Folly #2: Painful Grant Reports

Hurdles we jump to keep small, restricted grant funders happy.

For years, one of our nonprofit clients applied for an annual grant and received $5,000. The funder required an interim and a final report, both with financials. Probably no big deal. Except for the timeframe.

This funder’s proposal was due in May. Decisions were made six months later, and grants were funded the following January. For many nonprofits, those seven months span two fiscal years; for all they span two calendar years.

The interim report was also due in May. That’s not quite halfway through the grant period, so is the interim report for January–April? Strange timeframe. And the final report was due before the end of the year.

This client was a $2M nonprofit, with a July–June fiscal year and a small team: no fundraiser on staff. The required reports did not coincide with any quarterly timeframe they used, which meant the overly busy COO had to run special time periods for this funder, every year. Feels a bit like fighting a losing game. And the funder only wanted reporting on the specific program they supported, not on the nonprofit as a whole. By any definition, this required a custom report and the staff time to create it.

The first year I wrote the report, that’s what we did. The second year, I didn’t have the heart to ask the COO to go through the machinations. I suggested to her that, since this foundation had supported the organization for multiple years, we address financial information in the interim narrative report and confirm that the final report would include a complete financial accounting for the $5,000 grant and project funded. (But let’s be real. Clearly only a very small part of the project was funded by this grant. And none of the administrative staff time to report on it.) Sounds responsive and reasonable, right? Or so we thought.

The foundation program officer emailed me to ask why the interim financial report wasn’t included.

And I had that moment that every fundraiser has.

Do I divert internal resources to meet this $5,000 funder’s request or do I come clean, and risk perception of biting a hand that’s feeding us? I chose the latter, citing the complexities of the time span.

I hope I was diplomatic, but really wonder if it sunk in. Does that funder – also a small shop from all appearances – have any idea of the burden their reporting places on their grantees?

Happily, change is brewing. This year, one community foundation launched a new reporting format – you talk, we write. Recognizing the pressure on under-resourced and small nonprofits who can’t afford to rock the boat with funders, they now invite grantees to attend a joint meeting with their staff and a few like-minded nonprofits where, together, these peer organizations can give verbal reports on the issues, solutions and impact. That’s good, but here’s the best part: the community foundation has a staff member take notes and write the reports for the grantees. It doesn’t get much better than that.

Next week… Folly Take 3: Painful Grant Applications.

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Have a grant report Folly to share? Know a funder that’s making it easy? Comment below! (Friendly reminder: no naming or shaming.)