Acceptance

Congratulations! You received a grant! Now you’re done, right? Wrong. Things just got more complicated.
Calling to say thank you to your contact at the funder is a courteous practice and a great first step in developing a relationship. The funder’s program officer will remember you did this. Also, even when you are successful, it’s a good idea to ask for comments from the trustees or grant panel. Knowing what parts of your proposal appealed to this funder might help you focus proposals to others.
If you received the amount you requested (which is fairly rare), and other funding has been coming in, your program will be fully funded and can proceed as planned. It’s still advisable to review proposals with program staff when the money arrives so you can find out if they’ve already modified the program and take appropriate actions with the funders if needed.
In some cases, reduced funding might make it impossible to carry out the program as described in your proposal. If this is so, the sooner you let all funders know about changes to the program, the better.
In my experience, funders are understanding about changes to programs. If a program will still be able to accomplish its mission and goals (even if it’s conducted in a different manner and serves fewer people), it’s unlikely you’ll encounter a problem. Some funders ask you to send them a letter noting the changes. It’s important you do this so your reports will be based on the modified proposal rather than the original.
Remember: a grant is a contract between your charity and the funder. You’ve accepted the funder’s money on the condition that your charity will carry out a certain program in a particular way in a specified amount of time. The funder has a right to know if any conditions of the contract won’t be met.

A Prompt, Simple Thank You

Within a day of receiving a grant award letter, someone in authority at your charity should sign and send a letter acknowledging receipt of the grant and thanking the funder. Ideally, the same person who signed the cover letter that accompanied the proposal will sign the acknowledgment letter. The executive director, board president, or even the director of development can sign the acknowledgment letter. The important thing is that it be sent promptly.
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HOW TO SAY IT
The thank you letter is the first step in developing a long-term relationship with a funder. Take care to make these letters personal, specific to the grant, and free of boilerplate text (except for the required IRS language).
An acknowledgment letter should contain …
• A thank you.
• A statement that the grant money will be used as stated in the proposal.
• A brief restatement of how the grant will assist your charity and its clients.
• A statement that the funder is receiving no benefit by making the grant (to satisfy IRS regulations).
Here’s a general acknowledgment letter:
Dear Ms. Sterling:
The Community Clinic’s staff faces an enormous challenge every day to meet clients’ needs within the clinic’s limited means. That challenge just got easier, thanks to your generous $6,000 grant. We will use your grant to support the mobile unit that provides free blood pressure and blood tests in neighborhoods throughout the city. We will specifically use it to extend the number of hours the mobile unit operates, as described in our proposal to you.
Since we applied to the Sterling Family Foundation, Lifeline Pharmaceutical, Inc., has made a grant of both cash and equipment that will allow us to update the mobile unit. The better equipment, along with the extended hours made possible by your grant, will make a significant difference in the number of people with heart disease we can identify early and treat.
Your support of this program is greatly appreciated, and we look forward to reporting to you on the execution of the expanded program in due course.
Sincerely,
Herbert Washington, M.D.
Herbert Washington, M.D.
P.S. As you received no goods or services in connection with this grant, it is fully tax-deductible under IRS regulations.
I like to put the legalistic IRS language in the postscript so it doesn’t spoil the flow of the letter, but I just as easily could have inserted it before the last paragraph.
If one of your board members helped pave the way for a successful grant, you should write her a thank you, too. Depending on your relationship with the board member involved, an e-mail or phone call might do. If the grant is particularly large, a letter or call from your board president to the helpful board member would also be in order.

No, I Really Mean Thank You

You can never say thank you too often. Especially with large grants or grants of any size from a new funder, it’s a good idea to send a second thank you a few days later from someone else at your charity. This is especially important if, in order to get the acknowledgment letter out quickly, it didn’t have the same signer as the proposal cover letter.
The second thank you should not repeat any language in the first one. Only the acknowledgment letter should have the IRS language, so you have more freedom creating the second letter. And yes, it might be you writing all the thank you letters, no matter who signs them.

Really, Really Thank You!

A handwritten note from one of your charity’s board members is a nice follow-up to the letters from staff. These are particularly important when you use a board contact to help get the grant. Use the signer’s personal stationery or note cards. These notes can be very short, something like this:
Dear Mary,
I was thrilled to hear that the Sterling Family Foundation has made a grant to the Community Clinic. I know we have you to thank for this. It will mean a great deal to our clients to have the extended service, and it means a great deal to me personally to know we have your support. Thanks so much.
Best wishes,
Cindi
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HOW TO SAY IT
Keep a supply of plain note cards on hand for your executive director or board president to use when sending handwritten thank you notes to funders. If he or she has terrible handwriting, the note can be typed, but have someone with good handwriting address the envelope by hand, and use a stamp—not metered postage—on important thank you letters.

The Least You Need to Know

• Limit your contact with a funder after submitting a proposal to one call to check on receipt and one to check on the result (only if they’re late in responding to you).
• Accept rejections graciously, but call to see if your contact is free to share information about why you weren’t successful.
• Gather as much information as possible in a rejection follow-up call to help you craft the next proposal.
• Don’t give up on a funder with the first rejection unless you’re told flat out not to try again.
• Acknowledge grants received immediately, including the required IRS language about tax-deductibility.
• Follow the acknowledgment with one or more additional thank you letters from different people at your charity.
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