Episode 121: How Philanthropy Perpetuates the Nonprofit Poverty Cycle: And How to Respond to Modified Awards
If you've ever been in the situation where you've submitted a grant requesting a specific amount, but the Funder responded offering your organization much less than your request, you might be at a quandry at how to respond. On the one hand, some money is better than none, so you want to accept the reduced amount, but at the same time you know you can't do the same amount of work for less than budgeted. What do you do? In this episode, learn exactly how to respond so that your organization doesn’t perpetuate the nonprofit poverty cycle (doing the most for less).
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🔦 NONPROFIT SPOTLIGHT 🙌🏿
The California Community Foundation Pt. 1
👉🏿https://www.calfund.org/
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🚀 RESOURCES TO HELP YOU RUN A SUCCESSFUL NONPROFIT
Questions To Ask A Grant Writer Before You Hire Them https://www.dropbox.com/scl/fi/2xiucmjn08pt8kjqd0mnw/06.-Questions-to-Ask-a-Grant-Writer-Before-You-Hire-Them.mp4?rlkey=f2djpb78uxf6uxnrgoiv7g8e6&st=e649n6b8&dl=0
90 Days to a Profitable Nonprofit https://drive.google.com/file/d/1ofgeHJ2CTVS0t8STMiNqfveaVpWfaK7o/view?usp=sharing
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Podcast Transcript
Speaker 1 (00:01):
Welcome to On Air with Amber Wynn, where nonprofit leaders learn to fuse passion and commitment with proven business strategies to create long-term funding impact and sustainability. And now here's your host and resident, Philanthrepreneur Amber Wynn.
Speaker 2 (00:22):
Hey, Amber Wynn in the house. You are on air with Philanthrepreneur. I'm so excited about today's topic because I'm going to call a spade a spade, and in this case, it's how philanthropy perpetuates the nonprofit poverty cycle. Yeah, I said it. Philanthropy perpetuates the nonprofit poverty cycle. Today I'm going to talk to you about a very common practice in the nonprofit sector, and it's when a nonprofit feels forced to take a grant that they know is not enough to cover the request. And what you should do in response, and I'm bringing this up because this is the second time, probably this month when I've heard of this happening, A foundation puts out a call. It's for a certain amount, the grantee applies, and when they come back, it's for a lower amount, but the deliverables aren't any less. So when we come back from our first commercial, I'm going to talk to you about how to respond to a modified grant award when we come back.
(01:42):
Have you been duped by a grant writer promising you the moon and the stars, but after collecting your $2,000, you never win a grant? No. A grant writer can't guarantee you'll get funded, but if you don't know how to vet them, you could walk right into a scam. Check out my guide the questions to ask a grant writer before you hire them to help you determine if a grant writer is a bonafide professional or out to steal your hard earned money with no intentions of yielding results. This guide explains what to look for in a grant writer if they're novice or seasoned, if they're a fit for the type of proposal you need written, what questions they should ask you. Leverage my 25 years of grant writing experience securing over $10 million in grants for clients to help you find a qualified grant writer and reduce your chances of getting scammed.
(02:28):
Order your copy today. Welcome back. You're on air with Amber Wynn, and today we're talking about how philanthropy perpetuates the nonprofit poverty cycle. Let's take two steps back. What is the nonprofit poverty cycle? It is the misinformation about how a nonprofit is supposed to exist. There are these thoughts out there that nonprofits are not supposed to make money that they're supposed to operate off of as little bit as possible, and that perpetuates poverty. A nonprofit is a business. It's just a business with a philanthropic purpose. And so it is wrong on all accounts to make a nonprofit organization function on scraps because a nonprofit is a business. So if it's a business, it has business expenses, it has salaries, it has rent and utilities, and that costs money. So for this expectation that nonprofits should not make money to go on and on and on, what it does is it makes our nonprofit leaders suffer, not only in terms of being able to provide quality services to our community who needs them the most, but personally, when our nonprofits can't bring in enough revenue, they can't pay livable wages.
(04:01):
They can't cover things like insurance, health insurance, dental insurance, life insurance, medical insurance. They can't put away for things like retirement. So it creates this full on poverty cycle and I'm not here for it. So today we're going to talk about what happens in philanthropy. This is what happens. And RFP goes out and the funder says, yeah, submit your proposal and your funding range should be anywhere between 75,000 to 150,000. So you submit your proposal, you submit it for 80,000, right above that floor, right? You get a call back or a letter back from the funder saying, congratulations. We're so excited to partner with you. We're going to offer you $10,000. What you say? They said $10,000. We're going to offer you $10,000. Now, a novice nonprofit leader or someone not really sure about how to navigate this situation would typically say, okay, well 10,000 is better than nothing.
(05:17):
I haven't been getting anything. So then you take this grant for $10,000 and next thing you know, you humping like you grinding because they haven't shifted those deliverables from that $80,000 proposal. So they're getting $70,000 worth of work for 10,000, and that's how they perpetuate the poverty cycle. They know that nonprofit leaders are just scrounging around trying to get some type of money until they take it, and I'm not here for it. So this is how you respond to said tempation. That's what I called it. What they're trying to do is pimp my nonprofit leaders and we're just not having it today. This is what you say, thank you so much. We're so excited to partner with X, Y, and Z foundation. As you know, our goal is to, and then you put in your mission, which is why we applied for whatever the name of the grant is for the amount of $80,000.
(06:23):
That's how much it costs to put on this program. We are more than happy to accept your generous offer of 10,000, and as such, here are three ways that we can partner such that the amount that you're willing to give aligns with the deliverables of that amount. So basically what you'll be saying to your funder is, nah, partner, not today. You are going to get $10,000 worth of effort for that $10,000 grant. Here's the reality. If this funder is only offering you $10,000, they don't believe that your program is either worth the 80,000 or they're just not comfortable enough to give you 80,000. So in essence, that $10,000 is establishing a relationship, and I'm saying go for it. Take it. Start to establish that relationship, but do it in an equitable way. Do not accept $10,000 for five deliverables, $80,000 worth five deliverables. So you give them three options and make it one deliverable.
(07:41):
It could be we'll take that $10,000 and we will purchase A CRM that will allow us to, we'll take that $10,000 to help fund this position and this person will manage this, deliver this work with this, do outreach, whatever, whatever. That's $10,000 towards that position. That $10,000 will go towards materials and supplies, and here's what we'll purchase. You give them three ways that you will utilize that $10,000, but you make it very clear they are not going to get those same deliverables for $80,000 that they'll get for 10,000. I'm really big on saying to nonprofit leaders, you have to get your house in order because you do. You have to look a certain way. You have to run your organization tight and right like a business. But we calling a spade a spade today and we're calling out the nonprofit sector saying, you need to stop pimping our nonprofit leaders who are putting their heart and soul into our communities doing the work.
(08:49):
If the call said $80,000, then the award should somewhere be up that range. And if not, when you say, Hey, we want to partner with you. Thank you so much for your application. We want to start a relationship. So here's $10,000. You need to also say, please reply with an agreement describing how you will now use this reduced amount. Now, we're on an equal playing field, so I know I'm a little heated about this topic, but it is because that is how the poverty cycle is perpetuated in the nonprofit sector. So I'm going to help you and give you some language so that you can still get that money. We're never going to turn away no money. No sir. No ma'am. But we're going to do it in a way that makes sense so that you're not overworking yourself, overextending yourself for that little bit of money.
(09:45):
All right? Yeah. And if you want to learn this level of confidence, guess what we're going to do? We're going to talk about a program that's going to help get you there. So let's go into this commercial where we talk about 90 days to a profitable nonprofit that will help to give you that type of language and that type of confidence where you can say to a funder, I can rock with you, and it's how we going to do it? Are you struggling to fund your programs? Can't get a grant to save your life. Most consultants will share the what of how to start a nonprofit or how to fundraise. They may even share the why, but they don't share the how because that's where they make their money. Now, I'm not hating. I'm a businesswoman too, but I've been where you are trying to make the world a better place, struggling to keep the doors open up to the wee hours of the night writing grants and doing whatever needed to be done.
(10:42):
And because I've walked in your shoes, I'm not here to make you spend your will, waste your time or your hard earned money. We ain't got time for that. The world needs you. I'm here to show you how to transform that pit. You keep dumping your hard earned money into a profitable nonprofit. I take my 30 years of nonprofit experience as a founder, executive director, program developer, grant writer in funder, giving out over $7 million annually in grants, and I save you literally thousands of dollars in. I walk you through setting up your nonprofit organization so that you can be generating enough revenue to cover your monthly expenses in just 90 days. How would that feel? Not paying bills from your personal bank account. I share my insider secret tips, tricks of the trade and provide you with a step-by-step roadmap on how to turn your bootstrap organization into a profitable nonprofit.
(11:41):
Within six months, you could be generating enough revenue to pay your salary or fully fund your program. The choice is yours, but you have to get the blueprint, and it took me three years to develop it, but it's here and it's going to change your life. Join my other successful clients who are just like you full of passion and determination, but they had no idea all that it takes to run and fund a successful nonprofit. Now they're winning grants and drawing a salary, and they know what it is that they're supposed to be doing to run a successful nonprofit. They're no longer making it up as they go. They have the roadmap and they're clear about next steps. And I want that for you too. So what do you get in this course? You'll walk away with knowledge, products, processes, and systems, not just a bunch of promises, but exactly what you need to turn your organization into a profitable nonprofit.
(12:39):
I promise you don't need grants. What you need is a solid infrastructure, and this course is going to give you all of that and more. And what's more, it comes with a money back guarantee. So go ahead, click the link below to register for this course. Welcome back. You're on air with Amber Wynn, and today we're talking about how philanthropy perpetuates the nonprofit poverty cycle. And now it's time in the episode for you to ask your question of Amber. It's called Ask Amber. This question is from Quentin in Palmdale. Quentin says, I found a grant that is a perfect fit. The problem is it's an unsolicited call. How can I get asked to submit an unsolicited proposal or grant or call or whatever? Let me explain that to the audience. So if you go to a funder's website and they do the description of the grant there, and then at the end where you think there's a link so that you could apply, it says, we're not accepting any unsolicited proposals.
(13:50):
That means if we didn't ask you or invite you, you cannot submit a proposal. And people are like, well, why do they even put it out there? Well, they have to put it out there so that people know that they're giving out money. And usually the reason why it's an unsolicited call is because the staff is very small. Think about it, just like Quentin did his research and found it, other people are doing research and so they don't want to get this whole slew of proposals that they just don't have the capacity to go through. So they do solicited calls, meaning they identify potential funders, fundees grantees, there you go, potential grantees, and they ask them to apply. So to answer your question, Quentin, how do you get asked? This is where having a seasoned board is important. Why? Because typically, board members sit on multiple boards.
(14:55):
And so what you would do is you would go to your board and you would say, Hey, I've identified this particular grant. Does anyone know anyone on this board? So let's just say if I was on the board, you would say, Hey, does anybody know anyone on this foundation board? And I'd be like, yeah, I go to lunch with so-and-So at least once a quarter, great. Let them know that we are perfectly aligned with this mission and we'd like to be asked to submit. And then I'd go to lunch with so-and-so, and I say, Hey, I sit on the board for such and such and such an organization. We are perfectly aligned. And they'll be like, really? Yes. Okay, great. I'm going to reach out and ask them to submit. That is the perfect scenario. If you don't have anybody on the board who knows the board member or the program officer for that foundation, go through their previously funded grantees, see if you know anybody who's been funded, because then what you can say is, Hey, Belinda, I see that you were funded by this organization.
(16:03):
Would you mind putting in a good word for me with the program officer? Do you mind making an introduction so that they can get to know me? Are you having any activities when that funder will be there? If they're like, yeah, we're doing an awards banquet at the end of the year, I'm going to purchase a ticket. And what you do is you go to that awards banquet, you identify who the funder is, and you go up and you introduce yourself. Hey, I'm Amber Wynn, I'm so excited to meet you. I saw that you have an unsolicited grant I think that we are perfectly in alignment for, and they're going to be like, really? What's the name of your organization? You give them the business card or you talk to them about it and they're like, great, let me do some more investigation. And then maybe they'll set up a conversation with you.
(16:49):
The other thing you can do is if they're having any events, sometimes funders will have events. Go and attend that event. Get to know the program officer. Introduce yourself. Tell them a little bit about your program and how it aligns with what they're doing. You could also add them to your newsletter, right? Go online, see the program officer. Add them to your newsletter so that they can see for themselves, oh, let me read this, okay's in alignment with what we're doing, and then they may reach out for you. Lastly, be sure to list that you are being awarded and acknowledged for your programs on your social media, and then tag them so that they can see, oh, this program is in alignment with what we're doing. Lastly, you can reach out to the program officer directly say, hi, my name is Amber Wynn. I see that this grant is unsolicited.
(17:46):
Can you please let me know what is your process being considered for the grant? And maybe they're like, oh, it's closed. We're not really okay. Or maybe they'll say, well, tell me about your organization. So these are the ways that you get in front of a program officer when it's an unsolicited call. You want visibility so that they can see that the programs that you're doing are in alignment with what it is they want to fund. Alright, if you have any questions, you can reach out to me just like Quentin did. Quentin reached out to me on LinkedIn and asked the question, but you can hit me up on any of my socials. I'm on LinkedIn, I'm on Facebook, I'm on Instagram, I'm on Twitter. You can email me. But I love to hear your questions because I love to make sure that the information that I'm giving you is valuable.
(18:39):
Speaking of valuable, we're going to move on to the next portion of the episode where I get to do the thing that I love the most, which is to put the spotlight on my most amazing individuals, nonprofit leaders. That's founders, program officers. We've expanded this section to include not just nonprofit leaders, but also the organizations and companies that support them. And today, I'm excited to feature a funder. Often we don't get to hear from our funders. There's some mystery behind the magic curtain. Well, I wanted you to hear firsthand from a funder. It's a program officer from the California Community Foundation. Her name is Brittany Daniel, and she's going to share some tea with you guys. What I love about Brittany is that number one, she was on the other side, right? She worked with the unhoused community, so she has an understanding, a deep understanding about what it is to be on the other side. Most of your funders, they don't have that experience. They're used to just y'all over here, us over here. So I think it's exciting to be able to hear just the funder's perspective. So for the next four episodes, you get to hear the conversation between me and Brittany. And if you want to hear the full conversation, of course you can go to my YouTube. But for right now, let's start the conversation with program officer Brittany Daniel with the California Community Foundation.
Speaker 3 (20:29):
I would say we're really interested in collaboration. Everybody wants someone that plays well with others.
(20:36):
And you're right, so many organizations, there's a lot of overlap. So it's two things. So thinking about when you have a lot of folks in the field is saturated, what are you doing that really stands out. But also if you're on the brink of thinking about even becoming a 501, or not establishing but doing the work, how do you just merge under someone else who's actually doing the same thing on a larger scale? I think that would help release a lot of the administrative burdens and tax stuff and all of that, that a lot of small grassroots organizations go through. It's okay to just, it doesn't have to be the Brittany Daniel Organization. Exactly. I can work at the Amber Wynn Foundation. You know what I mean? I think sometimes, and we love a grassroots organization, but sometimes a lot of the questions we ask like, oh, have you spoken to anyone else in the space? Do you know who the power players are? There's always those core larger folks, and a lot of times it's interesting, A lot of the times the answer is no. So
Speaker 2 (21:38):
Most of the answer is no. You're
Speaker 3 (21:39):
Being nice. That is exactly what it is too. And like I said, we love, even if they've met, these are in meetings with folks because there's so many collaboratives and meeting spaces and coalitions and things like that. So how are they participating? So if they are in the same space, are they in these coalition meetings? Are they in these impact meetings where a lot of these collective people are kind of coming together to leverage the work and leverage the dollar, see how far they can go? So even those participating in those types of meetings is really important in what we like to see as well too.
Speaker 2 (22:42):
And we are back. You're on air with Amber Wynn, and we are starting the conversation with Brittany Daniel. You already see, you're getting to hear the funder's perspective. Having been a funder. You just learn different things. So I'm excited about this four part series where you get to hear firsthand from a program officer, what their pet peeves are, what they're looking for, how to approach them. You get to hear all of that in talking to Brittany. So if you want to check out the full episode, go check out my YouTube. But in the meantime, next week, you're here, part two from Brittany at the California Community Foundation. Well, that's all we have for you today. Thank you for joining us. I know I was a little riled up today, but I take seriously when my nonprofit leaders are working so hard in the community and they get stuck in these situations where they feel like they're stuck between a rock and a hard place.
(23:45):
And I just wanted to give you information today to help you navigate that, because I've been seeing a lot where foundations are giving you less than what you asked for. You don't want to say no because some money is better than no money. So today we talked about how to respond to that. I hope it was helpful. If it was helpful for you, make sure that you like, subscribe, and share the episode with other nonprofit leaders in your network. And until I see you next week, because you better come back and check me out again, fam, take care of yourself like you take care of your community. Bye. Thanks for listening.
Speaker 1 (24:23):
If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.next/podcast for the links and resources mentioned in today's podcast. See you next time.
