What Holiday Gift-Giving Can Teach Us About Grant Management
In the holiday season, we get and give lots of gifts. The same is true in the nonprofit world, with Giving Tuesday and end-of-year giving campaigns filling our email inboxes. While there are clear differences between holiday gift-giving and grants, there are also surprising parallels that nonprofits can learn from. Understanding these connections can help organizations navigate the complexities of grant management.
Explain exactly how you’ll use grant funding
One of the funniest trends I’ve heard about recently is kids who put together a slide presentation for their Christmas list, complete with pictures, hyperlinks, and videos (I even saw one with a budget spreadsheet!).
Similarly, your grant application allows the funder to envision exactly what you’re requesting. The easier it is for the funder to understand and fit to their giving priorities, the more likely it is that your grant application will be funded.
Nonprofits prefer general operating support grants
Just like grandma’s gift check that you can spend on whatever you want, nonprofits prefer to receive general operating support grants. That is, grants that aren’t restricted to a particular program, project, or capital expense. Unfortunately, these types of grants aren’t as common as grants with restrictions.
Grant awards usually come with rules
At least in the southern US, it’s customary to wear or display the gift giver’s item the next time you see them or they visit your house. For example, if your friend gave you a charcuterie tray, you’d serve snacks on it for your next happy hour together.
Grant awards also come with rules, although (unlike social norms) they’re typically outlined in a formal contract or award documentation. It’s important to review these in detail and make a plan with your grant team to follow your grant agreement to the letter.
Use your grant award exactly as you told the funder you would
Your aunt probably won’t ever know you returned that sweater, or that you exchanged the scarf she gave you for a hat. You might even regift that candle to a friend of yours.
But in the grant world, any changes to the purpose of the grant need to be cleared with the funder. You can return the grant if your program/project no longer fits the purpose of the application. You can ask the funder for a revision to the award (an “exchange”). Some funders will even allow you to subgrant (“regift”) an award to another nonprofit, although this is less common. Communicating changes ahead of time helps build trust between you and the funder.
Thank the funder
When I was a kid, my mom wouldn’t let me use a gift until I’d written a thank you note to the giver. What a drag, right?? But it ingrained in me a sense of appreciation for not only the gift, but also for the thoughtfulness behind the gift.
Nonprofits need to have a formal process in place for thanking their grant funders, which usually includes at least a tax receipt. Most grant funders also want to be recognized with their logo and/or foundation name wherever other funders are thanked for the same program. Funders who feel that you weren’t appropriately grateful may not be interested in renewing their support.
Keep the big picture in mind: grants are intended for the greater good, even if they’re tough to manage
The holiday season is a time to spend with the people you love. You can show that love by giving thoughtful gifts, spending time together, and creating memories. But as we know, family time can be fraught with conflict or even sorrow, making it difficult to enjoy.
Grants are tools for advancing a funder’s mission, vision, and giving priorities, which often relate to creating lasting impact and solving pressing societal challenges. While we’re in the midst of a complicated application process or reading through a 50-page grant agreement, it can be challenging to remember the purpose behind the process. If you’re wading through the complexities of your grant process, remember that every grant builds a better future.
Understand all of these ideas in theory but have a hard time putting them into practice in your own grant program? We’re looking for nonprofit pilot clients for our new service, Increase Your Mileage. Email us at erin @ nonprofitnomad.com to find out more.
Cover photo by Keira auf der Heide on Unsplash