Frequently
Asked
Questions:
GENERAL
1. What does “Challenge Grant” mean to the Corporation?
The Corporation’s Challenge Grant program was established in 2003 to assist nonprofit organizations to use federal grant funds to secure previously untapped sources of private funds to build sustainable service and volunteer programs in the United States. The Corporation defines sustainable service and volunteer activities as those that will continue beyond the period of the Challenge Grant.
The purpose of the 2005 Challenge Grant competition is to engage volunteers in disaster relief and recovery for the population affected by the recent hurricanes in the Gulf Coast region.
- Applicants must propose strategies that engage volunteers in full-time, part-time, or episodic service designed to meet the needs in the Gulf Coast region and other regions of the country managing the large influx of evacuees.
- Applicants must propose to either significantly expand existing services or implement new services that serve the population impacted by the hurricanes.
- Applicants must provide at least two dollars in private funding for every federal dollar. This match must be in cash and must be raised within the grant period. There will be a preference for proposals that exceed the required two to one match ratio.
- Applicants must include strategies that engage baby boomers [those born between 1946 and 1964] in full-time, part-time, or episodic service designed to meet community needs identified above.
- The proposed program must operate in a minimum of three states. The Corporation will consider applications proposing programs that would be located in one or two states, but only if the scope of the proposed program is statewide in nature and must include one of the following states: Louisiana, Mississippi, Texas or Alabama.
2. Can these be planning grants?
No. Challenge Grants may incorporate a brief planning phase that will be followed by the actual operation of a program for the majority of the grant period. Approved applicants will negotiate the brief planning phase during the award process.
3. Who are the previous grant recipients?
Press releases for the previous Challenge Grant Recipients may be found on the following websites: http://www.nationalservice.gov/about/newsroom/releases_archive.asp.
4. Additional questions?
Please contact Marci Hunn at ChallengeGrants@cns.gov or (202) 606-7507. The TDD number is (202) 606-3471. This Notice, with the complete application instructions included, is available on the Corporation’s website at: http://www.nationalservice.gov/for_organizations/funding/nofa.asp.
APPLICATION INFORMATION
5. Where do I obtain the application guidelines and instructions?
You can obtain the application guidelines and instructions on our web site at http://www.nationalservice.gov/for_organizations/funding/nofa.asp.
6. Are we required to submit our application via the on-line eGrants system?
We strongly encourage you to submit your application via the on-line eGrants system. For eGrants instructions, go to: http://www.nationalservice.gov/egrants/index.asp.
7. My organization doesn’t fit into any of the categories provided under item #7b (characteristics of applicants) in Appendix A of the SF424 Fact Sheet and Instructions. How should my organization complete this item?
The Corporation is adding #32 as a category for “Other” under item #7b. If you think your organization does not fit into any of the provided categories, please use this code in the specified area of the SF424 Fact Sheet, and include a brief description of the type of organization applying.
8. What other documents are required in addition to the application? Where do I send them?
We require that you submit financial statements or an audit by the application deadline. These materials should be sent to: Corporation for National and Community Service
Box: Challenge Grants.
1201 New York Ave. NW
Washington, DC 20525
We will not accept any other supplementary materials.
ELIGIBILITY
9. How do I know if my organization is eligible for a Challenge Grant?
Eligible applicants for this funding are non-profit organizations. Organizations that are previous recipients of Corporation grant funds, including previous Challenge Grant recipients, are eligible to apply. The Corporation encourages all eligible faith-based and other community-based organizations to apply.
Applicants that currently operate programs with Corporation funds, or that are applying for other Corporation funds, must differentiate between the proposed objectives and activities under the Challenge Grant and those of its currently-funded program or pending application. An applicant must also identify any other grant received from the Corporation since 1994, including the program under which the grant was provided.
10. How does the Corporation define “non-profit organization?”
The term “non-profit organization” encompasses just about every kind of non-commercial organization. As an applicant for a Challenge Grant, your organization’s non-profit status will be determined in part by answers to the following questions: Is the applicant incorporated or otherwise recognized as a non-profit or not-for-profit organization in the state in which it operates? In administering past and current Federal grants, did or does the applicant apply the administrative principles of OMB Circular A-110 and cost principles of OMB Circular A-122 or A-21? These circulars set out standards that are applicable to non-profit organizations.
11. If my organization has not yet received its tax exempt status recognition from the IRS, am I still eligible to apply?
Public and private non-profit organizations, including faith-based and other community-based organizations shall be eligible to receive a grant under this subsection. Nonprofit applicants and prospective nonprofit subgrantees, including faith-based organizations, must be able to demonstrate that they are recognized under state law as nonprofit entities. While 501(c)(3) recognition by the IRS will be accepted as proof that an organization is a nonprofit entity, such recognition is not a requirement. Pursuant to the Lobbying Disclosure Act of 1995, an organization described in section 501(c)(4) of the Internal Revenue Code of 1986, 26 U.S.C. 501(c)(4) that engages in lobbying activities is not eligible.
12. My organization and program serves local needs and is not looking to become a national program. However, the proposed program could serve as a model for national replication. Is my program still eligible to apply?
The Corporation is interested in innovative programs that address community needs through service. The applicant must provide evidence that the proposed program will operate in a minimum of three states. The Corporation will consider applications proposing programs that would be located in one or two states, but only if the scope of the proposed program is statewide in nature and must include one of the following states: Louisiana, Mississippi, Texas or Alabama.
All other eligibility requirements must be met.
COLLABORATIONS AND INTERMEDIARY ORGANIZATIONS
13. Can an intermediary organization or consortium of organizations apply for this competition?
An intermediary organization may apply on behalf of community organizations that do not have the capacity to apply for and manage a federal grant. An intermediary organization provides technical and financial support for community or faith-based organizations and ensures that the systems to manage a federal grant are in place. An intermediary organization collaborates with these community organizations through such mechanisms as subgrants or the operation of host sites. The intermediary organization will be the legal applicant and will take fiduciary responsibility for the Challenge Grant. As the legal applicant, it must meet all of the eligibility requirements established in the NOFA and supplemental information.
A consortium of organizations may apply for this grant; however, one organization must apply as the legal applicant and take fiduciary responsibility for the grant. This lead organization will be considered an intermediary organization, as discussed above, and must meet all of the eligibility requirements.
PROGRAM DESIGN
14. Will an application that does not propose strategies to meet the needs in the Gulf Coast region and other regions of the country managing the large influx of evacuees be competitive in this grant competition?
No. The applicant must propose strategies that engage volunteers in full-time, part-time, or episodic service designed to meet the needs in the Gulf Coast region and other regions of the country managing the large influx of evacuees.
15. Will an application that does not propose strategies that engage Baby Boomers in full-time, part-time, or episodic service designed to meet community needs be competitive in this grant competition?
No. Applicants must include strategies that engage baby boomers in full-time, part-time, or episodic service designed to meet community needs identified above. Given the growing number of Baby Boomers, we are particularly interested in funding programs that propose to engage Baby Boomers as fifty percent or more of their volunteers.
16. May an application propose to recruit and select only Baby Boomers to engage in community service?
While applicants are required to propose programs designed to encourage and attract the engagement of baby boomers in service activities, as a matter of federal law grantees may not restrict participation in the program activities on the basis of age.
17. What do you mean by incentives for intensive commitment to service?
Examples of incentives for individuals who make an intensive commitment to service could be: providing housing, child care, course credit, living allowances, or stipends. Education awards, or scholarships, may be provided as incentives but no Challenge Grant funds may be used for them. We encourage organizations to provide incentives to their volunteers that are the most appropriate relative to the program model and design as well as needs of volunteers.
Programs can also propose incentives for volunteers who do not make an intensive commitment to service. The Corporation encourages applicants to consider developing non-monetary incentives for these volunteers.
18. Can you provide further guidance on stipends and living allowances for intensive commitments to service?
Stipends or living allowances are not required, but are two different types of incentives for an intensive volunteer. They are not wages, but are intended to provide a modest level of subsistence for volunteers who are devoting a substantial amount of their time in service. The Corporation has found that providing such incentives is one approach to ensuring that individuals of any economic background can make an intensive commitment to service. Applicants are encouraged to consider a range of incentives, cash and non-cash, in combination or alone, to allow individuals to make this intensive commitment.
For this competition, stipends or living allowances are defined as monetary incentives that do not have a fixed minimum or maximum dollar amount. The Corporation asks that any applicant who proposes stipends ensure that these amounts align with their program and the intent of such incentives as outlined above. These applicants may also propose prorated stipends for individuals serving less than 40 hours a week. During the review process, such applications will be evaluated on whether they have proposed excessive stipend levels.
The federal share of Challenge Grant funds may not be used to provide stipends or living allowances for program volunteers. Neither the federal share nor the match share of the Challenge Grant may be used to provide livings allowances [or education awards] for AmeriCorps members who may be participating in a Challenge Grant-supported program.
19. To the extent that this will be done by sub-grantees on pass-through dollars, what level of detail is required in the grant application regarding the plans for volunteer recruitment/management?
Provide enough detail so that the quality of the planned activities can be assessed.
PERFORMANCE MEASURES
20. Where do I go to learn more about performance measures?
The Corporation generally requires all programs to submit at least three performance measures as part of their application. For Challenge Grants, we require a minimum of one performance measure. That measure must relate to advancing sustainable service and volunteer programs. You are encouraged, but not required, to submit additional measures, as appropriate to your program, that relate to the citizen service that will be carried out with the grant. For successful applicants, following a period of negotiation, the Corporation will make the performance measure(s) a requirement of the grant. You are accountable for achieving the measure(s) during the period of the grant.
For more information about performance measures under Corporation grants, including a toolkit to assist in the development and implementation of performance measures, visit the Corporation’s website at http://nationalservice.gov. or http://www.projectstar.org/star/AmeriCorps/pmtoolkit.htm.
Using the Performance Measurement Worksheet in Appendix E in the Challenge Grants Application Instructions located at http://www.nationalservice.gov/for_organizations/funding/nofa.asp as a guide; enter each of your performance measure(s). Also:
· Please note that it is not necessary to include a performance measure for each of these three categories – Needs and Service Activities, Member Development, and Strengthening Communities.
· One performance measure must relate to advancing sustainable service and volunteer programs.
· You may submit other performance measures beyond the one required.
For successful applicants, following a period of negotiation, the Corporation will make the performance measure a requirement of the grant. The performance measure(s) should cover the one-year grant period. The Corporation will hold each grantee accountable for achieving the approved performance measures during the period of the grant.
21. Will it strengthen the application to provide more than the one required performance measure?
Grantees will be held accountable for achieving the performance objectives submitted. Only one is required, but you may submit as many as you like. The performance measure must be related to the proposed program activities.
BUDGET/CASH MATCH
22. What is the required cash match?
Applicants must provide at least two dollars in private funding for every federal dollar. This match must be in cash and must be raised within the grant period. There will be a preference for proposals that exceed the required two to one match ratio.
23. What do I need to include in the budget submission?
See Appendix E in the Application Instructions. The budget should be sufficient to perform the tasks described in the proposal narrative for the entire grant period. Do not include unexplained amounts, amounts for miscellaneous or contingency costs, or unallowable expenses such as entertainment costs. Round all figures to the nearest dollar. Refer to the Federal cost principles at http://www.whitehouse.gov/omb/circulars/index.html for information on allowable costs in Federal grants.
We recommend you prepare your project budget off-line before entering it into eGrants. eGrants will create the budget and the budget narrative automatically from the detailed budget information you entered.
24. What is a cash match? When does an organization need to have the matching funds secured?
A cash match is income leveraged from other funding sources that an organization will use to match a percentage of the overall grant award. For Challenge Grants, match funds must be cash from nonfederal sources. Grantees will be expected to raise this cash match for the full grant amount within the first year of funding.
25. What is eligible as match funds?
Match funds must be cash from private sources (i.e., foundations, private donors, etc.). Match cannot come from in-kind or public sources. Pledges can count toward match funds as long as they are legally binding and paid in full before the end of the grant period.
The cash does not need to be “in hand” by the end of the first year of funding. However, in order to meet the match requirement, you must have a letter of commitment indicating that the funds are committed to your organization and are designated solely to the Challenge Grant program.
Example of in-kind vs. cash match: If a partner (with a different EIN) were to allow one of their staff to work on the project 25% of their time, this would be considered in-kind match. If the partner donated funds to pay an individual employed by the organization this would be considered cash match.
26. Do I need to spend all of the funds within the one year grant period?
Challenge Grants are awarded for one year. All match funds must be raised within the one year period. On a case by case basis, the Corporation will consider a no-cost extension to the grant, to allow a grantee to continue to expend both the federal share and the private share of the Challenge Grant award.
27. Do the matching funds have to be new, or can they be in place prior to the start of the grant ?
The intent of the Challenge Grant is to help grantees leverage new private funds. We will allow some of the matching funds to have been secured prior to the start of the grant as follows:
· Ideally, the cash was received no more than 3 months prior to the start of the grant.
· The cash received must be available to be spent for the purpose of the grant.
· The cash must be spent on the grant, with explicit approval of the original donor/funder.
28. What does “new money” or “previously untapped sources of private funds” mean? Does it mean only new funders we have not worked with before or are not currently working with, or could it mean a new grant from a current funder?
A new contribution or grant from a current funder, for the designated purpose of the Challenge Grant, is acceptable.
29. Does the match have to be totally new, unrestricted money?
The funds used as match must be available for use in the program proposed in the application.
30. Must matching funds be cash or can we use in-kind sources also?
All matching funds must be cash.
31. Regarding a "well thought-out plan, including timetable, for raising private funds,” does that include the period of the grant or before the grant starts?
The plan for raising funds should include whatever the applicant organization plans to do to raise the funds, whether before or after the grant starts. It should contain enough detail for reviewers to assess the likelihood of success.
32. Do we have to have commitment letters or pledges in place before submitting the grant application?
No. The applicant does not have to have commitments in place before submitting the application. However, applicants do need to include a plan for raising funds which should include whatever the applicant organization plans to do to raise the funds, whether before or after the grant starts. It should contain enough detail for reviewers to assess the likelihood of success.
33. Does the cash have to be "in hand" in order to access the grant funds? What form of proof are we required to provide?
The cash does not need to be "in hand". However, to receive the Challenge Grant funds, you need either to have the cash in hand or a letter of commitment indicating that the funds are committed to your organization and are for the challenge grant. Federal funds will be released based on the amount of the commitments and your need for the use of funds
34. Do I have to wait until I have raised all of the cash to receive the Federal Funds?
Federal funds will be released as you demonstrate commitments and have a need for the funds.
35. If we are passing funds through to state or local programs, does the match on those funds have to be raised at the state or local level?
It can be raised either at national, state or local levels.
36. Does the match have to correspond or be proportional to particular line items?
The match does not need to correspond to a particular line item. However, it must meet the match percentage for the total approved budget and all match funds must be used to support the Challenge Grant budget.
37. Can we use public dollars for match, for example, from a school district or local government?
No. The intent of Challenge Grants is to help grantees leverage private dollars.
38. Can the funds be used to support staff functions at the national organization that are not specifically programmatic, but support its work with sub-grantees? For example, could these funds be used for a staff person whose work includes the financial management of the relationship between the national organization and the sub-grantees?
The funds are only to be used for activities related to the proposed program. For example, the financial management portion of the organization that relates to work on the grant activities can be charged to the grant.
39. Can the overall operational needs of our organization be paid for by this grant?
We expect that you will charge the grant for any operational costs that are directly related to the proposed project. Indirect cost charges will follow both the CNCS guidance and the applicable OMB cost principles of OMB Circular A-122 (Section C, Indirect Costs) or A-21 (Section F, Facilities & Administration).
40. Can we use earned income for match, for example, fee for service?
Yes, you may include this in your application. However, this will be considered on a case-by-case basis during grant negotiations once an application has been approved.
41. Can the grant be used to support fee for service activities?
Funding from the grant can be used to support fee for service activities if the money is used to build a sustainable base of income to generate additional volunteers and to support other volunteer activities. For example, a project may use grant funds to provide volunteer management activities that will generate additional volunteers. |
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