How to Find a Grant Writer for Your Non-Profit

How to Find a Grant Writer for Your Non-Profit

DISCLAIMER: BLUE HEART DOES NOT OFFER GRANT WRITING SERVICES NOR DO WE SUGGEST GRANT WRITERS

 

How to Find a Grant Writer for Your Non-Profit Without Breaking the Bank!

Grants provide a much-needed source of funding for non-profit organizations. They may come from government agencies or private sources, but let me tell you, the competition is fierce!

If you want your non-profit to receive grants, you’ll need a grant writer. Grant writing is a specialized form of writing and having someone experienced on your team is necessary if you want to get the funds you need.

 

What is a Grant Writer?

A grant writer is someone who researches, writes, and submits proposals to institutions that provide grants. To do the job effectively, an experienced grant writer must:

 

  • Scour lists of grants and identify those which align with the organization’s goals and objectives, while eliminating those that aren’t a good match.
  • Craft a grant proposal that uses clear, concise language to persuade the grantor that the organization applying for the grant is a worthy recipient of funds.
  • Respond to funder’s questions about the grant proposal and develop relationships with prospective donors.

 

Grant proposals may be very involved, including a cover letter, proposal, and supporting documentation per the grant’s requirements. The proposal itself must do a good job of providing information about the applicant organization’s past, present, and future activities and how the grant money would be used.

Some grant writers are employees of non-profit organizations while others work as freelancers.

 

How to Find a Grant Writer | What to Look for  

Being a grant writer requires a specific set of skills and many of them are not directly related to writing. Here are some of the qualities to look for when you hire a grant writer.

 

A good grant writer must have the drive to find grant programs that might be worth pursuing.

 

Affinity for Data. While persuasive writing is essential in a grant proposal, data is just as important. Being able to work with data and use it in the right way to support the grant proposal and illustrate the writer’s points.

Research Skills. An effective grant writer must be able to scour internal documents and external resources to find the information needed to write an effective proposal.

Detail Oriented. Grants are awarded to the applicants who do the best job of tying their needs to the goals and objectives of the grant’s specifications. A writer who attends to every detail has the best possible chance of winning a grant.

Writing Skills. A grant writer must have a strong grasp of the English language, an ability to write persuasively, and the ability to understand the linguistic needs of each grant proposal based on the requirements.

People Skills. To write an effective grant proposal, a grant writer must be able to work effectively with people inside the organization they work for to gather information to support the application. They must also be able to communicate clearly with the grantor and answer questions as needed, establishing rapport and building a connection.

 

An experienced grant writer is likely to have these skills already. Writing skills are the priority because they take time to develop, where other skills may be taught more quickly.

 

How to Find a Grant Writer | What’s The Cost?

Hiring a grant writer means hiring someone with a unique set of skills whose job performance can make or break an organization’s ability to get funding.

That said, the amount that grant writers make can vary depending upon their years of experience and the budget of the organization hiring them.

According to Salary.com, most grant writers earn between $30 and $38 per hour, with the average at $34 per hour as of February 26, 2020. A very experienced grant writer might earn as much as $100 per hour.

A grant writer who has other job responsibilities in addition to grant writing might earn more than the average. However, many non-profit organizations have limited budgets and may either ask an existing employee to write grants or hire someone on an as-needed basis.

 

How to Find a Grant Writer | How to Become a One

Have you played around with the idea of become a grant writer? Here’s some steps to look out for.

Grant writing is a specialized job, but it is possible to learn how to do it. The person who will be best able to acquire the skills needed will be someone who already has a facility with the English language. It’s important to be able to write with a formal tone, but also, to be able to vary it with persuasive and emotional storytelling when necessary.

 

There isn’t a single, set path to become a grant writer. Some people go to school knowing that they want to write grants, while others find work writing grants by other routes.

 

If you do want to pursue a degree, there are some schools that offer degrees in Grant Writing, including Emory and the University of Colorado. Other options include courses of study that emphasize writing, such as Journalism or Technical Writing. You may also want to consider professional certification programs that require less time than a college degree but teach the skills necessary to become a grant writer.

 

From there, you should try your hand at writing a grant. It’s best to start with small, local grants. As an inexperienced grant writer, you will need to set your rates low at first to prove you can do a good job. Each grant you write should become part of your professional portfolio, which you can use to demonstrate your ability as a grant writer.

 

The final step is to build relationships with non-profit organizations in your area. If you already work for a non-profit, you can volunteer to help with grant writing or to add grand writing to your job description. If not, attending local charity events can be a good way to meet the people who hire grant writers and let them get to know you.

 

Conclusion

Grant writing is a skilled job that requires a specialized set of skills that include writing ability, researching, and attention to detail. While donors provide needed funds to many non-profit organizations, grant writing is often the cornerstone of funding – and hiring the right grant writer is essential to a non-profit’s ability to fulfill its mission.

Together We Rise!

Together We Rise!

The Blue Heart Foundation

 

 

 

Our Mission 

“Building community equity by providing an inclusive and secure path to higher education, emotional wellness, and personal development for underserved male youth.” 

 

Email
support@theblueheartfoundation.org

Location
San Diego CA 92154

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Top 4 Challenges of Starting a Non-Profit

Top 4 Challenges of Starting a Non-Profit

Top  4 Challenges of Starting a Non-Profit And How to Solve Them

There are many reasons people start non-profits, and most involve a desire to help others. While it would be wonderful if a worthy cause translated to an easy process, most of the time it doesn’t. In fact, starting a non-profit is challenging in a variety of ways.

 

Getting Tax Exempt Status

To operate as a non-profit organization, you must apply for and be awarded tax exempt status by the Internal Revenue Service. Most charities are organized as 501(c)(3) corporation. The IRS defines these as:

  • Operating for a purpose identified as exempt under section 501(c)(3), including charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international sports competition and preventing cruelty to children or animals.

 

  • If charitable, the organization just provide charity in its accepted legal sense, which includes relief of the poor, distressed, or underprivileged; advancement of education, science, or religion; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions, eliminating discrimination and prejudice; defending human civil rights secured by law; and combating community deterioration and juvenile delinquency.

 

Any organization that meets these requirements and wishes to be granted non-profit status must complete Form 4220 and go through the complete application process.

 

Constraints on the Operation of Non-Profit Organizations

Organizations that are granted 501(c)(3) status must adhere to certain constraints as laid out by the Internal Revenue Service.

There are two primary requirements.

  • The first requirement states that 501(c)(3) companies may not operate as “action” organization, meaning that it may not work or lobby on behalf of any political party or candidate, and that it may not attempt to influence legislation “as a substantial part of its activities.” The last part is clearly open to interpretation, but it’s safe to say that any non-profit that aggressively lobbied legislators would be in danger of losing its status.

 

  • The second requirement is that the money brought in by the non-profit may not “inure to the benefit of any private shareholder or individual.” This part of the law can be confusing, and sometimes people misunderstand it to mean that nobody working for a non-profit can be paid. The law makes a distinction between fair pay for work and excessive pay or profit.

 

Financing Challenges of Starting a Non-Profit  

Every non-profit organization needs money to stay afloat. For most non-profits, the money they take in comes from a few sources.

  • Individual and corporate donors may donate funds to a non-profit organization. In many cases, the donor may deduct some or all the donated amount on their income taxes.
  • Government agencies and private companies may award grants to individuals and organizations. Grant money is most often given with a specific purpose and does not need to be repaid.

 

It sometimes happens that a non-profit organization is founded with seed money from the person whose name is on the charity. However, that is the exception and not the rule.

Research shows that 30% of all nonprofit organizations fail within 10 years. Cash flow is a common problem. As of 2018, approximately half of all charities in the United States had less than one month’s worth of cash in reserve, and between 7% and 8% are technically insolvent.

 

Organizational Challenges of Starting a Non-Profit  

A lack of financing isn’t the only element that can challenge non-profit founders. Other potential issues include:

The lack of a comprehensive business plan. Non-profits are still businesses, and it’s essential to have well-thought-out business plan to guide your operations and keep your organization on track.

A lack of strategic goals. To be successful, a non-profit must have a minimum of three years’ worth of strategic goals, although five years of goals are preferable. Goals help direct your operations and ensure that you’re headed in the right direction.

Poor volunteer management. Many charitable organizations use volunteer labor to supplement their regular staff’s work. However, mismanagement of volunteers’ time and skills can sink a charity even when everything else is working as planned.

The takeaway  here is that careful planning, both financially and organizationally, is a must if you want your non-profit organization to succeed in its mission.

 

Challenges of Starting a Non-Profit | Should You Hire a Non-Profit Lawyer?

One of the ways to avoid the most common mistakes that non-profit start-ups encounter is to hire a non-profit lawyer. The benefits of having a lawyer who specializes in non-profits are:

  • It saves time. For someone who is not experienced, it may take a long time to fill out the appropriate tax paperwork and create internal and external policies to govern your operations. An experienced non-profit lawyer will be able to help you do these things quickly, leaving you free to focus on other aspects of running your charity.
  • It saves money. A charity that starts with no written policies – or with poorly written policies – may end up losing money in a variety of ways. One of the most obvious is losing their tax-exempt status, which can happen if funds are mis-handled.
  • It helps avoid other problems. An experienced non-profit lawyer can help you to handle every legal aspect of starting a non-profit, including potential issues with your organization’s name, logo, and tax status.

You may not want to spend money to hire a lawyer but think of it as an investment in your non-profit’s future

 

Challenges of Starting a Non-Profit| Questions to Ask a Non-Profit Lawyer

Before you choose a lawyer, you should ask questions to determine if their skills and experience are a good fit for your non-profit.

Do you have experience working with non-profit organizations?

What type of work have you done with non-profits?

Will you handle our work yourself or assign it to a junior partner or associate?

What is your fee structure for non-profits?

Are you open to alternative fee arrangements?

Approximately how long will it take to complete the work we want you to do?

These questions will help you get a handle on the lawyer’s experience, time frame, and fee structure. You should weigh all these factors before you sign a contract – and keep in mind that in some cases, you may want to hire more than one attorney depending upon your needs.

Together We Rise!

Together We Rise!

The Blue Heart Foundation

 

 

 

Our Mission 

“Building community equity by providing an inclusive and secure path to higher education, emotional wellness, and personal development for underserved male youth.” 

 

Email
support@theblueheartfoundation.org

Location
San Diego CA 92154

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How Do Non-Profit Business Owners Get Paid?

How Do Non-Profit Business Owners Get Paid?

Ask people what it means to be a non-profit business organization and you’re likely to get an array of answers, many of them incorrect. For people who aren’t familiar with the ins and outs of how non-profits work, it can be confusing to hear about executive and employee compensation and earnings.

But, guess what? It’s an actual thing!

Because non-profit organizations provide essential services, it’s important for the people who interact with non-profits to understand how they work and especially, how non-profit business owners get paid. Here’s what you need to know.

 

So, What Does It Mean to Operate as a Non-Profit Business?

 Let’s start at the beginning with an explanation of what it means to be a charitable non-profit organization. According to the IRS, a non-profit charity is:

  • In operation for one or more of the exempt purposes set forth in section 501(c)(3) of the tax code, including charitable, religious, educational, scientific, literary, testing for public safety, fostering natural or international amateur sports competition, or preventing cruelty to children or animals.

 

  • Of a charitable nature, using the generally accepted legal sense of the word. Examples include relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

 

The IRS also states that “no part of a section 501(c)(3) organization’s net earnings may inure to the benefit of any private shareholder or individual.”

A non-profit charity takes in money from donations and other sources. The key part of the IRS definition is that the net earnings may not profit any shareholder or individual.

 

What’s Included in the Net Earnings of a Charitable Organization?

The area of the IRS definition that confuses people is the bit about net earnings. Let’s talk about what is included in net earnings.

For any business, net earnings (sometimes called net income) are calculated by subtracting operating expenses from revenue. Non-profit charities get revenue from donations, grants, and memberships. They may also get revenue from selling branded products.

A non-profit organization’s expenses may include:

  • Rent or mortgage payments
  • Purchase of necessary supplies
  • Transportation/Gas
  • Utilities
  • Money for essential services
  • Employee salaries and compensation

The last item is one that can cause a great deal of confusion, particularly when some charities are in the news for what seem to be unnecessarily high salaries paid to executives.

 

How Do Non-Profit Business Founders Earn Money?

The number one question people have about running a non-profit is how non-profit owners – who are usually referred to as founders – get paid. If the IRS rules say that the earnings of a non-profit may not “inure to the benefit of any shareholder or individual,”

…how is it possible that non-profit owners and employees can earn a salary for the work they do?

Let me try to break it down for you.

The IRS differentiates between a benefit and fair compensation for work that is done. A non-profit founder may pay themselves a fair salary for the work they do running the organization. Likewise, they can compensate full-time and part-time employees for the work they do.

Non-profit founders earn money for running the organizations they founded. They often put in long work hours and make far less money than executives at for-profit organizations. When running a non-profit is their sole employment, it is reasonable for them to draw a salary for the work they do.

One of the things that can lead to confusion around the issue of compensation for non-profit owners is that there is no hard-and-fast rule about how much they may be paid. However, the IRS can and does penalize organizations that overpay executives or employees.

You may have seen stories in the news about unscrupulous non-profit charities and their mismanagement of money. One of the most infamous cases was the one involving the United Way, whose former CEO was convicted of fraud in 1995.

The bottom line is that non-profit founders and employees are paid from the gross revenues of the organization. These salaries are considered part of the operating costs of the organization.

 

What is Considered Reasonable Compensation?

The primary guidelines for both executive compensation and employee compensation at non-profit organizations are that the wages paid must:

  1. Meet all local, state, and federal guidelines for the minimum wage; and
  2. Be reasonable, fair, and not excessive; and
  3. Include all benefits as part of the total compensation package.

Non-profit charities must walk a fine line between keeping their operating expenses low and competing with the for-profit sector for qualified employees; not an easy task. It is the responsibility of every charity to navigate the process of determining fair salaries that also manage to be competitive enough to attract the employees they need.

For executives, the road can be very difficult to travel. The recommended best practices from the Council of Non-Profits says that:

  1. Executive salaries must be disclosed to and approved by the non-profit’s executive board on an annual basis.
  2. The compensation voted upon must include all benefits.

In other words, a non-profit founder’s compensation package might include:

  • An annual salary
  • Medical benefits
  • Paid time off
  • A pre-approved bonus structure

Having the board vote on an executive’s compensation package is one of the best ways to ensure that the payment is not excessive and that it allows the bulk of the charity’s revenue to be put toward the organization’s mission.

 

How to Check on a Non-profit Business

When you interact with a charitable organization, whether it’s as a donor, member, or recipient of goods or services, it’s important to do some research to determine the charity’s status regarding its financial management, including employee compensation.

There are several organizations that track charities and grade them based on how they operate. They are:

These organizations track and rate charities based on criteria that may include:

  • The charity’s classification
  • Its descriptions of its activities and financial management
  • In-depth review of financial statements
  • In-depth review of tax returns

The goal with the ratings is to provide the public with a tangible way to measure a charity’s financial status and management of funds. The drawback is that in most cases, a charity must have at least seven years’ worth of financial reporting and tax returns to get a rating. That means that newer charities may not yet be rated as in the case with Blue Heart.

Although Blue Heart has been around for 10 years, it’s only been in the last 2-3 years that we have actually been receiving help from grant monies.

If a charity is not rated, there are still some ways to get a feeling for how a charity operates. One popular method is to examine the charity’s overhead percentage. On average, charities spend about 20% of their revenue on overhead.

However, the percentage of overhead being high is not necessarily an indication that the charity is misusing funds or even overspending. In fact, charities that skimp on overhead may not operate as efficiently as they could – and that inefficiency can have a negative impact on their ability to deliver services to the people who need them.

 

What’s The Point

Before you start coming up with speculative assumptions about how a Non-profit business should get paid, understand that both executives and employees of charitable organization must receive fair compensation for the work they do. Volunteers play a role as well, but people who are employed by non-profit organizations in an official capacity are paid according to their experience and responsibilities. That includes executives and owners, many of whom put in long hours to ensure that the charities they work for meet their obligations to the communities they serve.

Together We Rise!

Together We Rise!

The Blue Heart Foundation

 

 

 

Our Mission 

“Building community equity by providing an inclusive and secure path to higher education, emotional wellness, and personal development for underserved male youth.” 

 

Email
support@theblueheartfoundation.org

Location
San Diego CA 92154

If you found value in this article please...

COMMENT AND SHARE!

YOUR DONATION COUNTS! Support Us Here

Support The Blue Heart Foundation as we Educate and Motivate Our Youth! 

 

 

The Blue Heart Foundation is now a 501(c)3 Tax Exempt organization

UCSD Campus Tour, Workshop and Student Panel - 4

The Blue Heart Foundation is now a 501(c)3 Tax Exempt organization. This distinction will allow us to further assist under-served youth in attaining their goals as they pursue the dream of attending and graduating from a four year university. Partner with us as we work to make these young men’s dreams become a reality by donating via paypal or send a check payable to:

The Blue Heart Foundation – 10824 Scripps Ranch Blvd. #308 – San Diego, CA 92131

Download our 501(c)3 Tax Exempt letter here The Blue Heart Foundation 501(c)3

The Blue Heart Foundation 501(c)3