Creating an All-Inclusive Contract for Grant Writer Services: Fundamental Elements of a Grant Writer Contract

The Duties/Responsibilities of a Grant Writer

The grant writer plays a crucial role in the success of any funding proposal. At its core, the goal of a grant writer is to ensure that your organization meets the complex requirements for grant application and award. Given the enormous number of grant proposals that range from local to national levels, grant writers become experts in preparing and submitting proposals in a wide range of formats and answering the unique needs of multiple funding sources. The key attributes of a successful grant writer are an ability to convey a substantial amount of programmatic and fiscal information succinctly and defining the goals of a grant or funding proposal. Often the actual proposal writing process occurs as a team effort so that the grant writer understands the goals of the organization , adheres to the required proposal format; and clearly defines the program or project in relation to the grantmakers stated goals and objectives. From the perspective of the grantmaker, their primary goal is to ensure their funds are awarded to the organization with the most merit, clearly defined goals and the ability to achieve the proposed outcomes. Grant writers also play a central role in securing resources to help with further proposal preparation, program implementation and evaluation. Successful grant writers may often have dedicated time and resources to ensure they are able to compete and win grants as well as develop long-term relationships with program officers and grants managers. Both elements are critical as grantmakers strive to lower their risk when awarding funds.

Why You Need a Comprehensive Agreement for Grant Writer Services

For both the grant writer and the client, having a detailed contract in place before starting work on the grant is crucial for many reasons. From providing clarity from the get-go to setting expectations, and even providing legal protection, it is best for everyone involved when specific details about payment terms, deadlines, and work scope are laid out ahead of time.
As is often the case with nonprofit organizations, you may find that the grants where you are the most valuable (and have the greatest expertise) are the ones that don’t pay. For instance, your latest success story may be with an organization that, despite its mission and aim at doing great things, simply does not have deep enough pockets to afford a grant writer. However, they are in need of grant funds, and you just can’t help but lend your talents to them. The bottom line is this: sometimes it is simply not worth the trouble to put up contracts in order to write grants for free. For those times, it is best to keep emails as your running record. Establishing rules around your personal Best Practices for donating your writing time and skills will probably save you headache long term.
Of course, when you are working with grant writers, you are attempting to turn a profit. This means that you certainly want to make sure that contracts are in place. A clear contract puts all parties on the same page and makes sure there are no surprises. Contracts should not only include payment terms and deadlines, but also provide information about whether or not the grant writer will be privy to other intellectual property such as databases or lists.
Contracts also help to provide legal protection because if the client fails to uphold their end of the bargain (i.e. doesn’t get funding) you can at least get paid for work you did.
In addition to basic safeguards for both parties, here are some of the areas that should be included in your contract:
• Scope of Work – define boundaries from the beginning so that both parties agree on what the grant writer is expected to do and how involved they are going to be. What is the end goal? What are the deadlines and are they flexible? Which party will handle which aspect of the process?
• Payment Terms & Schedule – is it 50% upfront, and then 50% upon completion of writing? Is it hourly? Including this in the contract will provide you with security. It protects you from having to write extra work that you don’t get paid for.
• Expenses – what are they? Are they included in the contract?
• Ownership – Who owns the work? Although work for hire clauses commonly belong to clients, many grant writers prefer to retain ownership of their work. Retaining ownership of proposals can allow grant writers to reuse information in new proposals. If this is the case, never use the language "prepared by" in the proposals. Instead, use terms like "with the assistance of" or "with comments from."
• Deadlines – if you’re bringing writers onto the team, you may want to implement penalties for work that comes in after the deadline.
• Communication – the contract goes both ways. It sets the standard for communication as well—you want to make sure you know what to expect from us, and we want to know what to expect from you.

Core Components of a Contract for Grant Writer Services

Regardless of your fee structure, the contract must contain an accurate scope of work, payment terms, and timelines (including potential penalties for missed deadlines). Confidentiality clauses are always a best practice. And termination conditions should allow either you or the nonprofit to terminate the contract without incurring penalties, provided you each give notice of 30 days or more. Also be sure the contract clarifies that any in-house tangential work is not part of the grant writer’s fee; it’s frequently more cost-effective to let the nonprofit do any heavy lifting rather than "double charging" for work being performed by both the consultant and the nonprofit team.
A sample grant writer contract should include the following:

  • Scope of Work – A detailed description of work to be performed that could be clearly understood by the organization’s volunteer board members, restricting its scope to tasks that can adequately be priced.
  • Work Products – A list of products the grant writer will provide, such as award letters, e-mails, reports, schedules, and conference summaries.
  • Fees – Unless you’re a firm, this component will likely include three figures: (a) the hourly or monthly fee, (b) the minimum number of guaranteed hours to perform the services, and (c) the maximum number allowed in the event you cannot fulfill the terms of the contract (termination). The contract should also clearly state the fees for required travel and accommodation.
  • Payment Terms – Payment terms should include due diligence on your part, with no more than the first two payments due upon signing the contract, and the balance due only upon completion of the deliverables. Be cautious if you are asked to invoice the organization in accordance with an existing payment schedule. This clause can allow a nonprofit to withhold all fees as long as the project is not completed, even if it has not provided you with everything you need to do your work.
  • Timelines – These will include deliverables, completion dates, and even timelines for submitting various parts of the application for review by your client before submission.
  • Indemnification – This clause will limit your liability to the use of your services. One of the simplest forms of indemnification requires the nonprofit to indemnify you for its errors and omissions. In the case of group clients such as regional or community foundations or collaborative like-minded organizations that hire grant writers as a group of grant writers or proposal assistants, indemnification clauses become much more complex and should always be reviewed by an attorney.
  • Termination – No matter how optimistic you are about your prospects for success, you are likely to encounter at least one client who refuses to pay your final invoice or dismisses your services as substandard. The termination clause will give you a clear process to follow in the event of conflict, and will also allow your clients to cease work for whatever reason they deem necessary.
  • Confidentiality – A confidential disclosures form is recommended for you and the nonprofit, and nondisclosure clauses should be included in all contracts to protect both parties and the nonprofit’s clients.

Considerations for Negotiating a Contract for Grant Writer Services

Negotiating terms can be the most daunting aspect of the process, but these strategies will help you both feel good about a contract. Determine your range and follow it. You can’t reach an agreement if both parties don’t have an idea about what they want and what they’re willing to accept in terms of compensation. You may be in the position of negotiating a flat rate payment, an hourly rate, or perhaps a percentage of any grant award received by the organization. Naturally, you want to be fairly compensated for your time and effort, and the organization must be able to commit to a specific budget amount. Before you engage in negotiations, think through what you need in terms of salary and benefits like health insurance, vacation time, and professional development opportunities. Think about how much income you want to earn in the next year, and divide that by the number of jobs you expect to do, to determine a total ‘per job’ payment amount that you can live with. Then figure in what the organization is actually able to pay you, based on their grant history, and you’ve easily identified your range . With a range in mind when you sit down at the negotiation table, you’ll both have the same framework for the rest of the negotiation process. Communicate openly and clearly. It’s critical that both parties be upfront about their needs and wants early on in the process, so that both sides have an accurate picture of what they can offer and accept in terms of compensation. Aim for a low-stress negotiation process, which can allow you to spend the bulk of your time on actually grant research and writing. Make space for flexibility and compromise. Being flexible and open to compromise means that you’ll be in a stronger position to negotiate a contract settlement that you can both agree on. For instance, understanding that the organization can only offer up an hourly rate of $40.00 per hour is a good first step, but allowing the organization to pay you based on a logical time estimate of how long it should take to complete that particular proposal is an even better solution.

Mistakes to Avoid in Grants for Business Agreements

One of the most common mistakes is not having a robust agreement in place to outline the work to be done. This could lead to a "he said / she said" situation over the scope of work and payment terms.
There are plenty of predatory practices in the grant writing industry. Grant writer or freelancer misrepresented his/her expertise or had a history of not completing grants as written or on time. Be sure you check any reviews, complaints or news articles on the individual or business.
Whether you are a non-profit, university, or small business, make sure you are specific in your request for qualifications and contracting with a grant writer who matches your needs and goals. Does he or she have experience in your region or industry? Is he or she familiar with grant programs that are suited for your organization’s particular program? Another thing to clarify upon signing is whether the grant writer will still receive compensation after the grant is submitted. If so, what exactly is that compensation tied to—did the grant get funded and if so, how much? Or, is it simply a matter of getting the grant submitted?

Contract for Grant Writer Services Sample Template

This grant writer contract template is provided for illustrative purposes only. Please consult an attorney in your jurisdiction for professional advice regarding particular situations or questions. This contract is made between ______________(Consultant) , located at ________________________________________________ for the purposes of hiring a grant writer for ______________ (Purpose) for the fiscal year ___________. The work will be performed during the term of _____________ through ____________________. The Consultant agrees to be the fiscal agent for the purpose of grant writing for ___________________________________________________________________ (Specific Purpose) and submits a budget in the amount of $_______________________ for the consultants and contractors required to perform the service. A current resume of all personnel to be used for this task is attached hereto. The grant proposal will be based on the current state of: The Consultant agrees to provide monthly or bi-weekly progress reports of grant activity upon request including updates of the budget and itemized billing of grant development. Payment of the Consultant will be within _____________ days of receipt of said progress report and associated invoice.

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