How to pay a Grant Writer
How to pay a grant writer? When it comes to paying for grant writing services, there are a few different options available. One option is to use grant funds. While this may seem an ideal method, it's not an ethical option. The American Grant Writers' Association has guidelines that state grant writers should not accept compensation based on a percentage of the amount of the awarded grant funds (American Grant Writers' Association 2013). Grant writing for nonprofits can and is very rewarding. It can be done both part time and full time. You can work in a small town, on island, or in a big city. It is very flexible for remote work.
Also, check out Grant Proposal Writing
Paying a grant writer using grant funding is essentially the same thing as paying a grant writer with a percentage of the awarded grant funds, which makes it unethical. Another option is to pay a flat fee, which varies based on the grant writer's experience, expertise, and service level.
The third option is to pay by the hour or by the page. While this option is the most common and affordable way to hire a grant writer, it can be dangerous because it encourages the writer to rush through the grant application in order to obtain higher payment. You may not get as good a service as you hope to get.
Grant writers often are paid a flat fee, which is generally around $25 to $75 per hour (Scotti and Saklofske 2017). This cost will vary depending on the writer's experience and the level of services you require, as well as the complexity and length of the project. It's important to work with an experienced grant writer who can successfully craft your application without having to rush through the writing process in order to meet their payment deadline.
Grant writers sometimes are paid a percentage of awarded grant funds, which could be considered unethical. According to the American Association of University Women, there are several reasons for this: For example, it could negatively impact the peer-review process by prompting reviewers to base their decisions on how much the grant writer will receive rather than the merits of the application (AAUW 2010).
Contingency pay also is controversial because grant writers have no control over whether their organization receives a grant. The uncertainty involved can cause stress and financial hardship for both grant writers and their clients, so it's best to avoid contingency pay when possible. If you do choose to work with a grant writer who accepts contingency pay, make sure that you are comfortable with the terms of your agreement and that the payment will not compromise the quality of the work. Grant writing is not an exact science.
The American Association of University Women (AAUW) discourages contingency pay arrangements. According to the AAUW, there are several reasons why this should be avoided:
• It could lead to a conflict of interest by influencing the reviewer's decision-making process
• It could damage the reputation of the nonprofit
• It could increase administrative costs by requiring more time and effort on the part of the organization to set up and monitor the system
• It could cause financial problems for the nonprofit due to the fees associated with setting up and maintaining an escrow account.
So, is it ethical to use grant funds to pay the grant writer? According to the Association of Fundraising Professionals, it is not.
Full time grant proposal writing is time consuming work and takes dedication and thought. Nonprofit fundraising is though provoking work. There are many moving parts in grant writing that are not always predicted. A grant writer may not succeed with the grant and it would be no fault of the grant writer.
This type of arrangement could adversely affect both the nonprofit and the grant writer. Ultimately, both parties are putting their financial well-being at risk when they agree to this type of compensation model.
In addition, this model has several drawbacks that nonprofits should be aware of before agreeing:
The cost can also vary depending on the geographic region in which the organization is located.
For example, if an organization is located in New York, the cost of a grant writer's services may be more than an organization located in Florida. Contact a local nonprofit that specializes in grants to learn more about the costs associated with grant writing in your area. You may also want to conduct an online search for grant writers in your area to obtain an estimate on their rates. Is there a more economical way to pay for grant writing services?
The Agitator recommends "making sure the grant writer is compensated appropriately for their work. For example, most organizations pay their grant writers a flat rate based on their hourly rate multiplied by the number of hours required to write a grant proposal. Another option that many nonprofit organizations utilize is a payment based on a percentage of the grant amount awarded to the organization. This "contingency payment" agreement ensures that if the organization does not win a grant, the organization is not left with a paid invoice."
Working with a nonprofit that awards grants to similar organizations can be a cost-effective option for obtaining grant writing services. Many nonprofits specialize in providing a variety of services to their members. These services may include bookkeeping, technical support, graphic design, event planning, and website maintenance.
Working with a nonprofit that specializes in grant writing may be a better option for nonprofits, as they can assist specific to writing successful proposals at a lower cost. These organizations may also know the specific funders with whom their organization has relationships and can provide guidance on how to best approach these funders with a funding request.
Grant writing for nonprofits is one of the best career moves I have made in my work life. I feel a strong need/urge to help nonprofits and other groups to move forward and fulfill their organizational goals. It is very rewarding work and I continue to enjoy it immensely.
Cheers
References
References are in beta. Please check all citations for accuracy.
[1]Grant Writing Fees: How Much Does Grant Writing Cost?
[2]Grant Writing Fees: How Much Does Grant Writing Cost?
[3]Can You Pay a Grant Writer a Percentage of the Grant Award?
[4]How Much Are Grant Writers Paid Per Grant?
https://work.chron.com/much-grant-writers-paid-per-grant-31075.html
[5]Avoiding Unethical Pay Structures: A Guide for Grant Writers + Nonprofit Professionals
[6]Paying Commission On Grant Proposals: Don’t Do It
https://www.thenonprofittimes.com/npt_articles/paying-commission-grant-proposals-dont/
[7]Reasons Not to Pay Grant Writing Contingency Fees
[8]Can You Pay a Grant Writer a Percentage of the Grant Award?
[9]Price List
[10]About Grant Writer Success Rates
https://fundingforgood.org/about-grant-writer-success-rates/
[11]Can You Pay a Grant Writer a Percentage of the Grant Award?
[12]Paying Commission On Grant Proposals: Don’t Do It
https://www.thenonprofittimes.com/npt_articles/paying-commission-grant-proposals-dont/
[13]Grant Writers
Also see AFP Code of Ethical Standards