The Bellwether, April 1, 2023

How Nonprofits Can Leverage Red Flags to Win Grant Money By Teresa Huff, MS Ed.

Are You Hiding Your Red Flags?

“There were just too many red flags. I couldn’t go through with it.”

…the remaining staff is walking the new director through all the operations and services. And to top it off, the incoming director will be able to tap into his network of trainers to optimize the new program implementation.

Part of my role in advising grant writers and nonprofits is to play devil’s advocate. The key is that they know I’m on their side. I might be asking tough questions or bringing up some difficult issues, yet it’s much better to hear it from an ally so we can talk it through and brainstorm good solutions. Otherwise, if you try to hide the red flags, a grant funder will sniff them out a mile away and drop your application like a hot potato. Instead of pretending our nonprofit’s red flags don’t exist, let’s address the concerns up front. Own them, explain them, and outline your plan. For example, let’s say a nonprofit is applying for a grant to expand their after school tutoring program. However, the executive director of 10 years just left. Potential red flag. Are things in limbo? Unstable? Did they leave on bad terms? Is the org about to fall apart? Instead of glossing over the issue, let’s dive in. How about we explain… …the director needed to retire to care for her aging parents. …the new director has specialized training in the after school curriculum. …the board is working with them both to create a transition plan.

Ever found yourself saying something similar? Sometimes the red flags are strong enough that we walk away from a great opportunity and don’t look back. Unfortunately, the same is true when a grant-maker is reviewing a stack of grant applications. Too many red flags, and the application is rejected. It’s unfortunate since the funding is much-needed to support the nonprofit’s mission. Surprisingly, though, red flags can be our friend in nonprofit work when we learn to leverage them correctly.

No more red flags.

We’ve given facts, plans, and action steps. We’ve created an atmosphere of competence. When we address potential red flags up front, we’ll see much better long term results and sustainability.

3 Steps to Address Red Flags in a Grant Proposal

Use the Red Flags for Good

Everyone knows nonprofits are working hard to do good in the community. We also know they’re a work in progress and they always need more funding. The goal is to build trust and authentic relationships with the grantmaker. To do this, we need to lay the proper groundwork:

No organization is perfect. Whether a nonprofit, a school, or a business, there’s always room for improvement. Think about the last time someone made you an offer that sounded too good to be true. Your mind immediately went to, “What’s the catch?” And rightly so. With all the scams and so-called opportunities out there, we need to be discerning. That’s why it’s all the more important, when we’re seeking support for a nonprofit, to address the red flags up front. It’s counterintuitive, but it works.

Be aware. Before we can address them, we have to see them. Know and acknowledge what the red flags are. Be straightforward. Don’t sweep problems under the rug. Rather, invite grant funders to be a part of the solution. Be proactive. Have a plan with

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