Proposal Writing 1 Each proposal and proposal presentation

Proposal Writing 1

Each proposal and proposal presentation will contain the following: A listing of group participants detailing their exact role in producing the grant proposal and an accounting of the nature of the group process. n A list of potential funders or in the case of an actual submission of a grant, a detailed description of the funder to which the proposal will be submitted. n 2

Summary Statement One page or less. n A simple statement of the need usually no more than two sentences. n A simple statement of what will be accomplished (what goals will be achieved) usually no more than two sentences. n A brief description of the activities n A brief discussion of the cost. n 3

n A needs statement that contains the following: ¨ ¨ ¨ ¨ The problem or need (s) to be addressed by the proposal; The targeted population to be served; The cause of the problem or need; Statistical information about the scope of the problem or need. (Use information available from government agencies or advocacy groups obtained on the Internet, in research reports, or journal articles. Data from the U. S. Census is also o. k. ) The cost to the community of the problem or need; Why traditional programs have failed to meet the problem or need; The reasons why your program will succeed where others have failed. 4

n A project description section which will include: ¨ The specific goals and objectives of the project differentiating between process objectives and outcome objectives; ¨ A means for evaluating each objective. ¨ The specific activities of the project; ¨ An exact timetable of the implementation of the goals, objectives and activities. This can be in the form of a Gantt chart. (Hint: this is the section of the proposal that is the most important and requires most of the effort) 5

Gantt Chart Months 1 2 3 4 5 6 7 8 9 10 11 12 Hire Staff Recruit Clients Run Groups Terminate Groups Evaluate Program Write Report to Funder 6

An evaluation section: n n n How the project will be evaluated specifically? Will goal achievement be assessed? Will there be a pre and post test or other instrument created for the project? Will the evaluation focus on program processes or outcomes or both outcomes and processes? What kind of information system will be in place to gather data for the program evaluation? Will there be other kinds of evaluation mechanisms used such as advisory committees, periodic reports, or ongoing staff monitoring? 7

A Budget: n The budget will be broken down into: ¨ Personnel costs: ¨ Operational costs. Each budget will contain a budget narrative explaining each item in the personnel section and in the operation section as it relates to specific activities in the project. 8

The purpose of organization budgets is to: Plan how funds will be used within a one year period. n Identify how much money will be needed by the organization to deliver services. n Monitor how funds are currently spent. n Predict how much money will be needed for the next fiscal year. n 9

Budget time frames are called fiscal years. The fiscal year may span the time period: January 1 – December 31 n July 1 – June 30 (the fiscal year for most state governments) n October 1 – September 30. (Federal budget year) n 10

Budgets specify: Dollars on hand n Revenue n Expenditures n Revenue minus Expenditures n Specific categories of expenditures. n 11

The two biggest items in agency budgets are: Salaries and wages n Fringe benefits: - Payroll taxes (employer’s share) - Health Insurance - Pension (share) - Other incentives given to employees (for example, college tuition) n 12

Personnel costs are approximately 80% of all expenditures in an agency budget. Of that amount, fringe benefits, on average, are about 15 -25% of the total for salary and wages. 13

The two primary types of budgets are: n n Line item budgets (includes specific categories of expenditures for the organization) Program budgets (lists the same types of expenditures as the line item budget – except that they are organized by program). A typical program budget would just be a line item budget that includes columns for each of an organization’s programs. 14

Items typically included in a budget are: n n n Personnel (salary/wages and fringe) Office supplies Rent or mortgage Utilities Maintenance costs Xeroxing and/or printing Phone Insurance Cost of Annual Audit Equipment Travel Professional Development 15

Methods for developing a budget 1) Increasing or decreasing line items in relations to projected increases or decreases in funds. Often line items in budgets are increased at the rate of inflation (3 to 5%). Similarly, line items may be reduced by a specific percentage per year. 16

Addition methods for making budget estimates 2) 3) 4) How much did the organization go over or under designated budget amount in the previous year? Adjustments are made accordingly. Estimating cost on a line item by line item basis – based on vendor estimates of costs, existing contracts, or costs that have previously been “locked in” or fixed. Using budgets from similar programs to estimate future costs in new programs. 17

In general, there are two types of costs in budgets: n n Fixed Costs that we know in advance and that will probably not change in the next year. One approach to managing resources is to lock in as many of the yearly costs as possible (rent, utility rate plans, salaries) Variable costs. Costs that may vary in the course of day to day operation that are difficult to control, for example, xerox and telephone. 18

Another way to categories expenses involves certain administrative costs (Overhead) n n Certain types of management activities are considered to be overhead or indirect costs– for example, manager salaries, clerical support, or accounting and other services. (Direct costs are considered expenditures used to operate programs) Funders often restrict what percentage of program overhead may be paid for with grants and contracts. (8 tl 20%) 19

Overhead may be listed” As a specific line item in a budget. n As a cost center or separate program in a program budget. n Allocated among the various programs in an agency. n 20

There are several different types of budget tools used to monitor agency budgets n n Operating statements – lists the various sources of funding and expenditure categories. Balance sheets – Lists Assets and Liabilities; Difference between this year’s and last year’s expenditures. Cash flow statement (month by month listing of revenue and expenses) Year to date budget – what percentage of the yearly budget has been spent to date. 21

Expenditure Analysis n n Is the organization over budget in a number of expenditure categories. Is the organization under budget in a number of categories. Is the organization under budget in some categories and over in others (what adjustments should be made in the budget) What proportion of the annual budget is spent on overhead or fundraising costs? 22

Pointers to keep in mind: Does the proposal make a strong case for the need for the project? n Is the project feasible? n Is the project going to result in a definite change? n Can the project do what it says it’s going to do with the amount of money requested? n 23

n Do all parts of the project fit together? ¨ Do the needs statement fit with the goals and objectives? ¨ Do the goals and objectives reflect the activity of the project? ¨ Does the budget directly relate to the activities of the project? ¨ Does the proposal read as if one person wrote it rather than a group? 24

Funding Sources for Nonprofit Organizations (Applying for Grants) Foundations n Corporations/Unions n Federal, State, and Local Government n Some membership organizations (such as the Rotary) may also make grants n 25

Sources of Information Finding out where similar organizations/programs have applied n General search on the Internet n Searching sites of specific foundations or corporate donors n Searching sites that have information on available funding n 26

You should be able to find out: Grant deadlines n Mission of the organization providing the funding n Grant criteria – what is expected in the proposal – what type of programs is the foundation/agency looking for? n Who else have they funded? n 27

Other sources of funding: Individual donors n Government Contracts n Membership Fees n Fees for Services n 28