The Grant Process And Internet Technology

(This article is part of a series of guest columns written by innovators in the nonprofit sector. PNNOnline will be featuring a new "Challenges of the New Century" guest column each week.)

by Laura Brix

Today the ubiquitous "mini-e" is attached to every professional activity in existence - for example, e-commerce, e-business, and e-philanthropy. And, while there is much progress in exploiting new technologies to improve the way organizations raise money, the grants process still has not come into its own. And, unfortunately it may still be a bit of a wait.

According to The Foundation Center, foundation grantmaking is a nearly $23 billion industry (1999 estimated giving) with nearly 47,000 participants holding approximately $385 billion in assets. Yet only a handful of funders accept online grant applications. Most of this business is done through door-stop-thick paper applications, many requiring the use of a TYPEWRITER. Many of my peers don't even have a typewriter, mainly because it has long since broken down and no one makes the necessary replacement parts. So, they are reduced to time-consuming schemes to convert the application form into a computer document using a scanner, retyping and reformatting the form manually, or going to Kinko's and paying to use a typewriter. This is hardly an efficient use of always-scarce nonprofit resources.

However, a few bold organizations have made online grant applications a reality. Most of this progress is centered in government agencies such as the National Institutes of Health and National Science Foundation, or telecommunications and technology-related companies like Verizon, Bell South, 3Com, Hewlett-Packard Company, and AOL. Surprisingly, neither Microsoft Corporation nor the Bill & Melinda Gates Foundation accept electronic grant applications.

But the news isn't all bad. Many grantmakers-primarily corporations but also many private and community foundations and government agencies-do provide extensive information on their websites, including updated guidelines; downloadable application and report forms, either in an Adobe Acrobat "PDF" file or Microsoft Word document; links to other industry-related websites; and email contacts. In addition, several university grants offices have created electronic forms for their faculty's use and posted the forms on their websites.

What about the prospective grantee? Are U.S. nonprofits ready to fully participate in "e-philanthropy"? According to National Society of Fund Raising Executives (n/k/a Association of Fundraising Professionals), more than 80% of fundraisers use email and over half use the Internet, compared to only 1/3 of Americans in general. Only 10% of fundraisers say they lack any form of online access at all. That is at least partly because they work in smaller shops who "can't afford it" and "don't need it for their mission."

There are clearly benefits to online grant applications for both grantmakers and grantseekers:

• The application is always complete-if required information is missing, the application can not be submitted for processing.
• The consistency of the applications speeds the screening and review process. Key information is readily available for the reviewer, avoiding the need to hunt through reams of paper and reducing turnaround time to a matter of days or weeks, not months.
• Online assistance is available through a frequently asked questions (FAQ) page, reducing phone and email queries.
• Potential grantees can automatically receive an acknowledgment of proposal receipt and an anticipated decision date by email, reducing the need for follow-up calls and letters.

Of course, there are potential drawbacks, as well:

• Many smaller non-profits do not have the requisite Internet and email capabilities, making electronic submissions frustrating, if not impossible. Grantmakers must support industry-wide technological advancement before requiring electronic proposals-the old cart-before-the-horse principle.
• Some grantmakers fear there will be a flood of unsolicited online applications. To address this challenge, some require completion of an interactive Q&A; to screen out applicants who are poor matches. Also, many require a preliminary letter of inquiry by email or regular mail.
• Many standard attachments, such as 501(c)(3) verification, annual reports, and audits, are not available electronically. Until such documents are "e-mailable" or are linked through an organization's website, we will never eliminate the need for hard copy applications.
• Some grantwriters see "e-grantwriting" as a restriction to their creativity. Depending on the extent of this creativity, of course, their hesitation is justified. Many grantwriters who have applied online felt that the limited space, generic questions, and pull-down menus did not give the applicant the opportunity to describe their organizations adequately.
• Perhaps the biggest fear for both grantor and grantee is increased anonymity. Philanthropy is and always has been about relationships, but is "e-philanthropy"? Some concepts are not communicated effectively through email and online applications alone.

The grants process may indeed become fully electronic someday, but not until grantmakers and non-profits bring their information systems to a level that is consistent with the demands of e-commerce. Further, the more this technology shift is a COOPERATIVE effort, the better the end-result will be. Until then, hang onto your typewriters.

ABOUT THE AUTHOR:

Laura Brix has been writing in both the financial and not-for-profit worlds for 15 years. At present, she combines her love of writing and opera working as Grant Writer at Lyric Opera of Chicago. She has also written grant proposals and reports for a non-profit health clinic, a public radio station, and a cancer wellness program.