Oak 9b Effective Grant-Making Guidance

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Questions and Answers

What are unrestricted programme grants similar to?

Project grants

Organisational strengthening grants

Core support grants (correct)

Core+ grants

What is the primary goal of core funding?

To provide organisations with flexibility in how they use the funds (correct)

To strengthen an organization's capacity in a specific area

To cover the direct costs of specific projects

To support specific activities with pre-defined outcomes

What is a 'starvation cycle'?

A cycle of funding that emphasizes project support over core support

A cycle of funding that only covers direct project costs, leaving no resources for administrative functions (correct)

A cycle where organizations continually struggle to raise enough funding to meet their needs

A cycle of funding that is too heavily reliant on donor contributions

Which of the following is NOT a common administrative function that not-for-profit organizations struggle to fund?

Research and Development (B) Signup and view all the answers

What are 'Core+ grants'?

Grants that provide funding for both core support and project support (C) Signup and view all the answers

What is the purpose of 'Organisational strengthening grants'?

To build an organization's capacity in a specific area (B) Signup and view all the answers

What is the key difference between core support and project support?

Core support is unrestricted, while project support is for specific activities (D) Signup and view all the answers

What is the 'true cost' of a project?

The direct costs plus a portion of the organization's administrative costs (B) Signup and view all the answers

What is the primary purpose of discussing objectives and expected outcomes during the application process?

To measure progress during the grant implementation (C) Signup and view all the answers

During the grant process, what should be included in the application form related to tracking progress?

Plans to capture how progress will be tracked (C) Signup and view all the answers

How does Oak track the impact of grants after completion?

Through an end-of-grant impact rating in the GMS (C) Signup and view all the answers

Which of the following is NOT a typical outcome that core support grants aim to improve?

Volunteer engagement levels (B) Signup and view all the answers

What additional item might be evaluated in core support reporting?

Extent of financial reliance on Oak (D) Signup and view all the answers

What is one primary benefit of improved organizational culture?

Increased motivation of staff (B) Signup and view all the answers

Which of the following outcomes is associated with effective grant-making at the field level?

Better alignment on macro change goals (A) Signup and view all the answers

What is a significant aspect considered in project funding?

Coverage of true costs (C) Signup and view all the answers

How does increased agility benefit an organization?

Enhances the ability to adapt to changes (D) Signup and view all the answers

What outcome reflects the objectives of a project grant?

Meeting predetermined budget goals (C) Signup and view all the answers

Which aspect does effective grant-making NOT primarily improve at the organisational level?

Field influence (C) Signup and view all the answers

Which of the following describes a key goal of the project funding guidance?

To raise awareness about funding true costs (B) Signup and view all the answers

What is the primary outcome of leveraging funding effectively?

Enhanced organizational visibility (B) Signup and view all the answers

What type of support can be awarded independently to assist a partner's strategy implementation?

Core support (C) Signup and view all the answers

When organizational strengthening needs are identified for a partner, how can core support be modified?

It can be supplemented by organizational strengthening support. (C) Signup and view all the answers

What situation would prompt the provision of unrestricted programme support?

If the partner has a broader mission than Oak's scope. (D) Signup and view all the answers

What can be added as an objective to a project grant if the organization requires it?

Organizational strengthening support (A) Signup and view all the answers

What occurs when there is a lack of strategy alignment between Oak and a partner?

Oak can choose to fund a specific project. (B) Signup and view all the answers

According to the guidelines, what is a hybrid grant that includes organizational strengthening called?

Core+ (B) Signup and view all the answers

Who can Programme Officers consult if they have questions about an organization or project budget?

The finance team point of contact (D) Signup and view all the answers

What aspect does the starvation cycle illustrate regarding nonprofits?

The under-investment in organizational infrastructure. (D) Signup and view all the answers

What is the primary principle behind budgeting for projects?

Budgets must include both direct and indirect costs. (A) Signup and view all the answers

Which of the following is NOT considered a direct cost?

General office supplies used for multiple projects. (C) Signup and view all the answers

What approach is suggested for allocating shared costs?

A consistent and reasonable allocation base. (A) Signup and view all the answers

Which of these factors is NOT important for the allocation bases of shared costs?

Size of the project team. (D) Signup and view all the answers

What defines the indirect cost rate?

Percentage of indirect costs over direct and unrestricted fundraising costs. (A) Signup and view all the answers

Which type of costs may also be classified as direct costs?

Costs for recruiting project staff. (D) Signup and view all the answers

Which characteristic is important for the reasonableness of allocation bases?

Must reflect the benefits provided to each activity. (B) Signup and view all the answers

Why might budget implementation vary among grantee partners?

Flexibility in methods allowed by the funding organization. (C) Signup and view all the answers

What is the main reason Oak Foundation encourages grantees to include a fair share of indirect costs in their project budgets?

To ensure that grantees are able to cover their administrative expenses and remain financially sustainable. (D) Signup and view all the answers

What is the primary argument against the idea that "low" indirect costs are beneficial?

Low indirect costs can discourage grantees from investing in essential administrative functions. (A) Signup and view all the answers

Why does Oak Foundation have a flexible rate for indirect costs?

To reflect the diverse circumstances and needs of its grantee partners. (B) Signup and view all the answers

What is the role of Oak Foundation staff in relation to indirect costs?

To negotiate with grantees to secure a fair share of funding for indirect costs. (A) Signup and view all the answers

Which of the following is NOT considered a factor that might influence a grantee's indirect cost rate?

The size of the grant. (A) Signup and view all the answers

What is the specific exception to Oak Foundation's flexible indirect cost policy?

Grants to universities. (A) Signup and view all the answers

What is the primary goal of building grantee partners' capacity to seek full coverage of their indirect costs?

To reduce the risk of financial instability among grantees. (C) Signup and view all the answers

Why might some grantee partners have their indirect costs underfunded by other donors?

All of the above. (D) Signup and view all the answers

Study Notes

Effective Grant-Making

Oak Foundation uses core and project support funding
Core support is unrestricted funding for organizational activities
Project grants cover specific activities and budgets
Unrestricted program grants are similar to core support but cover specific program costs (typically in large organizations)
Organizational strengthening grants support capacity building
Core+ grants are a hybrid of core and project funding for specific organizational objectives
Core support provides flexibility for organizations to address their needs
Project funding supports specific project goals aligned with Oak's mission

Core Support

Core support is unrestricted funding for a grantee partner's mission
It's also known as general operating support, unmarked contributions, or general purpose support
It's recommended to be the standard term for unrestricted, unconditional, flexible funding
It covers organizational development, administration, and programmatic work

Core Support - Case for Core Funding

Improves organization resilience by enabling responses to emergencies and institutional needs
Strengthens organizations by making resource allocation decisions based on need rather than externally imposed restrictions
Core funding ensures that programs will survive inevitable fluctuations and short-term pressures

Project Funding

Project funding is focused on preset, agreed-upon project objectives defined by receiving organization and the funder
Project funding allocates budgets and resources for specific projects through a predetermined timeframe
Project funding addresses circumstances when core funding isn't appropriate, either because of a particular focus, co-funders, lack of strategic alignment, recent relationships, innovation need, or dealing with large organizations

True Cost Coverage

Project funding should cover the full costs of projects, including direct and indirect costs
Direct costs are easily identifiable project-related expenses
Indirect costs are overhead and administrative expenses crucial for the organization's overall operations, not easily linked to a specific project
True cost funding ensures a fair share of indirect costs attributed to the project by the donor

Management of Core Support Grants

Due diligence procedures vary based on organizational financial risk
Grantee partners are required to report total project costs in the core support line

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Description

Explore the various types of grant support provided by the Oak Foundation, including core funding, project grants, and organizational strengthening grants. Understand how these funding types contribute to the development and flexibility of grantee partners, ensuring alignment with specific project goals and organizational objectives.