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Why Did the City of Los Angeles Really Lose Out on Stimulus Money?

February 28th, 2012 · by Kathy Walsh · 1 Comment

I find it grimly hilarious, in a Catch-22 way, the City of Los Angeles’ City Controller, Wendy Greuel, realized that a “lack of oversight” cost the City an estimated $125,000,000 in stimulus money because the City failed to pursue all the funding it was eligible to receive.

This isn’t a surprise to Seliger + Associates, as we’re on the pre-approved grant writing vendor list for the City and didn’t receive any calls or RFPs from the City inquiring if we had the capacity to prepare one or more grant applications, as we have in the past. And if we had, this is the daunting gantlet we would have faced before writing a single word in the grant proposal:

  • the City has separate pre-approved lists for almost every City department;
  • apparently none are in a database easily accessed by departments that need grant writing assistance;
  • just because you have been approved by one department of the City, does not mean that you will not have to prepare and submit, almost, if not exactly the same paperwork for each and every department you want to work for.

If you bill by the hour, you could go out of business just preparing paperwork.

Then, if you’re chosen to bid on the specific job, you have to again fill out the same/similar paperwork again to turn in with your bid documents.
These problems, combined with the incompetence or laziness cited in the article, are the real reason the City lost out on more than $125,000,000 in stimulus funds. The City hasn’t realized that every check has a cost.

Nonprofits, however, can learn something important from this: pursue every opportunity you can. Be nimble, like a small business, instead of sclerotic, like the City of Los Angeles.

Tags: Government · Grants · Stimulus