BEWARE OF GRANT FUNDING MYTHS AND SCAMS

As a professional grant writer, I am appalled at the number of false and misleading websites offering information and guaranteed grant money. The information contained below should help you sort through the maze of online information pertaining to grant funding.

GRANT FUNDING--MYTHS, SCAMS AND FALSE IMPRESSSION ADVERTISING

·         Go back to school for free

Individuals cannot apply for grants to go back to school. These are provided through a variety of areas including the FAFSA (Free Application for Federal Student Assistance), www.fafsa.ed.gov. Grants and are awarded through individual schools.

·         Start your own business

Grants are not provided to start your own business, whether woman owned, minority owned or otherwise. This is an excerpt from www.SBA.gov -“The federal government does NOT provide grants for starting and expanding a business.” For more detail visit: http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/loans-grants-funding/grants . That said, the SBA does provide loans to help with this type of venture. Contact your local SBA for details.

·         Provide you a house

Grants are provided to non-profit organizations or to banks (not individuals) to assist qualified low income homebuyers.  These organizations and financial institutions can provide information regarding low interest loans and down-payment assistance. 

·         Guaranteed Grant Funding

One of the biggest scams is sending money to get money. There are websites promising a “guaranteed” grant. Basically, you send them a certain amount of money and they guarantee you will receive a grant amount larger than what you invested. Do not throw away your money, RUN as far away as you can from ANY group promising or guaranteeing a grant. Grants are solely the discretion of the grantor and thus cannot be guaranteed.

·         Books Promising Grant Funding

Many books have been written that promise to reveal the secrets of grant funding and how to receive this money from the Federal Government.  While the listings about grant opportunities may be true, these publications imply that individuals can receive this money, simple by asking for it.  Suffice it to say, BUYER BEWARE!

SO, WHAT IS GRANT FUNDING?

Grant funding is one of those terms heard regularly, yet many people are unaware of what grant funding supports and more importantly, what it does NOT!

Grant funding, typically is simply an award (usually monetary, but not always) provided by the government, a corporation or a private foundation to help support, improve upon, develop or sustain a community based project or program.

Government grants can be sought by a number of entities, both for profit and non-profit, depending on the project/program and the grant specific guidelines. These guidelines identify which organizations are eligible for funding and the requirements for submitting an application. Do not be misled; the official website for government grant funding is www.grants.gov.

Corporate and Foundation Grant Funding is awarded to help support projects and programs benefitting their respective communities or mission. This type of grant funding generally is awarded to non-profit organizations, substantiated by the attachment of the organization’s 501 (c) 3 IRS determination letter.

Side Note: A 501 (c) 3 letter serves as documentation of non-profit status; however, churches are recognized by the IRS as a non-profit organization and do not necessarily have to be a 501 (c) 3.  In this instance, check with the funder, before submitting the application, for clarification as to what documentation would be required. 

Grant amounts from corporate and foundation grantors can range from $500 to $10,000 or more, but are typically smaller awards that those from government grants, Ironically, many large non-profit organizations regularly search out and apply for corporate and foundation opportunities because of a skewed view that the amount of the awards are not worth their time.  On the flip side, many smaller non-profits, churches and faith based organizations fail to take advantage of these valuable funding resources for either lack of information or understanding regarding the grant process.

Below are a few reasons why many organizations do not apply for grant funding:

·         Concerns about limitations and restrictions placed upon what can be said.

Private and foundation grant funding rarely places limitations of this type. That said, always read guidelines carefully before applying.

·         Fear of the unknown

Sometimes lack of understanding fosters inaction. Grant funding is a legitimate funding resource designed to help organizations fulfill their mission to meet a variety of needs; although there are no guarantees of a grant award; failing to apply will ensure that your organization does not receive one.

·         Lack of time

Grant writing can be time consuming, yet endeavoring to make grant writing a funding resource priority can help offset costs that can ultimately affect the very success and survival of your program and/or project.

·         Understaffed

As stated with the aforementioned time deficit, utilize volunteers to develop a fundraising committee within your organization. As with any committee, designate a chair person in order to avoid duplication. Assign each volunteer a different responsibility. ALL fundraising ideas, grant applications and so forth will be scheduled and executed through this committee.

Grant funding (corporate and foundation) provides support for a variety of Areas of Interest. (Check grant guidelines for specific areas funded). Some areas include:

· Health

· Education

· Youth

· Community

· Capital

· Religious

· Art

Grant funding (corporate and foundation) typically does NOT fund (again, check grant guidelines for specifics on areas NOT funded:

· Religious organizations for religious purposes

· Political campaigns

· Debt reduction

· Fundraisers

· Travel requests for groups/individuals (i.e. bands and sports teams)

Grant funding is a great way to help support your organizations projects and programs; however, guidelines must be followed and dedication must be exercised during the process.