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Program Planning
&
Proposal Writing
Introductory Version
By Norton J. Kiritz and Jerry Mundel
Copyright © 1988, The Grantsmanship Center
------------------~------------------Proposals written for private foundations and those
written for government grants (Federal, State, County or
City) usually differ in their final fonn. Foundations often
require a brief letter as an initial approach. A full proposal
may follow in many situations. Government funding sources
almostalways requirecompletion ofa numberoffonns along
with a detailed proposal narrative. Therefore, proposals to
private and government grantmakers look quite different.
The package to a foundation or corporation will usually
contain these three elements:
1. The cover letter
2. The proposal
3. Additional materials.
1. The cover letter is signed by the Chairperson of the
Board of a nonprofit agency, or the top authority in a
governmental agency. It briefly describes the program, and
tells the grantmaker how important the grant would be to the
community served by the applicant agency. It shows strong
support of the Board of Directors, which is essential in
gaining foundation grants.
2. The body ofthe proposal may beas modestas onepage
(in the case of a foundation that limits requests to a page) or
voluminous. It may be in letter form or a more fonnal
presentation. In either case, following the instructions in
Program Planning &Proposal Writing (pP&PW) will help to
assure that the necessary items are includedand are presented
in a logical manner. Remember one thing: PP&PW can help
you structure your thinking and even plan your project or
program. It can serve as your proposal fonnat where the
funding source has not provided one-as is often the case
with foundation proposals. But it should not be substituted
for any format required by afoundation. If they ask you to
follow a set format, do it!
3. Additional materials should be limited to those
required by the funding source supplemented by only the
most importantaddenda. Reviewers don'tgradeproposalsby
the pound, so save your postage.
The proposal package to a government funding source
usually contains these elements:
1. Letter of transmittal
2. The proposal
3. Additional materials
1. The letter of transmittal is a brief statement (2-3
paragraphs) signed by the highest level person within your
organization. It briefly describes the request, the amount
asked for, and may indicate the significance and importance
of the proposed project. It should reflect the Board's support
and approval ofthe request as reflected in the signature ofthe
Board Chairperson (possibly as a dual signature along with
the Executive Director/Chief Executive Officer).
2. The proposal going to a government funding source
will generally be more lengthy than one going to a private
2 Program Planning & Proposal Writing- Introductory Version
foundation. Itwill often be 10-20 pages long, and the funding
source guidelines will contain the sequence to be followed in
writing the narrative portion.
It is a good idea to read the infonnation describing how
your proposal will be evaluated. Quite often, government
agency guidelines describe exactly how each section of your
proposal will be weighed. This tells you what the reviewers
look for and helps you to organize your thoughts. If you are
told to limit your proposal to 10 single-spaced pages, don't
include one or two more thinking that it won't be viewed in
a negative light. Follow the guidelines meticulously, because
the reviewers will. Proposals can be deemed inappropriate
simply because you failed to follow specific instructions.
Proposals going to government funders may also contain
unique forms such as face sheet fonns where the entire
project, names of key staff, budget, numbers of people
impacted by the project, etc. are indicated; assurance forms
(addressing issues such as human subjects at risk); equal
opportunity policy statements; facility access to the
handicapped; and a number of other such fonns. It is
important to understand which items must be submitted
along with your proposal and how they are to be completed,
so read the instructions carefully.
3. Additional materials will generally include those
items suggested by the funding source. This usually consists
of job descriptions, resumes, letters of support or
commitment, your IRS tax exemption designation, an annual
report, financial statement, and related documents. This
section (or Appendix) can be extensive when a funding
source requests a great deal of infonnation. There are
instances in which the funding source will request copies of
certain agency policies and procedures, copies of negotiated
indirect cost rates, etc.
Generally, this will happen only once, and for refunding
packages to the same public agency, you will probably not
need to resubmit the same documents.
We suggestthe following as a basic fonnat for planning all
of your proposals. Thinking through the various sections
should enable you to create virtually all that either a private
or government funding source will ask of you. It will also
enable you to develop a logical approach to planning and
proposal writing.
This is our proposal fonnat:
PROPOSAL SUMMARY
I. INTRODUCTION
II. PROBLEM STATEMENT
III. PROGRAM GOALS AND
OBJECTIVES
IV. METHODS
V. EVALUATION
VI. FUTURE FUNDING
VII. BUDGET
VIII. APPENDIX
------------------~------------------PROPOSAL SUMMARY
The summary is a very important part of a proposal-not
justsomething you jotdown as an afterthought. There maybe
a box for a summary on the fIrst page of a federal grant
application form. It may also be called a "proposal abstract."
In writing to a foundation, the summary should be the first
paragraph of a letter-type proposal, or the first section of a
more formal proposal. The summary is probably the first
thing that a funding source will read. It should be clear,
concise and specific. It should describe who you are, the
scope of your project, and the cost. The summary may be all
that some in the review process will see, so make it good.
I. INTRODuCTION
In this partoftheproposal you introduceyourorganization
as an applicant for funds. More often than not proposals are
funded on the reputation of the applicant organization or its
key personnel, rather than on the basis of the program's
content alone. The Introduction is the section in which you
build your credibility, and make the case that your
organization should be supported.
Credibility
What gives an organization credibility in the eyes of a
funding source? Firstofall, itdepends on the funding source.
A "traditional, conservative" funding source might be more
responsive to persons of prominence on your Board of
Directors, how long you have been in existence and how
many other funding sources have been supporting you. An
"avant garde" funding source might be more interested in a
Board of "community persons" rather than of prominent
citizens and in organizations that are new rather than
established.
Potential funding sources should be selected because of
their possible interest in your type oforganization as well as
the kind of program you offer. You can use the Introduction
to reinforce the connection you see between your interests
and those of the funding source.
What are some of the things you can say about your
organization in an introductory section?
How you got started-your purpose and goals
How long you have been around, how you've
grown, and the breadth of your fInancial support
Unique aspects of your agency-tbe fact that you
were the fIrst organization of its kind in the nation,
etc.
Some of your most significant accomplishments as
an organization or, if you are a new organization,
some of the signifIcant accomplishments of your
Board or staff in their previous roles
Your success with related projects
Thesupportyou have received from otherorganizations
and individuals (accompanied by a few letters
of endorsement which can be attached in the
Appendix).
We strongly suggest that you start a "credibility file"
which you can use as a basis for the Introduction in your
future proposals. In this fue you can keep copies of
newspaperarticles aboutyourorganization, letters ofsupport
you receive from other agencies and from your clients.
Include statements made by key fIgures in your fIeld or in the
political arena thatendorse yourkind ofprogram even ifthey
do not mention your agency. For example, by including a
presidential commission's statementthat the type ofprogram
which you are proposing has the mostpotential ofsolving the
problems with which you deal, you can borrow credibility
from those who made the statement (if they have any).
Remember, in terms ofgetting funded, the credibility you
establish in your Introduction may be more important than
the rest of your proposal. Build it! But here, as in all of your
proposal, be as brief and specific as you can. Avoid jargon
and keep it simple.
II. PROBLEM STATEMENT
oR ASSESSMENT of NEED
In the Introduction you have told who you are. From the
Introduction we should know your areas of interest-the
fIeld in which you are working. Now you will zero in on the
specific problem or problems that you want to solve through
your proposed program. If the Introduction is the most
important part of your proposal in getting funded, the
Problem Statement is most important in planning a good
program.
The Problem Statement or Needs Assessment describes
the situation that caused you to prepare this proposal. It
should refer to situation(s) that are outside of your
organization (i.e. situations in the life of your clients or
community). It does not refer to needs internal to your
organization, unless you are asking someone to fund an
activity to improve your own effectiveness. In particular, the
Problem Statement does not describe your lack of money as
the problem. Everyone understands that you are asking for
money in your solicitation. Thatis a given. Butwhat external
situation will be dealt with ifyou are awarded the grant? That
is what you should describe, and document, in the Problem
Statement.
Problem Statementsdeal with such issues as the homeless,
offenders returning to prison with regularity, children who
are far behind in their reading skills, youth dropping out of
school, and the myriad other problems in contemporary
society. Needs Statements are often used when dealing with
a less tangible subject. They areespecially useful inprograms
that are artistic, spiritual, or otherwise value-oriented. These
are certainly no less important as subjects, but they do not
Program Planning & Propa>al Writing-Introdwctory VD'sion 3
------------------~------------------lend themselves as directly to the problem-solving model of
PP&PW. You would ordinarily deal with them as Needs and
Satisfaction of Needs instead of Problems and Objectives.
You should not assume that "everyone knows this
problem is valid." That may be true, but it doesn't give a
funding source assurance about your expertise if you fail to
demonstrate your knowledge of the problem. Use some
appropriate statistics. Augment them with quotes from
authorities, especially those in your own community. And
make sure that you make the casefor the problem in yourarea
ofservice, notjust on a national level. Charts and graphs will
probably turn off the reader. If you use excessive statistics,
save them for an Appendix, but pull out the key figures for
your Problem Statement. And know what the statistics say.
In the Problem Statement you need to do the following:
Makea logical connection between yourorganization's
backgroundand the problems and the needs
with which you propose to work.
Clearly define the problem(s) with which you
intend to work. Make sure that what you want to
do is workable-that it can be done within a
reasonable time, by your agency and with a
reasonable amount of money.
Support the existence of the problem by evidence.
Statistics, as mentioned above, are but one type of
support. You may also use statements from
groups in your community concerned about the
problem, from prospective clients, and from other
organizations working in yourcommunity and from
professionals in the field.
Berealistic-don't try and solve all the pro~lems in
the world in the next six months.
Note: Many grant applicants fail to understand the
difference between problems or needs and methods of
solving problems or satisfying needs. For example, an
agency working with the elderly in an urban area said that
what the community needed were vans to get the elderly to
various agencies. They determined that this "need" existed
because not enough seniors were able to get to the social
security office, health services, and related human service
programs. What they had done was to immediately jump to
a "method" by which seniors would now be able to readily
receive services. The problem with that logic is that the
transportation suggested is a method and there are other
methods as well. For example, what about the possibility of
working with institutions to decentralize services?
Alternatively, volunteer advocates could work with seniors,
acting on their behalf with some of these service providers.
Ultimately, buying vans might be the best method, but it is
clearly a method and not a problem or a client need. Be very
cautious about this. If you find yourself using "lack of'
statements in the problem section, you are probably saying
"lack of a method." This starts you on a circular reasoning
track that will ruin the planning process.
4 Program Planning & Praposal Writing-Introductory Version
III. PROGRAM GoALS
AND OB.IECTIVES
A well-prepared proposal has continuity-a logical flow
from one section to another. Your Introduction can establish
the context for your Problem Statement Similarly, the
Problem Statement will prepare the funding source for your
logical Goals and Objectives.
Goals are broad statements such as: Develop additional
resources to provide AIDS information to bilingual
populations; Reduce underemployment rates among adults;
Increase availability ofresources to address the problems of
adolescentpregnancies; Create an environmentin which folk
art is fully appreciated; or Enhance self-images of senior
adults. These types ofstatements cannotbe measured as they
are stated. They offer the reader an understanding of the
general thrust of a program. They are not the same as
Objectives.
Objectives are specific, measurable outcomes of your
program. Objectives are your promised improvements in the
situation you described in the Problem Statement When you
think of Objectives this way, it should be clear in most
proposals what your Objectives should look like. For
example, if the problem was that certain children in your
school read at least three gradelevelsbelow thenorm for their
age, then an objective would be thata certain numberofthose
children would read significantly better when you had
concluded your program. They would read better than their
classmateswho had also been reading poorly,butwho did not
have the benefit of your intervention. These "outcome"
Objectives should state who is to change, what behaviors are
to change, in what direction the changes will occur, how
much change will occur, and by what time the change will
occur.
Another example of a measurable objective would be:
"Within 30 days of completion of the JTPA Classroom Training
Program, 75% of the 80 participating welfare recipients will have
secured unsubsidized employment ataminimum of$5.25 perhour,
and will maintain those posnions for a minimum of 90 days."
The Importance of Distinguishing
Between Methods and Objectives
Many, if not most, proposals state that the purpose of the
program is to establish a program or provide a service. This
is consistentwith most thinking in the nonprofitsector, which
sees the nonprofit organization as a "service provider." This
results in Objectives that read like this:
"The objective ofthis project is to provide counseling and guidance
services to delinquent youth between the ages of 8and 14 in the
blank community." .
The difficulty with this kind of objective is that it says
------------------~------------------nothing about outcome. It says nothing about the change in a
situation that was described in the Problem. That is, unless
the Problem Statement (perish the thought) said that the
problem was "a lack ofcounseling." Presumably theProblem
Statement said something about youth being arrested, going
to jail, dropping out of school, or whatever.
Objectives should be specific, estimating the amount of
benefit to be expected from a program. Some applicants,
trying to be as specific as they can, pick a number out of the
air. Forexample, an agency mightsay thattheirobjective was
to "decrease unemployment among adults in the XYZ
community by 10% within a certain time period." The
question you need to ask is: where did that figure come from?
Usually it is made up because it sounds good. It sounds like
a real achievement. But it should be made ofsomething more
substantial than that. Perhaps no program has ever achieved
that high a percentage. Perhaps similar programs have
resulted in a range of achievement of from 2-6% decrease in
unemployment. In that case, 5% would be very good and 6%
would be as good as ever has been done. Ten percent is just
plain unrealistic. And it leads one to expect that you don't
really know the field very well. Just remember that
Objectives shouldbe realistic and a]tainable. Decide whether
the 10% figure is attainable. Ifnot, then it is a poor objective
because you cannot achieve it.
Ifyou are having diffi~ulty in defining yourObjectives, try
projecting your agency a year or two into the future. What
differences would you hope to see between then and now?
What changes would have occurred? These changed
dimensions may be the Objectives of your program.
A Note About Process Objectives
You may be used to seeing Objectives that read like this:
"The objective of this training program is to offer classes in
automotive repair three times each week, for aperiod of 36 weeks,
to a group of 40 unemployed individuals", or
"The objective of this program is to provide twice-weekly counseling
sessions, for aperiod of 18 weeks, to nolessthan 50parents
who have been reported to Child and Protective Services for child
abuse,"
These are Process Objectives, and belong in the Methods
section of your proposal. They tell what you will do, and do
not address the outcome or benefit of what you will do. It is
critically important to distinguish between these process
Objectives and true outcome Objectives. Ifyou do not do so,
you will end up knowing only what has occurred during your
program, and will not have dealt with the changes attributed
to your program. Remember, you have proposed your
program in order to make some change in the world, not to
add one more service to a world already overcrowded with
services and service providers.
Process Objectives may be very useful, but should only
appear in the Methods section of your proposal, so they are
not confused with the results of your proposed program.
IV. METHODS
You havenow toldthe reviewer who youare, the problems
you intend to workwith, and yourObjectives (which promise
a solution to or reduction of the problems). Now you are
going to describe the Methods you will use to accomplish
your Objectives.
The Methods component of your proposal should
describe, in some detail, the activities that will take place in
order to achieve the desired results. It is the part of the
proposal where the reader should be able to gain a picture in
his/her mind of exactly how things work, what your facility
looks like, how staffare deployed, how clients are dealt with,
what the exhibits look like, how the community center
recruits and assigns volunteers, or how the questionnaires
will be administered and results interpreted.
There are two basic issues to be dealt with in the
Methodology section. What combination of activities and
strategy have you selected to employ to bring about the
desired results? And why have you selected this particular
approach, of all the possible approaches you could have
employed?
Justifying your approach requires that you know a good
deal about other programs of a similar nature. Who is
working on the problem in your community or elsewhere?
What Methods have been tried in the past and are being tried
now and with what results? In other words, you need to
substantiate your choice of Methods.
The consideration ofalternatives is an importantaspect of
describing your methodology. Showing that you are familiar
enough with your field to be aware of different program
models andshowing yourreasons for selecting themodel you
have gives a funding source a feeling of security and adds
greatly to your credibility. Obviously then, building
credibility only starts in your Introduction, and can be
enhanced as you demonstrate that you are knowledgeable
throughout your proposal.
Your methodology section should describe who is doing
what to whom, and why it is being done that way. Your
approach should appear realistic to the reviewer, and not
suggest that so much will be performed by so few that the
program appears unworkable. A realistic and justified
program will be impressive. An unrealistic program will not
win you points for good intentions.
V. EVALuATIoN
Evaluation ofyour program can serve two purposes. Your
program can beevaluated in order to determine how effective
it is in reaching its stated Objectives. This concept of
Evaluation is aimed at measuring results of your program
[outcome Evaluation].
Evaluation can also be used as a tool to provide
information necessary to make appropriate changes and
adjustments in your program as it proceeds. This concept is
Program Planning & Praposal Writing- Introductory Version 5
------------------~------------------focused on the way your program has been conducted
[process Evaluation].
Measurable Objectives set the stage for effective outcome
Evaluation. If you have difficulty in determining what
criteria t" 'Ise in evaluating yourprogram, bettertake another
look ~_. yvill" Objectives. They probably aren't very specific.
Subjective and Objective Evaluations
Many Evaluation plans are subjective---in nature.
Subjective Evaluations tell you how people feel about a
program, but seldom deal with the concrete results of a
program. For example, the Evaluation of an educational
program that surveyed students, parents, teachers and
administrators of the program would be eliciting attitudes
about the program. It would not speak to the tangible
improvement in performance attributed to the program.
Subjectivity also allows the introduction ofourown biases
into an Evaluation. This could easily happen if you evaluate
your own programs, especially if you feel that continued
funding depends on producing what looks like good results.
One way of obtaining a more objective Evaluation, and
sometimes a more professionally prepared Evaluation, is to
look to an outside organization to conduct an Evaluation for
you. Sometimes it is possible to get an outside organization
to develop an Evaluation design that can be submitted to a
funding source as part of your proposal. This not only can
suggest a more objective Evaluation, but can also add to the
credibility of your proposal, since you have added the
credibility of the evaluating institution.
It is essential to build an Evaluation plan into your
proposal andbeprepared to implementyourEvaluationatthe
same time that you start your program. If you want to
determine change along some dimension, then you have got
to show where yourclients havecomefrom. Itis very difficult
to startan Evaluation atornearthe conclusion oftheprogram,
for at that time you may not know the characteristics ofyour
clients at the time of their entry into your program.
VI. FuTURE AND oTHER
NECESSARY FUNDING
No grantmaker wants to adoptyou. Funding sources want
to know how you will continue your program when their
grant runs out. If you are requesting funds to start a new
program, or to expand an existingprogram, then how will you
maintain it after the grant funds have been spent?
A promise to continue looking for alternative sources of
support is not sufficient. You should present a plan that will
assure the funding source, to the greatestextentpossible, that
you willbe able to maintain this new program after their grant
has been completed. Indeed, if you are having difficulty
keeping yourcurrentoperations supported, you willprobably
have more difficulty in maintaining a level of operation
which includes additional programs.J'he funding source may
6 Program Planning & Praposal Writing- Introductory Vusion
bedoing you no favor by supporting a newprojectandputting
you in the position of having to raise even more money next
year than you do now.
At this point in your planning you may realize that there is
little likelihood of any other sources of support one or two
years hence. This ought to bring you to a decision-making
point-whether you should even try to implement a new
program at this time in your agency's history.
What would constitute a satisfying response in this
proposal component? Could you get a local institution or
governmental agency to agree to continue to support your
program, should it demonstrate the desired results? Can you
get such a commitment in writing? Can you generate funds
through the project itself-such as fees for services that will
build up over a year or two, subscriptions to publications,
etc.? Are there third parties available to provide
reimbursement for services? Are you expanding your nongrantfundraising
activities? Thebestplan for FutureFunding
is the plan that does not require continued grant support.
Other Necessary Funding
Other necessary funding refers to what are sometimes
called "non-recurring grants." That is, one-time only
requests. This could be a request for a vehicle to transport
your clientele, or the purchase of a piece of medical
equipment for your hospital. While these are not program
grants, the funds you request are not all you will need either
to utilize the vehicle, or to operate the medical device. For the
vehicle to be used, you must cover the costs of a driver,
insurance, gas, and maintenance. Similarly, the medical
equipment must be operated by trained personnel. The
funding source will want to know if you are aware of what
you need beyond the purchase requested in your grant, and
have the funds needed to cover these costs. They surely will
not want to fund a bus that will sit in your garage for a year.
VII. BUDGET
Funding source requirements for Budgets vary, with
foundations requiring less extensive Budgets than
government funding sources. The following Budget design
should satisfy most funding sources that allow you to design
your own Budget and, with minor changes that the sources
will tell you about, can be adapted to fit most government
agency requirements. This recommended Budget contains
three sections: The first is Personnel, the second is NonPersonnel,
and the third is Indirect Costs.
When planning your Budget, it is wise to look closely at
your Goals and Objectives to determine the level of activity
in the program, and at your Methods section to review the
specific plan you have proposed. For example, a Volunteer
Senior Peer Counseling program would, one hopes, be less
costly to operate than a Senior Peer Counseling program
involving paid staff. Budgets should be built from the ground
•
-------------------~-------------------up-that is, based upon your Goals and Objectives and the
methodology you have proposed. In the context of your
program you can begin to itemize such things as the staffing
called for, the facilities needed, the equipment required, the
supplies necessary, travel costs to be paid, and the range of
costs for which your agency must be reimbursed, i.e. time of
the CEO, bonding of employees, fundraising, use of space,
payroll services, in-service training offered, etc.
It is important to go through this exercise in developing a
Budget. Without it, there is a risk ofdeveloping unrealistic or
impractical requests, where program and Budget are
unrelated.
This is how we suggest you structure your Budget:
I. PERSONNEL
A. Salaries & Wages
In this section you can listall full- and part-time staffin the
proposed program. We suggest a format which includes the
following information: "
#of Title Full %oftime #of Amount Amount Total
per- monthly employed months requested donated
sons salary in grant during or volunper
grant teered
title period
How does this look on a completed line item of a Budget? If
you are employing a ProjectCoordinatorata salary of$2,000
per month, working full time (100%) for the entire grant
period (12 months) and are asking the funding source to
provide the full amount of this salary, then it looks like this:
Req. Donated Total
Proj. Coor. @ $2000 100% time x 12 mos. $24,000 -0- $24,000
You can listall ofyour staffin the same way. Ifany ofyour
staff are being paid out of another source of funds (for
example, a staffperson assigned to your project by a County
agency), then you total up their salary and put it in the
"donated" column (also referred to as in-kind, local share, or
applicant share). Like this:
Req. Donated Total
2 Soc Wkrs @$1500/ea. 50% time x 12 mos. -0- $18,000 $18,000
This means that you will have two half-time Social
Workers on your staff for the full year and their salaries are
being paid by somebody other than the funding source. You
take their full-time salary in the Budget ($1,500/mo.) and
halve it ($750) as they are only working 50% time; multiply
the $750 by the 12 months they will be working (giving you
$9,000) and multiply by 2 (the number of people employed
in this capacity). This gives you a total of$18,000 ofdonated
Social Worker services in this project.
What does the $2,000 per month figure for the salary ofthe
Project Coordinator represent? It may represent the actual
salary paid the Project Coordinator, but not necessarily. If
this is a new project, and if your organization has a typical
five-step salary schedule for job classifications, the monthly
salary range for the Project Coordinator may look like this:
Step A
$1,500
Step B
$1,750
StepC
$2,000
Step 0
$2,250
Step E
$2,500
Ifyou have developed a salary schedule like this for each
position, then you should request the mid-point ($2,000)
unless you know in advance who will fill thatposition. In that
case, list the actual salary anticipated. Ifnot, the mid-point of
the salary schedule allows you to hire someone currently
making $1,300/mo., who would welcome the increase even
to Step A. You have the flexibility to hire at any point along
the range with the assumption that all staff ~alaries will
average out toward the middle of the salary range. (This
works if there are a number of positions in your project, not
just one or two.)
How do you determine what the salary range for a Project
Coordinatoroughttobe? Thefederal governmentprefers that
salaries be comparable to the prevailing practices in similar
agencies in your community. Tojustify the salaries you build
into your Budget you should obtain information from other
local agencies regarding the salaries of persons with job
descriptions, qualifications and responsibilities similar to
those ofthejobsin youragency. You mightgo to the local city
and/or county government, the school district, or United
Way. By comparing the jobs in your agency with the jobs at
other local agencies, you plan a salary for each position, and
you keep the "comparability data" on hand, should you be
asked by the funding source to justify your staff salaries.
Another final item to be included in your Budget for most
public agency applications is the matching support being
contributed by your organization, or the donated services.
They can either be personnel contributed by you (the
applicant organization), or by a third party (another
participating agency, a corporation giving you a loaned
executive, students, etc.). In many cases this will involve the
use of volunteers. You should place a value on the service
being performed by that volunteer, e.g., plumber, attorney,
carpenter, receptionist, etc. That value is based upon the
function being performed by the volunteer, not on the
professional background or education of the volunteer. A
physician volunteering time at a community center where hel
she helps out in "painting" the facility is shown at the hourly
wage paid painters, not physicians.
Governmental grantmakers sometimes require financial
participation on the part of an applicant, i.e., 10% or 25%
match. You may be able to make this contribution in cash or
in-kind. For example, if you are going to pay the salary of a
staff member, that is "cash". If you are using volunteers, or
receive an executive on loan from a local corporation, that is
"in-kind."
Program Planning & Proposal Writing-Introductory Vusion 7
-----------------~-----------------If you promise volunteers in your program, you are
required to deliver the promised volunteer services, just as if
the funding source was actually paying their salary. You will
be asked to document the work they perform and to keep
records of their time. Records may be audited in the case of
a government grant. Always be able to document 5-10%
more than the required percentage matchjustin the event that
you are audited and some of your volunteer time is
disallowed.
Why is it important to develop a match (applicant share)
and show the total costs ofa project when some ofthe money
or services are not being provided by the funding source?
There are several reasons. First, the government funding
source wants to know that there is a commitment on the part
of your agency-a commitment beyond just conducting a
program. It helps for them to know there is some likelihood
that you have resources with which to continue the program
after funding has ceased. It also provides some clarity as to
the "exact" cost in delivering a service. If the program were
to be replicated elsewhere, and donated services were not
available, it tells the funding source what the total cost would
be. Finally, when you have local resources (volunteers, cash,
staff, equipment, etc.), it reduces the amount of money
required of the grantor, thereby allowing additional projects
.to be funded in other locations. ..
B. Fringe Benefits
In this section you list the fringe benefits your employees
will be receiving, and the dollar cost of these benefits. Some
fringe benefits are mandatory, but they vary from state to
state, so you will have to determine what they are for your
agency in your state. Mandatory fringe benefits may include
State Disability Insurance, State Unemployment, FICA, etc.
They are usually based on percentages of salaries. For
example,FICA is currently 7.51 %ofthe first $45,000ofeach
person's salary. Therefore, an entry for FICA on your Budget
might look like this:
FICA @7.51 % of $90,000
Req.
$6,759
Donated Total
-0- $6,759
$90,000 would be the total of all your salaries, up to
$45,000 for anyone person.
Some fringe benefits are calcuiated on a flat amount per
month per staffmember,and not on a percentage, e.g., health
insurance. For example:
Health insurance @$1 OO/mo per
staff member x4 staff @12 mos.
Req. Donated Total
$4,800. -0- $4,800
As with your salary schedule, your fringe benefits should
be comparable to the benefits offered in similar agencies in
your community.
While you will need to calculate fringe benefits for your
own information, in some grant applications you simply
indicate the fringe benefit total as a percentage of salary.
8 Program Planning & Proposal Writing- Introductory Version
C. Consultant and Contract Services
This is the third and final part of the Personnel section of
your Budget. In this section you include paid and unpaid
consultants (i.e. volunteers). You can differentiate between
which items go here and which go in Salaries and Wages on
the basis of the manner in which the individual or business
normally operates. Ifa bookkeeping firm generally operates
on a fee-for-service basis and is volunteering their services to
your organization, that would fit best under Consultant and
Contract Services. Essentially, belogical and ifa Fed yells at
you, change it. (Foundation persons never yell.) Entries
might look like these:
Req. Donated Total
Bookkeeping Services @$200/mo.
x12mos. -0- $2,400 $2,400
Contracted Fundraising Svcs.
@$400/day x10 days $4,000 -0- $4,000
Trainer @$2SO/day x 8 days $2,000 -0- $2,000
II. NON-PERSONNEL
A. Space Costs
In this section you listall ofthe facilities you will be using,
both those on which you pay rent and those which are being
donated for your use. Rent you pay, or the valuation of
donatedfacilities, shouldbecomparable to prevailing rents in
the geographic area in which you are located. In addition to
actual rent, you should also include the cost of utilities,
maintenance services and renovations, if they are absolutely
essential to your program, insurance on the facility,
telephones (number ofinstruments needed, installment cost,
and monthly cost of instruments), and out-of-town facilities
needed. Include these items in line item fashion like this:
Req. Donated Total
Office Space of 900 sq. feet
@$1.25/footlmo./x 12 mos.
Facility insurance @$600Iyear
$13,500 -0-0-
$600
B. Rental, Lease or Purchase of
Equipment
$13,500
$600
Here you list all of the equipment, donated or to be
purchased, that will be used in the proposed program. This
includes office equipment, desks, duplicating machines,
word processors, etc. Let discretion be your guide in this
section. Try to obtain as much donated equipment as you can.
It not 'only lowers the funding source cost, but it shows the
funding source that other people are involved in trying to
make the program happen. Be careful to read guidelines
closely when working with governmentgrantapplicationsespecially
as to their definition of "equipment" and restrictions
which apply. For example, equipment is often dedefined
as something costing more than $500 per unit and/or
having a lifetime ofgreater than one year. Additionally, there
-----------------~-----------------may be prohibitions against purchasing equipment, and you
may be encouraged to lease rather than purchase.
C. Supplies
This generally means "desk top" supplies such as paper
clips, pens, paper, stationery, etc. A reasonable figure to use
is$125 peryear for each ofyourstaff. Ifyou have any unusual
needs for supplies-perhaps you are running an art education
program, a sheltered workshop, or some classroom activity
requiring a good deal of educational materials-then have a
separate line item for such supplies. This component can also
include publications, subscriptions, and postage.
D. Travel
1.
2.
3.
4.
Bonding of employees
Tuition for classes
Professional Association dues
Printing (unless you placed this under Consultant
and Contract Services)
III. INDIRECT COSTS
The third component of your Budget is called Indirect
Costs. The federal government defines indirect costs as
"those costs of an institution which are not readily
identifiable with a particular project or activity, but
nevertheless are necessary to the general operation of the
institution and the conduct of the activities it performs. The
cost of operating and maintaining buildings and equipment,
All
transportation
related
ex
_-----------------------"'4iII depreciation, administrative salaries,
penses are
included her
Don't put in
any big lumpsums
which will requireinterpretation
or
raise a question by the
funding source. Include
staff travel, per diem rates approved
by your agency and/or
thestate or federal agency you are
applying to, ground transportation, .
taxi, reimbursement to staff for use of
their automobiles, consultant travel costs,
use of agency vans or automobiles (if this
has not been included under equipment), etc. Examples
include the following:
Req. Donated Total
Four roundtrip air fares LA-NY for
workshop on Creative Accounting
@$500/each $2,000 -0- $2,000
Reimbursement for staff travel @.20/mile
x average of 400 miles/mo. x 12 mos. $960 -0- $960
Per Diem (NY) @$1SO/day x8 days
for 4 staff at Creative Accounting
Workshop $1,200 -0- $1,200
Be sure that you use per diem (hotel and meals) rates which
are consistent for the location. Attending a workshop in
Weed, California will be considerably less expensive than
New York City.
E. Other Costs
This is generally a catch-all category which includes items
not reasonable to include elsewhere. For example:
general telephone expenses, general
travel and supplies expenses are
types of expenses usually con- .
sidered as indirect costs."
While it is possible for all
such costs to be charged
directly-That is, to the
line items listed above,
this is often
impractical, and
into a
common
pool.
The fedral
gov-
ernment
indicates that "An Indirect Cost Rate is simply a device for
determining fairly and expeditiously...that proportion of an
institution's general expenses each ofits projects or activities
should bear." An organization or institution can negotiate an
Indirect Cost Rate (generally a percentage of Salaries and
Wages or Total Direct Costs) with any federal agency from
whom it has received funds. This is an important issue since
many larger institutions find that every new project
undertaken costs the institution money unless itis reimbursed
for the indirectcosts associatedwith operating the institution.
For further clarification ofIndirect Cost Rates, contact the
Federal Office's Regional Comptroller or your Program
OfficerorContractOfficerto find outexactly how to go about
negotiating Indirect Cost Rates. Once you have such a rate,
there may still be instances in which the funding source
refuses to pay indirect cost rates or places a cap (a maximum)
on the percentage of total direct costs they will pay.
Nevertheless, this is an area which should be explored and
understood.
Program Planning & Praposal Writing- Introductory Vusion 9
b
SAMPLE BUDGET
I. PERSONNEL
A. Salaries and Wages
Project Coordinator @$2,000/month @100% x 12 months
2Social Workers @$1 ,500/month each @50% time x 12 months
20 Volunteer Recreational Aides @50 hours each/year x 7.001hour
B. Fringe Benefits
20% of $42,000
C. Consultant and Contract Services
Bookkeeping Services @$200/ruonth x 12 months
Fundraising Services @$400/day x 10 days
Trainer @$250/day x 8days
Annual Audit
II. NON-PERSONNEL
A. Space
900 square feet @$1.25/square foot/month x 12 months
Telephones @$200/mQnth x 12 months
Utilities @$300/month x 12 months
Facility Insurance @$600/year
B. Rental, Lease, Purchase of Equipment
Word processor/printer
12-passenger van @$400/month x 10 months
3 desk/chair sets @$250/each .
C. Supplies
Desk top supplies @$125/year/staff x3
Educational materials @$50/month x 12 months
D. Travel
4 roundtrip airfares LA-NY @$500/each
Reimbursement for staff auto travel @$.20/mile xaverage of 400 miles/month x 12 months
8days per diem (NY) @$150/day
E. Other Costs
Conference Tuition (Creative Accounting) @$200/each x4 staff
Board Liability Insurance
III. INDIRECT COSTS
Req. Donated Total
24,000 -0-0-
18,000
-0- 7,000
4,800 3,600
-0- 2,400
4,000 -0-
2,000 -0-
2,000 2,000
13,500 -0-
2,400 -0-0-
3,600
600 -0-
2,000 -0-
4,000 -0-
750 -0-
375 -0-
600 -0-
2,000 -0-
960 -0-
1,200 -0-
800 -0-
600 -0-
24,000
18,000
7,000
8.400
2,400
4,000
2,000
4,000
13,500
2,400
3,600
600
2,000
4,000
750
375
600
2,000
960
1,200
800
600
15.3% of TADC (Total Allowable Direct Costs) as per att. negot. rate with Dept. of Labor, 1988 10,860 -0- 10,860
TOTAL PROJECT COST: 77,445 36,600 114,045
10 Program Planning & Proposal Writing- Introductory Version
•
------------------~-----------------VIII. APPENDIX
Addendat~ foundation orcorporateproposal shouldbe
limited. It is an imposition to suggest that a reviewer plod
through many pages ofadditional material that you decided
were important enough to include with your proposal. In
the case of a government grant, however, the Appendix
may be longer than the body of the proposal. It contains
material which needs to be submitted to the funding source,
but should not detract from the continuity and flow of the
proposal by being included in the narrative. The rationale
for any decision about what to include in the body of a
proposal should be based on your answering the question,
"Do Ireally want the funding source to read/scan thecensus
runs, flow chart, or job descriptions while reading the
proposal?" If the answer is "Yes," then definitely include
the item at thatjuncture. Ifthe answer is "No," then include
the item in the Appendix and refer the reader to it.
Funding sources will usually stipulate the attachments
they want you to include with your grant application. This
will involve a variety ofdocuments, many of which will be
required routinely by other funding sources. It is a good
idea for Development Officers, Program Planners,
Grantwriters, or related personnel to maintain a file of
materials which can be included in a proposal package.
Such items ought to be accessible to you at all times.
Items which are routinely requested by many funding
sources include the following:
1. An Audited Financial Statement
Funding sources generally require an "audited"
financial statement. Many smaller organizations do not
routinely have an audit conducted, or cannot afford an
audit, and an "unaudited" financial statement is often
developed by the agency's accountant or bookkeeper. It is
important that applicants know whether the funding source
will acceptan "unaudited" financial statement. A telephone
call to the program officer, foundation staff member, or
related contact person at the offices of the funding source
will provide you with the answer.
2. I.R.S. Determination Letter
This letter from the I.R.S. indicates that your
organization is exempt from federal corporate income
taxes. It contains important information regarding the basis
for your exemption and the requirements associated with
maintaining it. In some cases, individual states also grant
such exemptions, and copies of both letters may be
appropriate for submission.
3. Indication of Nonprofit Corporation
Status
A copy of the receipt of nonprofit corporation status by
the statein which yourorganization was incorporated may be
required by funding sources. In most instances, the favorable
detennination of tax exemption (above) will be sufficient in
that it lists the name of the incorporated nonprofit
organization.
4. Roster of Board of Directors
A document more and more requested by funding sources
is a rosterofboardmembers by affiliation. Ofconcern is more
than simply the names ofyour board members, but who they
represent. By this is meant their job function-minister,
doctor, banker, social worker, building contractor, etc. In the
cases of retired individuals, indicate their fonner job or
profession.
In situations where organizations have board members
who are welfare recipients, housewives, unemployed
persons, students, etc., select an area of interest or specialty
for such individuals, and indicate that after their name. Don't
just list a name without any affiliation.
5. Table of Organization
Another item which may be useful is a table of
organization. This table should include the proposed staffing
pattern for the project for which funds are being requested,
and should also include thelargeragency/department!section
to whom the new project personnel report. With large
organizations, it is not critical that each position be indicated,
but units or departments should be shown. In many instances
it is more important that the funding source understand how
the major "functions" ofthe organization are carried out, and
how boards, committees and staff interrelate. The only
problem with th~se tables is that they too often present such
a confusing picture that one wonders how the organization
could ever work.
6. Organizational Budget
Some funding sources will require submission of an
organizational Budget for the current or forthcoming
program year. This organizational Budget differs from the
Budget for the project itself, previously discussed. This
allows thereviewer to putthe grantrequestin a largercontext.
7. Summary Chart of Key Activities
Mostpublic grantapplications will require that you submit
some fonn oftimeline for major milestones or activities. This
can be done in a variety of fonnats-Gantt charts, PERT
charts, flow charts, etc., and can be done by month, quarterly,
or by time elapsed from the initiation ofthe project. Whatever
format you use, itshould beclearand easily understood by the
funding source.
Other documents are often needed for inclusion as an
attachment to a proposal:
Program Planning & Proposal Writing-Introductory Vmion 11
1
-----------------~-----------------8. Negotiated Indirect Cost Rate
A copy of your agency's negotiated indirect cost rate
should be included in the Appendix when you are citing a
"percentage"amount for indirectcosts. This is required when
submitting public agency applications where such costs are
being charged.
Private foundations may also pay indirectcostrates,butbe
sure to review foundation guidelines closely in that some
place a limit on the percentage they will pay. In some cases
this percentage is only ten percent (10%) of total direct
costs--considerably less than the negotiatedpercentage with
the federal agency.
9. Letters of Support or Endorsement
Letters from elected officials, other organizations and
individuals will need to be submittedasrequiredby a funding
source or on the basis of your organization's decision that
such indicators of support would be a good idea.
In general, such letters should be addressed to your
organization (Executive Director, BoardChairman, etc.) and
sent to you for submission along with the proposal. Letters
should not be sent under separate cover to the funding source
because they may not get there in time or..may not be filed
appropriately with your proposal. More significantly, many
funding sources simply will not accept documents submitted
separately.
To aid in the process of securing letters of support, many
grantwriters and development officers have developed a
procedure designed to aid those individuals and
organizations from whom you want such letters. Many
elected officials and agency executives are continually asked
for such letters of support, and will gladly provide them, but
it speeds up the process ifthey can seean example ofthe type
of letter desired.
It is a good idea to draft letters of support and share them
with potential signees. This will ensure that you do not
receive a glowing endorsementfor your program "to provide
a shelter for homeless immigrant families" when you are
actually seeking support for "establishing a source of food
and shelter for migrating birds." Telephone discussions
which summarize projectideas often do notgetheard exactly
as you think you've transmitted them.
If you plan to include "motherhood letters" along with
your proposal, i.e. "As a mother in Centerville with six
children, I have nothing but praise for the Headstart program
and urge you to continue funding it," try to keep such
endorsements to a minimum-no more than two such letters
per proposal!
10. Resumes
Whenever possible, resumes/curriculum vitae ofkey staff
shouldbe updated periodically so that you are not submitting
the exact resume which was placed in the agency's fue ten
years ago when the person was hired.
Also, it helps the ease of reading if different resumes are
written in the same format, so when updating resumes you
mightconsiderdevelopinga similarformat for each. With the
exclusion of academic and medical personnel, they need be
no longer than 2-3 pages.
11. Job Descriptions
While in some instances it is important to create a capsule
resumefor inclusion in the body ofthe proposal, in mostcases
the description of positions ought to be an Appendix item.
This reprint is available from The Grantsmanship
Center. For a free copy of The Grantsmanship
Center's Whole Nonprofit Catalog, which includes a
reprint price list and order form, as well as a current
schedule of Grantsmanship Center Training
Programs, write to: The Grantsmanship Center, Dept.
DD, 650 S. Spring St., Suite 507, P.O. Box 6210, Los
Angeles, CA 90014.