Black People : National Agenda For Black Americans?

Grants are not easy to come by. My wife and I have both been writing grants since '96. I am a professional community developer that provides such services (among other things.)

Grants come with eligibility requirements. In particular public/gov't monies. Most require that you not only possess 501c3 status, but that your organization have several audits on file. Especially when you are applying for anything over the $10,000 mark. In fact, you can't be considered low-risk by either the federal gov't or the IRS until you have passed two high-risk audits and your operating budget is over $500,000.

- over 90% of public and private grants can NOT be used as start up money for new agencies.

- those grants that can be used as start up money require a full business proposal, a monetary match of up to 50%, proof of collateral and a full program description for every service you offer, of course you also have to provide resumes that show that every staff person you intend to hire has been identified and is proficient in the preferred area.

- federal and state grants are on a minimum of a one year turnaround. for example, Juvenile Justice and Delinquincy Prevention Act Formula II Grant is due on Aug 1. If you apply, you will receive notice of success around late Sept/early Oct. You will receive you first check NEXT Aug. and guess what - most federal grants work on reimbursements. So you have spend YOUR OWN MONEY UPFRONT and then get send in invoices each month.

Again, I been doing this since '96. My wife, she only writes grants. In fact, she writes grants for the largest midwestern human service delivery systems there is.

While I encourage people to see the value in grants. Preparation is key.

Private grants are no easier to obtain. Operating costs, capital campaigns (building rehab/acquistion/leasing), equipment purchases -- all the big stuff is off limits in most grants.

Most tech grants are given to large school districts or administered through local library networks and city governments.Its not that you can apply - you just wont get it, because you can possibly provide an equal return on investment (ROI) yes, grantmaking is now taking a corporate turn, and for the better! Numbers served is no longer valid - they want "impact measures" (a qualitative measurement squared against another, which shows savings, or gains in spending either by preventing a problem or creating an opportunity)

Where tech grants service exclusively grassroots orgs (federal gov't defines this as any group with an operating budget below $50K) you will be getting mostly refurbished machines, which i advise ALL my clients to say "thanks, but no thanks." because they require several hundreds and thousands of dollars to be made current.

New orgs should focus on board development and self-reliance. They should also pursue a fiscal agent. A fiscal agent gets an adminstrative fee for being your financial front. You apply for the grant, but use their years of service and their audits as assurance to that private or public funding source that their money wont be squandered.

I could go on..but only if you all are interested. But again, grants are not easy to get. I have friends with 20 and 30 years in this thing - and none of us are average at this - this is how we pay our bills. Even when I call someone I know, I still have to prove my client is the BEST option for a funder.

stop listening to the guy with the suit covered in question marks.

again, i would be willing to discuss further and in greater detail.
 
anyone that is applying for grants must address:

board of directors
by-laws
local/state/federal paperwork
agency insurance
board of directors insurance
strategic planning
program development
development of core results
staff development
best practices of industry
best models for industry
local/state/federal licensure, especially when proposing to provide certain social services.
worker's compensation
accounting/taxes


if you have no idea how to do one of the above in a manner that is suitable and desirable to the Federal gov't, IRS, a private foundation, or a public (federal) funder -- you are not ready to apply for a grant. any or all of these can come up before you apply, when you get accepted or when you are evaluated at the end -- with prior notice.

funders can and do demand repayment from agencies that spend money inappropriately. they dont care if its your first time either.

finding grants is easy. qualifying, getting and keeping grants is the real work.
 
Hodee and Ifasehun:

THANK YOU!!!! I have printed both of your posts. I am presently learning about getting non-profit status, etc... I am also in the process of completing my articles of corporation... for my own business.

There are many community resources out there. I would love to apply for them when and if we do this; first our people have to get together.... but we should not count on or just rely on grant monies---although we should actively go after them.... I think that we should do it on a community via community basis--- compete with each other--- friendly, and also help each other... it would not take much.
Hodee, keep your head up and be proud---you have every reason to be-- believe me... look around yourself, how many Black Americans... and know according to the census-- they have found 2 million more Hispanics and Blacks---not it is 38.7 mil Hispanics and 38.3 million Blacks = approximately 36 million Black Americans.... (yeah, yeah--- it is funny how they do that)So we can be even more viable!... how many Black Americans do you see with broken backs... we hold our heads up, we stand tall... we are that kind of people.

We can reach all of us--- we have to learn restraint... and begin thinking of us first and foremost...
Everytime I think of the potential we have as a people my chest burns... we all have to catch fire.

Again, thank you two so much for this info.
 
I've been reading this dialogue with growing interest and I have a few questions. But first I want to say thank you happy, HODEE, Anaksanamun and infasehun for the great contributions to this thread.

This is an opportunity for people to put into action their sentiments expressed here about Africans coming together to form a united front for the good of our people and our communities. There's a wealth of information here that I hope people are "quietly" taking advantage of because so few have posted opinions.

A question I have is, as far as federal grants go, can an organization qualify if their focus is on one particular racial group, or does the service being provided have to be directed toward a diverse group?

I would hate to lose the momentum of this thread and it's important message kwhen the discussion dies down. Too often, people talk the talk but don't walk the talk. I'm wondering what, if anything, we can do here to sustain this discussion and keep it ongoing? Along with social and political power is our need to develop economic power. How many of us connect the way we spend our money to the way we think as a cultural people?

Here at the Forums we have started to implement focused discussions in our Voice Chat room for General Discussion. Already we have scheduled "Sister Chat" once a week on Tuesday evenings at 8pm, ET. I'm wondering how many people would like to keep these discussions flowing in a similar fashion?

We need to begin to build trust among each other, get better organized, and arm ourselves with good information if we're going to begin to help improve ourselves. Whether we approach this community by community or collectively, it's worth discussing until we decide which approach (maybe both) warrants serious consideration.

If people are doing things already in their communities, have, are in the process of or want to start their own business, it would be nice if they shared with us in Voice Chat and here at the Forums. We need to encourage each other. Help shed the fears that people might have about taking risks in their own behalf. Maybe someone wants to own their own community-based or other type of business but feel they don't have the time to learn how, or feel they aren't smart enough to do something like that.

Who knows why some Black businesses succeed and other's fail? What are the strengths of the successful businesses and what are the weaknesses or flaws of those that fail?

What are some creative ways for financing start-up businesses outside of applying for grants and bank loans? What are the pros and cons of each?

Because this thread might get surpassed by others, how can we take this great information for starters and keep this dialogue flowing?

Peace :heart:
 
" - over 90% of public and private grants can NOT be used as start up money for new agencies.

- those grants that can be used as start up money require a full business proposal, a monetary match of up to 50%, proof of collateral and a full program description for every service you offer, of course you also have to provide resumes that show that every staff person you intend to hire has been identified and is proficient in the preferred area.

- federal and state grants are on a minimum of a one year turnaround. for example, Juvenile Justice and Delinquincy Prevention Act Formula II Grant is due on Aug 1. If you apply, you will receive notice of success around late Sept/early Oct. You will receive you first check NEXT Aug. and guess what - most federal grants work on reimbursements. So you have spend YOUR OWN MONEY UPFRONT and then get send in invoices each month.

Again, I been doing this since '96. My wife, she only writes grants. In fact, she writes grants for the largest midwestern human service delivery systems there is. "
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ifasehun

I haven't found it to be true that. That 90% of grants won't allow for start up cost. You have to list all expenditures, and equipment needed or that would be purchased. For instance a computer center. Would require you to buy PC's, DSL, connections, and have a support staff to maintain these things. These are all listed in the proposal. Grants have been awarded in this instance. I believe it is outlined per grant, but I haven't seen or heard of the 90% limit on using as start up funds until you meantioned it.

So are you saying.. the example I meantioned like the computer center would be the 10% that fall out side of the norm?
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" those grants that can be used as start up money require a full business proposal "

Yes I agree all grants have to be presented with a full business proposal. But before doing this you have to have your status as a 501(c) established.

Following the submission of an application, it takes the IRS up to six months to issue a letter of determination of tax exemption under Section 501(c) of the tax code. There is no point in conducting grant source research or submitting proposals until you either have the letter of determination in hand or are within a month or two of receiving it. While there are rare exceptions, to be eligible for the vast majority of grants, you must have a 501(c)3 letter.
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" a monetary match of up to 50% "

Isn't this only true if you get funding from a state matching fund program? I haven't seen or come across this requirement until you mentioned it. While you have been performing this business since 1996, I didn't get started until 2000. But in that time, I haven't encountered, or even heard of the matching fund requirement. Now I did some research today, and still from what I found. It is a state requirement. If they provide funds to your organzation, or charity.

State Commission office of Michigan for instance has a program the called : Lewis & Clark Bicentennial Grant Program. Funding for the grant program is provided by the Montana Lewis & Clark Bicentennial Commission and its partners: the Montana Dept. of Transportation and the Montana Tourism Advisory Council/ Travel Montana. The Bicentennial Grants are available to non-profit organizations and require a grant funding match.

This sounds like a grant that is self serving, Montana, and Migigan. I can see matching fund requirements applied in cases like this.

Also it is wel known that most investors, and those you receive funds from would want you to help, them help you by helping and investing in yourself. The old adage: "Bootstrapping"*

Any potential investor will want to know that you are prepared to invest your own capital in your own venture. Why would you ask others to take risks you wouldn't assume yourself, after all? Your savings, home equity, and cash on hand are all fair game when it comes to putting up start-up capital. No one expects you to put yourself or your family unduly at risk, however. Don't invest more than you can afford to lose, but do expect to "put up or shut up."
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" proof of collateral and a full program description for every service you offer "

This sounds like a loan. Are you sure this is a grant requirement?
Most grants start from scratch. No desk, no building, no members, etc. So what collateral would you claim? Banks generally go this route. In my research today, I found some information that would lead me to believe that if this applied. it would be such a small percentage that it isn't of any concern.

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" of course you also have to provide resumes that show that every staff person you intend to hire has been identified and is proficient in the preferred area. "

Your right here.

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What is a nonprofit organization?

The role of the nonprofit organization is unique in our American society. Charitable nonprofit organizations provide essential services within our communities and fill a gap left by government and private business. Nonprofits provide direct services, research, develop workable solutions and document critical issues. They give a voice to those without voice, and unite communities along common interests.

A nonprofit organization is a corporation created under state law. It remains a legal entity until it is dissolved. It is eligible to contract, to sue on its own behalf, and to be sued by an outside party.

Income from a nonprofit organization does not belong to its members or board of directors. Thus members do not have a right to the organization's income or assets, as they could from for-profit, or private, companies. The federal government grants certain nonprofits corporation's tax-exempt status.

Nonprofits can be distinguished from government and business in that they are mission-focused and receive their funding from foundation grants, individual donations, government grants, and fees for services or products, rather than directly taxing recipients of services, or seeking profits from investors, producing, and distributing.

Nonprofits are formed to fulfill a gap in the community and are driven by a focused mission. All programs should advance the organization's mission by accomplishing one more goals set by the board of directors.

The leadership and management of a nonprofit are the responsibility of a board of directors which oversees the nonprofit organization. It is the board's responsibility to ensure the organization's effectiveness, manage resources, and assess its own performance.

The individuals serving on a board are directly accountable for the actions of that organization and can be held financially responsible for any misdeeds of the organization.

Strong management knowledge and experience is essential to running a successful nonprofit. As a nonprofit grows, it often becomes necessary to hire staff and increase administration, including the capital that supports programs. Common administrative functions, unique to nonprofit organizations, are development and fundraising, program management, volunteer management, and public policy and advocacy.
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The basic legal criteria for 501(c) 3 nonprofit status are:

In business to serve a public purpose. No private benefit may inure to anyone involved.

Must maintain strict nonpartisanship in all it activities. In particular, it cannot oppose or endorse candidates for elective office.

May only conduct an insubstantial amount of lobbying.

The articles of incorporation must include an appropriate public dissolution clause.
==========================
The following is a checklist outlining the process of forming a 501(c) 3 nonprofit organization.

Legal advice and assistance is highly recommended when establishing a new nonprofit organization.

Determine if you really need to start a nonprofit. Conduct a scan of existing nonprofit organizations and seek out a partnership.

Define the purpose and mission of your nonprofit. You will be required to disclose this to state and federal regulators.

Draft a business plan for your nonprofit organization.

Recruit board members and other supporters.

Check for availability of a name and reserve it with the Michigan

Department of Consumer and Industry Service - Corporation Division.

Draft the corporate bylaws. A sample of articles of incorporation is available from the State of Michigan, Department of Consumer and Industry Service titled Articles of Incorporation for Use by Domestic Nonprofit Corporations.

Prepare and file articles of incorporation with the Corporation Division, State of Michigan, Department of Consumer and Industry Services.

Hold the first meeting of the board.

Receive tax identification number from the IRS. Forms needed is IRS Form SS-4 titled Application for Employer Identification Number (EIN)

Seek tax exempt status from the Internal Revenue Service (IRS) by filing IRS Form 1023. Need to include filed articles of incorporation. The following IRS Forms are needed:

IRS Package 1023, titled Application for Exemption, which includes forms 1023 and 872-C.

IRS Form 8718 titled User Fee for Exempt Organization Determination Letter Request.

IRS Publication 557 titled Tax Exempt Status for Your Organization.

IRS Publication 583 titled " Starting a Business and Keeping Records

Apply for sales tax exemption from the State, Department of Treasury (if applicable).

If fundraising, register with the Charitable Trust Section of your state Office of Attorney General.

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Here are some other issues to consider that should be considered simultaneous with the legal filing process:

Recruiting Board Members - How will the organization's constituency be represented? (e.g. will the organization require membership to elect certain numbers to board, number of at-large members who can be appointed by board, geographic representation).

Fundraising Plan - What amount of funds are needed and where will they come from? What is the role of board or staff in fundraising? How much will come from foundation and corporate support, government contracts, membership dues, and earned income?

Staffing - Will you have paid staff? How will you manage your volunteers? What are the organization's personnel policies, payroll procedures, etc.?

Community awareness - What is the plan for publicity, brochures and outreach? How will other charitable organizations be informed of the organization's work? What should be in the annual report? Who should be on a mailing list?

Evaluation - How will the results of the organization's work be assessed? How will this be reported to the board, funders and other stakeholders?

Insurance - Obtain business insurance.

Legal needs - Check to see if any other government agency regulates the activity of the organization (e.g. child care, health care, food service, etc.).


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BOTTOM LINE IS NOT TO LET THE OPPORTUNITY PASS YOU BY. WE CAN USE OUR CHURCHES TO ESTABLISH THE GRANTS. THEY HAVE THE 501(C) STATUS. THEYHAVE BEEN AND WILL ALWAYS BE THE ROCK THAT BROUGHT US THROUGH SLAVERY, THE LAST CENTURY, AND THRU TOMORROW. SO THERE IS NO REASON NOT TO START NOW. BLACKS IN EVERYCHURCH, IN EVERY CITY, WITH OPEN HEARTS AND MINDS, WOULD BE A BETTER LAUNCH OF SUCH A IDEA, OR PROGRAM ANYWAY. NEWLY ELECTED BOARD MEMBERS, COULD BE ADDED. FROM THOSE INTERESTED, AND BELONG TO THAT PARTICULAR CHURCH.

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