Grants, grants, grants…and more grants! I get it. For most nonprofits, grant
funding is a major source of revenue; so when a grantmaker issues an RFP
(Request for Proposal) for which a nonprofit has even the slightest bit of relevant
experience, it is tempting to dive right in and start preparing a response. But
this temptation must be resisted, particularly if the RFP is issued by a
federal government agency.
Preparing any request for grant funding requires an investment that may
not result in funding, but preparing a response to a federal RFP requires a significant
investment. So nonprofits need to know that they are making a wise investment
when deciding to prepare a response to a federal RFP that will shift the attention
of key staff, require weeks to properly prepare and likely require coordination
and partnership with other organizations.
How should a nonprofit go about determining if responding would be
wise? Well, the great thing about most RFPs is they spell-out specific details
of the work to be performed and the qualifications and experience the grantmaker
believes are ideal to perform the work well.
An RFP will typically include a section entitled “Scope of Work”, “Purpose” or “Purpose
and Scope” that describes the specific work the grantmaker wants the selected grantee(s)
to perform. It will also include a section entitled “Eligible Applicants” or “Eligibility” that describes who is able
to receive the grant. And finally, there will be a section entitled “Selection
Criteria” or “Criteria” that describes the standards by which applicants will
be judged. All three of these sections will help a nonprofit to determine if
responding would be wise; however, the eligibility and criteria sections are the
most important because they enable a nonprofit to quickly determine if they have
what grantmaker prefers in a grantee.
When an agency issues an RFP it’s very much like when a homeowner seeks
a contractor to perform work on his home. If a homeowner wants to put in ceiling
fans throughout his house, he likely already knows in which rooms he wants the
fans, when he wants the work to start and by when he wants it finished, and he
may very well already know the exact fans he wants put in. But he definitely
knows he wants a licensed, insured electrician with experience installing
ceiling fans who will perform the work within his budget. Thus, he doesn’t want
a plumber, interior decorator or other professional who happens to have experience
working in a house to put in his ceiling fans. He also doesn’t want to receive
responses that suggest he put in a pool or remodel his kitchen.
When a nonprofit focuses all or most of its attention on the scope of work
sections and jumps right in preparing a response, the nonprofit often ends up investing
invaluable time and resources responding to an RFP for which they may have little
or no hope of winning.
