What is a Grant Writer Contract?
A Grant Writer Contract is a simple contract that governs the relationship between an individual (or business) who provides grant writer services and the person (or business) that hires them. To a lesser extent, this type of contract is also sometimes referred to as grant writer contract agreement, grant writer agreement, grant writing contract, grant writer agreement, freelance grant writer agreement and contract for grant writing services . The purpose of a Grant Writer Contract is to formally outline the specific grant writer services being to be provided, their costs, the terms of payment and the term of the contract. It is important for both the grant writer and client to have (and sign) a written agreement because its terms will govern their business relationship if any dispute arises later on. Grant writing contracts should be tailored to meet the specific needs-a grantee may want the writer to agree to additional confidentiality, non-compete or non-solicitation obligations.
The Important Components of a Grant Writer Contract
The contract between you and your grant writer is like a social contract. It provides an understanding of behavior for both parties. The contract sets out the specific obligations to be carried out by each party to ensure that the project gets delivered on time and to specification. It is therefore critical to agree on key issues with the grant writer before the work begins and put these in writing.
Scope of Work: This needs to include the services to be performed, and how and where they will be performed. Generally, if the scope of work changes, the deadline for the deliverable should also change. Payment Terms: The terms of payment may be a set fee, based on an hourly rate or commission based, such as 3% of the amount awarded. The payment should include a deposit and a schedule for milestone payments if applicable. Deadlines: Deadlines are essential to keep everyone on track. A timeline should be agreed to set out specific deadlines for the grant writer to complete the work. Some grants have tight deadlines, and as long as they are set out in the contract, there shouldn’t be any problems with meeting them. Confidentiality Agreements: Typically, grant writing contracts include a confidentiality agreement that prohibits the grant writer from disclosing any of the information that was shared during the term of the engagement. This is especially important if the foundation or organization is disclosing sensitive information.
The language used should be very clear so that there is no room for misinterpretation later on. If your lawyer reviewed the contract before you signed it, it should be in the exact terms agreed to by you and the grant writer.
When to Use a Grant Writer Contract
Most nonprofit organizations and grant writers have found at one time or another that a verbal discussion is not an ironclad basis for understanding expectations. Since grant writers can draw on their own experience to set expectations in such details as number of hours to be worked, amount of information (or lack thereof) held by the client and expected turnaround time once information is submitted to the writer, many clients feel that a simple verbal agreement is all that is necessary. A written contract for grant writing services, however, can provide clarity in scope and in payment. Any subsequent questions can be answered by reviewing the written document, which can become an integral part of the budget. But just as the contract will list the responsibilities of both the writer and client, there are some broad parameters worth reviewing.
Like other contracting parties, grant writers render "professional services". These are services requiring special expertise acquired through extended academical study or professional experience. Whether they are providing research and writing services or performing financial or scientific analyses, all grant writers are providing professional services. Because these services are similar to those provided by CPAs, lawyers, architects, and other professionals, they are protected by what is called "professional liability".
Professional liability affords surefire protection to clients in case a grant writer should become disabled, misrepresent himself/herself, become barred from action, or fail to perform according to standard practice within the industry. To these ends, it should be noted that all grant writers are insured or contracted with an outside agency for protection against professional liability. The worst that can happen to a client (aside from the less than stellar grant outcomes) is to lose money on a grant writer who isn’t able to meet the terms of the contract. But because grant writers are professionals, the liability protection should give confidence to clients that the work will be done well enough to eventually pass muster with federal or state reviewers.
A written contract also helps with time management. Six- and eight-page grants don’t write themselves and deadlines don’t always adjust when the necessary research or revision work is being performed. A written contract provides both the grant writer and the client with a calendar, against which to manage expectations regarding time. And if extra time is required, a signed contract holds both parties to their end of the deal, with respect to when work is due. If it is determined by client to require additional time, the contract can be extended to cover the new period. If required by the grant writer to extend his/her due date, the contract might be renegotiated or expanded with an increase in payment to the writer in order to account for this overage. In every case, a timeline can be set down in writing, and contingencies addressed in advance. Expectations are clearly stated, in writing, and each party can be held accountable.
If the above examples don’t go far enough, a written grant writer contract can also become a standard part of an external review in case a federal grant writer’s work has to be called into question. Likewise, this written standard can help a client measure its own performance against that of comparable organizations seeking similar grant opportunities. Whether it is for the purposes of grant writing, or as a broader business tool for professional interaction, a written contract allows organizations to measure, rate and analyze the work of individuals who they take on for professional services. In short, a written grant writer contract sets clear standards for services rendered, provides protections against liability, helps regulate time, and serves as a baseline against which to evaluate efforts of both the writer and the client. And like other contracting efforts, grant writing is governed by the terms agreed to by both parties in the written document. Without such a document in place, a client may waste time and energy chasing a writer who hasn’t performed well, or a writer might not be able to recover fees for time already expended. Written grant writer contracts help ensure that everyone is performing according to standard.
Adapting a Grant Writer Contract for Various Projects
With such a wide range of projects that require grant writing, it is necessary that you customize your contract to fit the needs of your client and the type of work you will be doing. For example, often project size and complexity vary a great deal. There is a big difference between a small $5,000 grant and a $2 million grant – even if the grant is for the same 12 month period. For a big project, whether it is a multi-year or a one-off project, you may have to develop a complex strategy and multi-year grant writing plan. This varies greatly from a single year grant project that is not highly competitive or does not require a great deal of research and development. It may take you less than a day to write a grant application and review and complete forms for a simple project. It could also take many weeks to run a data analysis, talk with the staff, survey the constituents, analyze the needs and priorities, and design a program that meets the desire of all parties. For larger, more complex projects, your services may include extensive interviews, workflow, data analysis, development of an implementation timeline, working through logic models and a number of other activities in addition to the writing.
Your client needs to understand that each grant writing project is different and that this will have an impact upon your contract. For example, you may offer a set fee for 3 to 4 years for an easy project and an hourly rate that could range from $75 to $175 per hour (or more), depending upon need. You may also stipulate in your contract that the hourly rate would be adjusted for a large project to reflect the additions costs that come with complexity.
In some cases, a combination of the two may make sense. Clients requiring the development of a complex multi-year grant, may need additional grant writing time, so a lower rate will be applied to the project for analysis. Clients may also receive a discount if they are a returning client or if they are hiring you for multiple projects.
If the project is smaller, such as helping a non-profit with a few short one year grants, a different payment method may be in order. You could provide a flat fee or an hourly rate for all of the grant applications. By individual grant, you could provide a flat fee. This may be a good billing system for someone that just wants help with a few different, smaller projects.
A contract needs to be flexible enough so that you can differentiate your rates and fees from project to project while still offering a consistent fee system, but it should also address issues related to modifications and changes to the contract. Adventure writing services are not as uncommon as you might think. As a grant writer, you may encounter situations where a client wants to make major project adjustments after the grant writing process has begun. These adjustments may require substantially more time, thus requiring an addendum to the contract. This amount of time can be predetermined and built within the contract, or it can be defined outside of the contract and subject to additional costs.
Grant Writer Contracts: Key Mistakes to Avoid
By the nature of the job, many grant writers will contract with your nonprofit as opposed to becoming an employee. Having a fixed fee for services as opposed to base pay can be advantageous to nonprofit organizations. Additionally, the ability to end the contract if it is not working out is a lot easier than firing an employee.
However, these contracts can become a minefield. The field can explode as soon as a grant writer believes they are entitled to compensation for any extra work that was "necessary but that was not specified in the contract". Many nonprofits believe that they need to reward the grant writer for this type of additional work and thus, end up paying excessive compensation for the grant writer’s services.
Some common pitfalls (and tips to avoid them) when drafting a grant writer contract include: Pitfall: Failing to budget for funding. Tip: Analyze your 990 Form , funding ratio, and sustainability plan prior to entering into a contract with a grant writer. Pitfall: A vague contract that does not clearly list the purpose for the written grant application. Tip: Be as specific as possible in your grant writer contract with respect to the intended purpose for the written grant application. Pitfall: Allowing the grant writer to write in a voice that is different from the nonprofit’s program voice. Tip: Allot time to review, edit, and ask questions about the grant application once the grant writer has finished it. Pitfall: Excessive billable hours for one grant application. Tip: Select grant writers who can provide a flat fee quote prior to engagement and can work efficiently.
Legal Issues and Resources
As you draft a contract that includes a grant writer, strategic considerations do intersect with the legal requirements for contracts. Be sure that the person with whom you are contracting has the proper license for whatever services they will be performing. In addition to federal licenses, depending on the geographical area, there may be state or local licenses that the grant writer must have in order to legally work as a grant writer in that state and provide services to those clients. Check state and local authorities carefully!
Beyond that, the Uniform Commercial Code governs the sale of goods and not the sale of services. However, even when the primary scope of the work is for services, the contract you will be writing for your grant writer will be considered an executory contract and if the grant writer does not complete the work then the value of that work must be established so the party completed the work can be paid the fair value of the work performed (restitution).
The American Bar Association offers more resources on contracts. And, no matter how strong the provisions, you should have in place the proper tools and procedures to be sure that the contract is upheld. The ABA is a good source for articles on the enforcement of contracts.
You will also want to have in place a robust system for tracking grant writer contracts and renewals so you do not let the contract terms expire without establishing the value of the completed work, especially if it’s possible to obtain your own grants using this information before it begins to collect dust!
Sample Grant Writer Contract Template
This contract template is for educational use only and should not be copied for commercial use. Consult an attorney and consider your own circumstances and jurisdiction when drafting an agreement or contract.
GRANT WRITER AGREEMENT
BETWEEN
____________________
AND
____________________
This Grant Writer Agreement (the "Agreement") is entered into as of the ___ day of ________________, 20__ (the "Effective Date"), by and between ______________________ (the "Client"), whose address is _____________________________________________________________ and ________________________ (the "Consultant"), whose address is _____________________________________________________________.
The Consultant and Client are each referred to herein as a "Party" and collectively as the "Parties."
WHEREAS, the Consultant is a professional grant writer; and
WHEREAS, the Consultant has conflict free relationships with other clients involving grants, charitable donations and finance that could present a conflict of interest with the Client; and
WHEREAS, the Client desires to retain the Consultant to provide grant writing services to the Client in accordance with the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements, and the cash payment provided herein, and other good and valuable consideration, the Parties agree as follows:
- SCOPE OF SERVICES. The Client hereby engages the Consultant on a non-exclusive basis to provide grant writing services to the Client in accordance with the terms and conditions set forth herein. The Consultant hereby accepts such engagement and agrees to be available to perform such services, as the Client may from time to time request. The Consultant may decline any particular request for grant writing services by the Client in its sole discretion, but generally will not decline a request when the Consultant can reasonably allocate the time necessary to do so without adversely impacting the Consultant’s delivery of services to its current clients. The Consulting firm may employ agents or contractors, referred to collectively herein as Consultant, in performing the services hereunder. Consulting further agrees to disclose to the Client if it becomes conflicted out or otherwise must decline a particular request for grant writing services from the Client due to a conflict of interest involving the Consulting firm’s representation of other clients.
- INDIVIDUAL GRANT WRITER AGREEMENTS. The Client may elect to engage the Consultant pursuant to a separate individual Grant Writer Agreement with any individual person associated with the Consultant. In the event that the Grant Writer assigned to the Client’s account leaves the employ of the Consultant, the Client shall have the right to enter into a new Grant Writer Agreement with a new or different individual grant writer without having to renegotiate this Agreement with the Consultant. Notwithstanding any assignment or transfer of rights by the Consultant to its agents or contractors, the Consultant will remain primarily liable for the work performed under this Agreement.
- TIME OF PERFORMANCE OF SERVICES. The Consultant will devote such time, effort and attention to performing the services rendered under this Agreement in accordance with the scope of work as is required by the Client from time to time. While the Client will expect to obtain results from consulting services rendered by the Consultant, the Consultant makes no guarantees as to the results of such services.
- COMPENSATION AND PAYMENT PLAN. The Client will pay the Consultant for the grant writing services rendered under this Agreement at rates established in Exhibit A attached hereto and made a part hereof (the "Consulting Fee"). Consultation concerning the project or general grant writing services shall be billed at the normal hourly rate of the individual performing the services. Traveling time shall be billed at the normal hourly rate of travel. The Consultant shall submit invoices for services under this Agreement no less than once a month, which invoices shall be paid no later than fifteen business days following the date received by the Client. The Consulting Fee will not exceed the amount written out in words ("Written Amount"), unless prior written authorization is received from the Client for such increase. All payment procedures imposed by the Client, including without limitation, submittal of a purchase order, will be strictly followed.
- EXPENSES. The Client will reimburse the Consultant for all expenses incurred in performing services under this Agreement in excess of expenses set forth in Exhibit A, provided such expenses are pre-approved by the Client. Expenses will include , but are not limited to, postage, copies, long distance telephone, parking fees, tolls, travel and lodging expenses, and meals while traveling on behalf of the Client. All travel rates for airplane tickets and personal automobile travel will be at the most economical rates available and shall not include compensation for personal travel time.
- TERM. This Agreement is effective as of the Initial Term, as defined in Section 12 of this Agreement, and will continue for successive ___________ renewals unless terminated in accordance with Section 10 of this Agreement. The expiration of this Agreement will not affect the Consultant’s right to receive payment for services rendered or expenses incurred prior to the expiration of this Agreement, which amounts will be immediately due and payable.
- CONTACTS WITH CLIENT. The Consultant shall designate a representative (the "Consultant Representative") to perform the services hereunder. Such representative shall be the single point of contact for all matters related to this Agreement. The Consultant Representative shall provide the Client with his or her direct telephone number and email address within ten (10) days of the effective date of this Agreement. The Client may, in its sole discretion, contact the Consultant Representative on any day, at any time, before or after hours, by telephone and/or email to discuss any matters related to services rendered by the Consultant under this Agreement.
- CLIENT’S RESPONSIBILITIES. The Client is responsible for the following:
(a) making available to the Consultant all existing documentation relevant and material to the services rendered under this Agreement through a secured electronic portal or secure email; and
(b) keeping the Consultant informed as to the Client’s needs and pertinent time schedules for completion of tasks.
9. CONSULTANT’S RESPONSIBILITIES. The Consultant is responsible for the following:
(a) rendering services diligently, in good faith and in accordance with the highest professional standards applicable to grant writing consultants or contractors;
(b) maintaining all appropriate licenses and permits required by local, state and Federal law for the Consultant to perform the services hereunder; and
(c) complying with all laws applicable to the services rendered under this Agreement.
10. TERMINATION.
(a) The Client will have the right to terminate this Agreement at any time for any reason upon five (5) business days written notice. The Client may also terminate this Agreement with respect to the services rendered by the Consultant in connection with a certain grant writing project without terminating the entire Agreement at any time for any reason upon five (5) business days written notice.
(b) Notwithstanding the notice provisions of Section 10(a) above, the Client may terminate this Agreement immediately without notice if the Consultant breaches any representation or warranty in this Agreement or violates any code of conduct applicable to grant writing consultant or contractor, in which event the Client will only be obligated to pay the Consultant for services rendered through the date of termination and not for any amount set forth in the Written Amount.
11. REPRESENTATIONS AND WARRANTIES. The Consultant hereby represents and warrants the following to the Client:
(a) there is no pending or anticipated proceeding that may result in the suspension of the Consultant’s ability to provide the services rendered under this Agreement; and
(b) during the term of this Agreement, the Consultant (i) will not accept employment, from or on behalf of any other person or entity (other than the Client), for project funding, grant related consulting, grant writing or other advisory services, (ii) will not become affiliated with any person or entity, (iii) will not make any statement to the Client that would tend to put the Client at a disadvantage (iv) will immediately disclose to the Client all compensable services, including grants, charitable contributions and financial opportunities, that the Consultant is provided with the opportunity to accept that could conflict with the services rendered under this Agreement, (v) will not withhold from the Client any information known to the Consultant that the Client should reasonably have access to, and (vi) will not engage in any practice that would put the Client at a competitive disadvantage in connection with the services rendered under this Agreement.
12. GOVERNING LAW. This Agreement, including all matters of construction, interpretation, performance and enforcement, is governed by, and construed in accordance with, the internal laws of the State of _______________, without regard to its principles of conflicts of law.