Hey Reader,

Yup, this newsletter has a new look and a new name. Hope you like it!

Over the past several months, I've been thinking about how to make this newsletter a valuable resource for you and also something that I really enjoy writing. So, it was time for some reflection and a refresh. I've streamlined my service offers to focus solely on grants. While communication is so important to a nonprofit's mission, I found that most nonprofit leaders who come to me are seeking a thought partner on grant strategy. And I love thinking about grant strategy! So, here we are.

Since my goal is to talk to you about grant strategy, the name — Strategically Speaking — seemed appropriate (though far from original). If you signed up to get communications tips and strategies, I think you'll still find this newsletter helpful because effective storytelling is vital to the grant process. I hope you'll stick around (but no hard feelings if you decide this is not for you). Also, what's my obsession with parentheses these days?

Anyway, let's get into it.

You may not have known this already, but for about 15 years of my career, I was a math teacher. It may come as no surprise to you then, when I say I like looking at budgets!

And even if you don’t feel the same ✨spark of joy ✨when someone emails you a spreadsheet, I bet you feel all sorts of joy when those grant dollars start rolling in. 💰 Right?!

Part of your grant strategy is crafting a clear budget to improve the chances your grant application will be awarded. That means:

Make sure your budget aligns with the grant narrative.

The budget you attach should support what is described in the grant proposal. Any staff, equipment, supplies, etc. mentioned in the narrative should be accounted for in the budget, especially if they are significant costs.

Specificity is important.

One oversight I see in nonprofit budgets is not including enough detail. And I think this is sometimes based on the idea that if it’s broad enough, then there’s more flexibility. But, grantmakers want to see clear explanations of how funds will be used. Lumping sums into broad categories doesn't provide enough transparency.

Leverage other sources of income.

While some grantmakers provide sole funding for a project or offer emergency grants to support an organization, those are the exception and not the norm. Grantmakers typically want to see that your nonprofit has diverse revenue streams and isn't solely dependent on the grant they award you. Your budget should include other funding sources (government grants, corporate sponsorships, individual donations, in-kind donations, and earned income). If you were providing a donation to an organization and once your donation was spent they had to shelve the project, that would be concerning, wouldn’t it? A mix of funding sources adds to your nonprofit’s sustainability.

Don’t underestimate indirect costs.

Frustratingly, "overhead” is still a four-letter word in the grantmaking world. Fortunately, many grantmakers beginning to understand that overhead, or indirect costs, are vital to fulfilling an organization’s mission. The needle seems to be moving on the acceptance of personnel costs and general operating funds. After all, people are what make positive change happen. And also, quite frankly, you can't run youth programs in the dark (unless you run a planetarium, maybe). Even federal agencies have increased the de minimus indirect cost rate from 10% to 15%. When building out your budget, realistically account for all necessary costs to operate your programs and contribute to your overall organizational sustainability to achieve your mission.
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Make realistic projections.

Budgets should be based on well-researched estimates, not guesses. Take time to gather data and talk to experts to develop a realistic budget. For example, you can look at market rates in your region or try to get quotes if you have a specific project component that will need funding or outsourcing.

Illustrate connections between budget needs and impact.

Answer the question: What impact can be made with this $X grant? How many students will be able to participate in the robotics club? How many raised garden beds can your students build and plant? And how much healthy produce will it yield to be shared with the community? If there’s a funding gap, show how new funding will help close these gaps.

Plan for the unexpected.

Build in contingencies, especially when construction is involved. Planning for unexpected costs provides you with wiggle room when the unexpected happens and shows that you carefully considered your project or program scope.

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Reader, how do you feel about budgets? Love them? Loathe them? What's your biggest budget challenge? Reply to this email and let me know!

Happy Grant Seeking,

~ Tiffany

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