Wednesday, April 20, 2011

Grant Scam Warning

Have you been contacted by a company promising thousands of dollars of grant funds for a comparably small fee?

If you have been approached by a company or consultant seeking a fee to secure grant funds for you, consider the following:

1.  There is no such thing as a “guarantee” that a company can secure a grant for anyone.

2.  Over 99% of grants are awarded to nonprofit, governmental and social service organizations.  Less than 1% of grants are awarded to individuals.

3.  If a company says it cannot provide you with any references, you may not want to do business with them.  Most ethical contractors are happy to provide you with references.

4.  Check with the local Chamber of Commerce, the Better Business Bureau and the State Attorney General’s office for ratings and information about the company.

5.  If a company states it is a member of grant professional association and that it adheres to a certain "Code of Ethics", this is a false statement.  NO company is a member of any such association.  Companies may have a staff member or members who have joined the various associations. 

There are legitimate and ethical companies who provide grant seeking services.  To help you identify such a company, look for the following:
  • A company that does not guarantee your organization will receive a grant.
  • A company that is able to provide you with references of satisfied customers.
  • A company that works via contract and not solely by word of mouth.

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