Meeting payroll prices is an ongoing problem. “One of probably the most frequent questions I hear is whether or not grants can cowl workers salaries,” stated Barbara Floersch of The Grantsmanship Center in Los Angeles, Calif. “The reply is, ‘sure,’ nonetheless, there are solely three circumstances by which grants are a great supply for staffing prices.”

  • Program-Specific Staff: A grant to assist a program often covers salaries of workers members to implement the required actions. Some funders will assist the continued prices of a program, however generally, program implementation grants have a one to five-year life span.
  • Administrative Overhead Related to a Specific Program: For a grant-funded program to function, the applicant group should present primary administrative assist. For instance, somebody should reply telephones, deal with payroll, oversee the funds, hold the expertise working, and many others. Because of this, program-specific grants typically embrace some quantity of funding for the group’s administrative actions. That overhead-related funding may be utilized in direction of the salaries of workers members who deal with these needed administrative (i.e., oblique) duties.
  • General Operating Grants: When funders have a powerful dedication to a nonprofit’s mission and confidence within the group’s effectiveness, they generally present common working funds. These grants can often be spent flexibly to satisfy the group’s most urgent wants, together with the necessity to cowl workers salaries.

“Grants can typically assist cowl personnel prices, however grants because the long-term resolution to ongoing staffing wants is unrealistic,” stated Floersch. “Grants come and go, but it surely’s not in the perfect curiosity of a nonprofit for workers to do the identical.” It’s crucial that nonprofits diversify funding streams and transfer past grants to include annual fund drives, main items, occasions, contracts, earned revenue, and different approaches into their long-term plans.

“While a number of funders could assist new organizations put primary staffing into place, that’s the exception,” stated Floersch. “Funders often wish to see that the applicant group is powerful and has the capability and experience to enhance the group. And, in the event that they do assist start-up staffing, they’ll wish to see a strong plan for sustaining positions after the grants run out.” © Copyright 2017 The Grantsmanship Center.

This article sources data from Management Tips – The NonProfit Times

This article sources data from Donors.Today