Reduce Paperwork Burden
Right Size Applications; Simplify Reporting
Affirmation: Paperwork hinders us all.
Duplicative or complex proposal and reporting requirements divert time and resources for both nonprofits and philanthropy, needlessly burdens nonprofit partners and siphons scarce resources away from where they are most needed. Funders can lessen the burden on grantee partners by streamlining the application and reporting processes, especially for repeat grantee partners; decreasing the required data to only the most necessary for decision-making; taking on some of the burden of data collection by gathering data from central repositories such as Candid (formerly GuideStar) and the IRS; and retain and use data already collected from repeat grantees. Funders should require updated information such as annual budget, staffing, board member changes, etc., in their grant applications only when the nonprofit is the only source for this information. Collaborate with other local funders and agree to common GOS application questions and budget templates; streamline tools through technology and offer innovative ways for organizations to apply for and report out on grants; limit written requirements to information that is relevant to the request, and which moves the needle on critical social issues.
Activities
• Reduce rigidity and increase the flexibility of what nonprofits must submit for their applications in creative, egalitarian, and less burdensome ways.
• All funders right-size their application and report requirements relative to the grant amount.
• Shift from reports to conversations or other lower time-intensive means.
• Develop agreed-upon common questions for use across the philanthropy sector for general operating support grant applications.
• Explore the efficacy of using common applications for general operating support grants.
• Change site visits for compliance to goals of learning.
• Consider developing a central data repository for New Jersey nonprofits and funders, where applicants can submit and update basic information once a year, and funders can access the necessary information.
Outcomes
• 75% of funders begin to reduce the size of applications and reports relative to the size of the grant.
• 75% of funders shift from reports to conversations or other lower time-intensive means, like site visits geared to learning and relationship building.
• 50% of funders making general operating support grants accept creative, egalitarian, less burdensome applications including other funders proposals.
• Nonprofits have increased capacity to dedicate time to other activities and efforts.
How to Begin Doing Good Better on Reducing Burden
Learning opportunities
• For funders who do not right-size their applications, what are the barriers to reducing paperwork?
• Who is making the decisions about the application and reporting requirements, and how can they be reached to encourage change? How can we involve more board members of funders in this effort?
• For funders who require reports, determine what is “nice to have” vs. what is needed and used and consider eliminating the rest; what are expeditious ways to collect data including accepting other funders’ reports?
• Which funders who make multi-year grants require a full application for the first year and updates for subsequent years?
Pre-Work
• For funders who already report tailoring their applications, consider how to further simplify processes for grantees; share these practices with other colleagues in philanthropy.
• Learn how information is collected without burdening the applicant.
• Review and implement recommendations already provided by nonprofit networks and philanthropy-serving organizations for concrete examples such as centralized document repositories; allowing nonprofit partners to re-use other proposals and reports; holding check-in meetings in lieu of written reports; and other helpful practices.
• Seek promising practices of funders who use site visits as opportunities to build trust and understand the programs and organizations they support instead of as compliance reviews.
Notes:
See, for example, SMU DataArts (formerly the Cultural Data Project), https://culturaldata.org, a nationwide research and data repository for the arts and cultural community. DataArts serves as a collector and clearinghouse for a wide array of data, which funders can access instead of requiring nonprofits to provide it separately.