PRE-GRANT
The following are pre-grant considerations for an organization:
- Know Your Funder
Understand the funder’s mission and priorities so that you can ensure that your project is aligned with them. Also, understand their rules and policies around what expenses are allowable under the terms of the grant. Ensure that you know the eligibility requirements for the grant. Some require that you are a registered charity, or have a certain tax status.
- Secure Contract/Agreement
Every grant should be made official through a contract or agreement process. Large funders often have their own contracts, while smaller funders or smaller projects might have a less formal mechanism.
In any case, ensure that the contract/agreement includes the following:
- The amount of the funding. A budget should be prepared for the proposed fund and breakdown of category of corresponding expenses. A funder may also ask for the organization’s other sources of funding and these should be included in the budget;
- Any restrictions on what expenses or types of expenses are allowed/not allowed. Also, if is it permissible to move expenses between categories if necessary for project completion;
- An understanding on when the funds will be received – at the beginning of the project, in installments, or after completion;
- A clear explanation of the work/project to be completed;
- The timeline for project completion;
- Interim and final report requirements;
- What to do with unused funds. Will the funds be returned to the funder or kept by the recipient?
- Any legal liability or responsibility of the organization should it fail to comply with the contract/agreement; and
- Other conditions.
Check the contract to ensure that it does not contain any condition that goes against your organization’s beliefs or tenets. If it does, you will need to remove that from the contract or negotiate with the funder. A signed contract/agreement should be in place for the grant.
- Be Clear Who Is Involved
The people involved may be:
Senior leaders
Grant manager
Program staff / Delivery teams
Finance staff / Budget holders