[WiLT] DSC May - pitfalls of taking government money - and - Do politicians understand?

[WiL Admin]

Government grants - how to avoid the pitfalls
by Debra Allcock Tyler,Chief Executive, Directory of Social Change

The inherent dangers in taking state money are:

* It is a very unstable form of revenue - government policies, indeed,
governments themselves, change frequently.

* There is a high cost associated in reporting and monitoring which
reduces the actual amount of the pound that goes to the cause.

* You risk losing your ability to change your mind about how a service
is delivered because you are obliged to meet the exact terms of the
grant or contract delivery spec.

If you are considering taking taxpayers' money there are some things
you need to think about and/or do.

1. Be sure that you are not applying for the contract or grant simply
because it's there. The real question is: will that money directly
fund the work of your charity in the context of its objects, vision
and mission? Better to have a short-term funding crisis than a long
term vision crisis.

2. Whether grant or contract - ask for the terms and conditions to be
specified at the point of application for the funds - otherwise you
risk having to agree to terms and conditions that are not in the best
interests of your charity because you are too far committed to back
out.

3. Remember, it's not their money to spend - it is the taxpayer's.
That doesn't mean you have a right to it either, but it does mean they
have to act in a reasonable way. Civil servants and politicians are
entrusted by all of us with spending our money - they don't own it.
However, the individuals making the spending decisions are subject to
the complex and difficult world of politics and government machinery.
Make an effort to understand their pressures and your ability to
negotiate will be enhanced.

4. Don't simply accept the reporting and monitoring requirements that
are thrust upon you. Negotiate. A private sector company would. So
should you.

http://www.dsc.org.uk/NewsandInformation/News/Governmentgrants-howtoavoidthepitfalls

Debra Allcock Taylor's reasons why government money is not "evil"
* Spend government money without selling your soul
http://www.dsc.org.uk/NewsandInformation/News/Spendgovernmentmoneywithoutsellingyoursoul


DSC May Quick Survey:
How well do politicians at different levels understand the issues
affecting your organisation?
Take the survey online at
http://www.surveymonkey.com/s.aspx?sm=G0RIvqzxqHz2MZC6b5z5xA_3d_3d