To Negotiate or Not

The grants listserv on the Charity Channel is always a source of interest to those of us who are observers of the trends in the grantwriting profession. Questions of broad interest to the subscribers are met with a flurry of comments, often twenty or more. Although I have never left a comment (I leave most of my musings to this venue), I admire those like Pamela Grow, who gives her opinions freely and is for the most part celebrated for it.

Yesterday Lu Cavanaugh reported that a new client had asked her to delay 30% of her fee until after the grant was awarded, presumably contingent on the success of the proposal. This way of dealing with independent contractors is an issue that comes up regularly in discussions among grantwriters. The professional organizations have weighed in with the universal opinion that it is “unethical” for a grants professional to take a commission based on the award of a grant, especially if it is based on a percentage of the award.

Some people argue that this deal puts the grantwriter in the disadvantageous position of waiting for her money until after a long period has passed. How do you enforce the contract? How do you know how much money you are owed? Can you afford to wait three or even nine months to be paid? These hardly seem like ethical questions. They are more like business questions – a questions of negotiation.

Others argue that it sets a bad precedent that could lead to all grantwriters facing this deal. Again, this is not an ethical question, but a business question. If it were stated in that form, I find this argument much more compelling than the latter. After all, small businesses are often paid a portion of their fee and the rest when the project is finished (and they are occasionally cheated by unscrupulous clients – caveat venditor).

Personally, I say let the market take care of theses things. If a grantwriter wants to take a percentage, or a bonus, then it needn’t affect the rest of us at all. Let us take care of ourselves. After all, we all ask for advances against the project estimate. Don’t we?

Here's the end of the story: when Lu negotiated for her full fee at the conclusion of her work, her client relented. I guess they valued her expertise more than whatever they would gain by withholding a big part of her fee. If you are the vendor with proven superior skills, you have a strong position from which to negotiate. (see Women Don’t Ask by Babcock and Laschever).