Grant Writing Fees: When Can a Grant Writer Be Paid and How to Protect Your Relationship with Funders

For organizations and individuals seeking funding, the process of grant writing can seem daunting. Hiring a professional grant writer can be beneficial, but it's crucial to understand the regulatory and ethical frameworks surrounding payment. In this article, we will explore the nuances of when and how a grant writer can be paid, ensuring that you maintain a strong and ethical relationship with funders.

Legal and Ethical Considerations

As a grantees' consultant with over 15 years of experience in grant writing, I strongly advocate for transparency and clear communication when engaging a grant writer. Before hiring, a formal agreement must be established. This agreement should clearly outline the scope of work, including any fees and payment terms. Whether the fee is by the hour or per job, the agreement should be signed by both parties. Without this written agreement, a potential for disputes may arise, and consulting a lawyer might be advisable.

One key aspect to consider is the timing of payment. Practically speaking, funders typically require that expenses associated with grant writing are borne by the organization itself until the grant is awarded. This means that granting a grant writer payment with funds provided by a grant is generally not permissible. Federal grants, in particular, contain clauses that explicitly exclude the costs of grant writing. Engaging a grant writer with such an arrangement is not only impractical but also unethical, potentially jeopardizing your relationship with funders and exposing you to legal liabilities.

Exceptions and Professional Ethical Standards

While the general rule is clear, there are two rare exceptions to the non-payment rule:

Personal Funds: A grant writer can be paid with personal funds at any time, provided that the transaction is transparent and documented properly. This ensures that the audit process remains unmarred by external funding which might not be approved by funders. Post-Award Services: Payment can be made for services delivered after the grant is awarded, such as acting as an evaluator or project manager. However, these services must go above and beyond the initial proposal writing. Clearly defining the scope and additional services provided can help avoid any misunderstandings.

It is essential to ensure that all payments made post-award are for legitimate and ethically sound services. Adequate records and documentation are necessary to substantiate that the grant writer has indeed fulfilled their contractual obligations.

Audit and Documentation

Grant writers, if paid, must ensure that their work is transparent and auditable. The audit process includes providing evidence that they have diligently fulfilled their role. Proper records and invoices should be maintained to support the legitimacy of payments, especially when using your personal funds or post-award services.

In conclusion, when seeking to work with a grant writer, it is crucial to establish clear and written agreements to protect both parties and ensure ethical compliance. By understanding the legal and ethical considerations, you can avoid potential disputes and maintain a healthy relationship with funders.

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