Grant writers cannot get paid to write grants on commission. This is one of the most popular urban myths of the grant writing world.
It might sound like a win-win situation, but it’s not.
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#1: Writing a Grant on Commission is Against Best Practices & Is Unethical
Getting paid a percentage of the grant award is against the best practices of the grant writing community.
Some of the leading associations who prohibit writing grants on commission include the Association of Funding Professionals, Grant Professionals Association, and Grantsmanship Center, and here at Grant Writing & Funding.
#2: Writing Grants on Commission is Against Federal & Accounting Guidelines
According to the OMB Super Circular Uniform Guidance proposal costs are aligned with the Generally Accepted Accounting Principles (GAAP), and pre-award costs are very specific.
Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R Part 200 § 200.458 Pre-award costs states, “Pre-award costs… are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency.”
The GAAP standards state that fundraising services should be paid “at the time services are provided.”
#3: Grant Budgets Cannot be Allocated For Pre-Award Costs
When creating a budget for a grant program, you design a budget for costs to (generally) create, operate, or expand a nonprofit’s program. These budgets are generally for future projects (or expansion of programs).
Once the grant is submitted, it goes through a review process. If your grant makes it to the top for approval, you then enter into a grant agreement (contract) with the funding source. They are approving your budget from time of signature forward.
#4: Writing Grants on Commission is Unethical because a Grant is a Product
Once a grant writer has written a grant, they have created a product. This product is a business plan that can be used for multiple funding advancements.
Plus, this takes a grant writer’s time, technical writing experience, and grant writing knowledge. Many grant writers invest in grant writing courses and hone their skills over years.
Even if the grant proposal does NOT get awarded, it is still a product that can be repurposed for the following items:
✨ Resubmit to the same funding source next funding cycle
✨ Submit to other grant funding sources
✨ Submit for funding to corporate sponsors, etc.
✨ Use the copy from the grant for fundraisers, on websites, fliers, social media, etc.
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Holly Rustick
Expert Grant Writer & Bestselling Author
✨💌 Visit www.grantwritingandfunding.com for the Hub Haven Grant Writing Resources 💌✨
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