Independent Contractors and the IRS
Foundation for the Mid South Leadership Grants Program
by Brian Kit and Chris Dudding
ARGH! Have you entered the state of grantwriting malaise? RFPs, measurable results, outcome measured results, deadlines, etc. Or perhaps you've never written a grant before and are getting ready to venture into the unknown for the first time. Either way, it's easy to feel a bit daunted and overwhelmed by the tasks facing you. Perhaps we can help to dispel some of the misgivings you may have about these responsibilities.
As VISTAs with the Arkansas Disability Coalition in Little Rock, we have gained some grantwriting experience in funding our projects. While we are by no means experts at writing grants, we do have some knowledge on how to start tackling this sometimes nerve-racking task--knowledge we learned firsthand, by trial and error.
When reviewing the grantwriting we'd done, the one phrase that kept recurring most in our conversation was "INVOLVE OTHERS." Involve persons in the community you serve from the beginning. Invite the feedback of members of the community you are serving, make sure that they are in on and aware of the planning process, and ensure that you allow community members adequate time to review your efforts.
Community involvement is SO important to every project, for a number of reasons. In addition to having a strong base of support to help ensure your project's long-term sustainability, involving community members allows you to tap into the combined networks of the community you serve. Involvement is the key to building in-kind support, eliciting contributions of matching funds, and providing ongoing support to a project.
And don't forget to build new relationships within the community and to strengthen existing ones. One of the best ways to go about doing this is by uniting community members to work together toward a common goal. Getting the various members of the community to the table and talking to one another can be one of the hardest things to do in a project, but if you succeed, it can have benefits that long outlast the particular project and far outweigh the dollar amount of the grant you are pursuing. Below we've outlined some pointers that we found helpful from our experience. Hopefully, you'll find them beneficial as well.
Prepare a packet of information. Include information that explains the project, the grantor, areas where resources are needed, and anything else you think is important. Know your issue! Be sure to update the packet after each milestone. This packet may be key in getting community support.
Know your community. This seems obvious, perhaps, but we feel that we can't emphasize this point strongly enough. Talk to your community members. Talk to organizations that have done or are doing similar projects. Find out what they learned from past efforts. Remember, there's no sense in reinventing the wheel.
Develop a rapport with the funders. If appropriate, pick up the phone and call your funder. If you're lucky, they might be able to give you some helpful pointers.
Seek out veterans. Find grantwriters in your community, or others with grantwriting experience and ask if they would share their ideas and answer your questions.
Delegate responsibilities. Community members have different strengths--make use of them! If they shoulder responsibility early in a project, then they have a stake in its eventual success.
Keep ongoing, clear records. Ensure that your knowledge and experience do not leave with you.
Brian Kit and Chris Dudding are VISTAs (Volunteer In Service To America) with the
Arkasnas Disability Coalition.
A recent news story in The Washington Post described a girls' softball league that is in trouble with the IRS for allegedly failing to file tax returns and possibly (this is implied in the story, but not specifically stated) not paying taxes on unrelated business income.
The young ball players and their parents seem to think the IRS is unfairly harassing them for what they perceive as minor infractions. The League's secretary is quoted as saying, "There's no reason for Big Brother to come in like this and start pushing a lot of innocent girls around. Why doesn't someone stop and think about what they're doing?" One of the young players lamented, "This summer we could be just watching other softball games and wishing we were out there. It's not fair."
Don't athletic programs purport to teach children to know the rules and follow them in a sportsmanlike manner? It's ironic that in this situation the parents didn't know the rules, didn't follow them, and are now blaming the IRS while the little girls are crying, "It's not fair."
Tax-exempt groups agree to serve the public good and, in return, are not required to pay taxes on income related to their charitable purposes. IRS regulations and reporting requirements are there to protect taxpayers. We all know it can be difficult, expensive and frustrating to straighten out problems with the IRS. Those of us in positions of fiscal responsibility in nonprofits have an obligation to live up to our end of the bargain and avoid IRS problems.
NRI offers a variety of training opportunities, such as our currently scheduled Managing for Excellence and Legal Issues for Nonprofits workshops, to help nonprofits stay out of trouble. We will soon be releasing a schedule of Financial Management for Nonprofits workshops as well. All of our training is recommended for both board and staff members and we hope representatives of your organization can attend.
--Bonnie Johnson
The Health and Human Services Department's Administration for Children and Families is inviting applications for projects to combat domestic violence.
Deadline: July 28
Funds: $50,000 for up to four 17-month projects to develop services for immigrant and migrant battered women; $75,000 for up to four 17-month projects to develop models for services to help victims of domestic violence applying for or receiving welfare move into the work force; $600,000 for first-year funding of a cooperative agreement for a special issue resource center to help Indian Tribes and Tribal Organizations deal with domestic violence and aid victims; and $75,000 per institution for each of four institutions to fund four fellowships of $11,250 and a faculty coordinator of $30,000.
Eligibility: Varies by priority, but generally state and local public agencies, federal recognized tribes and native American communities, private nonprofit agencies, domestic violence advocacy organizations and coalitions; and, for training, historically black colleges and universities, Hispanic-serving institutions and tribal institutions.
Contact: Trudy Hairston, 202/401-5319; James Gray, 202/401-5705; or William Riley, 202/401-5529, Administration for Children and Families, Office of Community Services, 370 L'Enfant Promenade SW, Washington DC 20447.
The Department of Veterans Affairs is accepting applications seeking money to help veterans recover from homelessness.
Funds: $3.3 million.
Eligibility: Public and private nonprofit groups.
Areas: Grants can provide up to 65% of the cost of acquiring, constructing or renovating facilities to be used for supportive housing or as service centers. The program allows the VA to pool its resources with community groups throughout the country to end homelessness among veterans.
Contact: Roger Casey, Teresa Hayes or Victor Harris, 202/273-8442, 8443 or 8445.
The Housing and Urban Development Deptartment is inviting applications for projects under the Supporting Housing for the Elderly program and the Supportive Housing for Persons with Disabilities program.
Deadline: July 28.
Funds: $645 million for capital advances and project rental assistance for elderly housing; $194 million for capital advances and rental project assistance for housing for persons with disabilities.
Eligibility: Private nonprofit organizations.
Contact: Multifamily Housing Clearinghouse, P.O. Box 6424, Rockville, MD 20850, 800/685-8470, http://www.hud.gov/nofas.html.
The Housing and Urban Development Dept. is inviting applications for special projects of national significance to provide models of housing assistance and supportive services under the Housing Opportunities for Persons with AIDS program.
Deadline: July 15.
Funds: $19.6 million, including $9 million to address the needs of multiply-diagnosed homeless persons living with HIV/AIDS and with chronic alcohol and/or other drug abuse and/or serious mental illness.
Eligibility: States, local government units and nonprofits for grants for Special Projects of National Significance and grants under the HIV Multiple-Diagnoses Initiative; certain states and local government units for grants under the long-term category to serve areas ineligible for fiscal 1997 formula funds.
Contact: For applications and information, Community Connections Information Center, 800/998-9999 or http://www.hud.gov/fundopp.html.
The Environmental Protection Agency is inviting proposals to catalyze community-based projects to promote environmentally and economically sustainable development, build local partnerships to ensure long-term health of ecosystem, human, economic and community vitality and well-being and leverage public and private investments to enhance environmental quality.
Deadline: August 15
Funds: $5 million.
Eligibility: Incorporated nonprofit public and private agencies, institutions and organizations.
Areas: Examples of potential activities are projects that demonstrate the range of environmental, economic and community benefits associated with alternative development patterns; demonstrate a cutting-edge approach to cleanup and redevelopment of contaminated property; and support a regional bottom-up process for managing rapid sprawling development.
Contact: For applications, EPA regional offices or EPA headquarters, 202/260-6812; fax, 202/260-2555; http://www.epa.gov/ecocommunity. For information, Paula Hurt, EPA, Office of Air and Radiation, 401 M St. S.W., Wash, DC 20460; e-mail, phurt@epamail.epa.gov.
The Danforth Foundation supports elementary and secondary school reform projects that address youths/ intellectual, social, physical and emotional capabilities and involve educators, parents, community members and local agencies.
Deadline: None. Applicants should submit letters of inquiry before sending full proposals.
Funds: More than $9.8 million in 1996, with grants ranging from $1,000 to $100,000.
Eligibility: Nonprofit organizations, elementary and secondary schools, school districts.
Areas: Projects should help schools work with families and community organizations, develop leadership and policy-making skills among teachers and administrators and improve children's readiness for school. Applications also should fit into one of the following priority areas: school, family and community partnerships that create or improve collaborations among schools, families and local government agencies; leadership projects that provide important preparation and development opportunities for teachers and prepare teachers, principals, administrators and other community members to face school reform issues; and early childhood education projects that promote parental involvement, staff development for preschool and elementary school personnel and improve children's transitions from home to school.
Contact: Cathy Cole, Danforth Foundation, 231 S. Bemiston Ave., Suite 1080, St. Louis, MO 63105-1996, 314/862-6200, fax 314/862-2003.
Target funds education-related projects that focus on families, the arts and community projects in communities where it has stores.
Deadline: Vary by geographic area. If there are no deadlines, Target encourages applicants to submit proposals between March 1 and Nov. 1.
Funds: $9.8 million in grants in 1997. Target donates 5% of its income each year.
Eligibility: Nonprofit organizations in Target communities.
Areas: The "Target the Family" programs helps families including non-traditional families: single-parent, extended, intergenerational, and adoptive. Projects should teach skills promoting effective family relationships, such as parent education and effective communication, and prevent violence and neglect in family relationships, including the prevention of child abuse and domestic violence. Arts projects should provide quality arts experiences for family audiences and arts education in the schools. Projects should reflect and promote a community's racial and cultural diversity as well as meeting Target's priorities.
Contact: Local Target Store Team Leaders for information about how to apply. For more information or the location of the nearest Target store, Community Relations, Target Stores, PO Box 1392, Minneapolis, MN 55440-1392, 800/800-8800.
Many nonprofits are struggling with the effects of welfare reform legislation in their social service programs. There is help in sifting through the piles of government legislation concerning child care, child support, food stamps, welfare to work, immigration, and temporary assistance to needy families. The following World Wide Web sites offer briefing papers, abstracts on welfare legislation and helpful links to other sites on welfare reform. Many sites offer linkages to other Web pages on state responses to the new welfare legislation, including all the information you need to know to contact local officials about statewide initiatives.
The American Public Welfare Association provides extensive coverage of the new welfare legislation in general and for each state.
The Center on Budget and Policy Priorities provides an excellent summary of the new welfare law.
The Institute for Research on Poverty.
The National Conference of State Legislatures.
The National Governor's Association:
The Welfare Information Network:
Information by Ronald J. Meshanko from ERC Newsbriefs, published by Ecumenical Resource Consultants, Inc., 1843 Kalorama Rd., N.W., PO Box 21385, Washington, DC, 20009-0885, 202/328-9517.
The Foundation is committed to strengthening the basic framework in Arkansas, Louisiana and Mississippi to enhance positive community change. One of its strategies to meet this goal is to focus on leadership development. The Foundation has established a leadership development grants program that will identify leaders in the region while also building capacity to transcend the boundaries of geography, institutions, and politics, and the barriers of race, class, gender, and image.
Objectives of the new program are as follows:
The program challenges emerging leaders to focus on a community-based objective that will provide a leadership experience. This learn-by-doing approach is aimed at those who have a personal commitment to providing leadership on behalf of achieving positive community change. Leadership Development Grants will be awarded for a maximum of a one-year period up to $1,500.
Grants will be given to youth who demonstrate that they are challenging themselves to build their own knowledge and skills as agents of change; describe the link between the investment made by the Foundation and the expected outcomes of the project; demonstrate a track record of community leadership; and show strong evidence of their commitment to reduce barriers of race, class, gender, and/or image in their communities and/or institutions.
In order to apply for a Leadership Development Grant:
1. Write a brief, clear letter of application. Address the following questions. Why are you applying for the grant? How are the proposed activities expected to contribute to your growth as a community leader? What will you do, specifically? How will this challenge you? What are the benefits and results of the project that will benefit the organization and the broader community? How will you know if you have accomplished your objectives? What financial support is needed to enable you to carry out this project?
2. Provide a narrative and budget for proposed activities. The payment of a stipend to the applicant for the performance of the activity is generally not eligible for consideration as an expense.
3. Identify and secure the written commitment of a community organization that will serve as sponsor and fiscal agent.
4. Enclose a letter of recommendation from someone who can attest to the ability of the applicant to complete the proposed project in a timely manner with excellent results.
An organization may apply for a youth leadership development grant by addressing the following in the application. Why does your organization seek this grant? What do you hope to achieve with the youth you serve? Have young people been actively engaged in the development of this proposal? What will you do, specifically? How will you know if you have accomplished your objectives? What financial support is needed to enable your organization to carry out this project?
Proposals may be submitted at any time and decisions will be communicated within six weeks.
For more information, contact Karen Quay, Foundation for the Mid South, 308 East Pearl Street, 4th Floor, Jackson, MS 39201, 601/355-8167, fax 601-355-6499.