HOW WE BASE OUR FEE SCHEDULES FOR GRANT WRITING SERVICES

RETAINER PROGRAM & PER GRANT FEES VS. PERCENTAGE

A great many organizations may ask if they can pay a percentage of the acquired
funds and the more inexperienced grant writer will agree with those terms. This is
not the case with MRodgers – FCS. A grant writer paid on commission may put
their own self-interest ahead of the nonprofit's mission. They may promise the
funder more than the organization can deliver, in order to get a larger grant and
get paid more. They might inflate the budget to earn a larger commission. They
may apply for huge grants that are too large for the nonprofit to manage. They may
seek grants with a quick turn-around simply to get paid sooner, even if a longer-
term grant would be of greater benefit.

While percentage payment does not necessarily cause these problems, it certainly
creates a temptation that would not exist for a grant writer paid on an hourly or
project basis. Commission grant writing also undermines the relationship with the
funder, because most grantmakers disapprove of it and will not fund an
organization that pays its consultants on this basis.

The most obvious reason why percentage fees are unethical in the grant writing
field is that they usually involve falsifying the project budget in the proposal. Very
few funders and no government agencies allow the grant writer's fee to be "written
into the grant" as a line item in the project budget. So organizations that do this
frequently disguise the grant writer's fee as something else -- a salary for the
"Project Director" or "Evaluator."

Proposals succeed or fail for a number of reasons, most of which are out of the
Grant writer's control. Among these are:

The strength of the project: its feasibility, whether it meets a clear community
need, and whether it has a well-planned budget.

How well the project fits the funder's interests.

The non-profit's reputation, track record and financial history.

Relationships in regards to how well the funder knows and trusts the non-
profit's board and staff.

Competition in regard to how many other requests the funder has received and
from whom.

Funds and timing: how much money the funder has available in this cycle.

The state of the economy and the funder's finances: whether their assets are
growing or shrinking.

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

81 Johnson Park – Buffalo, New York 14201

www.mrodgers-fcs.com – mrodgersfcs@msn.com
Phone: 716-440-1106 – Facsimile: 716-852-0183
__________________________________________________________________

Finally, a key element is the quality and persuasiveness of the proposal. This is the
part the grant writer controls, and it is important. But even the most beautifully
written proposal will fail if other factors are not in its favor.

Grant writers are skilled professionals who deserve to be paid for their time and
expertise. They are an important part of the fundraising team, but it takes the
work of the whole organization -- as well as favorable circumstances -- for a grant
proposal to succeed. That is why the grant writer's fee should not be tied to the
success of the proposal.

"But we're a small organization, just starting out," says the Grassroots Community
Association. "How are we supposed to pay a grant writer if we don't have any
money?"

The direct answer to this objection is: "If you don't have any money, you're not
ready to apply for a grant." Grants are rarely an organization's first dollar, nor
should they be.

Most funders are wary of start-ups, and many require an organization to have its
501 c 3 for two or three years before applying. Grants are not the bread-and-butter
of nonprofit revenue; most unrestricted contributions come from individuals.

The Giving USA chart of private (non-government) giving for 2002 shows that 84%
of contributions come from individuals (including bequests), while only 11% comes
from foundations and 5% from corporations. New nonprofits don't need a grant
writer who works on contingency; they need to develop a long-range organizational
plan, including a plan for building their membership and raising funds from
individuals. For their first dollar, they need to get support from their board.

The following pages will provide you with the Fee Schedule MRodgers – FCS
adheres to in order to assure we keep a high ethical standard in working with tax
exempt organizations. If you have further questions, or would like to propose a
payment plan, feel free to contact us:

By e-mail – mrodgersfcs@msn.com

By phone – 716-440-1106

By snail mail – 81 Johnson Park, Buffalo, NY 14201

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

81 Johnson Park – Buffalo, New York 14201

www.mrodgers-fcs.com – mrodgersfcs@msn.com
Phone: 716-440-1106 – Facsimile: 716-852-0183
___________________________________________________________

MRODGERS – FCS GRANT RETAINER SCHEDULE

With our Retainer Program we are available to your organization to:
- Write and submit proposals,
- Conduct prospect research for all program needs,
- Help prioritize your funding requests,
- Keep you informed of new grant opportunities,
- Write interim and year-end donor reports,
- Maintain a spreadsheet for your organization's grant activity.

Your organization will receive a monthly Work Summary Report that details all
services rendered and hours worked. In all cases, clients will receive a written
contract clearly outlining each party's obligations, timeline and payment schedule.

Additionally, a Retainer Agreement reserves our services for when you need them.
For example, with a Retainer you have a reserved slot for your needs. If something
arises that you need performed, there is no need to try to catch us when we’re
available – we already are for you.

One Month –

$3,000 (Deposit of 50% at start of contract)

Six Months –

$16,500 (Deposit of $4,125 at start of contract with monthly billing)

$2,475 for the balance at the third week of each month

Twelve Months –

$30,000 (Deposit of $7,500 at start of contract with monthly billing)

$2,045.50 at the third week for 10 months and a final month billing of $2,045

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

81 Johnson Park – Buffalo, New York 14201

www.mrodgers-fcs.com – mrodgersfcs@msn.com
Phone: 716-440-1106 – Facsimile: 716-852-0183
___________________________________________________________

MRODGERS – FCS PER GRANT SCHEDULE

REQUESTED AMOUNT FEE PER GRANT

$499 OR UNDER (SMALL GRANTS) $100
$500 - $999 $250
$1,000 - $9,999 $450
$10,000 - $24,999 $575
$25,000 - $49,999 $950
$50,000 - $99,999 $1,950
$100,000+ $1,950 p/$100K unit*
*Example - $150,000 ask = $2,925 fee

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

81 Johnson Park – Buffalo, New York 14201

www.mrodgers-fcs.com – mrodgersfcs@msn.com
Phone: 716-440-1106 – Facsimile: 716-852-0183
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