Streamlining Assessment Report
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1 Streamlining Assessment Report APRIL 24, 2012 GRANTS MANAGERS NETWORK th Street, NW Suite 420, Washington, DC Phone: (888) GMN-1996 Fax: (888) CENTER FOR EFFECTIVE PHILANTHROPY 675 Massachusetts Avenue, 7th Floor, Cambridge, MA Phone: (617) Fax: (617) Streamlining Assessment Report 1 of 28
2 Contents I. Background and Methodology 3 II. Structural Characteristics of the Dataset 4 III. Cost of Grantmaking 8 IV. Project Streamline Defining Principles A. Take A Fresh Look 12 B. Right Size Grant Expectations 15 C. Relieve the Burden 18 D. Clear Communication 21 V. Appendix 24 VI. Project Streamline and CEP Resources 27 Streamlining Assessment Report 2 of 28
3 Background and Methodology The Streamlining Assessment Survey and Report was developed by the Center for Effective Philanthropy in collaboration with Grants Managers Network and Project Streamline. Project Streamline is a collaborative effort including grantmaking and grantseeking organizations working to improve grant application and reporting practices. The survey and report are intended to provide funders with a better understanding of the monetary and time costs of their grantmaking procedures with respect to their own organizations, their applicants, and their grantees. The survey and report also focus on potential inefficiencies in grantmaking processes as identified by Project Streamline. The Streamlining Assessment Report shows individual funders the results of their self-assessment relative to the results of other funder respondents who have taken the survey in two ways. First, the report generates several overall grantmaking cost analysis figures based on information provided by survey respondents and by national data sources. These grantmaking cost figures are then compared to those of the median funder in the database. Secondly, the report includes overall scores under each of the four core principles that Project Streamline recommends grantmakers adopt to streamline their grantmaking: Take a Fresh Look, Right-Size Grant Expectations, Relieve the Burden, and Clear Communications. These overall scores are also compared to other funder respondents who have taken the survey. Streamlining Assessment Report 3 of 28
4 Structural Characteristics of Funders in the Dataset YOUR ORGANIZATION AND THE ORGANIZATIONS IN THIS DATABASE he Streamlining Assessment Report contains your responses to the online survey you completed about your organization's administrative processes. The Streamlining Assessment Report shows your ratings on items relative to the ratings of other survey respondents. Funders choose different strategies for their administrative processes. It is important to interpret the results of this survey in light of your organization s strategy for its administrative processes. The comparative dataset continues to grow and may not at this time include a large number funders. Please see below for information on funders included in this dataset. Streamlining Assessment Report 4 of 28
5 Number of funders in dataset 158 Which of the following best describes your organization? Which of the following best describes the geographic scope of your funding? What is the approximate amount of cash grant dollars awarded by your organization in the most recently completed fiscal year? YOUR YOUR PREVIOUS MEDIAN FUNDER $3,100, $2,501,639 What is the approximate number of program and grants management staff at your organization? YOUR YOUR PREVIOUS MEDIAN FUNDER Program Officers/Directors Assistant Program Officer/ Other Program Support Staff Grants Management Staff Scoring and Results Grantmaking Cost Analysis Two components drive our total cost of grantmaking analysis - the cost to the funder and the cost to the grant recipient. These costs are calculated in dollars based on the number of individuals, salaries, and hours spent by each of the parties on these processes per grant awarded. There is also a cost incurred by your declined applicants. This estimated cost will also be shown, while recognizing you may have less direct control over this cost. Streamlining Assessment Report 5 of 28
6 Streamlining Principles There are four streamlining principles put forth by Project Streamline that are measured - Take a Fresh Look, Right-Size Grant Expectations, Relieve the Burden, and Clear Communications. Scoring Information Scoring for the Grantmaker Assessment Tool was developed by CEP based on the principles identified in the Project Streamline report, Drowning in Paperwork, Distracted from Purpose. A separate scoring system was developed for each principle and standardized to a 100-point scale. Each of the four streamlining principles are covered separately within the report. The more points achieved per section, the better aligned your organization is with each streamlining principle. Scoring varies by survey item; some questions carry few points, while others constitute a substantial proportion of your score. Some survey questions such as those used to determine your cost of grantmaking are not scored. Based on the response you provide, for each scored survey item you will be awarded none, part, or all of the possible points. When developing the scoring system, CEP accounted for the difficulty of providing an accurate response to some individual questions. As a result, these types of questions are worth fewer points to ensure that they do not unduly influence your overall score in a section. Each section of the report includes your score for the associated streamlining principle, as well as an explanation of the possible points awarded for each related survey item. The Grantmaker Assessment Tool is intended to help funders identify opportunities to streamline their grantmaking processes and to spark discussion within their organizations. All results should be considered in light of your organization s strategy: a relatively low score in a given section may or may not be concerning, depending on your particular goals and strategy. Scoring and Results Streamlining Assessment Report 6 of 28
7 How to Read a Summary Chart Summary of Results - Cost Measures Streamlining Assessment Report 7 of 28
8 Cost of Grantmaking Project Streamline seeks to reduce the resources used in application and reporting processes, allowing both grantmakers and grantseekers more time to focus on mission-related activities. The cost figures calculated in the report are based on standard, non-loaded salaries. They have not been adjusted for geographical context. The combined, typical cost of your organization's grantmaking, to the funder and grantee is $14,656. This compares to $1,175 at the median funder. Typical Cost YOUR YOUR PREVIOUS MEDIAN FUNDER Funder cost per applicant $9, $627 Grantee organization cost $4, $475 Total cost per grant $14, $1,175 The Cost of Typical Grant Grant Size Calculated Cost of Grantmaking The typical grant awarded by your organization is $250,000, compared to $26,838 at the median organization. The calculated cost of awarding a typical grant, to grantees and your organization, is $14,656 or 5.86% of the size of the grant (compared to 3.82% at the median). The calculated cost of your organization's grantmaking, as a proportion of grant dollars awarded, is higher than that of the typical funder. Streamlining Assessment Report 8 of 28
9 Cost of Grantmaking - Cost to the Funder Project Streamline research suggests that grantmakers, like grantseekers, suffer from inefficiencies in administrative processes. Funder Costs per Grant The total cost of your organization's application/selection and reporting/evaluation process per grant is $9,904, which is higher than that of the typical funder. Funder Cost Inputs Application / Selection Process Reporting / Evaluation Process YOUR YOUR PREVIOUS MEDIAN ORG. YOUR YOUR PREVIOUS MEDIAN ORG. Salary in dollars per hour of professional program staff $48 -- $38 $48 -- $38 Hours spent per grant for professional program staff Total professional program staff cost per grant $1, $188 $ $57 Salary in dollars per hour of program support staff $38 -- $19 $38 -- $19 Hours spent per grant for program support staff Total program support staff cost per grant $3, $14 $2, $0 Salary in dollars per hour of grants management staff $29 -- $29 $29 -- $29 Hours spent per grant for grants management staff Total grants management staff cost per grant $1, $32 $ $21 Cost of external evaluators per grant $0 -- $0 Total cost of application / selection process to the FUNDER Total cost of reporting / evaluation process to the FUNDER $6, $ $3, $173 YOUR YOUR PREVIOUS MEDIAN ORG. Total cost of grant to the FUNDER $9, $627 Streamlining Assessment Report 9 of 28
10 Cost of Grantmaking - Cost to Grantees Project Streamline research shows that there is a significant cost to grantees inherent in the grantmaking process. Grantee hours estimates are taken from the survey, while grantee salary information was taken from the 2009 Grants Managers Network Member Salary and Benefits Report. Grantee Costs per Grant The total cost of your organization's application/selection and reporting/evaluation processes to grantees per grant is $4752, higher than the typical funder. Grantee Cost Inputs Application / Selection Process Reporting / Evaluation Process YOUR YOUR PREVIOUS MEDIAN ORG. YOUR YOUR PREVIOUS MEDIAN ORG. Salary in dollars per hour of grantee staff* $31.68 $31.68 $31.68 $31.68 $31.68 $31.68 Hours per grant spent by grantee staff on process Total cost to GRANTEES of each process $ $317 $3, $127 YOUR YOUR PREVIOUS MEDIAN ORG. Total cost of grant to GRANTEES $4, $475 * Source: 2009 Grants Managers Network Member Salary and Benefits Report Streamlining Assessment Report 10 of 28
11 Cost of Grantmaking - Dollar Return and Net Grant Project Streamline research shows that the cost to grantees of obtaining a grant can be higher than funders may realize. The value of grants can be demonstrated by the number of grant dollars awarded for each hour spent on administrative process over the lifetime of the grant. The value is also demonstrated by the net grant received by the grantee relative to the original grant amount (after the cost of administrative processes). Dollar Return (Median Grant Dollars Awarded per Administrative Hour Required) At the median, your organization awards $1667 per hour spent on administrative processes, similar to the typical funder. Dollar Return inputs YOUR YOUR PREVIOUS MEDIAN ORG. Median Grant $250, $26,838 Hours spent by grantees on application/selection process Hours spent by grantees on reporting/evaluation process Total hours spent by grantees on administrative processes NET GRANT Median grant - $250,000. Your Net Grant size is calculated by determining the median total administrative cost to grantees of your grantmaking process and subtracting that cost from the value of your median grant. The chart to the right depicts the size of your Net Grant relative to the full size of your typical grant. This proportion is shown relative to the proportion at other funders in the dataset. Salary of nonprofit development staff in dollars per hour - $31.68* Total grantee cost per grant - $4,752 NET GRANT RELATIVE TO FULL GRANT At the median, your organization awards a net grant of $245,248, 98.10% of the original grant awarded. The net grant proportion awarded by your organization is similar to that of the typical funder. * Source: 2009 Grants Managers Network Member Salary and Benefits Report. Streamlining Assessment Report 11 of 28
12 Summary of Results - Streamlining Principles Principles of Streamlining In addition to helping funders understand the total cost of their administrative processes, Project Streamline has also developed practices and guidelines to help reduce both grantmaker and grantseeker costs through more streamlined requirements (i.e., less paperwork) and the elimination of duplicative requirements. Strategies to achieve these cost reductions include defining the minimum legal and regulatory requirements for grant application, monitoring, and reporting; promoting "right-sized" requirements that reflect the grant size and/or length of relationship; and encouraging grantmakers to limit their requirements to just the items needed for decision making. Project Streamline research suggests four core principles that grantmakers can adopt to become more streamlined. Taking a fresh look at information requirements with a special focus on what due diligence grantmakers really need to do in order to make a grant. Right-Size grant application and reporting requirements. When grantmaking is right sized, the information and due diligence requirements are proportionate to the size of the grant, appropriate to the type of grant, and take into consideration prior relationships with grantees. Relieve the burden that grantseeking places on grantees with a special focus on improving financial reporting and implementing online systems. Improving communications and obtaining feedback from grantseekers to support and help direct your streamlining efforts. Your organization scored lower than the typical funder on the Take a Fresh Look principle. Your organization scored lower than the typical funder on the Right-Size Grant Expectations principle. Your organization scored lower than the typical funder on the Relieve the Burden principle. Your organization scored similarly to the typical funder on the Clear Communications principle. Streamlining Assessment Report 12 of 28
13 Summary of Defining Elements - Take a Fresh Look The Take a Fresh Look principle seeks to encourage funders to examine their due-diligence requirements, including the distinction between the basic legal requirements and the other fact-finding activities that help grantmakers make wise decisions about a particular organization or proposal. Your summary score indicates that your organization scored lower than the median funder with respect to measures of the Take a Fresh Look principle. Survey Items included in Take a Fresh Look score Points Possible Different requirements for previously funded organizations 10 Potential to decrease information collected during selection process 12 Potential to decrease information collected during evaluation process 12 Proportion of renewal grants awarded 10 Proportion of multi-year grants awarded 10 Estimated proportion of grants for which your organization acknowledged and discussed reports/evaluations 16 Time lapsed since your organization reexamined the information it requires in your application/selection and reporting/evaluation processes 30 Total 100 TAKE A FRESH LOOK SUMMARY SCORE MORE STREAMLINED LESS STREAMLINED Streamlining Assessment Report 13 of 28
14 Take a Fresh Look (1) Please estimate the mix of materials you require applicants to submit through the regular application process relating to compliance/accountability and program/impact assessment Mix of Application Materials How do the materials required/requested of applicants differ for previously funded organizations, if at all? How much could your organization decrease the information collected during the application/selection process without compromising its ability to make a funding decision? Approximately what proportion of the grants your organization awards require some type of formal reporting/evaluation? YOUR YOUR PREVIOUS MEDIAN FUNDER 100% of grants % of grants Please estimate the mix of reporting/evaluation materials and activities you require of grantees relating to compliance/accountability and program/impact assessment Mix of Reporting/Evaluation materials and Activities Streamlining Assessment Report 14 of 28
15 Take a Fresh Look (2) To what extent would it be possible to decrease the information collected during the reporting/evaluation process without compromising your organization's ability to assess the success of a grant? What proportion of the total number of grants awarded by your organization through the regular application process in the past fiscal year were renewal grants (grants awarded to the same organization for approximately the same purpose)? YOUR YOUR PREVIOUS MEDIAN FUNDER 0% of grants -- 43% of grants What proportion of the total number of grants awarded by your organization through its regular application process in the most recently completed fiscal year were multi-year grants? YOUR YOUR PREVIOUS MEDIAN FUNDER 100% of grants -- 2% of grants Please estimate the proportion of the total number of grants in the most recently completed fiscal year for which your organization's staff acknowledged and discussed the results of reports/evaluations with the grantee organizations. YOUR YOUR PREVIOUS MEDIAN FUNDER Reports acknowledged 100% of grants % of grants Reports discussed 90% of grants -- 30% of grants When was the last time your organization formally reexamined the information it requires in your application/selection and reporting/evaluation processes? Application/Selection Reporting/Evaluation Streamlining Assessment Report 15 of 28
16 Summary of Defining Elements - Right-Size Grant Expectations The Right-Size Grant Expectations principle seeks to encourage funders to assess the appropriateness of their administrative processes for the size of the grant awarded. Your summary score indicates that your organization scored lower than the median funder with respect to measures of the Right- Size Grant Expectations principle. Survey Items included in Right-Sizing Grant Expectations score Points Possible Existence of a simpler process for renewal grant requests 25 Existence of a simpler process for smaller grant requests 25 Number of reports grantees typically required to submit per year 25 Decision processes regarding deadlines for reports 25 Total 100 RIGHT-SIZE SUMMARY SCORE MORE STREAMLINED LESS STREAMLINED Streamlining Assessment Report 16 of 28
17 Right-Size Grant Expectations (1) Does your organization have a simpler process for renewal grant requests? If no, what is your primary reason for not having one? Does your organization have a simpler process for grants that are significantly smaller than your typical grant? If yes, up to what grant size can grantees go through a simpler process? YOUR YOUR PREVIOUS MEDIAN FUNDER $10,000 If no, what is your primary reason for not having one? Streamlining Assessment Report 17 of 28
18 Right-Size Grant Expectations How many total reports (interim and final reports) are grantees typically required to submit per year? YOUR YOUR PREVIOUS MEDIAN FUNDER Single-year grants 16 reports -- 1 reports Multi-year grants 16 reports -- 1 reports How does your organization most often decide the deadline for reports? Streamlining Assessment Report 18 of 28
19 Summary of Defining Elements - Relieve the Burden The Relieve the Burden principle seeks to encourage funders to assess whether they are unnecessarily outsourcing the administrative burden to grantees. Your summary score indicates that your organization scored lower than the median funder with respect to measures of the Relieve the Burden principle. Survey Items included in Relieve the Burden score Points Possible Requirement for grantees to provide information that may be publicly available 10 Methods for developing reporting/evaluation requirements 10 Provision of support for grantees efforts to collect information to measure results 10 Existence and utilization of Letter of Intent (LOI) process 18 Accepted forms of application/selection and reporting/evaluation materials 40 Acceptance and consideration of selection/application and reporting/evaluation materials developed by organizations other than your own 12 Total 100 RELIEVE THE BURDEN SUMMARY SCORE MORE STREAMLINED LESS STREAMLINED Streamlining Assessment Report 19 of 28
20 Relieve the Burden (1) Does your organization require grantees to provide you information that is publically available (e.g., 990, board lists, audited financials, annual reports)? For grants that have reporting/evaluation requirements, please describe how those requirements are developed. Does your organization regularly provide support explicitly for funder reporting/evaluation requirements? Does your organization's application/selection process have a Letter of Inquiry (LOI) component? If yes, what proportion of all applicants have gone through the LOI process? YOUR YOUR PREVIOUS MEDIAN FUNDER 50% -- 90% If no, what is your reason for not having one? Streamlining Assessment Report 20 of 28
21 Relieve the Burden (2) How does your organization accept application/selection and reporting/evaluation materials? Application/Selection Process Reporting/Evaluation Process YOUR YOUR PREVIOUS MEDIAN FUNDER YOUR YOUR PREVIOUS MEDIAN FUNDER Online System No -- 46% yes Yes -- 52% yes Fax No -- 15% yes Paper No -- 59% yes Online System No -- 29% yes Yes -- 75% yes Fax No -- 25% yes Paper No -- 64% yes If you have an online system, does your organization's online system have the following characteristics? Accepts documents in different forms Stores information from year to year for previously funded grantees The ability to view the entire application before submitting it Printing capabilities Character or word limits Does your organization accept the following items during its application/selection and reporting/evaluation processes in formats other than your own? Grantee budget information in grantee formats Common applications Application formats from other funders Grant reporting formats from other funders Streamlining Assessment Report 21 of 28
22 Summary of Defining Elements - Clear Communications The Clear Communications principle seeks to encourage funders to use clear, straightforward and helpful communications with grantees. Your summary score indicates that your organization scored similarly to the median funder with respect to measures of the Clear Communications principle. Survey Items included in Clear Communications score Written communication resources and information available on your organization s website or in print to applicants and grantees Points Possible 26 Frequency of providing specific reasons to unsuccessful applicants for declining their proposals 15 Direct communication with grantees about the reason for and use of required information 24 Mechanisms in place for receiving feedback from applicants on your administrative processes 15 Type of feedback mechanism 20 Total 100 CLEAR COMMUNICATIONS SUMMARY SCORE MORE STREAMLINED LESS STREAMLINED Streamlining Assessment Report 22 of 28
23 Clear Communications (1) Are the following resources and information available on your organization's website or in print to applicants/grantees? Published funding guidelines Description of your mission and goals Description of your strategy Individual program area descriptions and/or detailed descriptions of priorities Deadlines for applications or an explanation of your review of applications on a rolling basis List of funded grantees Answers to frequently asked questions List of suggested resources in addition to grantmakerprovided materials List of staff contact information Detailed descriptions of funded grantees and projects Examples of applicants and projects that were ineligible or unsuccessful Detailed descriptions of information to be included in reports/evaluations Examples of reports and evaluations How often does your organization give specific reasons to unsuccessful applicants for declining their proposal? Streamlining Assessment Report 23 of 28
24 Clear Communications (2) Please estimate the proportion of grantees your organization directly communicates with about the use of information collected during the application/selection and reporting/evaluation processes. Application/Selection Reporting/Evaluation Does your organization have a mechanism in place for receiving feedback from applicants and grantees on your administrative processes? If yes, how does your organization receive feedback from applicants and grantees on your administrative processes? Designated person and/or address YOUR YOUR PREVIOUS MEDIAN FUNDER No -- 13% yes Anonymous feedback directly to funder No -- 17% yes Feedback collected by third party No -- 15% yes Streamlining Assessment Report 24 of 28
25 Appendix (1) The following data was not used to calculate your streamlining scores, but may be helpful as you consider your options to further streamline administrative processes at your organization. How often does your organization require each of the potential application materials listed below in the regular application process? LOI Full Proposal/Application Financial Information Project Budget/Financials Financial Information Organization Budget/Financials Proof of Eligibility Annual Report Staff Lists Board Lists Streamlining Assessment Report 25 of 28
26 Appendix (2) How often does your organization require each of the potential reporting/evaluation materials listed below? Third Party Evaluations Meetings/Phone Calls/Site Visit Financial Information Project Budget/Financials Financial Information Organization Budget/Financials Quantitative Outcome Data Qualitative Outcome Information What proportion of the number of grants awarded (approved) through the regular application process in the most recently completed fiscal year fall into the following categories? YOUR YOUR PREVIOUS MEDIAN FUNDER Project/Program Support 60 % -- 68% Operating Support 40 % % Other Types of Support 0 % -- 0 % Percent of grants awarded per number of applications. YOUR YOUR PREVIOUS MEDIAN FUNDER Percent of grants 71 % % Streamlining Assessment Report 26 of 28
27 Your Streamlining Efforts Your organization reports having undertaken the following efforts in the last year towards streamlining your grant processes: We have re-evaluated the purpose of each evaluation procedure. We are also currently in the process of revamping our proposal guidelines. Streamlining Assessment Report 27 of 28
28 Resources Project Streamline Please visit the Project Streamline website to access the Guide to Streamlining series, a set of tools and resources to help grantmakers apply Project Streamline principles. Current guides include: Online Applications and Reporting Identifies the essential and gold standard features and practices of online systems to help your grantmaking organization select and implement or retrofit a system that is user-friendly and designed to help grantseekers succeed Grant Budgets and Financial Reporting Many nonprofits find that specialized budget and financial reporting requirements are some of the most time-consuming and burdensome aspects of grantseeking. This guide can help your organization streamline its grant budget and financial reporting requirements in ways that benefit your organization and your grantees. Online Grant Applications: A Review of Vendors A comparison of the features offered by some of the most widely-used grants management products. Making Streamlining Stick A guide to starting and developing buy-in for a streamlining process at your organization. Right-Sizing Guide When grantmaking is right-sized, the information and due diligence requirements are proportionate to the size of the grant, appropriate to the type of grant, and take into consideration prior relationships with grantees. This guide will help your organization think through the opportunities to right-size your own process. For these and other Streamlining resources please visit: Grants Managers Network Please visit the GMN website to learn more about effective grants management practices: Center for Effective Philanthropy Please visit the CEP website to learn more about grantee-funder relationships: Please feel free to contact CEP with any questions about this report: streamline@effectivephilanthropy.org Streamlining Assessment Report 28 of 28
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