Open communication between grantors and grantees
Funders’ processes can support better jobs
Like other forms of privilege, being a funder is like wearing horse blinders that restrict what you see. The grant-making blinders can render invisible too much of the scene inside and outside their applicant and grantee organizations.
Making the case
Some nonprofits are hesitant to raise their concerns about organizer burnout with funders for fear of losing much-needed funding. Grant-seekers often assume that funders will favor those who promise the largest amount of impact for the least amount of money. This can lead to widespread dishonesty and over-promising, sometimes with devastating effects.
It is a funder’s responsibility to:
- seek information on applicants’ real costs of running their organization, not just the campaign or project;
- communicate that they value sustainable pay and good working conditions with the intention of helping grantees improve job quality;
- communicate clearly their grant-making criteria, timeline and processes;
- minimize the burden of application processes and reporting requirements.
A good workplace “would look like a culture that balanced investing in the development of your people, as much as the development of the people you’re trying to organize.” [Funders should have a] “better assessment and a better understanding of the conditions of organizers.”
The Bay Area Power Building Funder Table is an exemplary group of funders who became much more responsive to community and grantee needs.
Questions to consider
For effective communication about staffing needs
- What needs aren’t you hearing about from applicants and grantees?
- Are your application and reporting requirements draining valuable staff time?
How to address communication
Download this section as a pdf
In the “Nonprofit starvation cycle,” nonprofits understate needs in order to get funding; funders come to believe impacts cost less than they do.
Ask applicants to report the full costs of running the organization, not just the particular project; take guidance from Full Cost Project.
Consider following the example of SkillWorks, a funder collaborative which requires grantees to take a job quality assessment survey and to then discuss how their pay and practices compare with others in their same field.
Nonprofit managers believe funders want them to be as frugal as possible with the funding.
Put a clear statement on your application forms, grant award letters and website that you want to support good jobs with family benefits.
Consider adding questions to application forms about pay levels, benefits and internal pay ratio, in a non-threatening, supportive tone to show that the foundation wants to help support good jobs.
Application processes are cumbersome, draining scarce staff time.
Online forms with character limits are especially difficult for applicants. So are unusual questions probably not already prepared for other funders, such as ‘Apply your theory of change to each of your 3-year objectives’.
Use a common grant application such as Philanthropy MA’s Common Proposal form; or collaborate with other funders in your field and region to create a common application.
Suggest maximum word counts but don’t require them.
Consider having no application form, but accepting existing organizational materials or proposals written for other funders (unless there are specific requirements for a large RFP).
Likewise, accept Form 990 or audited overall financial statements, instead of requiring project budgets and grant-specific financial reports. Don’t insist applicants use the foundation’s budget form.
Consider giving small grants (with no reporting requirements) to applicants that are not awarded more significant funding, to recognize the staff labor that went into the application.
Reporting requirements can absorb large amounts of staff time—sometimes costing more than the grant amount.
Move towards “trust-based philanthropy,” asking only for easily available work products, financial reports and annual reports, not itemized financial breakdown or elaborate reports.
Eliminate reporting requirements for small grants, or reduce their frequency for multi-year grants.