Content of the Sustainability Component
The sustainability component needs to reflect whether the proposal is seeking program, capital or equipment, or capacity-building funding. Then it must address how the program will continue once the grant comes to a close. When a program ends prematurely, it typically leaves “unfinished business.” In other words, it fails to achieve its intended goals and therefore does not successfully address the need outlined at the beginning of the proposal. And let’s not forget the ultimate impact this has on the clients, constituents, and community who are counting on this program. For that reason, funders pay much more attention to this section than most nonprofits would probably suspect because—like you—they will have a vested interest in the project’s success. So this section of your proposal should provide a framework that shows how your nonprofit plans to continue the program beyond the funder’s initial investment, as well as who on your staff will be responsible for making this plan happen.
In capital or equipment proposals (major equipment purchases or building renovations and expansion) grantmakers need to know what the associated costs are for operating the new equipment, for maintaining the new building, or for increasing services if building expansion results in program expansion. They need this information because these are all costs that the organization will incur beyond the funding being requested. You will also need to show that the sources of funding meet these additional costs.
In the case of a capacity-building grant, funders want to know how the nonprofit will support the capacity it has grown. For example, you might have requested a capacity-building grant to increase the organization’s fundraising ability via the creation of a development plan. Once the plan is created—and the grant is expended—how do you plan to pay for the actual implementation of your new development plan?
Consider future funding from one or more of these sources:
• Continuation grants from foundations and corporations. A nonprofit can seek continuing support from those foundations and corporations that fund ongoing programs. However, as we stated earlier, a majority of foundation and corporate funders prefer to support new and expanding programs—not continuation funding for existing programs.
• Annual campaigns. Organizations can develop fundraising campaigns whose revenues are restricted to a program’s operational costs.
• Fees for service. If a nonprofit opts to ask clients to pay fees, the fee scale and a revenue plan should be shown in the proposal.
• Sales of items or activities. A nonprofit might be able to set up an income-producing program, such as a gift shop or thrift store. In addition, it might be able to sell publications, concert recordings, or educational activities. Revenues generated from these sales might cover some costs of the program. If this route is taken, a clear expense and revenue projection should be a part of the proposal. (Please note: You need to check with both legal counsel and accounting counsel to ensure that any revenue-generating ventures you launch are set up and monitored in accordance with IRS standards.)
A typical mistake that grantseekers make in their proposals is not taking this component as seriously as they should and not fully understanding that grant funding does in fact come to an end. Saying something to the effect of “future funding will come from a mix of sources such as other grants and individual support” is not a sustainability plan that plays well to grantmakers.
Helpful Hint
Toot your own horn! If you have examples to share of other instances in which the organization successfully continued programs beyond their initial funding, this would be the place to share such information, because it speaks to your organization’s credibility not only in launching programs but also in maintaining them, which in the end is truly the hardest part of the work.
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