Thanks, but no Thanks

No Organization wants to turn down money, but some grants just aren’t worth the trouble. Many of my clients these days are saying, “thanks, but no thanks” to grants with too many compliance requirements. Their accounting/program departments just aren’t equipped to properly handle the compliance requirements below:

1. Provisions of grant agreements
2. Reporting requirements
3. Programmatic tasks are not met or performed in accordance with established requirements
4. Audit requirements are not met
5. Or other identified non compliance

Non-compliance not corrected in timely manner can lead to suspension of funds, terminations of contracts, inability to obtain future grants and at the highest level--legal action can be taken to recover funds and ruin your organization’s reputation.

What are many organization’s doing to replace those grant revenue streams? Marketing departments are getting more involved with fundraising departments to tap into corporate marketing dollars. Over 52% of companies, in a survey released by EConsultancy and SAS UK,  have increased their marketing budgets in 2011. While a study released by the Committee Encouraging Corporate Philanthropy noted 60% of companies have cut their donation budgets by 10%. In addition, digital marketing is now measureable and companies realize that digital marketing pays big dividends.

This means those marketing folks are going to have to walk down the hall to the fundraising  and IT departments (if your organization is so lucky as to have separate departments) and figure out how to pitch companies for marketing dollars--putting together sponsorship packages, events and an effective online presence.

The 2012 budget season is upon us, as your organization looks to new sources to fund its programs, consider if your organization should look to corporate marketing dollars to replace resource consuming grants.

Happy fundraising!