The federal stimulus package has sparked a renewed interest in the nonprofit sector to apply for federal grants. LANO has put together the following recommendations for nonprofits to consider if they decide to go after any federal grant opportunity.
1.)
Assess your organization’s capacity and ability to apply for a federal grant. Federal grants require a large amount of staff time to complete and usually involve a significant amount of reporting conditions. If you feel that your organization does not have the required level of capacity, please see
LANO's calendar for upcoming federal grant workshops.
2.)
Currently, applications for federal grant funding are most likely to be awarded to prior federal grant recipients. If your organization has not received federal dollars before, the learning curve and time demands coupled with increased federal accountability and reporting should be heavily considered. In addition, federal grants do not always cover the entire cost of providing services and the money often flows slowly.
3.)
Prior to submitting an application, an organization must register with grants.gov and have in place a Data Universal Numbering System (
DUNS number) The wait time after applying is 3 weeks or more. If you plan to apply for a federal grant you should
apply for your DUNs number as soon as possible.4.)
Read the releases very carefully to understand the type of programs, criteria, evaluation models and participation requirements. Most announcements are limited to federally recognized 501c3 organizations and require cash and/or in-kind matches.
5.)
Federal funds must be used in accordance with grant guidelines. Federal awards can be withdrawn for failure to meet the requirements of the grant. In addition, grantees can be asked to return funds if auditors find that funds have not been used in accordance with the guidelines.
6.)
Federal agency websites are a good source of information. The federal agencies that have the most grant opportunities for nonprofits include the
Administration on Children and Families within the Department of Health and Human Services,
Department of Education,
Department of Justice, and
Housing and Urban Development. Finally, you can access all federal grants by going to
http://www.grants.gov/.
7.)
For those nonprofits working in primary and secondary education: Most ARRA dollars, such as funds through the Individual with Disability Education Act (IDEA), are going to school districts so your school district should have further information.
8.)
Act quickly because deadlines to apply for ARRA dollars and other federal grants are approaching soon. Deadlines will vary but all require quick turnaround.
9.)
Small and midsize organizations should consider collaborating and consulting with each other when constructing applications. They should also consider applying for grants to work in other states where local groups may be unable to provide services alone.
10.)
Reporting requirements are stringent for federal grants. The organization must provide quarterly reports and be responsible for tracking any flow-through dollars to sub-grantees. The organization will also need to conduct an independent audit and evaluation.
11.)
If your organization does receive ARRA funding or any federal grant, develop a strong strategic plan. Although this funding may be temporary, it should be seen as an opportunity to provide a solid foundation for your future work.
12.)
Make sure your organization documents the goals and accomplishments achieved as a result of receiving ARRA dollars. The Federal Government, just like your organization, will want to showcase its impact.
For questions or further information please contact Elisabeth Gehl at
elisabeth@lano.org or by calling (504) 309-2081 ext. 310.
