No, funding agencies do not allow for grant money to be used to pay for services rendered prior to an award. Therefore, legitimate grant writing firms will not place their clients at risk of fraud by charging for grant writing – contingent upon a grant being funded. Clients must pay for grant writing services at the time of service, not upon award.
Things to know…
- Contingency payment for services rendered before the grant award is an unallowable expense with public dollars (federal and state funded grants). Should an organization be audited, the organization would then have to repay the amount paid out to the grant writer back to the funder, plus fines, plus possibly lose the grant and/or face federal jail time.
- It is also HEAVILY frowned upon by foundations. However, while rare, some DO support it as they fund capacity building; this would include grant writing.
- Use other types of #funding, such as small business loans, crowdfunding or angel investors to pay for grant writing services
If you are interested in an #SBIR #grant, however, there may be a Phase 0 #funding program you may be eligible for. Phase 0 programs help pay for grant writing services by defraying a portion of the costs through an award to organizations who have won #SBIR Phase I awards.
We help high-growth startups find and apply for non-dilutive funding. Schedule a consult call with us HERE.