Is the distinction between a contract and a grant fairly simple? Yes says the Commonwealth of Virginia Attorney General (Washington Post). Contracts are legal agreements between the State and nonprofits. Grants are, well, free money or otherwise known as public funding of charitable organizations. Contracts can be extensions of the public. Grants can not.
So-what? For Virgina nonprofits, the so-what could have been huge losses but saavy and caring legislators and state agency heads have quickly rushed to save the safety-net nonprofits. The cultural institutions do not appear so fortunate (although I would just create a nonprofit who would be the contractor with the State and then sub out grants).
But isn't this situation really one more wake-up call for nonprofit boards to regularly have the sustainability converstation to be sure not to be dependent on any one source of income?
That's why signing an agreement or contract is a MUST in every appointment you are engage in.
Posted by: compare and contrast essay | May 26, 2011 at 04:42 PM