Increasing the Capacity of Individuals, Families and Communities

Sub-Award Management

Determining Your Sub-Award Process | Step 2: Reviewing and Selecting Sub-Awardees

Step 1: Soliciting Applications

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This first step of soliciting applications is comprised of four phases: A) developing your request for proposals (RFP); B) distributing your RFP; C) providing support for applicants; and D) taking preventative measures to ensure accountability.

The goal of soliciting applications should be to receive a sufficient number of applications for the number of awards you are offering that all meet your eligibility criteria. A good numerical goal is to solicit three to five applications for every sub-award you will offer. Of course, you don't want to limit your choices by having too few applicants. And you don't want too many applicants taking up too much of your organization's time and effort.

A. Developing Your RFP Packet
Based on the purpose, the targeted groups, the number of awards, the amount per award and the length of the grant period, you are ready to begin to develop your RFP and accompanying materials in a RFP packet. First, you will need to determine what information about and from the applicant you need to make your sub-award decision. In most cases, you will need to include requests for information about the organization itself, its proposed project, the budget of the organization and the requested budget for the project and any compliance requirements concerning the sub-award. The following table summarizes the various recommended components to include in the RFP packet. An example of a sub-award application is also included in the Appendix.

Recommended Components for RFP Packets Components Description Recommendations Information on the grant and the sub-award program Materials that describe the purpose of the grant and sub-awards, the sub-award categories, eligible organizations, requirements and intended outcomes. Include an overview of the grant, and the purpose of the sub-awards. Provide a timeframe for the sub-award grant process with deadlines. Clearly list eligibility and funding criteria. Describe the size of grants. Identify any workshops, technical assistance or support available to applicants. Provide contact information for the grantee organization. Qualifying organization information Information that describes the type(s) of organization that can apply for which award(s) Include questions that provide information you want to know about the applying organization. Specifically request information that you can use to determine if the organization meets your eligibility criteria: mission of organization, location, size (budget and staff), service areas, etc. You may want to request one or more of the following: a list of the current board of directors; supporting materials from the organization (brochures, articles, letters of support). Proposed project information Information that outlines the proposed project of the applicant Determine what you need to know about the applicant’s proposed project: 1) project purpose/goal 2) problem/ issue to be addressed 3) projected outcome/impact 4) project plan 5) timeline 6) outcome measurement process Budget information Information that provides an overview of the proposal budget as well as the organization’s current budget For sub-awarding Federal funds, include the 424 form, instructions, and accompanying budget category definitions. Ask for the organization’s current operating budget and the organization’s most recent audited financial statement (if available). Requirements or compliance information Information that awardees need to be aware of and agree to in order to participate in the program Any conditions for receiving a sub-award should be clearly listed for organizations to consider. Some requirements could include: participation in training and/or technical assistance, allowing a representative to help set up systems to account for grant funds, complying with all Federal regulations and submitting financial, progress and outcome reports. Some grantor organizations may want to develop a preliminary Memorandum of Agreement (MOA) outlining all post-award requirements of the sub-awardee. A preliminary MOA could to be included in the applicant packet for signature. The actual MOA then would be signed when the applicant was designated as a sub-awardee. An example of a MOA is provided in the Appendix. Scoring percentages Percentage amounts given to each of the key areas of the application. For reviewing purposes and to provide information on scoring to the applicant, provide percentage amounts for scoring on each of the key areas of the application. The percentages should add up to 100%.

In designing your RFP packet, be sure to put it in a user-friendly format that is accessible for your specified audiences. For example, if you are targeting organizations that are from different language or cultural groups, you may want to consider translating the packet contents into the appropriate languages. The Southeast Asia Resource Action Center, another 2002 CCF grantee and national nonprofit organization dedicated to advancing the interests of Southeast Asian Americans, posted its sub-award application in five different languages: English, Hmong, Khmer, Vietnamese and Lao.

In addition, be sure to provide guidance in completing the application. Include clear directions and specify any requirements, such as length of application (number of pages to be submitted), deadline for submitting application, supporting materials or information to be included with application and the address to which you want the application sent.

You may want to consider designing your application to be consistent with other area foundations or organizations’ applications. JVA, Consulting, a Denver-based intermediary, modeled their RFP and proposal process after the Colorado Common Grant Application which has been widely accepted by a number of Colorado foundations. Once the RFP is completed by an applicant for a JVA sub-award, it can be re-used and adapted for other funding requests. You may also want to design your application so that it is consistent with other funding organizations’ applications in your geographic area (city, state) or in your particular area of service (homelessness, at-risk youth, etc.).

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Determining Your Sub-Award Process | Step 2: Reviewing and Selecting Sub-Awardees