New Policies for Grant Awards
Effective Beginning the Spring 2009 Grant Cycle
(the deadline for grants submitted for this cycle is December 1, 2008)

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The Cherokee Preservation Foundation (CPFdn) Board of Directors recently enacted some new policies for grant applications and awards. All CPFdn grantees and grant applicants should make note of the new requirements.

Proposals and Project Budgeting

Limits on Applying for Grants - CPFdn will award funding for only one large grant (more than $20,000) and two small grants ($20,000 or less) per year to any grantee.

Budgeting for Fringe Benefits, Indirect Cost or Grant Administration Cost - CPFdn prefers not to award funding for fringe benefits, indirect cost or grant administration cost.  Grantee organizations should support these costs through other funding sources and count them as matching funds for CPFdn grant awards. However, fringe benefits, indirect cost and grant administration cost may be funded on an exceptional basis at the discretion of the CPFdn’s grant reviewers, subject to the following limits:

• When a grant budget includes salaries or wages, up to 10% of the total salaries in the grant budget may be allocated to fringe benefits and an additional 10% may be allocated to “indirect cost.”
• When a grant budget does NOT include salaries or wages, up to 10% of the total grant project cost may be allocated to “grant administration cost.”  However, this amount may not exceed $20,000.
• A grantee may budget funds for either the “indirect cost” line item or the “grant administration cost” line item, not both.

Exceptions to these limits may be considered in the following situations:

• The grantee is a school or university.
• The grantee is serving as a fiscal agent for a grant project that includes salaries.
• An exceptional circumstance exists with regard to the grantee.
• The grant project is related to a CPFdn initiative, such as RTCAR or the Cherokee Language program. 

Budgeting for Fiscal Agent Fees -When a grantee utilizes another organization as a fiscal agent to manage the financial record-keeping for their grant project, the fiscal agent organization may charge a fee for their services. Fiscal agent fees range between 5% and 10% of the total grant project cost. The maximum CPFdn will fund for these fees is 10%.  If a fiscal agent fee is charged in a grant budget, indirect cost and grant administration cost may not also be charged.
Grant Award Management

Limits on No-Cost Extensions – Grantees are encouraged to complete their grant projects within one year. In cases where this cannot be accomplished, CPFdn will allow a one-time extension. Exceptions will be made only in rare and extenuating circumstances. Grantees seeking No-Cost Extensions will be required to attend the “Building Grantee Skills” courses as discussed below.

Guidelines for Budget Line Item Reallocations – Grantees may reallocate funds from one line item to another within the approved grant budget subject to the following limitations:

• For Personnel line items, including Salaries/Wages, Fringe Benefits, Indirect Cost, and Honoraria/Stipends, a maximum increase of 10% of funds in any individual line item.

• For all other line items, in the categories including Contracted Services, Operating Expenses, Major Capital Purchases and Other Expenses, a maximum increase or decrease of 25% in any individual line item.

• No new line items may be created within the approved budget.

• The fiscal agent fee or grant administration cost line items, if any, may not be increased.

Any budget amendments needed beyond these specific limitations must be requested in a letter to the Foundation. Budget amendment requests must be approved by the Foundation prior to any expenditures being made outside the reallocation limitations described above.

Incentive and Resources to Build Grantee Skills

In an effort to strategically allocate resources and develop quality projects, the Cherokee Preservation Foundation is encouraging grantees to engage in ongoing capacity building trainings.  Grantees that attend “Building Grantee Skills” training sessions will receive funding priority in regards to their grant application. 

Grantees will have the opportunity to attend “Building Grantee Skills” sessions.  Grantees located on or near the Qualla Boundary will be encouraged to attend three of the following “Building Grantee Skills” courses during every 12-month period:

Core Courses: Project Planning, Project Management, and Financial Management

Additional Courses: Project Communications, Project Leadership, Project Funding, and Project Relationships

CPFdn will offer these 3-hour courses on a regular basis at times and places convenient to our local grantees. Two key staff members involved with CPFdn grant projects will have the opportunity to attend. The core courses must be completed first.

Grantees seeking No-Cost Extensions will be required to attend the “Building Grantee Skills” core courses, which will help them complete their projects within the new timeframe.

Other grantees (residing around our seven-county service area) can complete at least five hours of organizational development training every 12-month period that is comparable to the “Building Grantee Skills” courses (example: WNC Nonprofit Pathways courses).  

Documentation of Training -  As part of the grant application form, all grant applicants must document their prior year’s attendance in the “Building Grantee Skills” courses and their plans for attending skill building training in the coming year in order to receive funding priority.  This step does not guarantee funding, while all grants must still meet the CPFdn funding priorities and guidelines.  

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Last revised 11/1/08