Planning for Sustainability: Acquiring Public Funding
Learn about the nature of public funding, its advantages and disadvantages, what you need to do to obtain it, and what you need to consider once you have it.
-
WHAT IS PUBLIC FUNDING?
-
WHY SHOULD YOUR ORGANIZATION APPLY - OR NOT APPLY - FOR PUBLIC FUNDING?
-
HOW DO YOU FIND OUT ABOUT THE AVAILABILITY OF PUBLIC FUNDING?
-
HOW DO YOU POSITION YOUR ORGANIZATION TO ACQUIRE PUBLIC FUNDING?
-
HOW DO YOU APPLY FOR PUBLIC FUNDING?
-
WHAT DO YOU DO IF YOU'RE SUCCESSFUL?
Chapter 46 is about making sure your organization can continue for the long term. In order for that to happen, you obviously need a number of things: a competent and committed staff, an organizational structure that works, appropriate space, community support... and money. Stable, adequate funding is the holy grail for just about every organization that sees itself as more than temporary. There are many possible sources of stable funding, but one of the most readily available -- and probably the largest -- is public money. A share of it may provide the foundation you need if you want to institutionalize your organization.
This section discusses the nature of public funding, its advantages and disadvantages, what you need to do to obtain it, and what you need to consider once you have it. It may be the answer to your prayers, or your worst nightmare... or both. You have to examine all the angles to decide whether public funding is a good option for your organization. This section should give you much of the information on which to base that decision.
WHAT IS PUBLIC FUNDING?
Public funding, in its simplest terms, is funding that comes from the public treasury. It's the taxpayers' money, and the funding of health, human service, environmental, community development, and other public service programs is one of the ways it's spent for the common good. Public funding may come through federal, state, or local government channels, and those channels are usually different at each level.
- Federal funding comes from federal taxes -- the money that individuals and for-profit businesses pay to the IRS, in other words. The federal government usually doesn't fund small organizations directly, but rather parcels out money to states for funding various activities. On occasion, however, the government -- often for pilot programs or the like -- will offer research or program money to community -based or grass roots organizations. In this case, it is generally an agency of a government department that oversees the process.
For example, OERI, the Office of Educational Research and Improvement, an agency of the U.S. Department of Education, offers grants for research on specific educational topics. Although most of its grants go to state agencies or universities, it occasionally funds community-based organizations.
- State funding, as mentioned above, may come from federal money, or it may come from the state's revenues. These vary by state laws, but may include state income taxes, sales taxes, taxes on other commodities (cigarettes, gasoline, restaurant meals), fees for state government transactions (car registrations, professional certification, various permits), and even lottery sales. As with the federal government, it is generally an agency or office of a state government department or division (Department of Public Health, Department of Employment Training, Department of Environmental Management, Division of Youth Services, etc.) that makes the decisions and administers funding. Most of this funding goes to local organizations, which may be community -based or other nonprofits, local government entities, school systems, etc. In the case of contracts, money may also go to for-profit and/or out-of-state concerns that submit successful bids.
- Local funding may come from federal or state sources, or from local - county and municipality - fees and taxes, particularly property taxes. Although local governments may also work through agencies, many, especially smaller, counties or municipalities may administer funds through an individual -- an Administrative Assistant, Town Planner, Human Service Coordinator, etc. These funds are limited to the county or municipality which offers them, but an outside organization that serves a sizeable number of residents may still be eligible for them.
An organization that served the homeless located in one western Massachusetts county nonetheless regularly received money from another, because it maintained shelters in that county as well.
WHY SHOULD YOUR ORGANIZATION APPLY -- OR NOT APPLY -- FOR PUBLIC FUNDING?
Public funding has its advantages and disadvantages, but there are a number of good reasons why you should consider tapping into it.
ADVANTAGES OF PUBLIC FUNDING:
- Public funding often represents the largest amount of money available to fund organizations or initiatives. A fairly populous state has a budget of tens of billions of dollars. The federal government budget is in the trillions. Thus, even a very small portion of the budget can represent a large amount of money for programs -- in the tens, or even hundreds of millions of dollars. That can very nicely cover the few -- or even more than a few -- thousands your program needs.
- Public funding is often more reliable and more long-term than private funding. Once public funding for a particular issue becomes a recognized item in the budget, it is often refunded without much question, year after year.
- Public funding is often appropriated specifically for what your organization does. The federal government, most states, and many local governments offer money for such services as substance abuse treatment, youth services, community health education, adult literacy, mental health services, etc. It is often easier to ask for money already designated for what you want to do than it is to convince a funder that what you're doing is worthwhile.
- Public funding gives your organization more credibility in the community. It establishes you as a "legitimate" entity, and makes it easier to gain community moral and financial support.
- Public funding may make it easier for your organization to gain funding from other sources. Both the fact that a public funding source saw you as fundable, and the fact that you've already done the work of becoming eligible for public funding, could make another funding source -- public or private -- more willing to work with you.
An adult literacy program, already funded by two state sources (the Department of Education and the Department of Employment Training) was able, as a result, to get funds from a third, the Department of Public Health, to add health education to its services. The facts that it already had fulfilled the requirements for state funding, and that it had a good reputation with its other state funders contributed greatly to its successful application.
- Public funding is subject to advocacy, and therefore you may have some influence on how much of it is available. Through an advocacy or professional organization or a grass roots coalition, or simply through educating the public, you may be able to convince legislators about the need for funding for your particular issue.
Public funding may be just the answer you've been looking for... or it may not. Along with its considerable pluses, it can carry some distinct negatives as well.
DISADVANTAGES OF PUBLIC FUNDING:
Access Checklist, PowerPoint