Are you missing out on grant funding? The three costs to consider before leaping into applications.
A lot of people have a sneaking suspicion that they’re missing out on grant funding. If you’re leading an innovative organisation that delivers social good, a strong track record and great governance – then you very well may be.
But before leaping into writing the first grant application you can lay your hands on, then quickly giving up on that idea when it all seems too painful, I encourage you to cost out your strategy properly before choosing the path most appropriate.
First cost to consider: the lost opportunity cost.
I’ll be honest – it’s surprising how much money can be secured through grant funding per year for even small-medium sized non-profits (revenue under $500k p.a.) who take a strategic and consistent approach to applications.
Without breaking too much of a sweat, $30,000 – $200,000 could be within reach for organisations who find themselves eligible for at least 5 grants per year. This increases significantly for larger organisations or those with particularly compelling cases for support.
While grants will never form your bread and butter income, they can add incredible value and a sizable chunk to annual revenue.
So before you leave grants assigned to the too-hard basket or keep them perpetually on the back-burner, think about the lost-opportunity cost to your bottom line and ultimately to the beneficiaries of your organisation.
Second cost to consider: avoiding the frantic factor
Once you’ve made the commitment to pursue grant funding regularly for your organisation, it’s important to have a plan.
My advice is to map out what you’re eligible for throughout the whole year, and start each application 4-6 weeks before the deadline. Put dates in your calendar, assign responsibility to team members, and don’t let it slip to the end of the to-do list. You should factor in costs for database subscriptions ($200 – $500 per year approx), and for someone to manage grants research, writing and acquitting (a few days per month on average).
Without this planned approach, you risk a frantic, last-minute rush to complete applications that is all-too-common. Unfortunately this approach is unlikely to yield results; rushed work and a scattered thought-process is usually very clear to those assessing grant applications. It also becomes a nightmare to manage in the office, with requests for supporting documents flying in every direction, stress levels peaking and staff ending the process drained and uninspired, only to be further demotivated when the application is not successful.
Third cost to consider: strategic outsourcing
Seeking external support for grant writing can bring great relief – and financial return.
It’s one of the few external costs you’ll take on that can actually bring in many times more what you spend. Depending on your in-house skills, you may only want external advice at an edit and review level prior to submission. Or at the other end of the spectrum, you may wish to outsource all grant related work (research, writing and acquitting) to ensure effective and timely management.
It’s difficult to give an approximate cost for a grant application, as all applications vary significantly in the detail required, from one page to 20 page responses. But if you want a rough rule of thumb, be prepared to pay $1,000 – $3,000 for external support for applications seeking less than $100,000. Costs should reduce for additional applications that put forward the same project.
At Clarity Content, we can support single applications from a review level service through to leading the grant-writing process. We also offer retainer services to effectively manage grants research, writing and acquitting for your organisation throughout the year, and take great delight in delivering results for our ongoing clients.
There are costs involved in any direction you choose – take your time to think about which cost is going to give you the best return.