Need to know where to fund in your organization? Start Here.
Use this funding allocation analysis method to help determine where funding is needed in your nonprofit organization.
In the non-profit world, capturing dollars to support your notable cause can sometimes feel like a juggling act. When applying for grant funding, there are several twists and turns that make this effort even more challenging. How do we decide which costs to fund?
Applying for and receiving funds for one grant with a singular purpose is a relatively smooth process. Yet, most agencies have numerous grants funding a variety of expenses. This is when proper allocation of funding can become tricky.
The grantor is counting on the agency to utilize funds as intended, and transparency is a key factor in building and maintaining the grantee/grantor relationship. Putting together two simple spreadsheets is an exercise that provides a clear picture of needed-funding, and ensures no over-funding and/or fund-duplicating.
The first spreadsheet tool is a Salary Worksheet. The worksheet should include for each staff member:
· Annual Salary Amount
· Fringe Benefits paid on behalf of employee, listed separately (FICA, Workers Compensation, Health Insurance, 403(b), etc.)
· Total of Salary and Fringes
· Amount of total that is funded, by grant. This could be one, two, or more grants funding one position.
The second is an Agency Grant Funding Worksheet. Utilizing the agency budget, list all expenses, and identify which grant(s) funds each expense item in the budget. Depending on the number of grants, this could be a pretty lengthy spreadsheet, but absolutely worth the effort.
Now, look for gaps in funding. Where is the agency short in covering expenses that are vital in service providing? What grants are available that allow for these costs? On the flip side, which expenses are overfunded? How can those costs be diverted or re-allocated to cover the gaps?
Managing a grant program is a constant balancing act, and one that requires diligent effort and monitoring to leverage grant dollars, and be in compliance with grant reporting. With these simple tools, the agency can be confident they are accomplishing both.
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