I wonder why they call it a planning grant?

Social entrepreneurship is a hot topic around here.  The whole idea of a sustainable social enterprise is compelling. While not every charitable organization can be self sustaining, many can be, and can transform whole communities for a long time. 

With that as a background,  I was at a meeting the other day with a participant who was not "verbally challenged."   One group member offered the suggestion that many of our local foundations offer planning grants to help the proposed self-sustaining social enterprise get up and running and learn, statistically, if the proposed model might work.  If it did, sustainability was a real possibility.

Our friend weighed in with the insightful comment that "planning grants aren't sustainable," and that when they run out, the enterprise "wouldn't have them anymore."  One wonders why they call them planning grants?

What's the point of this?  We often think the same way in startups.  We don't think much about how much money we need - usually from investors - to gain information that increases knowledge and lowers the risk of the business.  In the same way that the appropriate use of a planning grant is planning to learn how to make this enterprise sustainable, early seed funds are best spent reducing business risk and increasing the likelihood of success through the process of testing and measurement.

Comments

[Andy Black]

Tim

While I don't have much experience with planning grants (or any for that matter), it appears that the grant is being misused. Your "well spoken" associate is misinterpreting the use as well, or at least speaking about the typical application of the grant and not the theory behind them. I don't see the planning grant as a sustainable item but as a means to create a sustainable item. Any group offering such a grant should be specific in the terms of its use (i.e. can it be used for capital equipment, consulting services, etc.). Any company in need of a planning grant should welcome that type of guidance.

PS-Congratulations on the grandchild!