Beyond the Check 

In our business, it is a well-known and frequently repeated phrase that foundations provide more than money to grantees.  But exactly what does that mean?  What are the goods and services foundations provide beyond grant funds, and what role can grants managers play?

Let's first recognize that in this economy – some might say in any economy – little is more valuable to nonprofit organizations than access to dependable sources of income.  In fact, one can argue that strong, well-managed, and established nonprofit organizations would like nothing better than to receive a foundation's check in the mail and dispense with the donor's well-intended interference and requirements for interim narrative, financial, and final reports.  What else can explain the overwhelming preference grantees have for general operating support grants? 

But with reductions in grantmaking budgets, many foundations are still providing valuable benefits to grantees when additional financial support is not available.  Along with the money, foundations can provide important intangible assets to grantees.  Take for example, this immodest truism that every grant check is a kind of philanthropic “seal of approval.”  For some grantees, a grant from a well-known, respected foundation can open doors to new sources of funding and provide valuable recognition to the organization and acceptance of its work.  Sometimes called a foundation's reputational asset, intangibles of this kind can be especially useful to new organizations or organizations opening new fields of endeavor. 

Another intangible benefit is the opportunity to meet with other nonprofit organizations working on similar issues.  A foundation can convene groups of nonprofits working on similar issues to share ideas and experiences.  Anecdotal evidence suggests that peer meetings are an important way of sharing information about developments in their field.  They also provide a forum for exploring ideas and serve as the nursery for solutions to common problems.  This is particularly true for grantees working in geographically isolated areas with limited opportunities and resources for reaching out to peer organizations working on similar issues.  Costs for these meetings are typically borne by the foundation, but grantees receive most of the benefit.

The public relations support foundations offer grantees constitutes the third type of non-monetary support.  Foundations can amplify the work of grantees by publicizing their efforts.  Press releases, press conferences, webinars, or simply showcasing a grant or group of grants on the foundation's web site are all ways in which foundations can help grantees gain visibility and more traction for their work, even when additional dollars are not available.  

So far, I have listed several ways foundations can help well-managed grantee organizations gain more from their grants than the dollar value of the contribution.  But what can foundations do for the larger group of less sophisticated nonprofit organizations?  (The kind of organizations that have difficulty filing incorporation papers, 990’s, or grant-related financial reports)  What kinds of non-monetary help or technical assistance can be offered to these organizations? 

Some foundations offer direct technical assistance or in-service training to nonprofit organizations, and one can make the case that this type of tailored and customized technical assistance is highly effective.  But let's face it.  It's also the most time- and resource-consuming method of providing assistance to grantees.  Communications technology has the potential for lowering the costs of these intensive training interventions, but they still have the potential to quickly consume foundation staff resources. 

For most foundations, the technical assistance watchword here is Refer, Refer, Refer.  Referrals can take one of two forms, direct and indirect.  Direct, as in referring a grantee to a website that can help with specific issues such as how to fill out a Form 990, can be quite effective if you, as the referee, know the sites, their strengths, and their appropriateness for a particular organization.

When it comes to indirect referrals, we are fortunate that our field supports many effective service organizations that are in business to provide the overall nonprofit sector with technical assistance.  National organizations like The Foundation Center, GuideStar, and regional associations of grantmakers provide access to resources and training for nonprofits seeking technical assistance.  It could be that some organizations feel more comfortable asking for technical assistance from third parties rather than going back to funders for help.

So where does the grants manager fit in?  What tools and information can we share with grantees to help them reap the benefits of these intangible assets?  Recent posts on the GMN Online Community have highlighted IRS tools to help nonprofit organizations complete the new Form 990.  As items like this come across your desk, it may be useful to share with grantees when questions arise.  While your foundation may not have the time or resources to launch a full-scale technical assistance program, taking the time to answer individual questions or to research a referral will build your own knowledge of the sector, as well as benefit a grantee organization beyond putting that check in the mail.