Nonprofit Assignment

Center for Nonprofit Management & Leadership at MSU Texas

FEDERAL GRANT CASE STUDY HOMEWORK

Read the Case Study below. Copy and paste the below questions in a new WORD document and provide your answers. Do not forget to put your name on the document.

All homework assignments MUST BE TYPED and include your NAME. Your discussion should be written using good mechanical, grammatical and spelling.

Discussion Questions:

1. Should the organization pursue the immediate federal grant opportunity? Why or why not? 2. If no, is it just THIS federal grant opportunity or ANY federal grant opportunities? Why or why

not? 3. Should the organization consider expanding its services or programs? Why or why not? 4. What strategy might the organization employ to offset the anticipated reduction in funding by a

current funder?

Case Study

New Life Beginnings is a local nonprofit which currently provides case management and assistance for low-income, single mothers and has never applied for federal funding. New Life Beginnings has been in existence for over 10 years and has had impressive outcomes, with over 70% of their participants stabilizing and finding higher paying jobs within 12 months; and 58% having increased savings and reduced debt within 3 years. Their operating budget is just over $2 million. The mission of New Life Beginnings is to empower single parents by providing hope, support and resources so families can become self-sufficient and thrive.

The executive director has found a federal grant on Grants.gov which will provide $250,000 annually for up to 3 years to assist low-income men, between the ages of 17-25 with completing GED’s and gaining skills to enter into an apprentice field (plumber, electrician, carpenter, etc.). The executive director wants to apply for the funds because she believes education and increased skill building is the key to breaking the cycle of poverty and the influx of funding would increase their impact. The board chair disagrees. He believes the agency should remain focused on its current program and its success. He doesn’t want government “meddling” in the agency’s affairs.

The executive director is also concerned that the agency is at risk of becoming stale and stagnant. The chair believes that as long as the organization continues with the status quo, they should not change anything. The agency has great success and outcomes, but the agency has not had significant increases in the number of clients served each year or expansion/addition of any services in the last 5 years. Their donor base and dollar amount generated from individual donors has remained fairly constant, although it was slightly lower the most recent year. They receive about 65% of current funding from local foundations, with many of the foundations funding them year over year the same amount. One of the major funders indicated recently that they may not be able to continue funding the organization at the same level, as they needed to invest in other, just as worthy, organizations.