Often, the professional ethics of those
seeking contingent-pay for grant writing are brought into question. While I see problems
with giving grant writers a percentage of the take, I do not think that the
willingness, or even the preference, to write grants on a commission basis automatically
indicates a lack of ethics.
Rather than preach against contingent pay as unethical behavior, I prefer to share with
contingent- pay seekers and providers some real-life consequences of such arrangements.
Say an organization wants someone to write a grant proposal for a project costing $118,000
and that the grant writer was to be paid a 5% commission if the grant is approved.
It is almost always a requirement by funders
that every dollar to be raised for and spent on projects be accounted for on a line-item
basis.
For many funders, the line showing
$5,900 for grant-acquisition services, would be reason enough to deny the grant.
It would make no difference what the commission size or even if the contingency-pay were a
flat fee.
Grant-writing expenses are seen as part of an organization?s operating budget. Few if any
foundations, corporations, or governmental organizations are willing to make a grant when
a portion of the money granted is to be used to pay a grant-writing fee. Remember
the grant is being requested for a specific project, not to offset operating expenses.
A nonprofit that fails to take the possibility of such a caveat into consideration may be
facing a rude awakening.
There is another reason why I believe grant writers should never agree to contingency pay.
It is simply not fair for hard working grant writers to receive no pay for their efforts
when a grant proposal is turned down because of a bad presentation on the part of the
organization, an ill timed request, or for some other reason beyond their control.
And what if the grant was to be paid out over a number of months -- or even years? Would
the organization be willing to pay for the services rendered in full at the moment of
grant approval? Should the grant writer be willing to accept a payment schedule in sync
with that of the grant?
In the end, grant writers should be paid for their time and efforts by the hour or
project, whether or not the grant is received. I question whether an organization
unable to pay a fair fee for work done is likely to survive. Few non-profits
forced to operate in ways not fully in accord with accepted professional standards
flourish and grow.
About Tony Poderis
Tony Poderis (Tony@raise-funds.com)
Read more about Tony at his Raise Funds website www.raise-funds.com |