A grantor-grantee policy outlines how the organization expects the relationship with grantees (other organizations applying for funding or grants) to be structured. (Sometimes you’ll see this type of policy called a funder-grantee policy.) A grantor-grantee policy will address details related to the beginning of the grant application process through evaluation and multiple points in between. The intended audience is both your internal board of directors and staff as well as current/prospective grantees.
This type of policy often sets forth details regarding the complicated details that should allow for a better, more transparent relationship from the get-go with grantees. The policy can be as general or as specific as needed for maximized effectiveness to the organization’s specific situation. I’ll explain some of the “common” points often included in successful grantor-grantee policies below.
Benefits of a Grantor-Grantee Policy
By outlining the process and details of grants, your organization benefits from having an approved, agreed-upon plan of action. This is a proactive step toward avoiding wasting time. A grantor-grantee policy also makes it simpler to navigate unexpected situations or complexities as an organization.
Grantees will certainly benefit from a clear-cut, candid grantor-grantee policy as well because it invites them to set realistic expectations about what a relationship with your organization will look like.
Common Points to Include in a Grantor-Grantee Policy
When drafting grantor-grantee policies, it’s important that provisions included are directly related to your actual current and/or intended operations. (This is why it is important to have an attorney draft your policies as opposed to using something found off the internet—it probably won’t apply!) The following are some points you’ll want to consider as a part of a useful policy.
What basics should be included in the guidelines?
Consider details regarding:
How you want prospective grantees to approach your organization to submit an application or express interest. Is it by online application, email, letter, visit, etc.?
How quickly can prospective grantees expect a response to an initial inquiry or a submitted grant application? How will that contact be made?
What does the decision-making process look like? How often does the board meet, and when are decisions made?
You can also include here what you do NOT permit in terms of contact, meeting, or presentations by prospective grantees to avoid undue influence or even the appearance of unethical decision-making.
Are grants generally restricted, unrestricted, or on a case-by-case basis?
Can applicants expect grants to be made on a rolling basis or are there specific deadlines?
What about the chance for grant renewals? When do those take place?
What are the types of proposals and information are you looking for?
Potential grantees will appreciate upfront information to decide whether to invest scarce resources and considerable time in an application for your organization. This invites a healthy amount of self-screening which enables you to evaluate the most appropriate applications. Consider these essential points:
Who is your ideal grantee? Do they need to operate in a certain location or within a specific realm of charitable purpose (such as, through work with animals, human services, or education)?
What are your preferred areas of funding? Some preferred funding areas can include: equipment; operating support; special programs/projects; financial stabilization; board/staff development; and capital projects. Will you accept proposals from outside your preferred areas or not at all?
What types of funding requests will you NEVER accept?
What qualifications and information will you consider in applications?
Do you want to give examples of previous grant applications you have funded? Do you want to list all grants made in the previous funding cycle in the policy or perhaps elsewhere (like on your website) or not at all?
What are the specifics of the grant application?
The grantor-grantee policy is not where your grant application should live, but important details about the application should be included. For instance:
What will you do to keep the application process reasonable? For instance, asking an applicant to make 10 copies for each individual board member may be unreasonable.
Where will the application be made available (online, in-person at the office, etc.) and in what formats (Word document; fillable PDF; etc.)?
How often will the grant application process and instructions be reviewed for inconsistencies and clarity? Once a year? Before any given application cycle?
What are the granting process logistics?
What is expected of grantees to confirm acceptance?
How will funds be distributed—at a specific check presentation event, through electronic transfer, or some other means?
How will the organization invite feedback?
Most grantees will not offer invaluable feedback unsolicited. Your organization may want to highlight how and when it will seek productive criticisms for continued growth.
You may not know an adjustment needs to be made until another organization tells you! How will you invite constructive feedback from current and prospective grantees regarding your funding application process? How will make certain it is seen as welcome and important?
What about an exit strategy?
Organizations evolve and priorities change. What does the process look like for informing grantees of a transition away from funding? Certainly, grantees should not expect support for forever, but they should expect respect and clarity when it comes to a grantor planning to pull support. Ample time and notification should be given, as well as the option for support in other ways (if applicable).
How about opportunities for collaboration?
In addition to or apart from funding, what are other ways you invite collaboration with past/current/future grantees? Beyond money, additional chances for working together can further strengthen community connections and enhance mutually beneficial partnerships.
I would be happy to discuss the particulars of your organization’s needs and goals to ensure your grantor-grantee policy is tailormade to best set your organization up for granting success. Contact me at any time via email (gordon@gordonfischerlawfirm.com) or by phone (515-371-6077).
If your nonprofit has an endowment, I recommend adopting and implementing an endowment policy handbook. The benefits of this handbook are numerous. For one, it can best prepare the nonprofit’s leaders to manage and put to use bequests of all sizes. Furthermore, a pre-established set of policies can help your organization avoid legal missteps and other conflicts.
Endowed funds bring special responsibilities: legal, financial, and ethical. There are many important questions which can only be resolved by:
a full discussion and informed decisions by board members;
the members adopting written and specific policies in clear, plain language; and
putting those policies in a coherent, consistent, and accessible handbook.
In this way, all the many and varied responsibilities of endowed funds will be met. Once legal, financial, and ethical duties are met, the nonprofit can use the endowed fund to effectively grow the organization’s programs, support the mission, and aid the organization’s longitudinal viability.
Recommended Content for the Endowment Policy Handbook
Just like your employee handbook, the set of policies related to the organization’s endowment should be specific to your operations, intentions, and goals. There is no one-size-fits-all document, as what may make sense for a large nonprofit would not apply at all to a small one. (This is a good reason to not steal a template from the internet as it likely won’t serve its purpose and could potentially make things even more confusing.) In general, however, there are some recommended provisions that should be in all handbooks, like the following:
Definition of Terms
Basic terms, like the word “endowment” itself, need to be defined. The same goes for restricted versus unrestricted funds, donor intent (to contribute to the endowment rather than other funds), and others.
Types of Gifts
What types of gifts will be accepted for endowment contributions, and under what circumstances?
Donor Recognition for Endowments
Will there be a different or special procedure for donor recognition when a donor gives to the endowment?
Confidentiality
Confidentiality of private information of donors and potential donors to endowment must be maintained. What’s the specific process for doing so?
Uniform Prudent Management of Institutional Funds Act
Rules which ensure the requirements of the law UPMIFA are fully meet, if not exceeded.
Accounting of Endowment Funds
How will financial standards be applied to endowment funds? Who specifically will ensure the appropriate and proper accounting of endowment funds?
Management of Endowment Funds
The management of endowment funds is to provide consistent sources of income for which programs or activities?
Investment of Endowment Funds
Is the investment of the endowment directed toward maximizing the return of principal while maintaining prudent fiscal guidelines? A basic question for both the management and investment of endowed funds is: what institution shall hold the funds?
Restrictions of/on Endowment Funds
Endowment funds can NOT be spent on certain categories or items. What are they?
Revision or Amendment
In the future, how can the endowment policies handbook be revised or amended, under what circumstances, and for what reasons?
It’s also a smart idea to include a copy of the Endowed Fund Gift Agreement you have donors sign when making a gift to the endowment.
I would be happy to discuss the particulars of your organization to ensure your endowment policy handbook is tailor-made to set the organization and its fundraising efforts up for success. Contact me with your questions and thoughts! One thing is for certain–you shouldn’t be managing an endowment fund without having a clear blueprint for how it should run.
Football is a complex game—the field is full of moving parts and competing strategies; it’s a game of inches where just a few missteps or right moves can make a huge difference. Estate planning works the same way. Here are just five of the surprising similarities between estate planning and the game of football:
1. Your Clock Will Indeed Run Out
Just like every football season eventually comes to an end, your (hopefully long and healthy) season will also come to a close. When it does, you need a special kind of playbook for the rest of your team…AKA an estate plan. In this analogy, an experienced lawyer is a great coach who is going to help you put plans in place for when the game changes unexpectedly or the stadium lights turn off for the last time. And, just like so much can change over the course of a season, a lot will happen over the course of your lifetime. That’s where annual reviews and revisions after significant events fit in.
While it is often difficult for people to ponder their unavoidable exit off their own fictitious field, preparation for what happens after your season is over can be one of the most comforting aspects of financial and legal planning.
2. The Main Players
Let’s take this analogy a bit further and put some estate planning terms into football speak.
Will – A will deals primarily with the distribution of assets and care for minor children. You need to make certain the will is well-drafted, solid, and can stand up in court. Keep in mind though, important assets such as life insurance policy payouts, retirement assets, and investment accounts may well contain beneficiary designations that trump your will.
Trust – You have lots of different options with this player. A trust can dictate how your assets will be dispersed, the timeline and manner in which they are dispersed, and who’s overseeing the process.
3. You Must Make Mid-Season Starting Lineup Adjustments
Just as a coach may switch up who’s starting partway through the season, you may need to make adjustments to your estate plan as things inevitably change over the course of your life. Big events like marriage, birth of a child/grandchild, moving to a different state, a large change in financial status, divorce, and other significant changes are a good reason to review your “playbook.”
Your loved ones and close friends are all a part of your team; part of being a strong team player is including them on the plays you’re making. Discuss important aspects of your estate plan with the people it involves to avoid any confusion or conflict when it comes times for them to carry out your wishes. For instance, if you have minor children (under age 18) you’re going to want to establish legal guardianship if the worst happens and you’re no longer around to care for them. You’ll want to discuss with your chosen guardians ahead of time to make sure they’re willing and available to carry out the responsibility.
5. Final Score
There are probably at least a few more good football analogies I could tie into the conversation of why you need an estate plan, but the most important takeaway is that you never know when the game is going to change. So, you need to have your “playbook” written out ASAP. The best place to start is with my free, no-obligation Estate Plan Questionnaire. You can also shoot me an email or give me a call at 515-371-6077 to discuss your situation (or football).
https://www.gordonfischerlawfirm.com/wp-content/uploads/2018/01/adrian-curiel-465963.jpg33766000Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-01-11 04:29:322020-05-18 11:28:38College Football Playoff National Championship: 5 Similarities Between Football & Estate Planning
Grantor-Grantee Policy Best Practices
NonprofitsWhat is a Grantor-Grantee Policy?
A grantor-grantee policy outlines how the organization expects the relationship with grantees (other organizations applying for funding or grants) to be structured. (Sometimes you’ll see this type of policy called a funder-grantee policy.) A grantor-grantee policy will address details related to the beginning of the grant application process through evaluation and multiple points in between. The intended audience is both your internal board of directors and staff as well as current/prospective grantees.
This type of policy often sets forth details regarding the complicated details that should allow for a better, more transparent relationship from the get-go with grantees. The policy can be as general or as specific as needed for maximized effectiveness to the organization’s specific situation. I’ll explain some of the “common” points often included in successful grantor-grantee policies below.
Benefits of a Grantor-Grantee Policy
By outlining the process and details of grants, your organization benefits from having an approved, agreed-upon plan of action. This is a proactive step toward avoiding wasting time. A grantor-grantee policy also makes it simpler to navigate unexpected situations or complexities as an organization.
Grantees will certainly benefit from a clear-cut, candid grantor-grantee policy as well because it invites them to set realistic expectations about what a relationship with your organization will look like.
Common Points to Include in a Grantor-Grantee Policy
When drafting grantor-grantee policies, it’s important that provisions included are directly related to your actual current and/or intended operations. (This is why it is important to have an attorney draft your policies as opposed to using something found off the internet—it probably won’t apply!) The following are some points you’ll want to consider as a part of a useful policy.
What basics should be included in the guidelines?
Consider details regarding:
What is the timeline for funding?
What are the types of proposals and information are you looking for?
Potential grantees will appreciate upfront information to decide whether to invest scarce resources and considerable time in an application for your organization. This invites a healthy amount of self-screening which enables you to evaluate the most appropriate applications. Consider these essential points:
What are the specifics of the grant application?
The grantor-grantee policy is not where your grant application should live, but important details about the application should be included. For instance:
What are the granting process logistics?
How will the organization invite feedback?
Most grantees will not offer invaluable feedback unsolicited. Your organization may want to highlight how and when it will seek productive criticisms for continued growth.
You may not know an adjustment needs to be made until another organization tells you! How will you invite constructive feedback from current and prospective grantees regarding your funding application process? How will make certain it is seen as welcome and important?
What about an exit strategy?
Organizations evolve and priorities change. What does the process look like for informing grantees of a transition away from funding? Certainly, grantees should not expect support for forever, but they should expect respect and clarity when it comes to a grantor planning to pull support. Ample time and notification should be given, as well as the option for support in other ways (if applicable).
How about opportunities for collaboration?
In addition to or apart from funding, what are other ways you invite collaboration with past/current/future grantees? Beyond money, additional chances for working together can further strengthen community connections and enhance mutually beneficial partnerships.
Drafting Your Policies
I would be happy to discuss the particulars of your organization’s needs and goals to ensure your grantor-grantee policy is tailormade to best set your organization up for granting success. Contact me at any time via email (gordon@gordonfischerlawfirm.com) or by phone (515-371-6077).
Nonprofit Best Practices: Implement an Endowment Policy Handbook
NonprofitsIf your nonprofit has an endowment, I recommend adopting and implementing an endowment policy handbook. The benefits of this handbook are numerous. For one, it can best prepare the nonprofit’s leaders to manage and put to use bequests of all sizes. Furthermore, a pre-established set of policies can help your organization avoid legal missteps and other conflicts.
Answer the Important Questions
Endowed funds bring special responsibilities: legal, financial, and ethical. There are many important questions which can only be resolved by:
In this way, all the many and varied responsibilities of endowed funds will be met. Once legal, financial, and ethical duties are met, the nonprofit can use the endowed fund to effectively grow the organization’s programs, support the mission, and aid the organization’s longitudinal viability.
Recommended Content for the Endowment Policy Handbook
Just like your employee handbook, the set of policies related to the organization’s endowment should be specific to your operations, intentions, and goals. There is no one-size-fits-all document, as what may make sense for a large nonprofit would not apply at all to a small one. (This is a good reason to not steal a template from the internet as it likely won’t serve its purpose and could potentially make things even more confusing.) In general, however, there are some recommended provisions that should be in all handbooks, like the following:
Definition of Terms
Basic terms, like the word “endowment” itself, need to be defined. The same goes for restricted versus unrestricted funds, donor intent (to contribute to the endowment rather than other funds), and others.
Types of Gifts
What types of gifts will be accepted for endowment contributions, and under what circumstances?
Donor Recognition for Endowments
Will there be a different or special procedure for donor recognition when a donor gives to the endowment?
Confidentiality
Confidentiality of private information of donors and potential donors to endowment must be maintained. What’s the specific process for doing so?
Uniform Prudent Management of Institutional Funds Act
Rules which ensure the requirements of the law UPMIFA are fully meet, if not exceeded.
Accounting of Endowment Funds
How will financial standards be applied to endowment funds? Who specifically will ensure the appropriate and proper accounting of endowment funds?
Management of Endowment Funds
The management of endowment funds is to provide consistent sources of income for which programs or activities?
Investment of Endowment Funds
Is the investment of the endowment directed toward maximizing the return of principal while maintaining prudent fiscal guidelines? A basic question for both the management and investment of endowed funds is: what institution shall hold the funds?
Restrictions of/on Endowment Funds
Endowment funds can NOT be spent on certain categories or items. What are they?
Revision or Amendment
In the future, how can the endowment policies handbook be revised or amended, under what circumstances, and for what reasons?
It’s also a smart idea to include a copy of the Endowed Fund Gift Agreement you have donors sign when making a gift to the endowment.
Drafting Your Endowment Policy Handbook
I would be happy to discuss the particulars of your organization to ensure your endowment policy handbook is tailor-made to set the organization and its fundraising efforts up for success. Contact me with your questions and thoughts! One thing is for certain–you shouldn’t be managing an endowment fund without having a clear blueprint for how it should run.
College Football Playoff National Championship: 5 Similarities Between Football & Estate Planning
Estates & Estate Planning, Events, Wills, Trusts & EstatesTurn on ESPN, put on your jersey, and stock with fridge with a cold beverage…the College Football Playoff National Championship is this Monday, January 13, 2020. (The game kicks off at 8 p.m.) While reading up on the stats and predictions for a tiger showdown between the LSU Tigers and Clemson Tigers in New Orleans’ Mercedes-Benz Superdome, I couldn’t help but make a connection with estate planning. Goalposts to estate planning goals may seem like a stretch, but hear me out.
Football is a complex game—the field is full of moving parts and competing strategies; it’s a game of inches where just a few missteps or right moves can make a huge difference. Estate planning works the same way. Here are just five of the surprising similarities between estate planning and the game of football:
1. Your Clock Will Indeed Run Out
Just like every football season eventually comes to an end, your (hopefully long and healthy) season will also come to a close. When it does, you need a special kind of playbook for the rest of your team…AKA an estate plan. In this analogy, an experienced lawyer is a great coach who is going to help you put plans in place for when the game changes unexpectedly or the stadium lights turn off for the last time. And, just like so much can change over the course of a season, a lot will happen over the course of your lifetime. That’s where annual reviews and revisions after significant events fit in.
While it is often difficult for people to ponder their unavoidable exit off their own fictitious field, preparation for what happens after your season is over can be one of the most comforting aspects of financial and legal planning.
2. The Main Players
Let’s take this analogy a bit further and put some estate planning terms into football speak.
Estate – An estate is a whole playbook, containing the following documents: your will; health care power of attorney; financial power of attorney; disposition of personal property; and final disposition of remains. (Click on the link preview below to delve deeper.)
Will – A will deals primarily with the distribution of assets and care for minor children. You need to make certain the will is well-drafted, solid, and can stand up in court. Keep in mind though, important assets such as life insurance policy payouts, retirement assets, and investment accounts may well contain beneficiary designations that trump your will.
Trust – You have lots of different options with this player. A trust can dictate how your assets will be dispersed, the timeline and manner in which they are dispersed, and who’s overseeing the process.
3. You Must Make Mid-Season Starting Lineup Adjustments
Just as a coach may switch up who’s starting partway through the season, you may need to make adjustments to your estate plan as things inevitably change over the course of your life. Big events like marriage, birth of a child/grandchild, moving to a different state, a large change in financial status, divorce, and other significant changes are a good reason to review your “playbook.”
4. No ‘I’ in Team
Your loved ones and close friends are all a part of your team; part of being a strong team player is including them on the plays you’re making. Discuss important aspects of your estate plan with the people it involves to avoid any confusion or conflict when it comes times for them to carry out your wishes. For instance, if you have minor children (under age 18) you’re going to want to establish legal guardianship if the worst happens and you’re no longer around to care for them. You’ll want to discuss with your chosen guardians ahead of time to make sure they’re willing and available to carry out the responsibility.
5. Final Score
There are probably at least a few more good football analogies I could tie into the conversation of why you need an estate plan, but the most important takeaway is that you never know when the game is going to change. So, you need to have your “playbook” written out ASAP. The best place to start is with my free, no-obligation Estate Plan Questionnaire. You can also shoot me an email or give me a call at 515-371-6077 to discuss your situation (or football).