Billing Alternatives
for Grant Assistance 

There are four billing methods used by various Grant Assistance firms:
 

PER HOUR

This billing method is most common in reputable Grant Assistance firms.   The Applicant receives:  a guaranteed per-hour rate quote,  a delineation of what work is to be done and the resulting products,  and a non-binding estimate of the number of hours / dollars for the project.   Analysis: 

• Grantors approve of this method.
   

• The amount paid to the Grant Assistance firm could count as your "in kind" contributions to the Grant effort - to your benefit.
   

• You pay for only what you get - no more, no less.   If a job is smaller than estimated, you pay less, but if the job increases in complexity, you could pay more.   A Grant Assistance firm should offer an estimated maximum in its original estimates.
   

• Some companies bill on 'time-blocks' in 10- or 15-minute increments;  15-minute block billing charges 30-minutes for 16-minutes actually worked.   A number of these blocks add up to considerable extra cost (+87.5% overcharge in this example).   T-21 charges you for only the exact amount of work done by billing on a precise 'per work minute' basis.   [ For more on this click:  T-21 Time Billing System ]. 
   

• Many reputable Grant Assistance firms charge $90 - $170 per hour or more to cover fixed-costs of facilities and on-staff personnel.   While some may do good work - those rates could pose a large cost to you.   Just one of their normal 40-hour work weeks could tally to $3,600 - $6,800.   Complicated Grants can cost many times these amounts.   T-21 is far less expensive.
   

• T-21 has low rates and a unique, efficient billing system.   We offer honest, up-front estimates on Grant Assistance projects.   Our billing rates are lower than other professional Grant Assistance firms and we do not bill on "time blocks."
   

• T-21 recommends the "per hour" method of billing.   Select a professional firm, quoting guaranteed reasonable hourly rates and precise billing, like T-21.
   

FIXED AMOUNT

The Grant Assistance firm charges a fixed dollar amount for your project.   Analysis:

• Grantors will approve of this method, if the cost ratio is not too high.
   

• The amount paid to the Grant Assistance firm could count as your "in kind" contributions to the Grant effort - to your benefit.
   

• A small additional percentage is added to a fixed quote by the Grant Assistance firm to cover unexpected costs. 
   

• If Grant Application support takes less time than estimated, the Applicant pays more than they otherwise would;  if it takes more time, the Applicant could benefit.
   

• Unethical grant assistance firms may "cut corners" to avoid losses, if a project is "running over," and the end-product could suffer.
   

• The only advantage is that the Applicant knows the total cost, in advance, and there will be no cost over-runs.
   

• T-21 offers this plan for simple, straightforward Grant Application work.
   

CONTINGENCY

No up-front cost to Applicant;  the Grant Assistance firm receives a high percentage of any Grant Award in return for assuming risk.   Analysis: 

• Most Grantors immediately reject Applicants using this method, as it indicates a reluctance to commit any resources to a proposed project.
   

• A large percentage of any award would go to an outside company - not for the purpose of the Grant.   Grantors, therefore, eschew this method.
   

• The Association of Fundraising Professionals’ Code of Ethics states that "Members shall not accept compensation or enter into a contract that is based on a percentage of contributions; nor shall members accept finder’s fees or contingent fees."  [See:  http://www.afpnet.org - Select:  "Compensation and Contracts"]
    

• The Applicant receives considerably less Grant money to work with (even if this method could be utilized) and must make up the difference.
   

• The success rate of this method is low to non-existent.   Grant Assistance companies, working on this basis, may just perform quick "cookie cutter" Grant Applications, hoping to get a sizeable percentage of any Grant Award. 
   

• T-21 Does Not accept work on this basis and strongly recommends that Applicants do not participate in this practice.
   

FIXED RATE  PLUS INCENTIVE

The Grant Assistance firm charges a reduced amount (fixed- or hourly-rate quote), initially, and receives a low percentage of any Grant Award in return for assuming less risk.   Analysis:

• Most Grantors reject this method for the reasons stated in the "Contingency," section, above.
   

• A Grantor must approve this arrangement in advance of Application submission if this method is used.   Such approvals are rare.
   

• The success rate of this method is very low.
   

• T-21 Does Not accept work on this basis and recommends that Applicants use extreme caution before attempting this method.
   

Take a more detailed look at what T-21 offers you by clicking the blue links below.   T-21's:

• Organizational Structure  Saves You Money
   

• CWM  Time Billing System  Also Saves You Money
   

• Billing Policy  Ensures Fair, Honest, and Flexible Billing
   

• Customer Service Policy  Protects You
   

• Customer Privacy Policy  Protects Your Privacy 
   

• Billing Rates are the Lowest Professional Costs In The Field 
                                (rates are "per cwm;"  hourly rate = cwm X 60)