Ask Slashdot: With Grants Drying Up, How Is a Tech Non-Profit To Survive?
helios17 writes "Non-Profits like this have traditionally gotten started from the money grants provide. Most grants award vehicles, computers, and even pay for organization rental and utility costs. The problem fledgling and even established non-profits are encountering is the dwindling number of grants allowing for Operating or General Support costs. What good is a vehicle received via grant if you can't afford to put fuel in it? With the number of Operating or General Support grants shrinking and those available funds competed for heavily, should we be looking on line for help? Can efforts like this be a better way to approach it?"
Why are the grants drying up?
In many cases, it's not that the money is drying up; it's that the money is increasingly 'focused' on projects rather than administration.
There's a popular conception among donors that the best way to keep NGOs from existing for their own sake (and growing fat and complacent) is to cease providing core funding, instead providing money for individual initiatives. As a happy coincidence, this also keeps NGOs on the string, having to justify every single little thing they do, which makes it easier to ensure that NGOs don't do anything that might make the donors uncomfortable, like speak their mind, or have a conscience or tell the truth.
The 'no core funding' argument has some merits, I'll grant (heh) you, as there have been NGOs who got caught up in navel-gazing, who got lazy and spent more time feathering their respective nests than actually, you know, doing good. That is absolutely something to be guarded against. But this move toward project funding has the unfortunate effect of keeping some NGOs on the fringe, struggling to stay alive. This applies particularly to those who challenge the status quo.
And as noted here, it has a knock-on effect on all NGOs, who find they can obtain salaries and meet project expenses, but can't own any fixed assets or even keep a vehicle running. Perversely, this increases their operating costs, which have to be met somehow. And that results in bigger grant applications for project funding.
Obligatory software analogy: This is similar to tech companies who see design, tech support, permanent staffing and even updates as cost centres and therefore areas to starve as much as possible. This can all too easily lead to more friction in the gears, longer ramp-up times, slower release schedules, reduced quality and sales, and yes, higher development costs, once everything's factored in.
Crumb's Corollary: Never bring a knife to a bun fight.