MODULE 6
More Than a Little Change:
Identification of Financial Sources
PARTICIPANTS' GUIDE
Published by:
U.S. EPA Region 4
Environmental Justice and Children's Health Section
Environmental Justice Academy
pn* United States
Environmental Protection
Agency
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More Than a Little Change:
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Module 6
Participants' Guide
Table of Contents
Preparation Materials 3
Icon Key 4
Module 6 Day 1 5
Module 6 Day 2 6
Module 6 Day 1 8
Module 6 Day 1: Welcome Back 9
Module 6 Day 1: Close the Gap Recap: Module 5 9
Module 6 Day 1: Lesson 1: Defining Financial Management 10
Module 6 Day 1: Lesson 2: Budget? What Budget? Developing a Realistic
Budget 12
30-Minute Break 20
Module 6 Day 1: Activity: Budget Outline 20
Module 6 Day 1: Closing 20
Module 6 Day 2 21
Module 6 Day 2: Welcome Back 22
Module 6 Day 2: Lesson 3: Show Me the Money: Developing a Plan for
Obtaining Funds 22
15-Minute Break 26
Module 6 Day 2: Lesson 4: Defining the Grant Process 27
30-Minute Break 29
Module 6 Day 2: Lesson 5: Crossing Your T's and Dotting Your I's 29
Module 6 Day 2: Activity: The Good, Bad, and Ugly of Grant Applications 37
Module 6 Day 2: Lesson 6: Financial Sustainability 38
Module 6 Day 2: Summary: Synopsis of Day 1 and 2 41
Homework Assignment 42
Bonus Activity 43
Appendices 44
Appendix A: Additional Resources 45
Appendix B: Glossary 48
Appendix C: Activity: Budget Outline 50
Appendix D: Activity: Identify Potential Funding Sources 51
Appendix E: Homework: Piranha Bowl 52
Appendix F: Sample Organizational Budget 55
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Additional Notes:
Module 6
Participants' Guide
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Participants' Guide
Preparation Materials
Participant Guide Icons and Agendas
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Icon Key
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51
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Agendas
Module 6 Day 1
More Than a Little Change: Identification of Financial Sources
Date:
Time:
Location:
Contact:
Time
Day 1
Facilitator
Close the Gap Recap: Module 5
Overview of module 5
Short review of homework
o Select a specific community concern
o Identify key stakeholders
o Identify potential resources
Questions and answers
Lesson 1Defining Financial Management
Definition of financial management
Brief guidance on the objectives and functions of a
well-developed financial management plan
Lesson 2Budget? What Budget? Developing a Realistic Budget
Define a budget
Why is it important to create a budget?
How do you develop a realistic budget?
Break
Lesson 3Show Me the Money: Identifying Funding Sources
Outlining financial resources
Where to find resources
Ways to get money
Closing
Short introduction to day 2
Thanks and closing of session
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Module 6 Day 2
More Than a Little Change: Identification of Financial Sources
Date:
Time:
Location:
Contact:
Time
Day 2
Facilitator
Welcome Back
Sign in
Housekeeping
Lesson 4Defining the Grant Process
What is a grant?
What is a grant proposal application?
What is a request for proposal?
When should you write a grant application?
Break
Lesson 5Crossing Your T's and Dotting Your I's
Identify the problem or goal area for which funds
will be sought
Thoroughly search the field for available grants
Know the types of support available to you
Consider whether your proposed project fits with
the identified funder's goals
Focus on the type of support you want
Know the grant guidelines and follow them exactly
Activity: The Good, Bad, and Ugly of Grant Applications
Review different grant applications
Lesson 6Financial Sustainability
What is financial sustainability?
Why should you complete a plan for financial
sustainability?
How should you plan for financial sustainability?
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Time
Day 2
Facilitator
Summary
Review of all topics discussed
Interactive discussion and questions
Homework Assignment
Complete the appropriate column in the action plan
Complete budget template
Prepare for piranha bowl
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Module 6 Day 1
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Module 6 Day 1: Welcome Back
Objective: Welcome back to the EJ Academy.
Sign the class roster and ensure that the points you have earned are annotated on your
participant points matrix.
Module 6 Day 1: Close the Gap Recap: Module 5
Objective: You should be able to identify key stakeholders, both internal and
external, who can help the community address issues. Ideally, the key
stakeholders can offer informational resources, technical and financial
assistance, and assistance with potential policy changes.
H Module 5 Overview
In module 5, you developed skills to promote constructive dialogue between
stakeholders and partners. In addition, you identified what support you need to
enhance community initiatives, as well as stakeholders and partners who can provide
those needs.
In module 5, you were provided tools to identify key stakeholders, both internal and
external, who can help the community address issues with informational resources,
technical and financial assistance, and policy changes. You were also provided with
tools to promote constructive dialogue and assess the outcomes of community
engagement with stakeholders to promote lasting relationships. These tools helped you
develop skills to determine who can bring ideas and resources (i.e., money, time,
meeting space, knowledge, marketing, supplies) to solve community problems.
Module 5 Homework Discussion
Select an existing environmental justice issue in your community and evaluate
the role of key stakeholders in addressing the issue. Identify key stakeholders (internal
and external), their roles, and the potential resources they bring. The finished project
will be added to your portfolio.
Discussion Points
What was the most important concept you learned from module 5?
What concepts were easy to understand?
What concepts resonated with you?
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How can you use this information within your community?
Module 6 Day 1: Lesson 1: Defining Financial Management
Objective: You will learn to define financial management and understand why it is
necessary for community development.
What Is Financial Management?
Financial management encompasses planning, organizing, directing, and
controlling financial activities, such as procurement and use of funds. It means applying
general management principles to financial resources.
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Objectives of Financial Management
Financial management concerns procurement, allocation, and control of
financial resources for a community project. Its objectives can include:
Ensuring a regular and an adequate supply of funds to the projects.
Ensuring optimum use of funds with the least cost impact.
Ensuring certainty on investment (i.e., funds should be invested in specific goals
and projects).
a
Functions of Financial Management
To determine how much money is needed, a financial manager should make an
estimate considering the capital requirements of the community project. This will
depend upon the project's initial costs, operations, maintenance, future programs, and
policies.
Determine how much money is desired. This will depend upon the proportion of equity
capital an organization or community possesses and the quantity of additional funds
that must be raised from outside parties.
Brainstorm available funding possibilities. For additional funds to be procured, an
organization or community has many choices, including:
Leveraging shared positions and resources.
Becoming a line item in an existing budget.
Combining your activities and resources with organizations with similar
missions.
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Applying for grants.
Using existing personnel resources.
Soliciting in-kind support.
Fundraising.
Using third-party funding.
Developing a fee-for-service structure.
Acquiring tax revenue.
Securing endowments and giving arrangements.
Establishing membership fees and dues.
Developing a business plan.
Creating a for-profit corporation to help pay for the nonprofit side.
Having programs be "picked up" by other organizations.
Tracking your various in-kind volunteer services, number of hours, and in-kind resource
support can help you qualify for certain grants, especially where there is a cost-share
(i.e., there are ways to calculate the monetary equivalents). More importantly, this can
persuade new funders. Showing that you have a volunteer base who are donating
unpaid, pro bono time to solve community challenges demonstrates community
enthusiasm.
Organizations need to find funding from partners. Choice of funding will depend on
relative merits and demerits of each source and the period of financing.
The financial manager must make decisions about cash management. Cash is required
for many purposes, including wages and salaries, bills, payments to creditors, current
liabilities, maintenance, community cleanup, revitalization, and health programs.
The financial manager has to plan, procure, and utilize the funds, but must also
exercise control over finances. A financial sustainability committee can:
Bring in resources to help your organization survive and thrive.
Ease the transition from one source of funding to another, such as at the end of
a grant period.
Help find money or goods from many different sources. A financial committee
that has members with many connections will create a diverse funding base for
the organization, ensuring sustainability.
Meet funders' requirements. Sometimes, the existence of a financial
sustainability committee is a requirement for receiving a grant.
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Allow group members to focus their time and energy on the jobs they were hired
for. Too often, members of organizations spend so much time finding resources
that they are unable to do what they volunteered or were hired to do.
iyi
Discuss
What is financial management?
o Financial management means planning, organizing, directing, and controlling
financial activities, such as procurement and use of funds. It means applying
general management principles to financial resources.
What are the objectives of financial management?
o To ensure regular and adequate supply of funds to the projects,
o To ensure optimum use of funds. Once the funds are procured, they should
be utilized in an efficient way.
o To ensure certainty on investment (i.e., funds should be invested in specific
goals and projects).
What functions should you consider when planning for financial management?
o Determine how much money you need.
o Decide how much money you want,
o Brainstorm available funding possibilities.
o Take care of the money. The finance manager must make decisions with
regards to cash management,
o Control the finances. The finance manager not only has to plan, procure, and
utilize the funds but they also must exercise control over finances.
Module 6 Day 1: Lesson 2: Budget? What Budget? Developing a
Realistic Budget
Objective: Understand what a budget is, what to include in a budget, and why it is
important.
a What Is a Budget?
An amount of money available for spending that is based on a plan for how it will
be spent.
A plan used to decide the amount of money that can be spent and how it will be
spent.
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An official statement from a government about how much it plans to spend
during a period and how it will pay for the expenses.
The Importance of Budgets
It is important to create accurate and up-to-date annual budgets to maintain control
over their finances and show funders exactly how their money is being used. The
specificity and complexity of the budget depends on how large it is, the funders'
requirements, and how many different programs or activities the money funds.
Budgets can sharpen your understanding of your goals. They also provide a
financial reality check by showing you what you can afford and where the gaps
in funding are. Budgets can help you plan to meet future needs and decide what
can be done each year. In addition, budgeting:
o Encourages effective ways of dealing with money. By showing you what you
can or can't afford with the known income, a budget can motivate you to be
creative in seeking out other funding sources,
o Fills the need for required information. A complete budget is a necessary
element of funding proposals and reports to funders and the community
served.
o Facilitates discussion of the financial realities of an organization,
o Helps organizations avoid fiscal surprises or pitfalls and maintain fiscal
control.
Budget Elements
Projected expenses. The amount of money expected to be spent in a fiscal
year, broken down into expected categories such as salaries, equipment, office
expenses, and travel.
Projected income. The amount of money expected to enter the organization for
a fiscal year, broken down by sources. These sources might include grants,
contracts, fundraising efforts, memberships, and the sale of goods or services.
The interaction of expenses and income. Usually, funding is conditional.
Funders may provide money for specific positions, activities, or items. If funding
comes with restrictions, it's vital to build those restrictions into the budget to
follow funder agreements.
Adjustments to reflect monetary fluctuations. Budgets usually begin with
estimates, and as time progresses, those estimates will need to be adjusted.
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Develop a Realistic Budget
Create a calendar for the budgeting process. This calendar should include
milestone dates, check-ins with a review team, monitoring, and internal
reporting.
Plan earlyat least six months before the next fiscal year.
Have separate calendars for monitoring, internal reporting, and other aspects of
financial management.
What to Consider When Developing a Budget
Setting financial goals should be one of your first priorities. You will need research and
data to assign costs to various items. Donated items, volunteers, and in-kind services
should be included, as these items vary each year.
Determine monetary needs for the following year, using these steps to estimate
your expenses:
o List yearly expense totals for absolute necessities,
o List estimated expenses for conducting organizational activities,
o List estimated expenses for miscellaneous costs,
o Total all defined expenses.
Estimate your organization's income following these steps:
o List all actual figures or estimates of income expected from funding sources,
o Estimate the amount to be raised in the next fiscal year from fundraising.
o Estimate the amount to be received from items that may be sold,
o List and estimate the amounts from any other income sources,
o Total the listed items to determine the total projected income for the fiscal
year.
Follow the five steps of analyzing and adjusting budgets:
o Lay out your figures in an easy-to follow format.
o Compare total expenses to total income,
o Know what to do if your budget is balanced,
o Know what to do if there is a surplus,
o Know what to do if there is a deficit.
Your project team should review the completed budget. Refer to the calendar to ensure
that reporting and quarterly meetings are included in the timeline. Confirm that the
budget is aligned with the S.M.A.R.T. actions.
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jQ Some Practical Considerations
Sometimes budgeting and financial management can prove challenging for
organizations. You can find professional financial management help by hiring a
bookkeeper, accountant, or chief financial officer (CFO). Organizations like the U.S.
Small Business Administration (sba.gov/fundinq-proqrams/loans) and the Service
Corps of Retired Executives (score.org) can assist with budgeting, business plans, and
loan searches. Local universities, community and technical colleges, or government
agencies may have offices that assist with financial planning. Sharing an accounting
position with another organization is another possibility.
The Preliminaries: Funds for the Next Fiscal Year
It is important to know what the priorities are and what makes the most sense for the
organization at each stage of development. Determining how monies will be spent
involves an organization-wide planning process.
Consider These Questions:
Which activities or programs will do the most to advance your mission? Can you
carry out these programs with your projected income and resources?
How many positions will it take to run those activities or programs well?
How will staff members be compensated (e.g., hourly wages, salaries,
consultant fees, benefits), and how much? What funding sources will you use to
compensate them?
What else is needed to run the organization and its activities (e.g., space,
supplies, equipment, utilities, insurance, transportation)?
Step 1: List the estimated yearly expenses for the organization's absolute
necessities.
For most organizations, these expenses may include, but aren't limited to:
Salaries or wages for all employees, listed separately by position.
Fringe benefits for all employees, also identified by position. Even without formal
fringe benefits, taxes, compensation, and unemployment insurance for regular
employees must be paid. These costs can be considerable payroll additions.
Rent and/or mortgage payments for the organization's space.
Utilities (e.g., heat, electricity, gas, water).
Phone service.
Internet provider or server costs, depending on your organization's needs.
Estimating Expenses
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o Insurance (e.g., liability, fire, theft).
Step 2: List the estimated expenses for things vou need to conduct the
organization's activities.
Program and office supplies (e.g., pencils, stationary, software, educational
materials).
Program and office equipment (e.g., peripherals, copiers, fax machines). Be
sure to figure in the annual estimated costs of repairs or service contracts in
addition to purchase or lease costs.
Step 3: List estimated expenses for anything else the organization is obligated to
pay or can't do without.
Loan payments.
Consultant services. These may include annual auditing, accounting, or
bookkeeping services, or payments to other organizations for specific services.
Printing and copying, if not done within the organization.
Transportation, including travel expenses for staff, participants, and volunteers
and vehicle upkeep and expenses for any organization-owned vehicles.
Postage and other mailing expenses.
Step 4: Total all the expense items vou have listed.
This total represents your organization's projected expenses for the coming fiscal year.
Estimating Income: Where Are We Going to Get All That Money?
Use last year's figures, if available, as a baseline. Estimate conservatively
rather than being overly optimistic, which could lead to disappointment.
Step 1: List all actual figures or estimates from expected funding sources.
This list should include sources that have already promised monies for the upcoming
year. These sources may include federal, state, or local government agencies and
private and community foundations.
Step 2: Estimate the fundraising amount for the next fiscal year.
Fundraising efforts might include community events (e.g., a raffle, a bowl-a-thon), more
ambitious events (e.g., a benefit concert by a world-class performer), media
advertising, or phone or mail solicitation.
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Step 3: If members pay yearly dues or fees, estimate the amount yielded from
them.
Step 4: List and estimate the amounts from any other expected income sources.
Step 5: Add up all the income items vou have listed.
This total represents the money available, or your organization's projected income for
the next fiscal year.
Analyzing and Adjusting the Budget
Step 1: Lav out vour figures in a useful format.
A useful budget must be organized to inform the reviewer of exactly how much is
available to spend in each expense category.
It is beneficial to use a spreadsheet. The spreadsheet should list funding sources along
the top and list expense categories on the left-hand side. Each column represents a
funding source, and each row represents an expense category. Where each column
and row meet (cell), the number represents the amount of money from that funding
source (the column) that goes to that expense (the row).
Step 2: Compare total expenses to total income.
If projected expenses and income are equal, then the budget is balanced.
If the projected expenses are less than the projected income, there is a budget
surplus. This allows for the possibility of expanding or improving the organization
or putting money away for when you need it.
If your projected expenses are greater than the projected income, there is a
budget deficit. In this case, you will need to find more money or cut expenses to
run the organization in the coming year.
Step 3: For balanced budgets, make sure the money can be used as planned.
If you've filled in the numbers in accordance with your funding restrictions, your
spreadsheet should immediately let you know whether you have enough in each
of your expense categories. If there are discrepancies, there are several ways of
addressing them.
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Consider negotiating an arrangement with the funder that allows you to use the
money in other ways.
Consider reassigning expenses from one category to another. If you don't have
enough money to pay an assistant director, for example, it may make sense to
make them the coordinator of a specific program and pay part of their salary with
funds allotted to that program.
Consider rethinking your priorities so that the money can be spent in accordance
with funding restrictions
It's important to remember that the mission, philosophy, and goals of an organization
should drive funding, not the other way around. Creating a program or project simply to
make use of available funding usually doesn't help you meet organizational goals.
Step 4: Be aware that a budget surplus may not show up as cash until the end of
the coming fiscal year.
A conservative course is sticking to the budget and investing the excess money
at the end of the year. This provides something to draw from in emergencies, or
money for something the organization really wants or needs in the future.
"Invest" doesn't necessarily mean putting money in the stock market.
Certificates of deposit give high interest rates in return for keeping money in the
bank for a set period (generally from six months to five years). Money market
accounts, which give a high interest rate for keeping a large balance, are easy
ways for organizations to earn interest while keeping money available for
emergencies.
A surplus can be used to improve working conditions within the organization by
raising salaries or adding benefit packages. It is important to remember that
once this type of change has been promised, you're obligated to fulfill it.
A surplus can also be used to purchase items that you haven't been able to
afford previously.
Consider adding positions or starting a program or initiative that has been
planned for a long time. When starting a new program, commit to maintaining it
for years so it will have enough time to be successful.
Consider a long-term capital investment, such as buying a building. You could
lock in your rent for the duration of the mortgage, and you might be able to
provide the organization with income by renting parts of the building to other
organizations.
The surplus may not be large enough for the organization to make significant
changes, but it may help you collaborate with other organizations to achieve a
goal.
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Step 5: For budget deficits, consider combining several or all the following
possibilities to make your budget work.
If you have enough money in the bank or in investments from prior years, you
can use it to fill the gaps in your budget.
Try to raise money by writing grants, fundraising, or increasing fees for services.
If your organization has a plan for raising money, list it with your estimated
income, but be aware that a projection isn't "real" money until you reach the
financial goal it represents.
Collaborate with another organization to share the costs of services, personnel,
materials, or equipment.
Try to cut expenses by reducing some costsuse less electricity, use recycled
paper, or try to get items you planned to buy for less money.
Cut expenses by eliminating some things from your budget.
Borrow the money your organization needs, being sure to add loan payments to
the projected expenses and figure them into the revised budget.
beneficial to put the budget in a form everyone in the organization can
understand.
A simple budget document lists projected expenses by category and projected income
by source, with totals for each. This can help readers see how much the organization
intends to spend, how much it intends to take in, and what the difference is, if any.
Refer to Appendix F for an example budget.
The spreadsheet itself can also be the budget document, for those who want to see
exactly how the money is allocated. Many organizations provide their boards with both
a simple budget and a spreadsheet. This ensures that board members eager to
understand the organization's finances can see the full picture, while others can simply
see whether the budget is balanced.
Working With Your Budget
Most organizations review their budgets regularlyonce a month is usually
reasonableand revise them to keep them accurate. If the organization gets
unanticipated monies or spending estimates are off, these things should be figured into
the budget.
The budget becomes the basis for financial documents you might prepare during the
year (e.g., balance sheets), which give an up-to-date picture of the organization's
financial status.
Creating the Budget Document
While a spreadsheet will be used to track the organization's finances, it is also
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Your Budget Should:
Show you if there are still any gaps in funding, and exactly where they are.
Show you exactly what needs to occur to close those gaps.
Allow you to carefully track money, adjust to changes, and avoid overspending.
30-Minute Break
Objective: You will take a 30-minute break before the activity.
Module 6 Day 1: Activity: Budget Outline
You will receive a budget spreadsheet, a flip chart, and markers before the
brainstorming activity. Think about what elements you need to identify for your
budget. An example budget spreadsheet can be found in Appendix C.
Brainstorm with others at your table about what should be included in a
complete budget. Remember that the goal is not to develop numbers (i.e.,
costs). Instead, think about what your specific goals are and what you need to
achieve them.
Module 6 Day 1: Closing
Objective: Close out day 1 of module 6 and receive a short introduction to day 2.
~ Introduction to Day 2
A budget process that examines an organization's priorities produces an
accurate, balanced budget, helps you control the organization's finances, and
helps guide the work. A rational and accurate budget allows organizations to give
accurate reports to funders and to spend their money as they have promised. The
budget will also provide clear guidelines about what can be spent and when.
Discuss the need to develop a list of financial resources, seek funding through
grants, and obtain financial sustainability using a financial management plan.
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Module 6 Day 2
More Than a Little Change: Identification of Financial Sources
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Module 6 Day 2: Welcome Back
Objective: Welcome back to day 2 of module 6.
Sign in and mingle with fellow participants.
Module 6 Day 2: Lesson 3: Show Me the Money: Developing a Plan for
Obtaining Funds
Objectives: You will learn to research and develop a list of financial resources. You
should also research non-monetary resources to support community
development.
n Resources
Resources (or assets) can include individuals, organizations, institutions,
buildings, landscapes, or equipment. A resource is anything that can be used to
improve the quality of life for community members.
Community Resources
Community resources are the people and places that members of a community or
community organization can depend on to fill unmet needs. Community resources can
include:
People. Every individual is a potential community asset. The stay-at-home
parent who organizes a play group, the church member who starts a discussion
group on spirituality, and the firefighter who's willing to risk their life to keep the
community safe are all community assets.
Physical structures or places such as schools, hospitals, churches, libraries,
recreation centers, and social clubs. These assets could be a town landmark or
symbol, an unused building that could house a community hospice, or a room
for community meetings. These assets might be public places that already
belong to the community, such as parks, wetlands, or other open spaces.
Community services, such as public transportation systems, early childhood
education centers, or community recycling facilities.
Local businesses that provide jobs and support the local economy.
You and everyone else in the community are potential community assets.
Everyone has some skill or talent, and everyone can provide knowledge about
the community, connections to the people they know, and the kind of support
that every effort needsmaking phone calls, stuffing envelopes, giving people
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information, or moving equipment or supplies. Everyone can be a force for
community improvement.
Government Resources
Government resources include local, state, and federal government programs, staff,
and internet tools. These resources provide guidance, answers, and financial help for
individuals and organizations. Government resources include schools, colleges,
libraries, post offices, and recreational facilities and their staff. Because tax dollars
support these structures, these resources tend to be available to all members of the
public. Government resources are not merely restricted to grants. Some environmental
justice communities have attained congressional appropriation line items for
community-based projects by working closely with their elected representatives in
Congress.
Other public resources are targeted to certain segments of the community, such as
mental and physical health services, food and housing assistance, and child and elderly
care services.
Below are examples of government resources:
https://www.usa.gov/
https://www.epa.gov/
https://www.usa.gov/monev
Private Resources
Private nonprofit organizations also provide a range of services to the community.
Unlike public organizations that exclusively employ paid staff, these organizations rely
heavily on volunteers to fulfill their missions. Civic organizations and even groups of
employees from local businesses who band together to volunteer are community
resources. Any individual who volunteers time to help one of these nonprofit groups is a
community resource.
Grant Resources
A grant resource can be a private or government entity that gives based on subject and
geographic region. Grant seekers are encouraged to match the funders' interests to
their organization's mission, programs, populations, and locations served. We
recommend using grants.gov to find and apply for federal grants.
Fundraising Resources
Fundraising is the process of requesting contributions of money or other resources from
individuals, businesses, charitable foundations, or government agencies. Although
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fundraising typically refers to gathering money for nonprofits, it is sometimes used to
solicitat investors or other sources of capital for for-profit enterprises. New forms of
fundraising, such as online fundraising, have emerged in recent years. Below are
examples of fundraising resources:
Association of Fundraising Professionals (AFP): www.afpglobal.org
National Council of Nonprofits: https://www.councilofnonprofits.org/
Network for Good: https://www.networkforgood.com/resources/guides-
templates/
Foundations. Refer to www.philanthropy.com and
https://fconline.foundationcenter.org/ and subscribe to
https://philanthropynewsdigest.org/. Be sure to build direct relationships with
foundations, know their values, and research what they funded previously.
Crowdfunding
Crowdfunding is the practice of raising money for a cause by harnessing the power of
social networks to drive awareness and donations from all over the world. The
crowdfunding model is fueled by three types of actors:
The project initiator who proposes the idea and/or project to be funded.
Individuals or groups who support the idea.
A moderating organization (i.e., the "platform") that brings the parties together to
launch the idea.
There are two main models of crowdfunding:
Donation-based funding. Funders donate via a collaborative, goal-based
process in return for products, perks, or rewards. Below are examples of
donation-based funding:
o GoFundMe: https://www.gofundme.com/
o Kickstarter: https://www.kickstarter.com/
o Indiegogo: https://www.indiegogo.com/
o RocketHub: http://www.rockethub.com/
Investment crowdfunding. Businesses seeking capital sell ownership stakes
online in the form of equity or debt. In this model, individuals who fund become
owners or shareholders and have a potential for financial return, unlike in the
donation model. Below is an example of investment funding:
o Crowdfunder: https://www.crowdfunding.com/
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Identifying and Communicating with Potential Funders
Determine appropriate funding sources.
o Find out what funding sources exist that might support the project,
o Research funders' websites or listings to find more information about them
and the grants they provide,
o Identify funders with grants that match the organization's needs.
Before contacting funders, identify the program administrator or program officer
for the specific grant program.
Identify potential supporters for your project.
o Who are the key players that can help generate support among others?
o Who are the individuals and groups that you need to sign on?
Create a community map with connection lines among various individuals and
groups to identify connections.
We also recommend these tips for writing grants and securing funding:
If your organization lacks "programmatic capability" (i.e., history to manage a
grant), partner with an experienced, eligible entity, such as the local or regional
government, a nonprofit, or an academic institution.
Research a few recent grant proposals that received funding from the funder to
review and reference as a "go-by." This will help you see the techniques of
award-winning proposals. Reach out to successful previous grant recipients
many of them would be happy to share their proposals.
Realize that many grants are highly competitive. Be open to partnering with
successful grant writers, such as environmental consultants. Some cities enroll
high-quality grant writers to give their communities the highest competitive
advantage.
Enlist pro bono help from environmental consulting companies or more
experienced nonprofits with successful grant writing experience.
Be familiar with all proposal guidelines and answer all questions thoroughly,
ensuring space dedicated to criteria is proportional to scoring percentages while
staying with the maximum page length. Do multiple rounds of proposal editing
and solicit both internal and external feedback to create a persuasive proposal.
Activity: Identify Potential Funders for Your Project
Brainstorm potential funding sources.
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Use the internet and other sources (i.e., networking with similar community-
based organizations) to identify possible grant sources and gather relevant
information.
Communicate directly with potential funders to establish relationships. Be sure
to have an "elevator speech" ready (refer to Appendix E ) to succintly describe
your organization, your top projects, and your funding needs.
Consider factors such as:
o Eligibility for funding under the funder's guidelines,
o The timing of the application and funding,
o The funder's reporting and other requirements,
o The restrictions on the funder's grants,
o The funder's priorities and examples of past funded projects.
Create a chart to compare different opportunities (see Appendix D).
Complete the chart by recording details of funders that appear to have grants
that match your needs.
Discuss
What do we mean by resources?
o Resources (or assets) can include individuals, organizations, institutions,
buildings, landscapes, and equipmentanything that can be used to improve
the quality of life.
What type of resources are available?
o Community, government, private grant, fundraising, and crowdfunding
resources are available to your communities.
How can resources be identified?
o Research websites for funding sources,
o Brainstorm with community members.
15-Minute Break
Objective: You will take a 15-minute break prior to the next lesson.
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Module 6 Day 2: Lesson 4: Defining the Grant Process
Objective: You should have a clear understanding of the grant process and the
information you need to begin the process.
Grants
A grant is a financial award given to an organization to carry out a public
purpose through addressing a problem. Grants do not need to be repaid.
Grants are used to carry out an authorized purpose or project and are not provided as
personal benefits or assistance. Grants are typically awarded to universities,
researchers, law enforcement, cities, states, counties, and nonprofit organizations.
Grants are not loans. Loans are different than grants because they are awarded to an
individual as a personal benefit or assistance. You are required to pay back a loan,
often with interest.
What Types of Grants Are Available?
There are three main sources for grant funding:
Governmentsoften federal, sometimes state, and occasionally local.
Private businesses and corporations.
Foundations, which distribute millions of dollars each year to community
organizations like yours.
What Is a Request for Proposal (RFP)?
An RFP is an invitation by a foundation or funding agency for bidders to submit a
proposal for money for projects that reflect the agency's values, interests, or
research priorities.
When Should You Apply for Grants?
You might apply for grants when:
B
You are invited to apply or are responding to an RFP.
You want to start a new project or expand an existing project, and financial costs
are involved these costs cannot be covered in the current budget.
You know of a specific granting agency that awards money for the types of costs
you envision.
Your community meets the eligibility standards for such awards.
There is time to commit to the grant writing process.
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Note that some grants have prerequisites, such as attending public meetings or
participating in public engagement activities well before the grant deadline. You might
start anywhere from three to 12 months in advance, using the previous year's grant
guidelines, as they often don't change much from year to year.
Operating grants can be used to support the general expenses of operating an
organization, from a specific program to the heating bill. An operating grant means the
funder supports the organization's overall mission and trusts you to make good use of
the money.
Program or Project Support Grants
Most other grants come in the form of program or project support. A project grant
supports a specific, connected set of activities with a beginning and an end, explicit
objectives, and a predetermined cost. When a funder gives a grant for a specific
project, it is generally a restricted grant and must be used for that project.
#\ Grant Proposal Application
A grant proposal application is the written document submitted by the
requesting agency or individual to a funding agency as a means of requesting
grant money.
Standard Components of a Grant Proposal
Common elements in a grant proposal:
Cover letter, title page, and abstract.
Statement of the problem/needs statement.
Project description (e.g., goals, objectives, methods, activities).
Evaluation plan.
Budget request and budget justification.
Applicant qualifications.
Future funding plans and plans for sustainability.
Appendices, which may include:
o A marketing or dissemination plan schematic.
o A project staffing flow chart.
o A timeline of proposed activities.
o An evaluation instrument (e.g., a survey).
o Any existing educational or printed materials to be used.
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o Description or resumes of key project personnel, including advisory board
members and any consultants already identified,
o Letters of support/participation.
Features of a strong proposal that enhance the likelihood of funding:
Well-organized proposal sections.
Well-researched and -documented statement of the problem.
Creative or innovative strategies for addressing the need/problem.
Feasible and measurable goals and objectives.
A sound evaluation plan.
30-Minute Break
Objective: Take a 30-minute break.
Module 6 Day 2: Lesson 5: Crossing Your T's and Dotting Your Ys
Objective: You should have a clear understanding of the necessary components to
include in a winning grant application.
Guidelines for Submitting a Good Grant Application
Before beginning a grant proposal, the organization should identify the problem
or goal area for which funds will be sought. Thoroughly search the field for
available grants for the problem/goal area.
Understand which types of support are available. This allows you to focus on the
funding that fits with your goals.
Know the grant guidelines and follow them exactly. If you have any questions,
consider meeting with the funding source, or have others contact funding
sources on the organization's behalf.
Form a working group that includes an expert in the field or someone with grant
writing experience. Use a successful application as a model when building your
application.
Once the application is complete and submitted, follow up with your partners,
the community, and the funding source. This ensures that all the information has
been received and builds a resource network.
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^ Common Elements in a Grant Proposal
The discussion that follows will give you guidelines for each element in a grant
proposal:
Cover letter, title page, and abstract.
Statement of the problem/needs statement.
Project description (e.g., goals, objectives, methods, activities).
Evaluation plan.
Budget request and budget justification.
Applicant qualifications.
Future funding plans and plans for sustainability.
Appendices.
^ Cover Letter, Title Page, and Abstract
Instructions for the cover letter and title page will be included with the RFP. The
cover letter should be on your organization's stationery and signed by the appropriate
organizational official. The cover letterusually limited to one pageshould:
Describe the organization's interest and capacity to successfully implement the
proposed project.
Have an upbeat tone that makes it stand out in a positive way.
Summarize the project.
Designate a contact person for any questions about the project.
Once again, a well-written letter is likely to get you extra points in the reader's mind.
Make certain that all your spelling and grammar is correct.
Typical title page contents include:
Project title.
Name and address of the organization submitting the grant proposal.
Name of the prospective funder.
Beginning and ending project dates.
The total amount requested.
Some RFPs require a letter of intent that precedes the submission of a grant proposal.
These can be challenging to write, as they are basically an abstract for the proposal.
Therefore, it is helpful to have a clear purpose, identified need, and a strategy for
addressing that need ahead of time. Have those things in mind as you research RFPs
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so you can identify agency missions and grant opportunities that match the interests of
your program or project.
An abstract is related to, but different from, the letter of intent. The abstract includes a
summary of the problem/need, overarching goals, and implementation and evaluation
methods, as well as a final paragraph describing the organization's capacity for carrying
out the proposed project. An RFP may limit the number of pages an abstract can be,
but a good rule of thumb is no more than two pages.
Statement of the Problem/Needs Statement
The needs statement is one of the most powerful components of your grant
proposal. This is where you can grab the reviewer's attention and make the
case for funding needs. So, do your homework before writing this section. Know the
community (e.g., demographic and socioeconomic characteristics), the extent of the
problem, and if any previous or existing efforts have targeted the same problem.
Your problem or needs statement should:
Document the problem you want to address You can use text, statistics, graphs,
and charts.
Describe the causes of the problem or the circumstances creating the need.
Identify approaches or solutions attempted to date, based on a review of
literature when possible.
Use existing data sources to document the problem, such as city, county, state, and
national census data. If the existing local data for your needs/problem statement is not
easily available, you may need to conduct qualitative research (e.g., telephone
interviews, focus groups, self-administered surveys).
Project Description
Once you have captured the reviewers' attention by clearly documenting the
need for funding, present the details of the program implementation plan. This
section of the proposal should guide the reviewer through all the activities needed to
accomplish your goal. Furthermore, refer to your project description over the course of
program implementation. Even if program staff changes overtime, the project
description should provide a road map to follow.
The project description should include three main pieces of information: goals,
objectives, and methods.
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Goals and Objectives
Goals and Objectives are a very important piece of your grant proposal. Goals are
broad statements with a long-term, ideal outcome. Most proposals do not have more
than three goals.
For each goal, develop numerous corresponding objectives. Objectives are specific
statements that will show the reviewer exactly how you plan to achieve your goals. The
best objectives have several characteristics in common.
Well-written objectives are:
Specific. They specify what you want to achieve, by how much, and when.
Measurable. Information concerning the objective can be collected, detected, or
obtained from records.
Achievable. Not only should the objectives themselves be possible, but the
organization should also be likely to pull them off.
Relevant to the mission. The organization should have a clear understanding of
how these objectives fit with the overall vision and mission of the group.
Timed. The organization should develop a timeline (a portion of which is made
clear in the objectives) for achieving goals.
Challenging. They encourage the group to set its aims on significant
improvements that are important to community members.
Once you are comfortable drafting objectives, determine whether they are "process"
objectives or "outcome" objectives. A process objective measures the tasks completed
as part of the implementation of a program, while an outcome objective measures long-
term results or a program's impact.
Methods
A sense of clarity and specificity will come after you draft the proposal objectives. The
next step in the proposal writing process is to break down each objective into a series
of activities needed to achieve it. The methods section describes in detail how to carry
out your goals and objectives over the course of a project.
When writing the methods section, be sure to:
Keep the sequential order of tasks in mind.
Make sure that the activities described are cohesive, so reviewers see that you
know how all pieces of the puzzle fit into the big picture.
Include a flow chart of the sequence of events, if applicable to your situation, in
addition to a timeline chart, which is usually required.
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jq Evaluation Plan
The purpose of the evaluation plan is to show how you will measure the
success of process and outcome objectives. Be sure that the plan includes
details about how information will be collected and analyzed. Describe how and when
evaluation findings will be shared with the funder.
The Need for a Program Evaluation Plan in a Grant Proposal
There are two main types of evaluation: process and outcome. Your project will dictate
which type of evaluation you use. Use a combination of both approaches depending on
the types of objectives you draft. Process evaluation assesses the implementation of a
program, emphasizing activities to be completed. Outcome evaluation assesses the
short- or long-term impact of a program.
Evaluations can be complex and time intensive. Unless you can afford to budget for an
evaluation consultant, design the evaluation plan within the strengths and limitations of
program and staff resources.
S Budget Request and Budget Justification
The detailed information for the goals and objectives, methods, and evaluation
plan will serve as the foundation for the budget request. You will now need to assign
corresponding dollar amounts to staff positions and activities.
Common budget line items for budget requests include:
Staff salaries
Taxes
Fringe benefits
Indirect costs
In-kind items
Rent and utilities
Equipment and supplies
Postage
Travel
In the budget justification, clearly describe the need for each line item total requested.
In one or two sentences per budget line item, show the reviewer exactly how you
arrived at the total for an item.
Tips to consider when making the budget:
Make sure the budget does not exceed the maximum amount stated in the RFP.
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Ensure that the numbers in the proposal narrative and budget justification text
match those in the line-item budget.
If you are required to submit budget projections for multiple years, include cost
of living raises in staff salaries and allow for inflation among supplies and
utilities.
If you are inexperienced with a proposed activity (e.g., conducting focus groups),
talk with someone who has done this to learn how much to budget for. You may
learn about costs that you did not anticipate. It is better to discover those before
you submit your grant proposal than after you are working within a set budget
that could require that you reduce the total number of activities or exclude some
altogether.
jq Applicant Qualifications
Use this section of your proposal to convince the reviewers why this project
should be funded. You may be requesting funding for a problem or need that is
already well documented. While reviewers may need no convincing that the issue is
important or timely, they have a limited amount of funds to award. What makes your
qualifications, approach, or strategy better than the competitors'?
Include the following information in the applicant qualifications section:
Describe the organization's mission, history, and existing experience.
Emphasize the organization's strengths and current contributions to the field or
community in the relevant topic area.
Highlight links to community collaborators and other resources. Obtain letters of
support (or letters of participation) for the proposal appendices from the same
collaborators you mention in this section.
jT) Future Funding Plans/Plans for Sustainability
Funders often want to see a long-term plan for the self-sustainability of a
project. The reasons for this vary. For example, funding may only be available for a
couple of years. Some programs require a match of funding from the beginning.
Funders will want to know how grantees' matching funds will be provided and
sustained. Some initiatives will need to be in place for years if they are to have a long-
term impact on outcomes such as health status indicators.
jQ Appendices
Appendices are supplemental materials that do not belong in the body of the
proposal, but nevertheless are important pieces of information, such as:
A marketing or dissemination plan schematic.
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A project staffing flow chart.
A timeline chart of proposed activities (include this in the body of the proposal
instead of or in addition to here).
An evaluation instrument (e.g., a survey).
Any existing educational or printed materials to be used.
Bios, resumes, or curricula vitae for key project personnel, including advisory
board members and any consultants already identified.
Letters of support and/or participation.
One-page letters of support/participation should be submitted on official letterhead from
each partnering organization that you have proposed as a collaborator. Letters should
be signed by an executive director or chief executive officer of the collaborating agency.
You may want to draft the letters for each collaborator (in fact, they may request that
you do this), but make sure each letter is unique to your working relationship and
shared interests. Highlight the significance of the proposed collaborative relationship in
the context of proposal goals and objectives. Most grant evaluators will want to know
each individual partner's specific commitment and added value towards the grant
project, so be sure these are not "chain letters," per se (otherwise, this could hurt
instead of help). Make sure to summarize the collaborating agency's capacity and
strengths for addressing the problem or need identified in the proposal.
Grant Review Process
Reviewers provide an analysis and rating of the quality of each grant
application based upon the application requirements and selection criteria.
When applying for a grant, it is important to follow the funders' specific guidelines
exactly. Here's a general checklist you may wish to use:
0 1. Be sure to format and organize the grant headings exactly the way the RFP
requests. Answer all the questions in the order listed and use the headings,
subheadings, and numbers provided. Be sure to submit the number of
copies the funder requests.
~ 2. Include a cover letter to introduce your organization and your request, and to
make a strategic link between your proposal and the funder's mission and
grantmaking interests.
~ 3. Grant proposals should be typed and look professional. Make sure the grant
is easily readable (e.g., the font size is not too small).
~ 4. Keep an electronic copy of the proposal for future reference. This can be
adapted or modified for future proposals.
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~ 5. Find out if you need to register to apply. Contact the funder to let them know
the organization is applying or set up a profile before submitting a grant. For
example, federal grants need a Data Universal Numbering System (DUNS)
number. If any of these steps are required, make sure you complete them
well in advance of the grant's due date. If you contact the funder's agency,
be sure to state not only your name, but also the group you are with.
Q 6. If the funder conducts pre-assistance calls or webinars on the funding
opportunity and the application criteria, attend one or more of those. This will
help your organization gain a stronger understanding of the grant/funding
opportunity. Being incorrect on one requirement (e.g., page length, one
criteria) could cost you, as funding opportunities can be extremely
competitive.
~ 7. Find out if the grant needs a letter of intent and submit one by the due date if
required.
~ 8. Determine if you need letters of support or if you need potential partners to
sign a memorandum of understanding.
~ 9. Pay attention to how reviewers are going to score various aspects of the
grant and give higher priority to areas that are more heavily weighted (e.g.,
proposal length).
~ 10. When writing the grant, use bold or italics to emphasize key points.
~ 11. Note that you may need to include the following in the appendices: proof of
nonprofit status, a staffing overview or organizational chart (including board,
staff, and volunteer involvement), and an audited income or expense
statement.
~ 12. Once the grant is written, review it for clarity and consistency. Although grant
applications are often a team effort, the final grant application should have
one voice. It should read as if it were written by one writer.
~ 13. Make a strong case for the overall significance of the proposal and
prospects for success. State why this project should be done 1) at all, 2) in
this community, 3) at this time, and 4) by this organization.
~ 14. Ask the funder questions, if neededbut read the application thoroughly and
think before asking.
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~ 15. Be very thorough and careful when uploading your grant package to the
funder's website. Submit it well before the deadline to allow for unexpected
problems (i.e., internet is down). We suggest never submitting your package
at the last minute (i.e., 11:59 p.m. the day the grant is due). If you catch a
mistake after the deadline, then all the hard work of writing the grant is lost.
Most foundations and federal agencies will not allow you to resubmit if pages
or grant elements are missing or uploaded incorrectly. Depending upon
when the next grant cycle is, you may have to wait up to one to two years to
apply for it again.
~ 16. If your organization is granted funding, there will likely be periodic reporting
requirements to the funding agency.
Module 6 Day 2: Activity: The Good, Bad, and Ugly of Grant
Applications
Objective: Review different applications to determine whether they meet the grant
requirements.
Activity
You will see several grant applications that have been reviewed and processed.
For each grant application, you will identify what is correct and incorrect in the
application.
^ Criteria for a Good Grant Proposal
Most funding agencies apply similar criteria to evaluating proposals. We
discuss these below. It is important to address these criteria directly in the case for
support. A proposal that fails to meet them will be rejected regardless of the quality of
its source. Otherwise, there is a danger of unfairly favoring well-known applicants.
Major Criteria
Here are the major criteria against which many proposals are judged. Read through
your case for support repeatedly and ask whether the answers to the questions below
are clear, even to non-experts.
Does the proposal address a well-formulated problem?
Is it a research problem, or is it just a routine application of known techniques?
Is it an important problem? Will its solution have useful effects?
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Is special funding necessary to solve the problem, or to solve it quickly enough?
o Could it be solved using normal laboratory resources?
Do the proposers have a good idea on which to base their work?
o The proposal must explain the idea in sufficient detail to convince the reader
that the idea has substance,
o It is not enough to merely identify a wish list of desirable goals (a very
common fault).
o There must be significant technical substance to the proposal.
Does the proposal clearly explain what work will be done?
o Does it explain what results are expected and how they will be evaluated?
o How will one judge whether the work was successful?
Is there evidence that the proposers know about the work others have done on
the problem?
o This evidence may take the form of a short review or representative
references.
Do the proposers have a good track record of doing research and publishing it?
o Cite a representative selection of relevant publications by the proposers.
o Absence of a track record is not a disqualifying characteristic, especially in
the case of young researchers, but a consistent failure to publish raises
question marks.
Module 6 Day 2: Lesson 6: Financial Sustainability
Objective: You will develop a financial sustainability plan for continuing your
community or organization's goals.
^ Financial Sustainability
A financial sustainability plan is a tool used to help an organization or initiative
reach its goals and thrive. It will also assist in creating a sustainable community
initiative. A plan allows for easier transitions, makes you more competitive in your field,
and provides increased focus on your "real" work.
Have the team that developed the budget develop the sustainability plan.
Let supporters, funding agencies, and members know what is being done. This
allows for a more transparent process, and partners may provide good
suggestions for your plan.
Conduct an internal audit to determine the amount of money needed and current
projects.
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Set objectives, review available possibilities, and follow up on the most
promising options.
Develop a draft to give to the partners initially notified of the sustainability plan.
Review and incorporate comments into the plan.
Remember that implementation, review, and evaluation are continuous, as
planning never stops.
Who should plan for financial sustainability?
Individuals
Businesses
Governments
Communities
Organizations
Churches
Why should you complete a plan for financial sustainability?
To ensure finances are secure.
To increase focus on the real work. You organization can do more of what it set
out to do because it can focus on the mission, not just on finances.
To become more competitive in the field. More money allows you to hire more
and better staff, which allows you to do more work towards your mission.
To ease transitions. A plan can assist the organization in successful transition
when current funding is depleted.
To follow guidelines. Some funders require a plan for financial sustainability as a
condition of their grants. By having a plan already developed, you will be one
step ahead.
When should you plan for financial sustainability?
The earlier the better!
Start from the beginning.
If your organization has been around for a while, a complete overhaul may be needed.
Periodically look over the plan and revise it to fit your current needs.
How should you plan for financial sustainability?
Think about what the organizayion really needs and wants,
o Set goals.
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o Think about what taking or earning money in different ways will say about
your organization. For example, will a high membership fee deter lower
income people from joining?
Decide who will develop the plan.
o Designate a sustainability committee, board members, or a temporary
working group.
Be transparent to members about activities,
o Build trust.
o Receive suggestions.
Conduct an internal audit.
o How much money is currently available?
o How much money do you expect to have in the coming year, two years, etc.?
o Where is the money coming from?
o What will you do with it? How much money goes to programs, staff, etc.?
o How much debt do you have?
o Note that some funders or grants require an independent financial audit.
Determine how much money you need,
o Look at what the orgnization is doing.
o Think about what the organizations hopes to do in the future,
o Make a list of essential things your organization should be doing,
o Determine a bottom dollar amount of the things that must be done for the
organization to be successful.
Decide how much money the organization wants,
o Dream about the future of the organization.
o Talk with others about the goals they want to accomplish through the
organization,
o Make a wish list.
o Write down a list of what the organization will need over what period to make
the vision happen. What will it take (in terms of resources) to accomplish
these goals? Does the organization need more staff and/or better trained
staff? A new building? Next to each item, write down an estimate of what that
would cost. Break the list down into first year costs, second year costs, etc.
Write this down over a five-year period of time, or even longer.
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Tips for Continuing Financial Sustainability
Network to stay informed about what's going on and develop connections with
others.
Designate someone in your organization to take on the task of scouting and
tracking opportunities that might be available.
Consider hiring someone to write grants for the organization. This can be worth
the expense if your grant writer is good, especially if they are willing to work at
least partly on commission. You might also find a sympathetic local professional
with background both in grant writing and in the content area to review your
proposal for form and content. This being said, ensure you have numerous
internal and external editors to supplement the grant writer to help with the
quality, clarity, and obedience to the grant criteria.
If tax exemption is needed and you are not tax-exempt yourself, find another
like-minded, tax-exempt organization to make a formal grant application for the
organization. That same group, often called a lead agency, may also manage
grant funds received.
Make everyone's roles and responsibilities very clear.
Get to know your local politicians well enough that they return your calls and
understand your issue and its importance.
Diversify your funding so you aren't completely dependent on any one form of
support.
Ensure continuity. Stick to the mission and keep doing what has been done. It's
helpful to have consistent people, consistently going out doing the same things.
Consistency helps create a local base of support.
Successful fundraising often depends upon being in the right place at the right time,
over and above the actual merits of the proposal. Funding deadlines are often short.
Stay connected with possible funding sources, and develop ideas and action plans so
that you can be ready to move quickly when the right opportunity comes your way.
Module 6 Day 2: Summary: Synopsis of Day 1 and 2
Objective: Review key topics and learning objectives.
^ The goal of module 6 was to provide you with a clear understanding of what to
include in a budget and the need for financial management. After module 6, you
should be able to:
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Describe a plan for financial management.
Create a budget for the upcoming year that takes into consideration the
community dreams identified in module 2.
Collaborate and communicate with other community organizations to enhance
your organization's resources.
Identify ways to develop financial resources for your organization.
Sustain your organization by ensuring effective leadership during transitions,
managing your funds wisely, staying organized, communicating with
stakeholders, and retaining committee members
Homework Assignment
Objectives: Complete the appropriate columns in the action plan. Prepare for the
piranha bowl presentations
Background
There is a reality television show that has aspiring entrepreneur contestants make
business presentations to a panel of investors. The show features a panel of potential
investors who consider offers from aspiring entrepreneurs seeking investments for their
business or product. The entrepreneur can make a deal on the show if a panel member
is interested. However, if all the panel members opt out, the entrepreneur leaves
empty-handed.
The investors often find weaknesses and faults in an entrepreneur's concept, product,
or business model. Many deals made on the show are never enacted due to the
investor's vetting process, which includes product testing and reviewing the
contestants' finances.
Applying the Concept to the Piranha Bowl
Like the show, EJ Academy participants will be placed in front of potential investors.
Instead of participants pitching their next business venture or product, they will be
persuading these stakeholders to invest in their plan for their community. This exercise
will prepare the participants to pitch their action plan to actual investors and
stakeholders in the future.
Participants will prepare for this activity in the module 6 homework. Participants will
complete a budget for their project plan and search for potential grants to apply for
investors. They will imagine that the panel consists of the grant reviewers or investors
they identified for homework. Furthermore, they will work with their accountability
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partner to develop their 2-minute pitches for their community's environmental justice
challenge.
The piranha bowl will be a 90-minute activity in which each participant will present their
pitch for 2 minutes and the panel of "piranhas" will have 2 minutes to ask questions and
make comments. This activity will be held in two sessions and participants will have
time beforehand to prepare their presentations or set up necessary materials. The
presentation may also be recorded to provide better feedback if necessary later.
Module 6 Homework
The instructions for the homework can be found in Appendix E.
Bonus Activity
Objective: Attend a grant writing workshop or training.
H Find and attend a grant writing workshop in the regional area.
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Appendices
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Appendix A: Additional Resources
University of Kansas Community Tool Box. Generating, Managing, Sustaining
Financial Resources, Chapter 42, Section 1: Developing a Plan for Financial
Sustainability: https://ctb.ku.edu/en/table-of-contents/finances/grants-and-
financial-resources/financial-sustainabilitv/main
University of Kansas Community Tool Box. Generating, Managing, Sustaining
Financial Resources, Chapter 42, Section 5: Writing a Grant:
http://ctb.ku.edu/en/table-of-contents/finances/qrants-and-financial-
resources/writinq-a-qrant/main
University of Kansas Community Tool Box. Generating, Managing, Sustaining
Financial Resources, Chapter 43, Section 1: Planning and Writing an Annual
Budget: http://ctb.ku.edu/en/table-of-contents/finances/manaqinq-
finances/annual-budqet/main
University of Kansas Community Tool Box, Module 14: Applying for Grants:
https://ctb.ku.edu/en/applvinq-for-qrants
University of Kansas Community Tool Box. Managing Your Money:
http://ctb.ku.edu/en/table-of-contents/finances/manaqinq-finances/manaqe-
monev/main
University of Kansas Community Tool Box. Developing a Plan for Financial
Sustainability: http://ctb.ku.edu/en/table-of-contents/finances/qrants-and-
financial-resources/financial-sustainabilitv/main
University of Kansas Community Tool Box. Planning and Writing an Annual
Budget: http://ctb.ku.edu/en/table-of-contents/finances/manaqinq-
finances/annual-budqet/main
Dictionary of History and Ideas, edited by Philip P. Wiener. Published by Charles
Scribner's Sons, 1968-73.
Definition of financial management: http://manaqementstudyquide.com/financial-
manaqement.htm
Capital requirement definition:
http://www.investopedia.eom/terms/c/capitalrequirement.asp#ixzz3pnAEcPnA
Sample organizational budget: https://eiusa.org/wp-content/uploads/Sample-
Orqanizational-Budqet.xls
Federal Sources
Circulars on grant management for nonprofit organizations:
https://www.wh itehouse.qov/omb/information-for-aqencies/circulars/#educational
EPA resources for businesses and nonprofits: https://www.epa.gov/resources-
small-businesses
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Information for grant seekers: https://candid.org/improve-vour-nonprofit7fcrefHr
Tax exemption information for registered nonprofits: http://www.irs.gov/pub/irs-
pdfZp557.pdf
Common types of grants: https://mcf.org/common-types-grants
Health
Grantmakers in Health (GIH) is a nonprofit, educational organization dedicated
to helping foundations and corporate giving programs improve the health of all
people. You must become a member to get full access to information:
https://www.gih.org/
Global Fund to Fight AIDS, Tuberculosis and Malaria:
https://www.theglobalfund.org/en/
Poverty
Worldwide Initiatives for Grantmaker Support (WINGS). Dedicated to
philanthropy and a culture of giving, they provide mutual learning, support, and
knowledge sharing: https://wingsweb.org/
Administration for Children and Families. Responsible for federal programs that
promote the economic and social well-being of families, children, individuals,
and communities: https://www.acf.hhs.gov/
Women's Health and Development
Women in International Development. A compilation of web pages with funding
opportunities for women in international development: https://womenindev.com/
Global Fund for Women. International network committed to equality and social
justice for women by awarding grants to women's groups around the world:
https://www.globalfundforwomen.org/
Regional Funding Sources: United States and North America
Candid. Maintains a comprehensive database on U.S. grantmakers and their
grants. Provides access to free resources through five regional libraries and a
network of over 400 funding information centers: https://candid.org/
Grants.gov. This website, run by the U.S. government, is a central storehouse
for information on over 1,000 grant programs. It provides access to
approximately $500 billion in annual awards.
Agriculture
United States Department of Agriculture. Contains information on research, as
well as tips on grant writing and updated information on requests for applicants:
https://www.usda.gov/
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Environmental
Environmental Grantmakers Association. Helps member organizations become
effective environmental grantmakers through information sharing, collaboration,
and networking: https://eaa.ora/
Grantmakers Without Borders. Dedicated to increasing funding for international
social justice and environmental sustainability initiatives:
http://www.internationaldonors.org/
Environmental Protection Agency (EPA). Contains research and information
related to the environment that can aid in the grantmaking process:
https://www.epa.gov/
Echoing Green. Provides seed money to social entrepreneurs who want to make
a positive social change: https://echoinggreen.org/
Grant Writing/Grant Seeking
Foundations: Refer to www.Philanthropy.com
Fundsnet. A compilation of grant writing and fundraising services at no cost;
includes various categories of interest: https://fundsnetservices.com/
The Grantsmanship Center. Offers grantsmanship trainings and earned income
strategies for nonprofits: https://www.tgci.com/
National Service Resources. Provides general grant resources as well as grant
opportunities by category: https://egrants.cns.gov/espan/main/login.isp
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Appendix B: Glossary
Accounting
The method by which one keeps track of and manages money. There are
various accounting systems that an organization can use, but the goals of
all of them are to assure accurate records and help organizations know
exactly how its money is being spent and how its financial position
compares to its budget.
Audit
A certified public accountant (CPA) checks organizations' financial
records to make sure they are accurate and works with organizations to
correct errors and solve problems. The CPA then prepares financial
statements using the organization's books, and either certifies that the
organization follows acceptable accounting practices and that its financial
records are in order or explains any problems with the financial records
and suggests corrective measures.
Balanced budget
Projected expenses and projected income are approximately equal.
Budget deficit
Projected expenses are significantly greater than projected income.
Budget surplus
Projected income is significantly greater than projected expenses.
Budget
An amount of money available for spending that is based on a plan for
how it will be spent; a plan used to decide the amount of money that can
be spent and how it will be spent; or an official statement from a
government about how much it plans to spend during a particular period
and how it will pay for expenses.
Capital requirement
The standardized requirements in place for banks and other depository
institutions. These requirements determine how much liquidity is required
to be held for a certain level of assets through regulatory agencies such
as the Bank for International Settlements, the Federal Deposit Insurance
Corporation, or the Federal Reserve Board. These requirements ensure
that these institutions are not holding investments that increase the risk of
default and that they have enough capital to sustain operating losses
while still honoring withdrawals.
Conservative
estimation
Using the highest reasonable figures when estimating expenses and the
lowest reasonable figures when estimating income, so you will be more
likely to create a budget that will keep you from overspending.
Financial manager
A financial manager provides financial advice and support to clients and
colleagues to help them make sound business decisions.
Financial
management
Planning, organizing, directing, and controlling financial activities, such as
procurement and use of funds in an enterprise. It means applying general
management principles to the financial resources of an enterprise.
Fiscal year
This term means financial year. It is the calendar you use to figure your
yearly budget (e.g., July 1 to June 30) and which determines when you file
tax forms, get audited, and close your books.
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Fund accounting
The practice of keeping a separate record of the expenditures for each
separate grant or contract administered by an organization. For example,
a grassroots AIDS prevention initiative might keep separate records for
funds they receive from the Department of Health, the Department of
Social Services, the Department of Welfare, a local community
foundation, and the AIDS Action Committee.
Grants
Monetary awards to a group or organization to carry out a community
project they have proposed. In real life, grant awards are sometimes given
in resources other than cash (e.g., travel expenses, time off).
Occasionally, especially for research, grants are made to individuals as
well as groups.
Line item
An expense category (e.g., salaries, phone bills, office supplies).
Line-item budget
Generally, a budget that specifies how much of the funder's money will be
spent on each line item. It could also refer to any budget that is broken out
by line item.
Projected expenses
The amount of money you expect to spend in the coming fiscal year,
broken down into the categories you expect to spend it in (e.g., salaries,
office expenses).
Projected income
The amount of money you expect to take in for the coming fiscal year,
broken down by sources. In other words, the amount you expect from
each funding source, including grants, contracts, fundraising efforts,
memberships, and sales of goods or services.
Procurement
The act of getting possession of something; the act of obtaining or buying
goods and services. The process includes the preparation and processing
of a demand as well as the end receipt and approval of payment.
Spreadsheet
A grid format for creating a budget to see expenses, income, and the
ways they interact all in one place. In a budget spreadsheet, each vertical
column represents a funding source, and each horizontal row represents
an expense category. In the space where a column and row meet (called
a cell), a number represents the amount of money from that column's
funding source spent on that row's expense category.
Sustainability
Involving methods that do not completely use up or destroy resources,
including financial resources; able to last or continue for a long time.
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Appendix C: Activity: Budget Outline
Budget Outline Activity
Sample Spreadsheet
M-J M f\ f \ y~i f~v »
J-jO /lL UUt /lly | START | 1/1/2M6 | PERIOD LENGTH {IN DAYS] | a | END DATE | JfaS/ZDB
oi-J AN 31-JAN cz-MAR oi-APR oi-MAl" 31-MAY 30-JUN 30-JUL 29-AUG 28-SEP 28-OCT 27-NOV 27-DEC 26-JAN
25-FEB 2-MAR 26-APR 26-MAY
TOTAL TREND
NET INCOME $ - $ $ - $ - $ - $ - $ ¦ $ - $ $ - $ - $ - $ ¦ $ - $
- $ $ s - $
income
$
$
s
000
000
TOTAl INCOME $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
$ - $ - $ - $
expenses
%
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
TOTAl EXPOSES $ - $ - $ - $ - $ - $ - $ - $ -$ - $ - $ - $ - $ - $ - $
- $ - S - $ - 5
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Appendix D: Activity: Identify Potential Funding Sources
Potential Financial and Community Resources
Resource
Purpose/Grant
Program
Amount
Eligibility
Deadline
Contact
Information
Website
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Appendix E: Homework: Piranha Bowl
This exercise will prepare you to pitch your action plan, program, or project to actual
stakeholders or potential investors during the graduation and networking reception.
You are encouraged to work with your accountability partner to develop your 2-minute
pitches for your respective community environmental justice challenges. Although you
may collaborate in preparing your presentations, each person will present separately
unless you are working together in the same organization, project, or program for which
you are seeking a potential partner. Each person will have 2 minutes to present their
pitch, followed by constructive feedback from the panel of piranhas.
Participant Instructions
It is important that you stick to your 2 minutes to allow all participants time to present
their pitch and forjudges to provide constructive feedback.
You should include the following in your pitch to the panel:
Mission or vision *
- Reference module 2
Highlight current project/plan
- Goals
- Action steps
- Reference module 2
Why is it important?
Time: 1 minute
- Why is your project important to you
and your community?
- Reference module 2 *
Current partners (optional) *
- Mention at least one potential partner
- Describe how they will assist with goal
- Build credibility
- Reference module 5
Budget/financial investment
- Create a budget for your project
- Research actual costs
- Determine three potential grant or financial investors
(do not mention in presentation)
- Reference module 6
Time: 1 minute
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We recommend using visual aids such as diagrams, posters, or short PowerPoint
presentations. You should bring a one- to two-page document that includes the
required points for your community to give to the panel and review before the
presentation. You should have your pitch memorized; however, you can have note
cards as a reminder of your talking points.
Piranha Bowl
Evaluation Criteria
Comments
(If you need more space, please attach a separate
sheet of paper noting the participant presentation
number, date, and your name)
Score
Persuasive
presentation
Well-developed plan
Clear, concise
explanation
Inclusion of required
elements
(mission/vision, project
plan, importance, and
budget/financial
investment)
Volume
Eye contact
Confidence/poise
Total
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Closing: Lessons Learned and Tips
Here are some example pitches:
Bad (because it requires translation for those people outside the nonprofit
community): I'm the executive director for the Stop Homelessness Coalition of the
greater District of Columbia metropolitan area, which maintains facilities that provide
shelter for homeless constituents. Our client-focused educational process creates an
environment that fosters dignity and provides value for not only our clients, but also
stakeholders and the community at large. Application of these principles... [continuing
for 30 seconds].
Worse: Anything that goes over a minuteeven if it isn't using lofty "nonprofit-ese"
wording.
Good: I'm the executive director for a nonprofit that runs homeless shelters. [Pause.]
We help about 1,300 people per night get out of the cold during the winter months and
team up with other nonprofits to provide food for them. [Collect a thought.] What makes
us different is that we have a successful job training program that helps many homeless
families get back on their feet. Here's my card. If you'd like to see what we do, check
out our website.
Handing off the card is also vital, especially if you have a great website that really tells
your organization's story in words, pictures, and videos.
The keys to a good elevator pitch are brevity, plain language, and repetition.
Write it down. Rehearse it. Practice it on the other staff members or volunteers. Get
feedback. Ask to hear their elevator pitches. Make it fun.
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Appendix F: Sample Organizational Budget
See this link for another copy of the sample budget: https://eiusa.org/wp-
content/uploads/Sample-Orqanizational-Budqet.xIs
Organization Name:
Fiscal Year (FY) Period:
Current Current Previous Previous
Org. YTD FY FY
Budget Actuals Budget Actuals
Revenue
Government grants and
contracts
Foundations
Corporations
Religious institutions
United Way, combined federal,
and other federated
campaigns
Individual contributions
Fundraising events and
products
Membership and program
income
Other
Total cash revenue
Total in-kind revenue
Total Revenue
Expenses
Personnel
Salaries
Director
Victim advocate
Clerical support
Personnel total
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Organization Name:
Fiscal Year (FY) Period:
Current Current Previous Previous
Org. YTD FY FY
Budget Actuals Budget Actuals
Benefits
Federal Insurance
Contributions Act (FICA) tax
Worker compensation
Insurance
Benefits total
T ravel
Travel total
Office supplies
General office supplies
Office supplies total
Equipment
Computers
Vehicle maintenance
Equipment total
Other
Rent/lease
Meeting space
Internet and phone service
Website hosting
Other total
Total Expenses
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