HUD’s Lead Hazard Reduction grant program and the hazards of government autopilot

The NOFA for HUD’s Lead Hazard Reduction (LHR) grant program just came out, and it has $275 million to undertake, as usual, “comprehensive programs to identify and control lead-based paint hazards in eligible privately-owned target housing.” LHR NOFAs are issued every year or two, which is fine, but those of you who are alive and able to read or access the Internet are probably aware that there’s another health hazard out there this year, and it’s a health hazard that’s probably more urgent than lead-based paint—lead-based paint has been illegal in the US since 1980 and HUD’s been funding LHR grants for at least 30 years (we know, because we’ve written so many funded LHR proposals). It’s hard to believe that there’re all that many housing units left in the US with lead-based paint, but HUD soldiers on.

Sure, lead is a health hazard, but COVID-19 is also a health hazard; if I had to bet which one most persons would consider more hazardous right now, I’d bet on COVID-19. $275 million may be a small amount of money by federal standards, but I wonder how much the staff at HUD thought about whether public housing authorities (PHAs) and cities want to work on lead abatement this year, versus how much they’d like and need to work on COVID-19 abatement; $275 million can buy a lot of masks, education, and tests (although tests are still in short supply right now). It’s not really the fault of HUD bureaucrats, since LHR grants have been authorized by Congress for for decades and Congress usually just keeps funding programs like this, no matter what’s going on in the real world. Nonetheless, it would seem to me that a simple, bipartisan vote to amend the underlying legislation would be relatively easy—instead, LHR, at this point, is indicative of the dangers of government autopilot. Autopilot is fine in clear, consistent weather, but it can be disastrous during unpredictable storms—and the world has been hit by a storm in 2020.

I’m not presenting an argument against lead-hazard control: I don’t know enough to say whether lead-hazard control remains, in the absence of a pandemic, a (relatively) good idea or a (relatively—compared to other health-related activities) bad idea. I’ll posit, however, that a lot more people are going to die and suffer from COVID-19 this year, than will die or suffer from lead-based paint, and the failure to change course in the face of new events is evidence of deeper malaise.

Links: The online ad bubble, funny RFPs, college grads and job training, the nature of behavioral health, and more!

* “The new dot com bubble is here: it’s called online advertising.” One could alternately ask, “What do we really know about the effectiveness of digital advertising?” The answer seems to be, “Not much.” The idea that many companies throw away tens or hundreds of millions of dollars annually, and in some cases more, seems barely believable.

* One of my favorite recent RFPs is for “Strengthening U.S.-Ukraine Business Relations while Addressing Social Issues through ‘Serious Game Jam.'” That’s from the Dept. of State, and it has $100,000 to “introduce U.S. companies to the Ukrainian gaming industry and promote good corporate governance by creating a platform for U.S. developers to collaborate with their Ukrainian counterparts on tackling social issues through ‘serious games.'”

* You may have heard that 41% of college grads are working jobs that don’t require the degree. What should this do to our view on college for everyone, as a panacea to our economic woes? In other education news, “U.S. Higher Education Has a Foreign Money Problem“—but this is mostly the rich, highly marketed schools. Having been a part of higher ed for a long time, I favor a much stronger push towards apprenticeships and vocational education. Lots of people don’t like sitting still and doing abstract symbol manipulation, and we should stop pretending that those personality traits are key to a meaningful life.

* “The evidence for evidence-based therapy is not as clear as we thought.” That shouldn’t, for now, stop you from citing CBT, MET, etc. in your SAMHSA proposals. It still seems, however, that we don’t really know what makes therapy work or how it should work: we’re still leaping in the dark. Colorado, however, looks like it will, in November, decriminalize psychedelics, and a number of research projects are using psychedelics for therapy.

* Owning a car hurts your health. “Beijing has limited the number of new car permits it issues to 240,000 a year… Those permits are issued in a monthly lottery with more than 50 losers for every winner.” Older winners gained more than 20 pounds, compared to the control group of non-winners. Given COVID-19 social distancing and fears, it may be a while until mass transit gains its recent luster.

* Book Review: Just giving. I was surprised by the first quarter of the review and didn’t see the shift coming, although in retrospect I should have.

* Why the US sucks at building public transit. If we could get better at this, we could slash many households’s transit costs and thus free up more money for anything and everything else. Except for endless COVID-19 news, which is scaring most people off of public transit, even though wearing masks on public transit appears to prevent COVID from spreading.

* “Why Japan is obsessed with paper.” I have complained periodically about American publishers not being obsessed with paper at all, and the crappy paper quality used in most books. The New York Review of Books books are among the notable exceptions.

* “In the Future, Everything Will Be Made of Chickpeas.” One hopes. A pressure cooker helps.

* “In Philanthropy, Race Is Still a Factor in Who Gets What, Study Shows.” This is the New York Times, after all.

* For over a decade, the Permian Basin in Texas and New Mexico has been the epicenter of the American oil boom. Now, it’s the epicenter of its demise. I’ve read versions of this article a couple times already. The Permian Basin could be going back the back economic times that served as the backdrop for the book, movie, and great TV series, Friday Night Lights.

* Can genetic engineering bring back the chestnut tree? If so, that would be great news: chestnuts produce lots of cheap food and good wood. And, then there’s Jurassic Park style dinosaurs. Maybe they’ll love to eat genetically engineered chestnuts.

* The Early Days of China’s Coronavirus Coverup. If not for Chinese censorship, the rest of the world might have been much better prepared.

* The new language of telehealth. Maybe.

* “Exclusive: Tesla’s secret batteries aim to rework the maths for electric cars and the grid.” Maybe. It does seem that nickel and low-cobalt batteries are coming. The second-life systems are also hugely impressive: one rarely appreciated reason to pick electric vehicles is that their batteries can be repurposed for grid storage when the car itself reaches end-of-life. Here is one story on how “Millions of used electric car batteries will help store energy for the grid.”

* Cities are transforming as electric bike sales skyrocket. It is now possible to buy very good electric bikes for $1,500 retail and less-good ones for about $1,000. In this case, COVID-19 terror should help.

* The pandemic is bringing us closer to our robot takeout future?.

* MacOS 10.15: Slow by design. Thankfully I haven’t “upgraded,” although this is not an actual upgrade. We have written periodically about how we use Macs at Seliger + Associates, but we may need to re-think that usage given Apple’s direction.

Generalized human and social services: ACF READY4Life and Fatherhood FIRE RFPs

Astute newsletter readers saw two useful Administration for Children and Families (ACF) Office of Family Assistance (OFA) RFPs with lots of money available (albeit with overly long names) in our last edition: Fatherhood – Family-focused, Interconnected, Resilient, and Essential (Fatherhood FIRE) and Relationships, Education, Advancement, and Development for Youth for Life (READY4Life). Both have grants to $1.5 million for family formation and resilience services. A phrase like “family formation and resilience services” should make smart nonprofit Executive Directors sit up and take notice, because we’ve seen fewer overt generalized human services grants over the past few years—the kind of grants that we sometimes call “walkin’ around money.

Smart organizations figure out that these kinds of grants can be used to fill in the cracks of an organization’s budget, because the project concepts that can be funded are broad. Also, in most cases, only a process evaluation (e.g., number of outreach contacts made, number of referrals, etc.) is feasible, since there’s usually no way to tract outcomes. In the ’90s and ’00s we saw more broad, general-purpose RFPs, but we’ve seen fewer since the Great Recession. The feds seem to have lost interest in many kinds of general-purpose grants and have instead been targeting particular services, like primary health care and job training.

Many organizations are already doing things like fatherhood and family development, but without calling their activities “fatherhood and family development.” Federally Qualified Health Centers (FQHCs), for example, often serve low-income patients who are impoverished by single parenthood, usually in a female-headed household. Nimble FQHCs should apply for READY4Life, Fatherhood FIRE, and similarly nebulous grant programs, since they can re-brand their existing Case Managers and Patient Navigators as “Family Support Coordinators” and “Parenting Specialists.” Obviously, the FQHC wouldn’t say as much in the proposal—that would be supplantation—but, in the real world, a lot of organizations keep their lights on and their clients happy using these strategies.

Organizations apart from FQHCs should be doing this too. Job training and homeless services providers, for example, often work with populations that need family reunification training, and the organizations are already often providing wraparound supportive services. Funders love synergistic proposals that say things like, “We’re going to do job training services for ex-offenders, and those ex-offenders will also be eligible for Fatherhood FIRE services in order to ensure that they remain in their children’s lives.”

Increased funding for generalized human services typically follows some kind of seismic societal shock. Seliger + Associates began in 1993, soon after the Rodney King verdict civil unrest, which was soon followed by the onset of mass school shootings with Columbine. Then came the Great Recession: the feds respond to social turmoil with huge new grant programs (21st Century Community Learning Centers was an example) and big budget increases for existing programs (like the 2009 Stimulus Bill). With the COVID-19 crisis, the cycle is repeating. Since March, three giant stimulus bills have been passed, with at least one more likely. The enormous civil unrest and protests unfolding after the recent police killing of George Floyd will likely lead to grant programs too; the feds’s objective is to get grants on the streets quickly to nonprofits, which act as a kind of buffer to politicians.

With growing “defund the police” sentiment in big, left-leaning cities, politicians are engaging in a sort of bidding war with proposed police budget cuts; politicians say some version of, “We want to redirect huge amounts of police budgets to solving the underlying problems that generate crime.” Translated, this means, “We plan to fund local nonprofits to conduct some kind of human services.”

Grant writing in another time of civil disturbances

Once again, I find myself writing grant proposals during a time of tragic civil disturbances across America.* My entire life and career have been shadowed by such events. I came of age in the 1960s, a time of extreme social unrest, both race-related—like the 1965 Watts Rebellion—as well as often violent anti-Vietnam protests. I went to my first civil rights march in Paducah, KY in 1965 (my older brother was working for the then-new Job Corps there) and participated in many anti-war marches while in college at the University of Minnesota. As I wrote about in my first GWC post in 2007, “They Say a Fella Never Forgets His First Grant Proposal,” I got my grant writing start working as a community organizer in North Minneapolis in 1972. I grew up in North Minneapolis, when it was a Jewish, trending Black, ghetto, and the community was devastated by what were then called “race riots” in 1967 and 1968. In 1972, my job was to try to get some local businesses going again, as North Minneapolis hadn’t recovered—and, in many ways, it still hasn’t recovered.

In 1992, the genesis of what ultimately became Seliger + Associates was born out of the ashes of the civil disturbances following the Rodney King verdict. I happened to be visiting friends in the Hollywood Hills when the disturbances began, and we could see the fire burning across South LA and Koreatown that night from their deck. Based on my experiences over the years, I assumed that huge amounts of federal grant funds would follow soon, and that it might be a good time to ditch my career as as city-slug community development director and try setting up a grant writing business instead. I did just that in 1993 and discovered that there was indeed a market for good grant writing consultants. The timing was also propitious because the incipient Internet allowed us to work for people across the country in a way that wasn’t possible before it.

Flash forward: in 2014, I wrote a post about about grant writing and the Ferguson, MO civil disturbances in which I noted that grant money follows major incidences of civil unrest. The government only has two real tools to use in this situation: the stick of yet more policing (the problems of which are readily observable in the news) or the carrot of grant funds to help the affected communities recover.

As I write this, civil unrest is unfolding from Minneapolis to NYC, LA, and much of the rest of America, following the obvious, videotaped murder of George Floyd.** These horrific images are juxtaposed with the inspiring images of the first manned SpaceX/NASA launch. It’s very troubling to realize that, while much has changed since I was a high school freshman in 1965, some things haven’t; then, I was listening to Barry McGuire’s huge hit single, “Eve of Destruction“: “You may leave here for four days in space, but when you return it’s the same old place.” The reference is to the Gemini 4 flight and civil rights marches/violence of the era. Feels like we’re poised on another Eve of Destruction.

Unlike Ferguson in 2014 and LA in 1992, today’s situation is more like the huge unrest that followed MLK’s assassination in 1968 in that it has radiated out to more than 40 cities and, after five nights of burning and looting, shows no sign of abating. This is unfolding after months of COVID-19 lockdowns, and those most harmed by both the virus and the lockdowns have been low-income communities of color. I’ve worked in and around these communities for over four decades: when the lockdowns began, I thought and discussed privately (but not in a post) that this could lead to great civil unrest. I wasn’t talking about the gun guys marching in front of state capitols, but rather what erupted last week in Minneapolis. While I couldn’t predict the spark, I suspected civil unrest would follow. Force millions of low-income workers to stay at home in overcrowded housing, while their jobs and incomes evaporate, and this outcome should not be surprising. If it wasn’t George Floyd, it would have been something else. I read James Baldwin’s The Fire Next Time when I was a teen and it rings true today: “God gave Noah the rainbow sign / No more water but fire next time.”

The combination of civil unrest and tens of thousands of small businesses closing in places like South Minneapolis and Flatbush in Brooklyn will be devastating for years and possibly decades to come. As noted in a recent New York Times article, “According to one recent poll, nearly 40 percent of adults living in cities have begun to consider moving to less populated areas because of the outbreak. In New York, where I live, roughly 5 percent of the population — or about 420,000 people — have already left.” For the near term, gentrification and densification of cities, big and small, is over.

Still, the twin scourges of COVID-19 and civil unrest will present great grant opportunities for nimble nonprofits, cities, and other public agencies. The three COVID-19 relief bills passed so far are raining over $2 trillion on the country, much in the form of grants, with a fourth bill likely to pass soon. We’ve been writing COVID-19 proposals furiously for two months and know that at least $2.4 million in COVID-related grants we’ve written has already been funded. The inevitable huge increase in available federal grant money, due to the civil unrest, will soon follow. If you run a nonprofit, city department, or school district, once you’re done mourning for George Floyd and recovered from the shock of COVID-19, be ready. The grant waves this time will likely center on primary health care, behavioral health services, workforce development, and economic development. It’s not inconceivable that we’ll eventually address the underlying pathologies that have bedeviled American history since before the country’s founding. But I’ve been hoping for that for decades and it remains elusive.

* For purposes of this post, I’m focusing on the negative aspects of what’s happening, not the legitimate underlying protests against police brutality. I’ll leave the details of those issues to others, while noting that police unions create systemic challenges around dealing with police misconduct; the Supreme Court’s doctrine of qualified immunity is the other challenge. The date stamps on both those links are from years ago; knowledge about these problems has circulated among intellectuals and policy nerds for years.

** On a personal note, I took my Golden Retriever to doggy day care Sunday morning, which I do most Sundays. The store, Posh Pet, is just off the part of Melrose Avenue in West Hollywood that was trashed Saturday night. When I got there, I found this sign in the window: “We have dogs here. Please don’t break window.” The glass door was smashed and the business completely looted. No idea what happened to the dogs being boarded. This small business was barely hanging on, due to COVID-19. Now, it may never reopen.

Foster Family Agencies (FFAs) and why political rhetoric rarely focuses on child abuse

Tyler Cowen asks an interesting question: “Why the low status of opposition to child abuse?” A reader speculates that, on the cultural left, “the highly visible progressive segment that drives wokeness, is culturally powerful, etc.” does not emphasize child abuse, and, “while there’s nothing obviously wrong with their attention to sexual and racial discrimination, the energy put into it is disproportionate to the massive social cost of child abuse.” One possible answer to this query is that, as Cowen posits, “virtually everyone is against child abuse, so opposing it doesn’t make anyone significant look worse.” Another reader lists some reasons the political right could be quiet, and he says that “you can’t even think of a solution [to child abuse] by reasoning from your political views.” I’d venture another component: detecting child abuse is frequently hard because it occurs inside the home and away from most eyes, plus, once it has been unambiguously detected—what then?

What’s the alternative when the family is abusive, or, more readily and frequently, borderline abusive? Many GWC readers already know that the existing foster family system (FFS) can be characterized in a variety of ways, but “harmonious, well-funded, and functional” are rarely among them. Something like “completely f-ed up” is probably more common, in candid conversation if not publicly.* Most foster “family parents” are in effect small businesses in that they receive monthly payments from the contracting foster family agency (FAA),** which are higher for higher-risk kids. With several high-risk kids in the household, monthly payments can rise into the thousands of dollars—the foster kids know this and know they are, in some respects, a commodity. Still, some foster parents are saints (if you are one or know one and you are about to leave a comment, let me say that I’m aware of great and loving foster families) but most are running a very small enterprise on a tight margin. Plus, as much as I hate to say it, some number of foster families are motivated by the the very unattractive, horrific, and illegal impulses that you might imagine motivate them. To counteract bad actors, one needs a whole massive bureaucratic oversight machine, which is itself expensive, invasive, and onerous—and it discourages the well-meaning people who might otherwise participate. Most of us don’t want our homes randomly invaded by snooping, judging strangers.

We’ve worked for many FFAs over the years, and every FFA has the same publicly stated goal, which is aligned with the mission of county child protective services agencies: to facilitate family reunification, whenever possible. Birth families and/or relatives have to be very bad for the kid(s) to be worse off than they are in foster care, given the well-known shortcomings of the FFS. The honest FFAs will admit as much, again off the record. For family reunification, DHHS even has an RFP on the street, “Quality Improvement Center on Family-Centered Reunification.” It only has one grant available, which means it’s wired, so we’re unlikely to write one of these, though we’ve written other proposals in this genre.

It’s also important to understand that FFAs are themselves thin-margin businesses, which are often organized as nonprofits in only the most nominal of senses. The FFS in most states uses contracts with FFAs that reimburse the FFAs for the actual number and types of kids placed and the length of the placement. It is in effect a reimbursed per-capita arrangement that incentivizes the FFA to keep their census of placements as high as possible to cover fixed costs like staff and endlessly recruiting, training, and monitoring foster families. The many things that can go wrong with this structure are fairly obvious.

I have seen occasional articles like “The Best Thing About Orphanages:”

Duke University researchers issued the first report on their multiyear study of 3,000 orphaned, abandoned and neglected children in developing countries in Africa and East and South Asia. About half were reared in small and large “institutions” (or orphanages) and half in “community” programs (kin and foster care). Contrary to conventional wisdom, the researchers found that children raised in orphanages by nonfamily members were no worse in their health, emotional and cognitive functioning, and physical growth than those cared for in their communities by relatives. More important, the orphanage-reared children performed better than their counterparts cared for by community strangers, which is commonly the case in foster-care programs.

I don’t have a final answer to this issue, but orphanages have such bad PR in the United States that I doubt they’ll ever be seriously tried. Any politician who seriously proposes trying them is going to be compared to a Dickens villain and will likely be courting career suicide (on the other hand, I never thought we’d see legal marijuana, and here we are). The last major politician to make a pitch for orphanages was Newt Gingrich in 1990s, and that went nowhere (“[Gingrich] dared to suggest that some welfare children would be better off in private orphanages. In making his off-the-cuff comments, he ignited a media and policy firestorm, the general tone of which was best captured by First Lady Hillary Rodham Clinton, who dubbed the idea ‘unbelievable and absurd'”). Still, given our work with FFAs, I would favor some experimentation in the direction of orphanages, as long as they were re-branded with some clever moniker (“Growth Homes?”). Having a large number of adults watching each other and the kids is probably at least not worse than the current system, although I don’t see orphanages as a panacea. There is no panacea and some problems lack solutions.

All the problems above around foster care enumerated above are only exacerbated by teenagers, who are technically legally “children” but who often have non-childish impulses, are hard to control, and often run away. Even a 13 or 14 year old boy can be six feet tall and weigh 160 pounds or more. Girls present a different set of challenges.

Ideally, most political stances come with a set of solutions, but orphanages have a bad rap, more money would help the current system without alleviating its most pressing problems, and abused kids and FFAs are not large enough interest groups for their votes to be salient to politicians. There are lots of problems that we as a society prefer to sweep under the rug and not think about—it appears, for example, that “Air Pollution Reduces IQ, a Lot.” We could fix a lot of air pollution by depreciating gasoline-powered cars, but most people would prefer to ignore the issue and the incredible damage we do to kids’s health through cars. Animal meat processing factories are another example: if you kick a dog in public, you might be arrested and charged with a crime, but most of us prefer to ignore the horrific things that happen in meat processing factories. Foster care is yet another area in which we hope for the best and prefer not to know too much about what’s really happening.

While I was writing the precursors to this post, I also realized something unusual about grant writing: I don’t know exactly how to describe the vantage point we have, but it’s not a common one: we’re in this purgatory that’s not where most people thinking about social science and government policy reside. We’re in an intellectual and observational place halfway between the on-the-ground implementers and the in-the-tower legislators and academics. We’re not called on to dream up new programs, ideas, problems, or data, like academics and legislators, but we’re also much closer to the problem space, while not being completely mired in immediate day-to-day experience. Because we’re at a higher level of abstraction than most implementers, we can see comparisons that on-the-ground people sometimes miss, while still seeing enough of the ground floor to have a better idea what’s going on than some academic/legislator-types do. Almost no one asks us what we’ve seen and what we can see across organization types—for example, at one point, “We imagined foundations would hire us to help improve RFPs/funding guidelines. We were wrong.” That essay was written in 2015 and since then, zero funders have sought feedback. I’m not sure what to do with this observation, apart from noting that we see some things other people miss.

* We learn many interesting things from clients, most of which we can’t say publicly. Silence is one of our virtues.

** You can tell that we’re dealing with government because of the number of acronyms in play.

You’d think there’s no pandemic going on: The FCC shuts down its COVID-19 Telehealth grant submission portal

One of the bigger and more interesting RFPs on the street right now is the FCC’s “COVID-19 Telehealth Program,” which has $200 million available for obvious purposes—but grants are being accepted, reviewed, and approved on a first-come, first-served basis (federal RFPs usually have a fixed due date).* Lots of FQHCs are also implementing, or trying to implement, telehealth programs on the fly, since COVID-19 has hit them with a structural double whammy: patients with COVID-19 need to be isolated as much as possible from other patients, and other patients are avoiding health clinics for fear of catching COVID-19. This has had the unexpected side effect of lowering patient volumes at FQHCs, which, like other healthcare providers, have reacted by laying off staff. You’d intuitively think that, during a pandemic, the need for healthcare staff would expand, but that’s not happened outside of NYC intensive care units.

So the FCC program is designed to help FQHCs and other providers move relatively quickly to telehealth, which may help FQHCs achieve a higher patient volume. On Saturday we were working to backcheck a client’s online FCC application, since it’s our standard practice to make sure that applications are as complete and technically accurate as possible before client upload. But when we tried to log into the FCC’s application site, we were hit by a message telling us that the FCC had closed its application portal for maintenance. Is shutting a site down for “maintenance” still necessary in 2020? The error message felt very 2003, and, as you probably know, we’re in the midst of a pandemic, when every day counts. I guess FCC didn’t get the pandemic memo.

Eventually the site came back up, but its closure seems like a metaphor for many of the challenges we, as a society, are collectively facing from bureaucrats during these strangest of times.

The FCC COVID-19 Telehealth grant program is also unusual because it specifically says that applicants can only buy Internet-connected telehealth equipment—meaning blood pressure cuffs or pulse oximeters that automatically relay information to healthcare providers. I’ve seen budgets for how much these devices cost, and they’re crazy expensive, as most medical devices are. But: did you know that something as simple as an Apple Watch can function as a pulse oximeter—except that FDA regulations are blocking this use? This is the same FDA whose regulations stopped independent labs from rolling out virus testing in February. We try not to link outrage stories here, but it’s hard to read “The Infuriating Story of How the Government Stalled Coronavirus Testing” without being justifiably outraged.

Today, pointless FDA regulations are blocking people from using a relatively cheap and widely available device from being deployed in a medical context. lists “Series 5” Apple Watches at $399 and they’re shipping today (there’s been a pulse ox shortage). Our FQHC clients already know this, but pulse oxes are useful for determining whether a COVID-19 patient needs to be hospitalized, or needs supplemental oxygen. Most COVID-19 patients can recover on their own without medical intervention, but low blood oxygenation is a key danger metric: a normal blood oxygenation level is around 95 – 100. If a patient’s oxygenation level consistently falls below 90, that patient likely needs advanced care. Most households have a thermometer, but relatively few have pulse oxes. Many COVID-19 patients are suffering from what doctors are calling “silent hypoxia,” in which the patient is essentially suffocating but doesn’t realize they’re suffocating, and pulse ox data can tell the patient whether they need to go in to see their doc or to an ER. It would be relatively easy for Apple to allow Apple Watch users to link their health data with a healthcare provider, and for the healthcare provider go get an alert if a patient’s blood oxygenation level drops below 92 or 90. Cheap solutions exist but the FDA keeps us from implementing them.

* Other federal departments have been funding similar telehealth-related grants programs: for example, the USDA has $40 million available via the “Distance Learning and Telemedicine Grants.” Those grants aren’t due until July 13, however.

First SAMHSA COVID-19 FOA out,”Emergency COVID-19,” but the deadline is April 10

With the recent passage of the $2 trillion CARES Act to provide COVID-19 relief, we’ve been closely monitoring the issuance of RFPs. On April 2, SAMHSA issued its first FOA (SAMHSA-speak for RFP) under the Act, “Emergency Grants to Address Mental and Substance Use Disorders During COVID-19.” But the submission due date is April 10, which is just 8 days from the posting. This is a model for what other federal coronavirus-related RFPs will likely look like. Although the RFP length is long, most of the content is SAMHSA boilerplate, and the narrative only needs to be 10 pages. Projects are expected to start by May 31. A May 31 start date may seem slow in this time of war, but it’s incredibly fast by the standards of federal agencies.

Only states, territories, and Indian Tribes are eligible applicants. We’re pointing this program out because RFPs for which nonprofit and public agencies are eligible will likely follow in the coming days, issued from a variety of federal agencies. If you’re a nonprofit, you need to be ready to act fast. Some nonprofits aren’t poised to act. We got a query email, for example, from a nonprofit back on March 3. I sent a fee-quote letter and follow-up email that day. The nonprofit disappeared, then, on March 25, sent an email asking for a further call two to three weeks later. Six or more weeks to make a decision to apply may work in normal times, but a culture of inactivity during a crisis is a real liability.

NYT: Nonprofits should focus on grant writing, not donations, during the COVID-19 crisis

We’ve written two recent posts on the impact of COVID-19 on nonprofits, “COVID-19, donations, and foundation and government grant proposals” and “Less obvious things that impact human services during the coronavirus pandemic.” During an economic crisis like this one, most nonprofits will probably be gob-smacked with cash flow problems, while demand for services, particularly among human services provides, skyrockets.* Since thousands of businesses are suddenly closed, millions are unemployed, and the stock market is gyrating downward, seeking donations is mostly a waste of time and it’s not possible to hold galas and fundraisers. To avoid organizational disaster, the only option for most nonprofits is to immediately conduct grant source research and start submitting foundation and government grant proposals. If the nonprofit lacks internal capacity to do this, hire a consultant like Seliger + Associates.

A recent New York Times David Streitfeld article confirms this, “A New Mission for Nonprofits During the Outbreak: Survival.” Although Streitfeld incorrectly conflates donations and grants, the articles reaffirms what we said in our posts—foundations react to economic crises, at least in the short term, by vastly increasing their grant making:

Foundations, traditionally not among the spryest of organizations, learned from 9/11 and severe hurricanes that they could move fast. They are quickly retooling to disburse emergency money and relax reporting requirements that are suddenly impossible to meet. Bloomberg Philanthropies, Carnegie Corporation of New York, the Doris Duke Charitable Foundation and 23 other foundations as well as individual donors have created a $78 million Covid-19 rescue fund for New York City nonprofits. Grants will start going out to small and midsize social services and arts and cultural organizations on Monday. Interest-free loans will follow.

In hard-hit Seattle, the Seattle Foundation is administering a $14.3 million emergency program funded by local businesses, foundations and government. It released more than $10 million to 120 organizations this week.

These are probably not “donations,” and the nonprofits will likely have to submit proposals of some sort and, unless nonprofits are actively searching for such foundation support, most will miss out entirely. Foundation largess, however, will not last. Within a few months, the spectacular decline of their endowments will sink in and the the fire hose will be reduced to a normal flow—or even a trickle.

While the NYT piece doesn’t cover it, the same phenomenon is happening with government grants, but at a much higher level. In addition the normal billions of federal grant dollars up for grabs, billions more are included in the three COVID-19 Stimulus Bills passed so far, with Congress likely to past several more bills.

So, the time to seek foundation and government grants is now.

* Since grant writing in the time of COVID-19 is a strange experience, this is good time to read or re-read Gabriel Garcia Marquez’s wonderful magical realism novel, Love in the Time of Cholera.

COVID-19, donations, and foundation and government grant proposals

We’ve been in business since 1994 and have written proposals during several economic shocks; in the Great Recession in 2009, donations to nonprofits began drying up as soon as the stock market began diving (we wrote as much at the time). A decade later, COVID-19 is sending the economy into what could be a second Great Depression. While hopefully the crash will be v-shaped, there’s no way to know when a rebound will start, since much depends on the public’s response and on the success or failure of the drugs in clinical trials.

Nonprofits, and especially human services providers, are being torn between higher service demands and evaporating revenue. Particularly hard hit are Federally Qualified Health Centers (FQHCs); about 1,400 FQHCs deliver front line healthcare to Medicaid and other low-income patients. Total patient population estimates differ, but FQHCs may serve as many as 30 million people. FQHC CEOs have been telling us they have very limited capacity for treating infectious disease patients (no separate waiting rooms, scarce protective gear, etc.) and face staffing shortages, because clinicians staying home to watch their now out-of-school children. Some clinicians are pregnant and some are sick themselves. Inadequate testing infrastructure has been well-covered in the media by now.

Some nonprofits, like Head Start and other early childhood education providers or behavioral health service providers, face the same grim reality, as their centers are closed and third-party payments become delayed or non-existent. For other nonprofits that depend on donations, fundraisers, and/or membership dues (e.g., Boys and Girls Clubs, YMCAs, museums, performing arts, etc.) are likely even worse off. John Macintosh just wrote in the NYT that COVID-19 could mean extinction for many nonprofits. But this extinction can be averted—and will be by nimble nonprofits.

For the short term, nonprofits should stop or reduce screaming empty bowl-in-hand emails and mailers for donations. With the stock market in free-fall and unemployment probably already 10% and on a path to 20% *barring a sudden drug trial that works), seeking donations is delusional. When businesses, small and large, suddenly have zero revenue, millions are being laid off, and 401Ks being decimated, donations will quickly decline, no matter how good the cause or the relationship with the donor. Also, there’ll be no galas, art auctions, and other fundraisers for who knows how long.

The only real option for most nonprofits is to quickly ramp-up grant seeking and grant writing. As has been the case in previous economic crises, the federal response will likely be to dump money into grant programs and issue RFPs. In addition to already authorized FY ’20 federal funding for grant programs, by this week Congress will have passed three huge COVID-19 stimulus bills totally close to $2 trillion—dwarfing the 2009 Stimulus Bill. These bills will have a lot extra money for existing programs, as well as for a flock of new grant programs.* We saw this in 2009, when we wrote proposals for all kinds of oddball programs and projects, and this will unfold again with astonishing speed. Federal agencies will approve grant proposals much faster than usual—like most Americans, the federal bureaucracy rises from its normal stupor to meet extreme challenges. But RFPs are likely to have very short deadlines. Nonprofits that start preparing for intense grant writing will be more likely to succeed.

Most foundations, meanwhile, respond to crises like this by quickly increasing the amount of funds available from their endowments and speeding up their normal approval processes, both to address issues related to the crisis, as well as to keep essential nonprofits operating. In addition to emergency operating support, foundations will be very interested in project concepts relating to primary care access, public health education and outreach, telehealth, and behavioral health. But this foundation response won’t last more than about six months. At some point, they’ll turn off the spigot, either because their endowments will have been depleted too much or the crisis will have passed.

Even nonprofit royalty, which usually don’t sully their hands will grant writing, unless the grants are wired, know that reality has changed.** You may have read, “Met Museum Prepares for $100 Million Loss and Closure Till July.” The author reports that the Met will be “fundraising from foundations and pursuing government grants.” If the Met is turning to grant writing, so should your nonprofit and the sooner the better.

Want to talk about how Seliger + Associates can help? Give us a call at 800.540.8906 ext.1. By the time you read this, your organization’s leadership will probably already be convening meetings about what to do next.

* Extraneous program authorizations in federal spending bills are common and referred to as “ornaments.”

** As Bob Dylan put it in Things Have Changed, “People are crazy and times have changed.”

Less obvious things that impact human services during the coronavirus pandemic

The news about coronavirus focuses rightly on life and death and the struggles of hospitals, as well the need for social distancing and the suspensions of large gatherings. Emergency measures that last for a few weeks are one thing, but it looks like this crisis may continue for several months. While the media is generally doing a good job of crisis coverage, some aspects of particular interest to nonprofit human services providers are being narrowly covered at best.

For example, arrests by the LAPD are dropping, and many court systems are deferring or dismissing non-felony cases, since no one wants coronavirus to rip through jails. It’s hard to say what lowered policing and low-level case dismissal means: maybe many arrests were bogus in the first place. But maybe they weren’t, and we’re likely going to see substantially increased crime as people adjust to this new normal—most big city cops aren’t arresting people, even for such fairly serious crimes as burglary and car break-ins. It’s also possible that petty crime—and even crime in general—will decline because would-be criminals are at home and either don’t want to get coronavirus themselves, or they know most people are holed up at home, and many of those holed up at home are armed. It’s beyond the purview of our knowledge and subject matter to discuss this in detail, but there’s also a lively debate about whether most crime is premeditated versus simply persons seeing what they perceive as opportunity and then acting on it.

Some incarcerated persons are already being released early; released arrestees and, more importantly, recently released prisoners need something productive to do and to earn legitimate income—which usually means case-managed job training and placement of some kind. We’ve written many funded proposals for services for ex-offenders and, even in good times, this is not an easy population to work with. The unemployment rate is likely 10% and may spike as high as 20% in the coming months, further complicating matters. In the short term, however, there’ll be huge need, and likely lots of grant money available, to provide these services. Training and placement, alway challenging, will be hard, given social distancing, but some nonprofits have to try, perhaps with sufficient social distancing measure and/or tele-case management.

Another issue: thousands of 12-Step Program meetings, like Alcoholics Anonymous, are being cancelled—and these programs are based mostly on in-person peer support. Behavioral health provides will have to suspend in-person individual and group sessions, leaving millions more with SUD/OUD and/or severe and persistent mental illness (SPMI) more or less on their own. Add the incredible stressors of job/income loss, stay-at-home orders, and the like to addiction and mental health issues, and a huge human toll is likely. We’ve seen estimates that 10% of the US population has mental health or substance abuse challenges that are mitigated by in-person support. Most people don’t get the same effects from digital communications tools that we do from in-person interaction. Still, this is an opportunity for nimble nonprofits to seek foundation and government grants to establish or scale-up tele-behavioral health services.

Lots of people have realized that shuttered movie theaters may never recover; fewer people are thinking openly about what we ought to be doing with the most vulnerable persons who are facing serious disruptions, on top of the obvious coronavirus disruptions.