Tag Archives: competition

Is it Collaboration or Competition that HRSA Wants in the Service Area Competition (SAC) and New Access Points (NAP) FOAs?

HRSA just issued a Funding Opportunity Announcement (FOA, which is HRSA-speak for RFP) for the Service Area Competition (SAC). SAC FOAs are issued each year for different cities and rural areas in which HRSA has existing section 330 grantees, including Community Health Centers (CHCs), Migrant Health Center (MHCs), Health Care for the Homeless (HCHs), and Public Housing Primary Cares (PHPCs). Without going too far inside baseball, as section 330 grantee contracts expire, HRSA groups them together and forces them to reapply while encouraging other organizations to complete for the contracts. Hence the word “competition” in SAC.

SAC applicants are required to respond to a section of the FOA called “Collaboration” by describing “both formal and informal collaboration and coordination of services with other health care providers, specifically existing section 330 grantees, FQHC Look-Alikes, rural health clinics, critical access hospitals and other federally-supported grantees.” I’m guessing that if your organization is applying to take the contract away from the current Section 330 grantee, that grantee is probably not going to be in much of a mood to collaborate with your application and give you a letter of support.

To put a requirement for “collaboration” in a FOA that uses the term “competition” in its title demonstrates HRSA’s cluelessness. A particularly fun aspect of the SAC FOA is that HRSA pats itself on the back by stating in the Executive Summary that “For FY 2011, the HRSA has revised the SAC application in order to streamline and clarify [emphasis added] the application instructions.” The instructions are 112 single-spaced pages and the response is limited to 150 pages! And there a two-step application process involving an initial application submitted through our old friend Grants.gov, as well as a second application with a second deadline through a HRSA portal called Electronic Handbooks (EHBs). That’s what I call streamlining and clarifying. I would hate to see the results if HRSA tried to complicate and obscure the application process.

HRSA has another FOA process underway for the New Access Points (NAP) program, which I recently wrote about in “The Health Resources and Services Administration (HRSA) Finally Issues a New Access Points (NAP) FOA: $250,000,000 and 350 Grants! (Plus Some Important History).” A quick search of the FOAs reveal that the term “collaboration” is used at least 32 times in the NAP FOA, compared to 8 times in the SAC FOA. I suppose collaboration is four times as important in writing a NAP proposal that in writing a SAC proposal. For those with inquiring minds, the word “competition” is not used at all in the NAP FOA. As far as I can tell, HRSA does not let NAP applicants know that, if they are successful, they will eventually have to compete to keep their contract, while simultaneously committing to collaborating with their competitors. Since I have written many NAP and SAC proposals, I know how to thread this word needle by writing out of both sides of my Mac. But novice grant writers and new HRSA applicants will find this a challenge.

For more of my reasoning on the essential pointlessness of requiring grant applicants to profess their undying commitment to collaboration, see “What Exactly Is the Point of Collaboration in Grant Proposals? The Department of Labor Community-Based Job Training (CBJT) Program is a Case in Point.”

Grant Writing Confidential Scoops the Wall Street Journal and More on Being Creative in Finding Funds During the Great Recession

As the editor of my high school newspaper—the Cooper High School Hawk’s Quill—and a short-lived college journalism major, I take great delight in scooping the Wall Street Journal. Shelly Banjo wrote Donations Slip Amid Anxiety on June 9, which said:

For the second year in a row, philanthropy has seen the deepest decline ever recorded by the Giving USA Foundation, which has tracked annual giving since 1956. Donations fell 3.6% to $303.75 billion last year, down from $315 billion in 2008, according to the latest Giving USA study, released Wednesday. In 2008, they were down 2%.

Faithful readers will note that I made more or less the same point in my May 29 blog post, Tough Times for Folks Means More Grant Writing for Nonprofits, although with more humor and helpful advice. If one read Ms. Banjo’s article and knew little about nonprofits, one would get the impression that the end is nigh. This is because her article, like most stories about nonprofits, perpetuates the conventional wisdom that all nonprofits depend exclusively on donations, which is simply not true.

As I pointed out in my post, while donations are important, particularly for certain kinds of nonprofits, most human services providers support their service through grants, fee-for-service contracts, third-party payers and/or quasi-business enterprises, in addition to donations.* These alternative revenue streams, which can be ramped-up when donations are down, are not mentioned by Ms. Banjo and the cast of nonprofit “experts” she quotes and data she cites.

Although new contributions to foundations may be down, foundations still must give away 5% or so of their endowment every year, and the feds, through the Stimulus Bill and lots of other appropriations, have keep the grant spigot wide open. Cagey nonprofit executive directors are busy writing grant proposals and dreaming up other revenue strategies, not wringing their hands and gnashing their teeth over declines in donations. But not in the conventional wisdom world of newspaper writers.

A second Wall Street Journal article by Jennifer Levitz and Stephanie Simon on June 12, “A School Prays for Help”, confirms the importance of getting creative during tough times. While this article mostly discusses public schools, police departments and other public agencies seeking alternative funding sources, the same concepts apply to nonprofits.

In this article, the writers describe how some schools are getting local churches to “adopt” them and other strategies for what amounts to advertising in order to supplement limited tax dollars. Nonprofits can do the same sorts of things instead of just waiting around for donations to pickup.

One of the several odd aspects of a church providing donations to a public school, however, is that the church itself is a nonprofit that depends almost exclusively on donations from its members. Why would they do this? One reason could be that the church expects to get new members from school parents and staff, and they will eventually try to extract donations from the new members. In other words, the church and the school are probably competing for donor dollars and the church may be taking the longer view that investing a small amount of its money now, derived from its members, will result in more members and more money later.

While most nonprofits and public agencies like to present themselves as collaborating, in reality they compete with one another for donations, grants, and all kinds of resources. I pointed this out in What Exactly Is the Point of Collaboration in Grant Proposals? The Department of Labor Community-Based Job Training (CBJT) Program is a Case in Point, a post that generated quite a comment thread.

Some readers understood my point, while other denounced me as a hopeless cynic. Of course, I am a hopeless cynic, but nonprofits and public agencies are largely in competition, and the ongoing economic mess just makes this competition rise to surface, like the somewhat baleful giant crocodile in the best “big animal” movie of recent years, Lake Placid.


* Jake also wrote about funding sources in Bratwurst and Grant Project Sustainability: A Beautiful Dream Wrapped in a Bun.