal, bequest planning, envelopes in your monthly newsletter, a major donor program, and a walk-a-thon special event. This takes experience, committment, and work. A new fundraising method takes at least three years to make money and advanced committee planning. Your fundraising must be ongoing and enough to cover annual expenses. For more discussion read my post, "Bring In Donations From Many Different Kinds of Sources"

18. There are grants for individuals If I had a dollar for every time I'm asked to help raise money for an individual (I could donate a lot of money to a good cause). Yes, I've seen them...there are ads and books offering "grants to individuals". I know. You must be very leery of these kinds of 'grants'. Many are wolves in sheep's' clothing trying to get you to, in fact, sign up for a high interest rate loan or bilk you out of money. Legit grants for individuals come from municipalities (governments, Tribes, etc.) and are usually granted for a specific cause (i.e. arts, domestic violence recovery, etc.). The availability of grants may depend on a government's budget. Legitimate grants for individuals are tough to come by. For further discussion read my post, "Are There Grants for an Individual?"

17. Grant donors are just the wealthy giving their money away so that they can feel good Wrong. Today's grant donors are savvy. They do not just sign away checks. They select causes that they're passionate (and informed) about to effect change in our world. They research which non profit organizations are mission driven, healthy organizations, successful at their mission statement's goal, and good to work with. They expect reporting, program success, and results. Grant donors talk to one another and share information about bad apples. Really. Read my post about today's donors, "A Shift In Giving: Proactive Philanthropists Instead of Passive Donors"

16. We can just dive in and apply for a grant Successfully raising grants takes planning, learning what to do and how to do it well, professional know how, commitments to the process from leadership and staff, time, research, writing drafts and re-writing, patience, relationship building, communication, public relations, and more. See my post, "Soliciting Grant Money 101"

15. We can pay a grant writer part of a grant, if they get any grants for us This is called contingency pay and it is unethical among professional grant writers, professional non profit organizations, and many American professional fundraising affiliations such as the Association of Fundraising Professionals and the Puget Sound Grantwriters Association for instance. Why? Grant donors are not providing funding so that your organization can pay for its fundraising. Well run non profits pay for their overhead costs and plan out their fundraising accordingly. Also, grant donors expect that their money is going where your grant application requested the money for. If they discover that you spent any portion of their grant donation other than where you stated you would - they aren't going to donate to you again (as your organization is dishonest and not well run) and they'll share with other grant donors in your field/region that your organization did this to them. Your fundraising will become difficult as your organization's name will be muddied. Grant writers who do this are not professional and do not understand that the goal of grant writing is not simply to raise money, but to help develop strong long lasting relationships between non profit organizations and grant donors; so that the non profit receives grant money now and in the future. Relationships forge this likelihood and they should not be between the grant writer and the grant donor, but between the grant donor and the non profit. Professional grant writers are either hired as staff with hourly pay or a salary; or consult at a pre-arranged rate and fee schedule. To properly hire and afford a grant writer read my post, "How Do We Afford Grant Writing?"

14. There aren't any grants out there for our organization Unless your organization is trying to help E.T. "go home" most every cause has support. If your cause is having a tough time raising support - perhaps you need to develop educational materials about your cause and how your community can help. Otherwise research who are the grant donors interested in your cause. Read my post, "How Do I Prepare to Find Foundations Who Will Fund Us?" It describes how to locate grants for your organization.

13. Once we receive the grant we're 'home free' Nah. Seeking grant money is part of a fundraising strategy - it is not a short term venture. No organization dedicated to its mission can do all its cause needs through the funding of one grant (unless the grant is ongoing and open-ended, and then arguably your organization really has a major donor or benefactor more than a grant donor). Also, see numbers 16 and 19, above. Read my post, "Reporting To Grant Donor After End of Project"

12. Whether or not we receive a grant depends on how good our grant writer is This is a common assumption, but really wrong. Raising grant money is a team effort. A professional grant writer must be reputable, successful, and knowledgeable about your potential funders. They have to be very good at what they do. BUT they do not work in a vacuum. Staff, leadership, and even volunteers must be dedicated to the grant writing process as it often requires proof reading, fact-checking, research, pulling necessary agency documents, feedback, draft mark ups, etc. Also, a grant writer must provide a great grant application but the agency's reputation, track record, relevance, effectiveness at its mission work, health, etc. are more important factors to the grant donor. Grants are awarded based on many attributes, 99% of which are the organization's - not the grant writer's. The grant donor is giving to the non profit organization - not the grant writer - so their interests are there. Read my post, "What Is A Well Run Non Profit Agency? Well, I'll Tell You..."

11. Grant writers work on their own See number 10.

10. The board or executive director do not need to be involved in obtaining grants See number 10, AND grant donors who choose to meet with perspective grant recipients (some do, some don't) should be meeting with the highest level representation from your organization, such as board members and the executive director. This is called peer-to-peer relations. Treat any potential donor with respect and interest. This should come from your leadership to demonstrate your care for the relationship with them. They should not be meeting with your grant writer; they're likely not leadership. For further information read my post, "Leadership's Role In Seeking Grants"

9. Some professional fundraisers can raise grant money guaranteed ANYONE who guarantees that they can raise your organization grants had better be speaking in colloquial terms. If someone sits down and pitches to your organization that they can actually guarantee raising your organization money - be very leery. While most strong non profits have excellent chances at raising grant money - THERE ARE NO GUARANTEES. This is why any fundraising process must be long-term. An organizational investment in the process must be made.

8. Grants are just for start up non profit organizations No. Do not leave potential donations on the table. If your organization is raising money in many methods but not grant writing - ask yourselves 'why' and learn about it. Consider doing it! Grant writing's cost/benefit ratio, when the program is well managed, is excellent. Read, "Don't Leave Money On the Table"

7. Start up non profit organizations should only try to raise grant donations See number 19, above, and understand that any support that you raise at this stage of the organization will pay off in spades if you maintain it well - into the organization's future. Go from thinking 'start up' to thinking 'long term'. Diversified fundraising provides more safety and security to your organization's financial future. Read my post, "Seeking Grants for New Programs or Start Up Non Profits" for more information.

6. Public relations isn't important to our raising grant money Control what others are saying about your organization by disseminating your strong track record, successes, and more yourself. Be sure that your board is telling friends and colleagues why they volunteer with your organization. Provide clients, constituents, and potential donors with information. Call the press after a big success or when you launch or ground break a new innovative initiative. Grant donors are just like any other kind of donor. They invest in successful organizations working for causes that they're passionate about. Get the word about your organization out there. For further information read my post, "Why Is Marketing Important In Grant Writing?"

5. Our reputation and track record are not important to raising grant money See 17, 12, and 6, above. Like 'the truth', in the poster above Mulder's desk, "Your Track Record Is Out There"

4. We board members and/or I, the executive director can just take a leadership non profit position without being responsible/proactive about learning the latest in non profit governance, without understanding my legal and fiscal responsibilities to the organization, and without learning about fundraising and its latest paradigms Anyone working for a non profit whose leadership acts this way - be warned. You are not working for a well run or healthy organization - guaranteed. See my post "Wow, What A Shock...Another Example of Piss Poor Fundraising..."

3. Non profits are meek organizations that are lesser than 'for profits', an opportunity for people to contribute to their community, and hardly receive federal or other municipalities' oversight; we can be lax, and get away with stuff Oh boy. If you're affiliated with non profits in ANY way and think this - whoa to the organization. See the link, above. Also, read the latest press on Congress' new initiative to increase American non profits' reporting to the federal government. In particular they want to oversee what percentage of funds raised is going to your mission's programs; and whether you're legally and professionally accounting for your receipts and costs. Meanwhile, donors are smarter today. They aren't passive, either. Get it together or hire someone who can. Read my post, "New IRS Reporting Requirements..."

2. Straying from our mission statement (or the scope of its work) is OK - nobody will know or care - and we can still raise donations (including grants) Non profits succeed with community support - not in a vacuum. Your reputation is everything in fundraising, let alone grant writing. If you aren't on your mission statement's message - why are you still operating? Either correct the scope of your work, close shop, or reorganize as a new agency with a new mission statement. For example, read what happened to one non profit who may be thinking this way at, "Burn Out and Its Effect On Your Fundraising..."

1. It's OK to spend even just a little bit of a grant that we received on something other than what we told the grant donor that we were going to spend it on Your honesty, integrity, ability to raise funds, and ability to run a strong non profit agency are everything when raising any donations. If it gets out that you don't spend money where you've told donors that you will - you're thought of as less than honest, in the least, and as patent liars, at the worst. In either case - you're going to lose donors.

As you can see after reading this list of commong assumptions about grant writing, all of these misunderstanding are really more indicative of being out of touch with the latest paradigms or not learning modern grant writing practices. Being proactive, you'll strengthen your grant writing for your organization's mission's benefit.

Top 10 Grant Money Myths: Do You Think You Know What You're Doing While Looking for Grant Money? Or, Do You Know That You Don't?!