Dear Grant

Dear Grant,
I’ve recently had some grantees complain that we require too much due diligence material and that we request documents that they’ve previously submitted to us.  However, our Executive Director is very hesitant about changing our due diligence process.  How do I make everyone happy?  I feel like I’m caught in a tug of war between management and our grantees and I don’t know who to align myself with!

Sincerely,
Addled in Albuquerque

Dear Addled in Albuquerque,
Being a Grants Manager often means you are trying to please multiple parties, which can be like trying to walk a tightrope.  Fortunately, this is a balancing act that can be mastered.  First, take a look at what you require.  For instance, many foundations still ask for that “dinosaur,” the IRS letter of determination.  Instead of asking for the letter repeatedly (or at all), you can verify an organization’s 501(c)(3) status via IRS Publication 78, or other sources like GuideStar’s CharityCheck.  Many times, you can also use GuideStar to access an organization’s Form 990 and audited financial statements, so you really don’t need to ask your grantee to send you copies.

For more ideas, survey your program staff to see how much they actively use the materials you require, and then consider streamlining your process accordingly – also known as “rightsizing your grantmaking.”  You might also send your grantees an anonymous survey in order to identify which requirements are the most time consuming and/or costly for them (e.g., if you require that they send you multiple copies of a document).

When you are ready to approach your Executive Director with potential changes to your due diligence list, you should also be prepared with a list of solutions to share.  For instance, “We no longer need a 501(c)(3) letter because GuideStar is a more accurate source for up-to-date information,” or “our program team has found that quarterly reports aren’t necessarily helpful and they don’t have enough time to review them thoroughly.  Annual reports are enough for their analysis and evaluation.”  Make sure you have a clear process and timeline, and assure the ED that you have an evaluation plan in mind.  If your ED is still hesitant to commit to a new process, you might consider testing your changes through a pilot project.

Don’t be discouraged if all your recommendations aren’t taken right away.  Rightsizing and streamlining are approaches that take time to explore and adopt, but you will find that it gets easier once people notice the positive effects. For more tips and recommendations, visit www.projectstreamline.org.

Good luck!
Sincerely,
Grant