Tag Archives: executive directors

Why Clients Love and Hate Us (and Other Consultants), With An E-mail Example

As any consultant knows, some clients will hate you and some will love you. That’s certainly true of us, but the funny thing is that clients love and hate us for exactly the same reason.

It sounds counterintuitive, so let me explain using a recent “we love you!” e-mail from a client as an example:

Your assistance was truly invaluable; we could not have accomplished all of this without your excellent work. We really appreciated the Documents Memo, the specific deadline dates, the direction, advice and guidance and when you left decisions up to us, that was clear.

Please use us as a reference any time and any comments I’ve written here. Whether we get the funding or not, you provided us the opportunity to present the best package possible and best opportunity for funding.

We get attaboys like this regularly, and we like reading them because we take pride in our work.* Clients are often surprised when we do what we say and say what we do, which tells us something about other would-be grant writers.

We also treat all of our clients more or less the same way, which means that we produce complete and technically accurate proposals and minimize the amount of work our clients have to do. This means that we tell clients exactly what they need to do, how they need to do it, and when we need every piece of an individual proposal, which makes many of them love us.

But some clients hate us because we tell them exactly what they need to do, how they need to do it, and when we need every piece of an individual proposal. This thoroughness and lack of ambiguity actually makes them unhappy if they don’t really want to submit the application or want someone to blame if the application is rejected for reasons outside anyone’s control (which we’ve discussed previously here and in “True Tales of a Department of Education Grant Reviewer“).

A certain number of clients hire us, as far as we can tell, because they want to be able to tell others that they’re Doing Something. “Doing Something” is separate from wanting to turn in a complete proposal. An attitude like this doesn’t bother us, but when we first came across it it did surprise us. Usually these clients don’t hate us, but they rarely love us.

Then there are the clients who hate us, most often for things outside of our control. They don’t like that yes, in fact, they do need every single item listed in the documents memo if they want to be funded; they don’t like that we must have comments on the first draft within, say, a week, otherwise there’s not going to be adequate time for the second draft; they don’t like that we’re honest and direct; and so forth. We don’t make the deadlines. We only conform to them.

Our work is similar across clients: we read the RFP, deliver the documents memo (or “doc memo”), write the drafts of the proposal, prepare the budget, and assemble the final submission package. What’s interesting to us is the wide array of reactions we get from our clients. One of our challenges is to maintain our equilibrium regardless of our clients’ reactions. This is probably a problem universal to consultants.

Some are like the client quoted above. A small but real number of others aren’t. But we see our job as maximizing our clients’ probability of getting funded, and we do this by turning in complete and technically accurate proposals without missing a deadline. How our clients treat and feel about us varies widely for reasons largely outside our control.

On another note, grant writers are not miracle workers, although we sometimes resemble them, and we’re not True Believers (hence Isaac’s post, “Does Seliger + Associates ‘Care’ About Our Clients?“). Neither are other consultants, though they may pretend to be True Believers. We sometimes look like we are, but that most often happens when clients do as much as they can to help themselves too.


* In my other life, I’m a grad student in English Lit at the University of Arizona, which means I teach two sections of English Composition per semester. Usually I get a couple of “this class changed my life” e-mails after finals week. One of my favorite began this way:

I just wanted to thank you again for this semester. Although I enjoyed the material of the course, what I will keep with me for the rest of my life is what the course made me think about. Like I said, I am always one to (over…)-analyze and question things but doing a lot of the “why” exercises really helped me organize my thoughts in all areas of my life.

These messages give me hope during the inevitable experiences with apathetic or indifferent students, and the positive e-mails from students and clients are often pretty similar. Here’s a recent example from a client: “Your comments are good, helpful, and easy to understand.”

The Ups and Downs of Using a Fiscal Agent to Apply for Grants

We sometimes write proposals, usually for foundation grants, when the applicant is not tax exempt under Section 501(c)(3) of the Internal Revenue Code (IRC). Most government grant programs and almost all foundations require that the applicant be a public benefit, tax exempt organization, but one can also use a fiscal agent/fiscal sponsor. A fiscal agent can enable an individual (e.g., artist, researcher, inventor, explorer looking for the The Lost City of Z,* etc.) or unincorporated associations (e.g., Citizens for a Better Owatonna, Residents United Against Everything, etc.) to be considered for grants. The ineligible individual or entity has to make a deal with the 501(c)(3) organization to, in effect, borrow their tax exempt status and be responsible for the grant funds received.

The upside of using a fiscal agent is that the project proponent can try to get their snout into the funding trough without going through the time consuming process of forming a corporation (e.g. finding folks willing on the board of directors, obtaining a nonprofit charter in their state, etc.) and applying for and getting a Letter of Determination of Tax Exempt Status from the IRS. While it is possible to form a new nonprofit and obtain a Letter of Determination by yourself (I first did it when I was about 21), most people use a attorney and/or accountant to do the paperwork and must pay application fees at significant expense while waiting from six to nine months for the paperwork to wind its way through the state and federal bureaucracies.

This makes using a fiscal agent attractive, particularly if the project proponent wants funding for something urgent, like, say, cleaning oil-soaked birds in the Gulf today, providing post-Hurricane Katrina disaster relief in 2005 or offering case management for those newly diagnosed HIV in 1985. It is also a good approach for artists and other individuals who want to concentrate their creative energies on outcomes, not process.

The advantages to the grant user are obvious, but what’s in it for the fiscal agent? Some established organizations genuinely are interested in expanding availability of services in their community and want to lend a hand to emerging nonprofits. Others, a cynic like myself might conclude, are looking to collect administrative fees and influence the direction of service delivery in their bailiwick. But, whatever the motivations on both sides, fiscal agency remains popular.

As a result, we occasionally accept selected grant writing assignments involving fiscal agents, but only after we explain the potential pitfalls and challenges, such as:

  • The plausibility of the fiscal agent/grant user relationship, which increases if the fiscal agent conducts activities at least vaguely similar to the grant user. It is hard, for example, to explain why a domestic violence prevention organization is serving as the fiscal agent for a documentary on the American Revolution. It is important to not give the impression to the funder that the 501(c)(3) fiscal agent is “renting” its tax exempt status.
  • It is not good if the 501(c)(3) fiscal agent appears to be a shell organization to serve only as a pass-through to the ineligible grant user. For example, for-profit medical groups sometimes set up a “captive” 501(c)(3) affiliate. While the captive may be an eligible applicant, if it has no track record and grant funds will be used to hire the medical group, or some of its docs, the relationship may be seen as a sham. There are many situations, however, in which this affiliated nonprofit relationship is perfectly innocent and accepted, such as when a school district establishes a 501(c)(3) “educational foundation” to raise money through donations or grants to supplement tax revenues. Since many foundations will not fund entities like school districts, which are taxing entities, the affiliated nonprofit structure has become quite common and accepted.
  • Even if the intentions of both parties in the fiscal agent relationship are believable, the real problem often emerges when the grant seeking effort is successful. It’s fine to contemplate the nuances of fiscal agent responsibilities in the proposal world, but the real world complicates things. To paraphrase Grandmaster Flash in one of the first rap anthems, White Lines, “The money gets divided / The fiscal agents get excited.” When grant funds start flowing, the fiscal agent will often suddenly develop a need and deep interest in what the grant user is doing. In extreme cases, the fiscal agent may simply deep-six their “partner” to run the program themselves and there will be little, if anything, the grant user can do about it.

If your idea is good enough to be grant-worthy, it is probably worth your time and money to establish a new nonprofit and obtain tax exempt status instead of using a fiscal agent. Unless there is urgency to the problem being addressed, it is best to form the new nonprofit at the start. Otherwise, you are telling the funder that you are hedging your bets by not investing in the new organization until the grants are approved, implying that you want the funder to take a risk while you are unwilling to do so.


* An explorer seeking grants for an expedition to find the Lost City of Z actually contacted us about 12 years ago. I explained that he needed a fiscal agent, but he never called back. Either he couldn’t find a fiscal agent or, like John Voight in one of my favorite “big animal” movies, Anaconda, was swallowed by a large snake on his way through the Amazon to Z.

We were also hired by a fellow seeking grants through a fiscal agent to set up a reserve for Komodo Dragons. We lost contact with our client after he left for Komodo Island in Indonesia, where he may have been eaten by a dragon. His fate is unknown, but I will leave the rest of this tale for another post.