Friday, April 11, 2014

Self Assessment: The critical step in responding to an RFP

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.

Need help assessing your readiness to respond to an RFP? The Word Woman LLC can help!

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