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Great suggestion! Thank you!

As a grant writer with >30 years of experience in working with all sizes of organizations and entrepreneurs, I can suggest another mutually beneficial way of contracting for pay-as-you-go services from a qualified grant writer. Develop a RFP for what your organization needs and send it to AFP and idealist.org, as well as networking with similar organizations in your area (topic-wise or geographically). Then select the contractor that suits your needs.

Thanks Tina so much. That is a great idea to see if we can seek a donor to fund the grant writing.

You said, what I did not, and that was it can be challenging for small non profits. That is where we are at.

Anyway thanks for giving me a different set of eyes to look through.

Hi there Jim,

This is a great (and quite popular) question. Thanks for asking!

Most, if not all, major grant writing and fundraising companies, associations, groups, etc. deem “pay by commission” and “pay by results” to be unethical. And, in some cases, those bodies that distribute grants will actually choose not to fund your grant if they learn that the writer is paid on a contingency basis. There are a number of reasons for this.

1. In many cases, when an organization doesn’t receive a grant, the reasons for this are not due to grant writer error- per se. Sometimes, it’s because of external factors (timing, lack of funding diversity on the part of the nonprofit, number of grant proposals received, etc.)
2. Freelance grant writers part of an association (such as the Association of Fundraising Professionals) are asked to sign a code of ethics which bars contingency payments.
3. As a profession, grant writers are expected to charge a reasonable amount based on their skill level and experience. When you start to factor in % of a grant, things get a little hairy (If you’re paying 5% of the grant, 5% of 500,000 is a ton more than 5% of 10,000). Plus, if the grantor sees that you’ve added the writer’s fee into the budget, the grant will not be funded because your expected to cover the writing fees from outside sources (general fundraising, for example).

In my experience, grant writers know that there are many extenuating circumstances that can impact grant funding and there aren’t many out there willing to take a leap of faith.

There is definitely a risk in hiring a grant writer, just as there is a risk in hiring any sort of professional to complete a contracted job. It’s up to the nonprofit to weigh that risk against the investment- and that’s especially tough for smaller nonprofits.

One good thing to consider is that the grant itself belongs to your nonprofit. Whether or not it’s funded, you can retain that document and revise it as you see fit. So, you may be paying for the initial grant, but the body of work can be altered and submitted for years to come.

Could you possibly find a donor (or even a local business) that would sponsor the grant writer’s fees? I’d start there so that this time around those fees aren’t cutting into your bottom line.

It’s definitely not evil to ask this! It’s a great question with a complicated answer. Thanks Jim!

This is a great (and quite popular) question. Thanks for asking!

Most, if not all, major grant writing and fundraising companies, associations, groups, etc. deem “pay by commission” and “pay by results” to be unethical. And, in some cases, those bodies that distribute grants will actually choose not to fund your grant if they learn that the writer is paid on a contingency basis. There are a number of reasons for this.

1. In many cases, when an organization doesn’t receive a grant, the reasons for this are not due to grant writer error- per se. Sometimes, it’s because of external factors (timing, lack of funding diversity on the part of the nonprofit, number of grant proposals received, etc.)
2. Freelance grant writers part of an association (such as the Association of Fundraising Professionals) are asked to sign a code of ethics which bars contingency payments.
3. As a profession, grant writers are expected to charge a reasonable amount based on their skill level and experience. When you start to factor in % of a grant, things get a little hairy (If you’re paying 5% of the grant, 5% of 500,000 is a ton more than 5% of 10,000). Plus, if the grantor sees that you’ve added the writer’s fee into the budget, the grant will not be funded because your expected to cover the writing fees from outside sources (general fundraising, for example).

In my experience, grant writers know that there are many extenuating circumstances that can impact grant funding and there aren’t many out there willing to take a leap of faith.

The way I see it, there is a risk in hiring a grant writer, just as there is a risk in hiring any sort of professional to complete a contracted job. It’s up to the nonprofit to weigh that risk against the investment- and that’s especially tough for smaller nonprofits.

One good thing to consider is that the grant itself belongs to your nonprofit. Whether or not it’s funded, you can retain that document and revise it as you see fit. So, you may be paying for the initial grant, but the body of work can be altered and submitted for years to come.

Could you possibly find a donor (or even a local business) that would sponsor the grant writer’s fees? I’d start there so that this time around those fees aren’t cutting into your bottom line.

It’s definitely not evil to ask this! It’s a great question with a complicated answer. Thanks Jim!

I wonder if you could give a little feed back to the following. We have never been the beneficiary of a grant. So this is new territory for us.

You mentioned that grant writers are typically compensated hourly, flat fee, or retainer. As I understand, receiving a grant is not guaranteed. Some of the ideas you have suggested certainly would increase the odds.

Are grant writers ever compensated based on a percentage of the grant received?

I really like the idea of a win-win-win. That simply means if a grant is received, the grant writer wins, those we serve wins, and our organization wins.

If we shell out $25 per hour, and someone puts 100 hours into it, that would be $2,500. If there are no financial results, then only the grant writer wins.

The flip side of the coin, which I somewhat understand, is if the grant writer invests 100 hours, based on a percentage, then she/he does not win. Assuming there are not financial results. Thus nobody wins.

Maybe, a hybrid is something to consider? IE we will pay a grant writer X amount up front, and then a percentage based on performance.

To many this might sound to business like, as if that is a evil. But we serve a very vulnerable population, and to “try something out” without any gain is cheating those we serve.