Grants: The $400 Billion Question

PASADENA, Calif. (June 11, 2007) - Article authored by an eCivis grants expert was featured in the May 2007 edition of Texas Town & City, the official magazine of the Texas Municipal League:

By Leticia A. Jones, eCivis Grants Training Manager

What could your community do with $400 billion? Yes, that’s billion with a “b.” According to the 2005 federal budget, $400 billion in grant funding was distributed to local and state governments. Considering the changes occurring with federal earmarks, that number is sure to rise. What could your community do with grant funding?

New roads? Improved education facilities? Designation of a significant landmark?

There are many important projects that can be fulfilled by grabbing a piece of the pie; however, some local governments in Texas look at grants with a skeptical eye, believing that participating in grant programs makes them look weak, or lamenting that there are too many strings attached to grants to be worth the hassle.

Unfortunately, this is a common misconception.

With a little legwork and attention to detail, $400 billion that will be distributed to cities and counties could be at your fingertips. Grant funding from federal and state agencies, as well as foundations, can provide a good basis to improve the lives of your city’s residents. In fact, local governments in Texas—the country’s second-most-populous state—lagged far behind those in other comparable states in pursuing grant funding. Based on an eCivis study of fiscal year 2004 statistics (federal date from the most recently reported year), just over ten percent of cities and counties in Texas won grants of $500,000 or more. That’s compared to 57 percent of cities in California. Furthermore, cities and counties in California expended more than 22 percent more dollars per city and county than their Texas counterparts. These are striking statistics, and they signify that local governments in Texas are not taking advantage of valuable resources available to them.

Some local governments shy away from grants because of the perception of a complicated application process. People hear terms like “matching funds,” “requirements,” or “strings attached,” and they feel like grants are a burden. While the lingo of grant applications can seem like jargon, it’s really quite simple, once you understand the process.

The return on investment of grants can be tremendous. It’s simple: By taking time to apply for funding—and being smart and knowledgeable about the opportunities you pursue—your local government can look like a hero to your citizens.

Here are some tips to demystify the grant process.

Many different grants

You probably already know that a wide variety of grants is available. Some grants are automatically awarded to states or individual cities and counties. These are known as “formula grants” and “entitlements” (such as Community Development Block Grants for large cities). However, you’re most likely concerned with “discretionary”—better known as “competitive”—grants, in which your application is measured against those from other cities around the state and country. Grants can fund anything from parks and recreation to human services, education, technology, homeland security, and more. Chances are, if you have a need for something, there is a grant to pay for at least part of it.

No experience? No problem!

Many people are intimidated by grant applications. They decry the fact that they don’t have staff to write the grant, or they think, “I have no grant writing experience. I can’t do this.” But you can do this.

Our research shows that 90 percent of local government grant applications are written by people who have no grant writing training. That means that 90 percent of your competitors are just like you. And you can be sure that the other ten percent are not winning all available funding. Grant writing training can certainly erase some of the intimidation factor local governments may face, but a lack of it should not be a deterrent when seeking important funding opportunities.

The most important precursor to applying for grants is an understanding of the scope of your needs and why you are requesting funding. That is the purpose of the grant application. Funding agencies aren’t looking for Shakespearian prose; they simply want to understand the need for funding and how your need meets their requirements.

Size doesn’t matter!

“We don’t go after grants because we’re not big enough.” That’s a common complaint we hear often. Not true! Plenty of grant funding sources are available to small and mid-sized organizations. While a large city might have a better chance of winning funds to respond to a biological attack, your town may show a more pressing need for firefighter equipment, for example. All cities and towns have a chance to win grant funding, regardless of size. The key is to research grants to ensure that you apply for the right type, meet the requirements of the grant, and prove your need for the money.

Knowledge is power

The most important factor in deciding to apply for a grant is knowing which of your projects need funding. This allows you to narrow down the grants you will pursue, thus focusing your energy on viable opportunities and making your application stronger. So before you put pen to paper, consider the following:

• Is my city undertaking projects that are grant applicable?
• Is my city not undertaking projects because we don’t have the funding?
• What types of grants are available to fund these projects?

Once you’ve identified these three things, be sure to adhere to the 90-percent rule. The purpose of your project should have a 90-percent match between your goals and the grant program objectives. By ensuring that your needs match the grant opportunity, you can save yourself valuable time while making your application as strong as possible.

Research = Results

With so many federal, state, and foundation grant programs, there are many choices—and levels of funding—available. To make the best use of your time and resources, research the grants with the highest rewards. Know the grant’s matching requirements (the amount of money local governments are required to contribute), if any. Some grant programs require an in-kind contribution, which means that the grant winner donates goods or services instead of a monetary grant sum (such as providing computers or software licenses for a grant that funds a computer lab).

At your fingertips

The Internet has revolutionized the grant process, making the process of researching and applying for grants easier than ever before. Most federal and state agencies have Web pages dedicated to assisting grant coordinators, though a common complaint is that these government-run sites are confusing, cumbersome, and inefficient. Expect to invest a lot of time and energy rummaging through these sites. However, there are specialized tools, such as eCivis® Grants Network, which help local governments dig through the massive amount of information to make the research, application, and tracking processes easier. Get the information you need as quickly as possible, so you can spend your energy on that valuable application!

While the efficacy of all these resources varies by department, you may find them helpful as you balance grant opportunities, their performance requirements, and application processes.

Grants, like government, are by the people, for the people. They consist of taxpayer money, designated for your town, your citizens. Now Congress has shed earmarked funds for fiscal year 2007, freeing up billions of dollars that were previously destined for predetermined projects. This money is there for the taking.

$400 billion. What will you do?