Fw: Re: [GRANTS] Operating Funds common issues in Louisiana

H. C. Covington (ach1@sprynet.com)
Sat, 13 Jun 1998 05:44:41 -0500


-----Original Message-----
From: Michael L. Wyland <michael@sumptionandwyland.com>
Date: Friday, June 12, 1998 5:12 PM
Subject: Re: [GRANTS] Operating Funds




Most grants are project-based, and can be either or both "special projects"
and "core
projects".  Basic services are grant-fundable under the scenario we have
been
discussing in this message thread.  The difference is that administrative
expenses,
fundraising expenses, etc. ("overhead"), that are not directly allocable to
direct
service would be funded through one or more of annual giving, planned
giving, endowment
campaigns, capital campaigns, special events, and fees for services.

I have worked with many nonprofits who are adapting to the new landscape of
relying
less on federal support and more on community-based initiatives.  One of
the salutary
effects of this is the fact that many nonprofits are reexamining their
mission,
business practices, markets, and competitive environments.

A robust economy and strong stock market have contributed to increased
personal and
corporate giving.  Foundations and endowments are earning record returns on
their
investments, making additional dollars available for both distribution and
reinvestment.

The nonprofit business landscape has changed, and nonprofits which are
community-based,
community-responsive, diverse in their board structure, innovative in their
fundraising
strategies, and efficient in service delivery will at least survive, and
probably
thrive.  My firm's mission is to assist nonprofits and others maximize
their
opportunities in the emerging landscape.

I'm not familiar with the acronym "RAG", so I may be off-target on this
point.  I see a
definite case to be made for providing "transitional support" to
organizations caught
up in the move toward block granting and changing federal priorities.

I am a volunteer on the board of a local start-up nonprofit that approached
our city
for funding.  During the review and interview following our grant
application, they
expressed concern that we would turn into a "regular customer".  I assured
them that
the board had a fundraising strategy, and that should we be back in front
of the city
for municipal funding in three years, that would be a failure for our
organization --
our inability to garner necessary community support.  If I didn't have
faith that my
organization would become self-sufficient and diversified I would resign
now and save
myself a lot of time and heartache.

Michael L. Wyland
Sumption & Wyland
818 South Hawthorne Avenue
Sioux Falls, SD  57104-4537
(605) 336-0244
(605) 336-0275 (FAX)
---------------------------------------------
H. C. Sonny Covington  @  I CAN! America
Grant, Management & Resource Consultants
125 S. Buchanan Street - Lafayette, LA  70501
(318) 235-7005  Fax 318-235-7602
hccovington@usa.net