PROPOSAL PRELIMINARIES

 

Introduction

A proposal is a medium for persuasion aimed to convince the grantor to invest in your project.  Before you start developing your project, it is important to demonstrate that you are offering a unique response to a current problem of interest to the potential sponsor.  You will be in the right direction if:

  •    the proposed project is consistent with the sponsor's interests and priorities
  •    the program's staff has the training and expertise to achieve the objectives
  •    the proposed project is feasible and replicable
  •    the investment will yield significant results for the sponsor

Grant proposals are among the most difficult of literary forms to master.  The proposal must be concise, complete, direct and convincing.  It must contain a blend of self-promotion, current statistics, recent technical reports or studies in the proposed area, and a realistic well-balanced budget.  The form and content of proposals are dependent upon the prospective sponsor's guidelines and priorities.

STEPS

1.  Planning

Adequate planning is the first and, probably, the most important.  Keep in mind that a proposal is a plan to implement changes, not an application for money.  Hence, before deciding to write a proposal, make sure that your project will help the PCUPR meet its goals in the teaching-learning process, investigation and community services.

 

2.  Analyze if the project has the potential to be subsidized

This is part of the preliminary investigation.  Verify is the project hast the potential to be subsidized by an external source:  public, private or individual entity.  They assign funds to projects which respond to their interests and priorities.

 

3.  Define your motives

Keep in mind that the requested funds will cover a determined period of time and for a particular purpose.  These funds are not to be used to compensate for budget deficiencies, nor to cover for personnel  shortage or gaps in the operational budget.  It is important to note that the project must have the potential to be financed by your organization once the external funds terminate.

 

4.  Designing the project and getting support

Develop the concept.  Identify and make sure to involve as many as possible people who will benefit form the project.  Give them a detailed vision of the whole project and surely they will be pleased to participate in the development of the proposal and/or give you letters of commitment or support.

 

5.  Search for Funds

Once the concept is already designed, decide to which funding agency of foundation you will submit your proposal.  Base your selection on the amount they are willing to assign, the projected number of proposals, and if your project responds to the entity's priorities.  Assure compliance with the eligibility requirements.  During the writing process, adhere to the guidelines in all its parts (formatting, page limit, due date, submission media, and others).

 

 

GRANT RELATED TERMS

501(c)(3):  The Section of the Internal Revenue Code which defines nonprofit, charitable, tax-exempt organizations.  501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations.

Abstract:  A short summary of a project or program including all pertinent aspects of the sponsored activity, a summary of the objectives and expected results.  The abstract is usually less than 350 words and limited to one double spaced typed page.

Application:  a request for funds; may imply the use of a special form supplied by the funding source.

Appropriation: a federal, state or local legislative enactment which allows government agencies to incur obligations to spend or lend money during specific time periods, usually a fiscal year.  Congress may appropriate funds only on the basis of an existing authorization.

Assurances:  statement concerning the institution's or organization's compliance with Civil Rights, Title IX, Section 504 guidelines, lobbying, etc.  Assurances are required with many proposal applications.

Authorization:  basic substantive legislation that sets up a program or agency.  Such legislation sometimes sets limits on the amount that can subsequently be appropriated but does not actually provide or guarantee that monies will be appropriated in any given fiscal year.

Authorized signature:  signature of person legally responsible for making agreements on behalf of an organization; must appear on an application before it can be considered an official request; implies that if an award is accepted, the responsibility for its proper administration is assured.

Award:  the document, which may be a letter, a special form, or a contract, prescribing the amount of funds and restrictions imposed; an agreement between two parties.

Award letter:  written notification from the funding agency indicating that a project has been funded, for how long, and in what amount.

Beneficiary:  In philanthropic terms, the grantee receiving funds from a foundation or corporate giving program is the beneficiary, although society benefits as well.

Bricks and Mortar:  An informal term for grants for buildings or construction projects.

Boilerplate:  Those parts of a contract or grant proposal which are standard and do not relate to the specific project for which the application is made.  These include such things as capabilities statements (facilities available, number of staff, past experience), general statements on the organization, or the negotiated indirect cost rate.

Budget:  financial plan for conducting a project; should include whole dollar amounts only.  It is the estimated cost of performance of the project as set forth in a proposal or in the notification of grant award or contract.

Budget detail:  an itemized list of expenditures and income that accompanies a narrative proposal.

Budget justification (Budget explanation):  a detailed clarification of the budget; explains how dollar amounts are determined.

Capital Support:  Funds provided for buildings, construction, or equipment, and including, for example, grants for "bricks and mortar".

Consortium:  a group of organization sharing in the finances, administration, and/or activities of a single grant.

Consortium grant:  award made to one grantee in support of a project being conducted in conjunction with one or more other participating organizations.

Consultant:  a person with expertise who is brought in to lend insight, advise, do workshops, among other, as set in the written agreement.

Contract: A written statement that records the mutually agreed promises of the contracting parties and which gives rise to legally enforceable rights and duties.  Contracts generally outline very specific goals and requirements for a task to be completed by a certain date.  They are subject to an extensive body of law and regulations which govern, among other subjects, the manner of contract information, terms and conditions, and remedies and sanctions available to the parties. 

Contracting Officer:  An agency official who is authorized to develop, enter into, and administer contracts on behalf of the agency that the or she represents.

Contribution:  a service or item donated in lieu of dollars to the operation of a funded project; usually given by a third party; e.g., donated equipment, percentage of an administrator's time, or guest speaker's time.

Cooperative Agreements:  Agreements that generally involve no exchange of funds but involve either the use of an agency's services, equipment, facilities, or significant technical collaboration.

Cooperative Giving Program:  A grantmaking program established and administered within a profit-making corporation of company.  Corporate giving programs do not have a separate endowment, and their annual grant totals are generally directly related to the previous year's profits.  They are not subject to the same reporting restrictions as private foundations.  Some companies may make charitable  contributions through both a corporate giving program and company-sponsored foundations.

Cost Sharing:   The university's support of a project through either cash or in-kind services, required by some sponsors.  Cost sharing requirements vary, but they generally represent a percentage of the total cost.

Cover letter:  letter of transmittal accompanying a proposal submission.  Most used when submitted in hard copy.

Deadline or due date:  The date by which an application must be submitted to an agency to be considered for funding.  Usually the hour is also set.  The proposal will not be accepted for review if it is one second late.

Deadline types are Postmark deadline: the last date which may be affixed by the Post Office in order for a proposal to be considered for funding; set by the funding source.

                              Receipt deadline:  Date by which an application must be received by an agency; set by the funding source.

Declining Grant:  A multiyear grant which grows smaller each year in the expectation that the recipients home institution will raise funds to make up the difference.

Direct Costs:  All costs that can be directly attributed to the conduct of the project and are specified in the proposal budget.  It includes salaries and wages, fringe benefits, consultants, subcontractors, travel, equipment, supplies and materials, communications, computer time, and publication charges.

Discretionary Funds or Programs:  Programs or parts of programs whose funds are awarded from the national office based on priorities established in that office.

Donee:  The recipient of a grant.  Also known as the grantee or the beneficiary.

Donor:  An individual or organization that makes a grant or contribution to a donee.  Also known as the grantor.

Effective date:  date award is made, allowable project costs may not be charged to the project until this date.

Employee benefits:  direct expenditures by an organization on behalf of its employees for such items as workman's compensation, disability insurance, unemployment compensation, Social Security, life and health insurance, and retirement. Paid in addition to salaries Usually fringe benefits are calculated as a percentage of salaries.  (Fringe Benefits).

Endowment:  Funds intended to be kept permanently and invested to provide income for continued support of an organization.

Equipment grant:  award to be used exclusively for the purchase of equipment; typically for educational or research purposes; usually requires a 50% match by the grantee.

Evaluation:  a quantitative assessment of what was, or was not, accomplished by a project; a comparison of project objectives and actual project outcomes; an increasingly important part of proposal writing and project management.

Expiration date:  last date of a project; no charges may be made to a project after this date (Grant Period).

Face Page (Cover sheet):  first page of a proposal; identifies project title, agency to which proposal is submitted, project director's name, title, address, project duration, total dollar request, submitting organization's name and address ant the name, title, and signature of person authorized to sign for submitting organization.  For all federal agencies this is the Standard Form 424 (SF424).

Federal Register:   (the daily newspaper of the Federal government) is a legal newspaper published every business day by the National Archives and Records Administration (NARA).  It contains:  Federal Agency Regulations, Proposed Rules and Public Notices, Executive Orders, Proclamations, Other Presidential Documents.  Part of Public Notices are the requests for proposals.  When the guidelines of an agency and the federal register notice have a discrepancy, the federal register notice prevails.

Fellowship:  Awards that enable individuals to pursue study in their fields or to introduce them to related fields.  Although not consistently defined, some sponsors place their emphasis on contribution to the individual's own scholarly development. A fellowship often advances, synthesizes, or enlarges the applicant's special area of interest.  Or, it may enable the recipient to study in a different area which will extend his or her competence.  The salary support provided by a fellowship may be referred to as a stipend.  Fellowship types may include:  Research Fellowship; Training Fellowship or Traineeship.

Fiscal year (FY):  usually a 12-month period for which funds are appropriated and during which expenditures must be made.  The federal fiscal year runs form October 1 to September 30 and is designated by the calendar year it ends.  For example, FY 2009 covers the period October 1, 2008 to September 30, 2009.  For state and local governments is July 1 to June 30.  FY for many corporations is the same as the calendar year, January to December 30.

Formula grant:  funds made available on the basis of a specific formula used by the granting agency and prescribed in legislation, regulation, or policies of that agency.  The funds are awarded on the basis of demographic and economic data.

Foundation:  organization established to disburse funds for philanthropic purposes; usually privately endowed.

Goals:  general statements of anticipated project outcomes; usually more global in scope than objectives and not expected to be measurable; if used, goals should be supported by well-stated objectives.

 Grant:

  • Challenge Grant - a grant award that will be paid only in the recipient organization is able to raise additional funds from other sources.  Challenge grants are often used to stimulate giving from other donors. 

  • Consortium Grant - a grant made to one institution in support of a project which is carried out through a cooperative arrangement between or among the grantee institution and one or more participating institutions.  The cooperative agreement is subject to approval by the grantor and should be negotiated prior to the submission of the proposal.

  • Continuation Grant - Money awarded for the continuation of a previously funded project.  Usually, a continuing grant is not competitive with other proposals; however, it is contingent upon successful performance in the previous year.

  • Demonstration Grant - A grant awarded generally of limited duration, made to establish or demonstrate the feasibility of a theory or approach.

  • Institutional Grant -  A grant awarded generally on some type of formula basis which takes into consideration the volume of grants and contracts in one or more fields or disciplines at an institution.  Detailed proposals are normally required.  The National Science Foundation and the Department of Health and Human Services are the primary sources of institutional grants.  The scope of work is very broad.

  • Planning Grant- an award made in support of the planning stages of a future project.

  • Step-Funded Grant - A project grant, usually for a period of three years, with the initial grant providing 100% of the funds of the first year, 2/3 for the second, and 1/3 for the third. If the project is to be continued, the grand provides 1/3 of the funds.

Grantee:  any legal entity that assumes financial responsibility, accountability for managing awarded funds, supervision of grant-supported activities and submission of final reports.

Grantor:  funding source which has agreed to provide financial support in the form of a grant.

Grant period:  begins on the effective date and ends on the expiration date; the period of time agreed upon by the grantor and grantee during which a funded project is in operation; allowable project costs may be charged to the project only during this time.

Guidelines:  Procedures set forth by a funder that grantseekers must strictly follow when approaching a grantmaker.

IRB - Institutional Review Board.  A ten member body which reviews, approves or disapproves any research involving human subjects.

Indirect Cost (Overhead):  Costs that have been incurred for common or joint objectives of the university and the sponsored program, and which, therefore, cannot be identified specifically in reference to a particular project, such as building operations and maintenance, laboratory space, library service, utilities, and administrative services.

Indirect Cost Rate: The device for determining the proportion of an organization's general expenses each of its projects should bear.  The indirect cost rate is a percentage rate negotiated by the university, normally with the federal agency most involved with research at the university.  When the rate is applied to a base of the project's direct costs, it determines the maximum reimbursable indirect costs of the project.  A single indirect cost rate is usually negotiated for use of all federally funded projects at an institution.

In-kind contribution:  A contribution of equipment, supplies, or other tangible resource, as distinguished from a monetary grant.  Some organizations may also donate the use of space or staff time as an in-kind contribution.

Letter of Intent:  Initial contact with sponsor which indicates intent to apply.  It is a brief letter containing a description of a proposed project, an estimated budget, and information on the applicant.  Sometimes it is required to allow the funding source to screen out ineligible applicants or projects not consistent with the program's priorities.  This screening saves considerable time for both the source and the applicant.

Matching Funds:  Funds which must be supplied by the grantee in an amount equal to or a percentage of the award amount in order to receive the award.  In the case of a federal grant, the matching funds must usually come from non-federal sources. The institution may use its own funds (cash or in-kind) for this purpose.

Objectives:  specific statements of anticipated project outcomes; should identify clearly what will be different as a result of the project having been funded as opposed to what the project is going to do (activities); usually measurable and directly related to project evaluation.

Payout Requirements:  The amount of funds that foundations are required to expend for charitable purposes (includes grants and the administrative cost of making grants).  Currently, foundations are required to pay out 5% of the average market value of their assets, or of their net income for the year, whichever is greater.

Pre-Proposal: A preliminary of brief outline of the proposed work and budget for review by a sponsor to screen proposals.  The pre-proposal is also referred to as a "concept paper" or "prospectus", "pre-application", "preliminary proposal". 

Priorities:  funding sources develop annual program plans that include objectives and areas of emphasis.   The areas of emphasis are called priorities, and the source awards grants for projects which most clearly relate to those priorities.  Priorities for federal grant programs are published in the Federal Register.

Proposal:  A written application, often accompanied by supporting documents, submitted to a foundation or corporate giving program in requesting a grant.  Most foundations and corporations do not use printed application forms but instead require written proposals; others prefer preliminary letters of inquiry prior to a formal proposal.  Consult published guidelines.

Project Director of Principal Investigator (PI):  The designated staff member of the university whose proposed project is approved and funded by the awarding agency and who is responsible for the conduct of the project.

Project/Program Officer:  the federal or state agency representative who has the task or monitoring the project, providing technical assistance to the project and insuring that the objectives are carried out within the framework of regulations.

Proposal:  a written document submitted to a funding source requesting financial support to undertake a project.

Request for Proposal (RPF) or Request for Application (RFA):  Agency requests for proposals from individuals or institutions to perform a specific task.  The resulting award is in contract form.  RPFs and RFAs are published in the Federal Register.  While a few foundations occasionally use RFPs in specific fields, most prefer to consider proposals that are initiated by applicants.

Seed Money:  A grant or contribution used to start a new project or organization.  Seed grants may cover salaries and other operating expenses of a new project.

Site Visit: a final step in the review of some proposals; involves a team of evaluators from the funding source who examine the project facilities on location, includes a review of project plan and objectives with key personnel; an encouraging sign to the project director, occasionally conducted during the life of a project.

Sponsorship:  Affiliation with an existing nonprofit organization for the purpose of receiving grants.  Grantseekers may either apply for federal tax-exempt status or affiliate with a nonprofit sponsor.

Title:  a major section of a piece of legislation, e.g., Title I Higher Education Act, 1965.

990-AR:  from of the annual reports that foundations submit to the Internal Revenue Service and to the state attorney general's office.

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02/15/2011