Grant making and management

BY: SHOLA AFOLAYANFOR:PRESTON DEVELOPMENT FOUNDATIONDATE:3RD FEBRUARY 2017

Objectives By the end of the session, participants should be able to:

Define Grant, Grant Making and Grant Management

Differentiate between Grant Making and Grant Management

List and describe Types of Grants

Enumerate and explain steps of Grant Making process

Identify and describe key activities in Grant Management

Explain Gates Foundation’s Grant Making and Management Processes

Session OutlineDefinition of Grant, Grant Making and Grant Management

Types of Grants

Grant Making and Management Process

Gates Foundation’s Grant Process

Conclusion

Definition of Grant, Grant Making and Grant Management

Grant is a donation made by one party called the grantor or grant maker or donor to another party known as the grantee or recipient for carrying-out specific purpose or purposes. The donation can either be in monetary, material form or both.

 

Definition of Grant, Grant Making and Grant Management

Grant Making: Is the process whereby a funder or donor requests for grant applications/proposals through a competitive or non-competitive manner, review such applications/proposals, select the entire or some of the applications/proposals for funding and subsequently process and issue out grant award for each of the applications/proposals selected.

 

Definition of Grant, Grant Making and Grant Management

Grant Making: Is the process whereby a funder or donor requests for grant applications/proposals through a competitive or non-competitive manner, review such applications/proposals, select the entire or some of the applications/proposals for funding and subsequently process and issue out grant award for each of the applications/proposals selected.

 

Grant Making Process

Special award condition

Types of grants/award1. Simplified Grant:

a. Fixed Obligation Grant (FOG)b. Simplified Grant (SG)

2. Standard Cost Reimbursement Grant (STG)

3. In-Kind Grant:• Goods or Services• Financial support• Financial support/and or goods & services

Fixed Obligation Grant (FOG)

The conditions Precedent:

Between US$100,000 for US organizations and US$250,000 for non-US organizations

The grant period should not exceed one year

All costs to be charged to the grant are clearly identified in the grant application and do not include any infrastructure or constructions

Certainty that all the estimated costs will not change during the life of the award period

Any goods to be purchased under the project meet the rules governing local procurement, and none of the items has a useful life span of over a year and an acquisition cost of US$5,000 or more.

Should not be used as an alternative way to deal with high risk grantee(s)

It is a grant that is awarded for a very specific activity or activities with specified milestone(s) and does not require monitoring of the actual costs subsequently incurred by the recipient/grantee after the award has been made. In this case, the activity/activities to be supported/ funded are clearly identified with their expected milestone(s) and there is certainty that the estimated costs to be incurred during the award period will not change.

Simplified Cost Reimbursement Grant (SIG This is a grant used when FOG is not suitable and it is determined that the disbursement of grant funds to the grantee on cost reimbursement basis would be most suitable for effective implementation of the approved project. Conditions for the use of SIG are:The total grant amount does not exceed US$100,000 for US organizations and US$250,000 for non-US organizationsAll costs to be charged to the grant are clearly identified in the grant application and do

not include any international airfares or indirect costs except if the indirect costs is supported by NICRA with a US Federal Agency or indirect costs should be converted and specified as units of direct costs Any goods to be purchased meet the rules governing local procurement, and no single item with a useful life over one year and an acquisition cost of US$5, 000 or more shall be purchased under the awardThe grantee shall receive payment of the grant funds on a cost-reimbursement basis. That is advance payments shall be made to the grantee for implementation of project activities.

Standard Cost Reimbursement Grant (STG) This is the grant that is used by Pact for grants made under USAID funds, if the grant amount exceeds US$100,000 for US organizations and US$250,000 for non-US organizations. For this type of grant to be awarded, the recipient/grantee must possess:Accounting, recordkeeping, and overall financial management systems An adequate system of internal controls including but not limited : segregation of duties, handling of cash, contracting procedures, personnel and travel policiesA property management system A procurement system that meets the standards A system of administering and monitoring of subawards

In-Kind Grant (IKG) This is a grant wherein goods and services are provided by the grantor/funder to the grantee, which does not involve direct cash transfer to the grantee. This type of grant is awarded to recipient organizations that do not have the financial and operational management capacity to handle disbursement in cash.The IKG agreement must include provisions that give the title to the equipment or

Property purchased to the recipient/grantee plus disposition instruction for property or equipment. For IKGs that include the purchase of equipment and/property, which are USAID funded,

◦ In-kind grant of goods/services◦ In-kind Grant of financial support

BMGF Grant Making Process Stage 1- Concept Development Stage 2- Pre-Proposal

Direct solicitation: Steps:

Discussion and Dialogue

Concept Memo (i.e. Letter of Inquiry or LOI)

Request for Proposal (RFP)- Public RFP vs Private RFP

Stage 3- Development Stage 4- Management and Close out

Grant Management Is the process of ensuring effective and efficient disbursement of funds and/or provision of goods and services, implementation, monitoring, reporting and close-out of the grant in full compliance with the terms and conditions of its agreement.

Grant Management ActivitiesGrant management circle

Grant Management ProcessFinancial Management and Reporting

Program and Performance Management and Reporting

Monitoring, Evaluation and Reporting

Managing Key Issues

Modifications

Suspension and Termination

Fraud Prevention

Closeout

Feedback & Session Evaluation

◦ Questions and comments

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