On occasion there’s a web-based debate on whether or not or not grant writers can cost their shoppers for companies on a fee or share bases.
The essential argument for charging shoppers a fee / share is that the advisor can earn more money. For instance, on a grant with an award quantity of $100,000, at a ten% fee the grant author would obtain $10,000. If the award have been $1 million the grant author can be due $100,000. The better the worth of the grant award the extra the advisor stands to make, with none enhance within the quantity of labor carried out.
The explanations for not charging a fee or share are extra based mostly in enterprise and accounting rules.
The method of grant writing and making use of for grants is a fund-raising expense not a program expense. Most grant awards are for applications and program bills. Subsequently it might be unethical for the accountant to take funds from program allocations to pay for fund-raising bills.
The act of grant writing is a pre-acquisition price. It’s logical that the applicant has to write down the grant proposal earlier than they submit earlier than the grant proposal is reviewed and awarded. The grant interval, or the time the grant award monies can spent, are often for price happen on after the grant award is obtained, or as a post-acquisition price (with a couple of exceptions). Grant funding seldom covers price which happens previous to the grant award being accredited.
A few of this downside originates partly with authorities budgets which states {that a} sure share of the finances might be allowed for advisor charges. The seeming logic is that – for the reason that grant author is a advisor then they need to be entitled to that share of the finances.
All personnel charges, PIs, employees, and consulting, should be calculated on an annual wage or hourly price bases. None of those line objects might be calculated on a straight share of the whole grant foundation.
The funders themselves don’t wish to award grant funding to grant functions which pays the grant author a share. It is because funders need to see most of their cash going to assembly the mission and priorities of their funding objective.
Lastly, licensed grant writers put the philanthropic curiosity above their private achieve.
All skilled associations in fundraising generally, and grant writing particularly, maintain that charging a fee or share of the grant award is an unethical apply.
