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Local Economic Development: How grants work

A lot of community grant awards have been made for local projects in recent years. Most people celebrate these announcements. However, no matter what projects are funded, some complain that the funds would be better spent on something else, like filling potholes.

That’s not how grants work.

A grant is one way organizations get money to fund a specific proposal. The best thing about a grant is it is not a loan. Grant money is not expected to be paid back.

To get a grant an organization has to compete against many other organizations. They all have to submit an application that is evaluated before the winner is selected and announced. Ultimately the grant funds will be awarded to some project, if not here, than in some other area.

Instead of complaining that a grant is not funding exactly what you want, realize it will bring funds to help your community for things unlikely to happen if no one applied. These are projects your taxes would not cover. Successfully obtaining a grant often increases the likelihood the completed project may lead to more future funds being granted for other projects here. That might include the exact project dearest to your heart in the next grant cycle.

Grants fund everything from projects to provide public services, improve infrastructure, to enhancing recreational or cultural programs. Many are targeted to address specific issues, like funding to create crime prevention programs in high-risk neighborhoods, expand senior housing where not enough exists, or providing funding for critical recovery initiatives after a natural disaster. Regardless of exactly how grantors want to see their funds spent, grants stimulate the local economy.

Organizations usually learn about funds available to be granted when a Request for Proposals (RFP) is released. All grants have different rules and funding priorities. Those stipulations are included in their RFPs.

For example, one foundation that has funded many important projects locally in recent years is the Ralph C. Wilson, Jr Foundation. We are fortunate that the efforts of this foundation focus on Mr. Wilson’s home and adopted home regions of Southeast Michigan and Western New York. They have four key areas they invest in: active lifestyles; preparing people for success; caregivers; and entrepreneurship and economic development. There are many different foundations like this one located all across the country. Each has their own funding priorities.

Smart organizations and local municipalities keep a running list of projects they want to complete to be ready to apply when a grant matching their needs becomes available. This is because there is often a short turnaround time between when an RFP is released and when proposals are due. Since RFPs usually require narrative descriptions of the proposed project along with detailed budgets, including project timelines and proposed outcomes, many draft those and have them ready. Success is far more likely if plans have been developed far ahead of time.

Since many grants require what is referred to as matching funds or in-kind contributions, applicants also think of ways they could help offset the total project costs on the local level. In-kind contributions can take many forms, including cash, rental costs for space, donations of supplies, and the value of the time people devote to a project without being paid for their work.

Grantees must provide periodic reports and evaluations of their progress to their grantors, plus a full report once the funds have been spent and the project is complete. Consequently, since most grant funds are awarded to complete a very specific preapproved project, those funds would have to be paid back if they were directed toward something else, like filling potholes. Things like that are already budgeted for by local governments. Perhaps potholes don’t always get filled as quickly as everyone would like, but that’s an issue to discuss with local government officials.

The Northern Chautauqua Community Foundation’s Local Economic Development committee fully understands the importance of seeking and securing grants to help fund local projects. Our tax dollars go only so far. Grant funding helps to make this area a better place. These projects encourage more people to live here and more businesses to set up shop here. The committee celebrates all the wonderful projects that have been funded and supports those planning new projects to build upon past successes. Chautauqua County is fortunate to have great grant planners and achievers in our midst.

Patty Hammond is Economic Development Coordinator at the Northern Chautauqua Community Foundation. The Local Economic Development (LED) Initiative is a standing committee of the Northern Chautauqua Community Foundation (NCCF). Send comments or suggestions to Patty Hammond at phammond@nccfoundation.org

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