Proposal Review Vetting Applications and Conducting Site Visits

www.peakgrantmaking.org

What we will cover

►Context

o Values

o Mindset

o Understanding Your Bias

►Proposal review

o Reading the proposal

o Conducting site visits

o Third party data sources

►Options for Help

Context: Your Values

►Collaboration, Partnership, Teamwork, Working Together

►Respect

►Integrity, Honesty, Ethical Behavior

►Diversity, Equity, Inclusion

►Accountability, Responsibility

►Transparency, Openness

►Innovation, Risk-Taking, Entrepreneurial Spirit, Creativity

►Stewardship

►Learning, Continuous Improvement

►Leadership

Context: Your Mindset

Trust-Based Grantmaking

The default starting relationship between funders and nonprofits is one of suspicion of the latter by the former, which leads to funders enacting policies and practices designed to make nonprofits more “accountable,” such as restricted funding, individualized applications, bespoke budget forms, customized reports, and other things that drive us nonprofits nuts. This in turns leads to nonprofits’ hiding of information, especially about challenges, from funders, which in turn reinforces the suspicion. All this perpetuates a depressing cycle of waste of time and energy and lots of complaining, usually at bars, and all that could have been used to deliver programs and services.

Vu Le, Nonprofits with Balls

Whitman Institute: 9 Key Practices of Trust-Based Investment

►Provide Unrestricted, Multi-Year Funding

►We Do the Homework

►Partner in a Spirit of Service

►Offer Open and Responsive Communication

►Solicit and Act on Feedback

►Encourage Transparency

►Simplify and Streamline Paperwork

►Support Beyond the Check

►Host Restorative Retreats

Poll: Where does your approach fall between? Where would you like to be?

►Sentry/Cultivator

►Trust/Traditional

Limitations of Proposal Review

grantmaking

Source: Grantmaking Basics, Council on Foundations

You are Biased: Own It!

►Head vs. Heart

►Underdog vs. Institution

►Connected vs. Independent

►Past Reputation vs. Present State

Proposal Review ►Reading the Proposal

►Conducting Site Visits

►Gathering info from third party sources

Source: Due Diligence Done Well, GEO

Poll: What is required to make a grant?

►Proposal describing use of funds

►Proposal and site visit to grantee

►Proposal and report showing use of funds

►Proposal, site visit, and report

►Nothing

Start at the End What are you going to base your decisions on?

►Strategic fit with your mission and priorities

►Insight into general state of nonprofit health

and sustainability

►Portfolio make up

►What else?

Discussion: What are you going to base your decisions on?

Reality Check Yourself ►Ask for only what you need to make a decision

►Stage request for info

►Challenge yourself on what is realistic

oTo expect from a grantee (in general and based on

size/type of grant)

oTo expect from yourself

Poll: How many proposals do you individually review each year?

►Less than 10

►11-50

►51-100

►101-200

►More than 200

Review of Proposal Narrative

Four kinds of proposals

Good idea, good proposal

Good idea, bad proposal

Bad idea, good proposal

Bad idea, bad proposal

Eight Qualities of Exemplary Proposals

1. Energy – Enthusiasm, urgency, passion

2. Expertise – Deep understanding of problem they are addressing

3. Commitment – Reflects organization’s genuine priorities

4. Clarity – Clear about what organization wants to do, why it is important, and how it will be carried out and evaluated.

5. Collaboration – Formed alliances to advance mutual goals. People served by project participated in planning.

6. Benefits – Less concerned with own needs than improving society. Goal worth striving for and target group is appropriate.

7. Comprehensiveness – Problem’s complexity is matched by the sophistication of the proposed solution. Thinking reflects a comprehensive strategy.

8. Effectiveness – Effective, on-going evaluation reflects commitment to results.

Source: Grantmaking Basics, Council on Foundations

Discussion: What would you add the list of what makes a great proposal?

Finding the Good Ideas

What is the applicant organization proposing to do? • What are the goals of the organization?

• What are the project’s objectives?

• Is it clear how the proposed project objectives are linked to the organization’s goals?

• What changes (implications) will the project have on the organization?

• Does the proposal explain how the project will be structured, staffed, managed?

• Is it clear whether this is a one-time undertaking, an new project or a ongoing program for the organization?

Finding the Good Idea

Why is this project being proposed? • What needs does it address?

• What evidence establishes the existence of these needs?

• Are these needs important to you (the funder)?

• What benefits will be derived from the project’s implementation?

• Are any unintended positive (or negative) effects likely?

Finding the Good Ideas

Where will the project take place? • Why was this area selected?

• Will the project have influence or repercussions elsewhere?

Review of Proposal Narrative

When will the project take place? • What is the timeline for accomplishing the work?

• Is the timeline realistic?

• Are there any crucial deadlines that must be met?

• Is organization capable of keeping to timeline and meeting deadlines?

Finding the Good Ideas

Who will participate in the project? • Who will the program serve?

• Are they the right target group given the project’s goals?

• Who will provide the services?

• What are their capabilities?

• Who will oversee the project?

• What are their qualifications?

• Is anybody else attempting similar projects?

• Is a consultation, collaboration or alliance with other organizations being considered? If not, why?

Finding the Good Ideas

How are the chances of success being maximized? o Is the project’s approach practical?

o Does it demonstrate an understanding of best practices in the field?

o Have other organizations gotten results by using equivalent means?

o Are you aware of similar programs that have run into serious problems?

o Are there any crucial difficulties the proposal has not anticipated?

o How will success be measured?

“Red Flags” in a Proposal Narrative

Knowledge of best practices not apparent in narrative.

Evaluation plan is sketchy or absent.

Rapid staff turnover or recent leadership changes not

explained.

Little discussion of external trends or internal organizational

challenges.

Staff bios fail to correlate past experience to skills needed for

project.

Board list fail to include affiliations.

Tips and Tricks: Reading Proposals

►Have GM staff weed out bad idea, bad proposals

►Scan through everything once first o Focus on what asking for and how much

o Categorize proposals into similar “asks”

►Make a review form that focuses on criteria I’m going to use to decide and captures questions for the grantseeker

►Read everything thoroughly and rate Yes, No, Maybe

►Re-read Yes and Maybe to develop final “Yes, move to next stage” list

Review of Proposal Financials

Six Sources of Financial Information

►Project Budget

►Organization Budget

►Audit (balance sheet and statement of activities)

►Recent Financial Statements (balance sheet and statement of

activities)

►Information Return (aka 990)

Identifying the Financial Health of Organization

Sufficient financial resources to ensure stable programming.

A ready source of internal cash, or access to cash, available in times of shortfall.

A commitment to income-based spending.

Positive cash net assets at end of each year.

Establishment of, or plans to establish, an operating reserve to finance cash shortfalls and program growth.

Board members and management of financially healthy nonprofits hold themselves responsible for the financial stability of the organization.

Source: Stevens Group

“Red Flags” in Proposal Financials

Financial information including project budget, potential sources of

income, annual budget or audit, is missing, incomplete or inaccurate.

Have finances been in the black for an appropriate period of time?

Budget expenditures not justified – plugging a leaky operating budget?

Do debts exceed available cash?

Have they budgeted enough money for the proposed project?

Is there something unusual here worth discussing (e.g., loans from

board members, liability in books for unpaid salaries, large amount of

short-term debt with assets tied up in buildings and equipment)? Many

times these items are shown in the auditor’s opinion or audit notes.

Any questions on reviewing the Proposal Narrative?

Purpose of a Site Visit

► Meet the people

► Learn more about the organization and project

► See beyond the proposal

► Gain a sense of place

► Determine actual need

► Advance your own learning

► Evaluate progress of project after grant is made.

When to Make a Site Visit

• If the proposed project is within the foundation’s guidelines.

• If there are important questions not answered in the proposal or through follow-up conversations.

• If you need to physically see the program or meet the staff in order to determine capabilities.

• If it’s a new relationship for the foundation.

• If the cost/benefit to you AND the grantseeker makes sense

Poll: Site Visit Criteria What criteria does your organization use to determine when to conduct a site visit to an applicant? Check all that apply. All applicants receive a site visit First-time applicants are visited Site visits are conducted selectively, based on defined criteria Site visits are conducted as needed by the reviewer No site visits made Other

Site Visit Practices by Funders

Conducting Effective Site Visits

Preparation Read proposal carefully.

Write down questions.

Learn about the field.

Set up appointment with key staff.

Dig deeper (talk to other funders, project partners, etc.).

Sample Agenda I. Introduction

II. Review agenda; establish time lines

III. Tour facilities

IV. Brief presentation of proposal by grantseekers

V. Discussion; questions and answers (including questions for the grantseeker of you)

VI. Share your timing/next steps

What to Ask on a Site Visit

Clarifying Questions on Proposal

Open-Ended Questions

► Did anything unexpected happen since we last spoke/proposal was submitted?

► What does your organization really need right now?

► Outside of funding, what are some challenges you are currently facing?

Important last questions

► What should I know that I have not asked you?

► What are you worried that I might have misunderstood?

► Is there anything that we have left out?

Interview Styles to Avoid Big Talk – Loves sound of own voice, talks about own theories.

Agile Anticipator – Knows the answers before they are given.

Listless Listener – Acts bored, mind wanders.

Prosecuting Attorney – Cross examines instead of interviewing.

Goodwill Ambassador – Avoids asking the difficult questions.

Captious Categorizer – Intuitively judges people’s hidden

agendas.

Simultaneous Doer – Does a multitude of activities during

interview.

Faulty Question Asker – Poses vague, general questions.

Triple-header Questioner – Asks questions too difficult to answer.

Tactless Tactician – Asks personal, thoughtless questions.

Grantmaking Basics: A Field Guide for Funders, Council on Foundations,

Discussion: What’s worked well (and not so well) on your site visits?

Third Party Info Sources

►Watchdog Organizations o Charity Navigator (charitynavigator.org)

o BBB Wise Giving Alliance (give.org)

o CharityWatch (charitywatch.org)

oGiveWell (givewell.org)

oGreatNonprofits (greatnonprofits.org)

►Guidestar o Financial SCAN

►Org Website and Social Media (not third party, but tells you how org presents itself to the world)

Help!

►Review committees

oRequire training and support

oBroadens input and brings more perspectives into

decision making

►Consultants

oNational Network of Consultants to Grantmakers

Sources/Resources General

►Grantmaking Basics: A Field Guide for Funders, Council on Foundations

► The Insiders Guide to Grantmaking, Joel J. Orosz

► Due Diligence Done Well: A Guide for Grantmakers, Grantmakers for Effective

Organizations

► Whitman Institute Trust-Based Grantmaking

Sources/Resources Foundation Center

Vetting Grant Applications:

► Innovations in Open Grantmaking – GrantCraft Guide that has a section that discusses open peer review and participatory judging during the granting process

► Designing a responsive granting process to encourage nonprofits to explore disruptive technology adoption – GrantCraft blog that discusses revamping the grantmaking process to seek to add value to every applying organization at every stage of the decision making process

► Saying Yes/Saying No to Applicants: Strengthening Your Decision Giving Skills – GrantCraft Guide that offers observations and suggestions from funders and grantees to make the decision making easier and more meaningful

► Learning from Grantees – From IssueLab. report based on a survey of King Baudoin Foundation grantees on how the foundation can improve its support. Specific to this foundation, but does have a section on grantees’ opinions about the grantmaking and selection process, which might have larger lessons for the field

Sources/Resources Foundation Center

Site Visits:

► Insights to Capacity Building from a Grantee Perspective – GrantCraft blog post that discusses how funders should use site visits to see what is actually happening

► Funding Community Organizing – GrantCraft guide that has sections on what funders can to do organize initial site visits and lessons from site visits

► Managing Expectations: Site Visits – GrantCraft Takeaway with advice from grantmakers on how to meet grantseekers’ expectations during site visits (taken from the Saying Yes/Saying No to Applicants: Strengthening Your Decision Giving Skills Guide)

► Smarter Site Visits – GrantCraft blog on a funder’s perspective to make site visits more effective

► Conducting a Meaningful Site Visit – GrantCraft Takeaway with advice from grantmakers on aking site visits more meaningful (taken from the Building Community Inside and Out: With a Good Neighbor Committee Guide)

► Teen Philanthropy Cafe: Snackable Bites on Giving, For Teens: Thoughtful Site Visits – From IssueLab. Toolkit about on how to have thoughtful site visits, geared toward youth giving

► What Are The Top Things Youth Need to Know About Site Visits? – Youthgiving Blog post and video on a funder’s learning moment from a site visit

Proposal Review Vetting Applications and Conducting Site Visits