# Is This Federal Grant Worth the Lift? A Go/No-Go Checklist for Nonprofits | Viking Impact Advisors Source: https://www.vikingimpact.com/blog/federal-grant-go-no-go-checklist [Home](https://www.vikingimpact.com/) / [Blog](https://www.vikingimpact.com/blog) [Funding Decoded](https://www.vikingimpact.com/blog/category/funding-decoded) # Is This Federal Grant Worth the Lift? A Go/No-Go Checklist for Nonprofits November 11, 2025By Maria J. Posey Not every federal grant is worth winning. Before anyone writes a word, score the opportunity on nine factors, from mission fit and match to reporting and cash flow. A hard stop on eligibility, match or cash is a no, however large the award. A federal funding notice lands in your inbox. The award is large, the deadline is close, and someone on your board has already forwarded it with a note that says "We should go for this!" Maybe you should. But a federal grant is not free money. It is a binding agreement to deliver results under federal rules, with federal reporting, often on a payment schedule that is not yours. Saying no to the wrong grant is how you protect your yes to the right one. Here are the nine questions we ask before a nonprofit commits to an application, followed by a checklist you can score in under an hour. ## The nine questions ### 1. Fit: would we do this work anyway? Read the program purpose and the outcomes the agency wants. If you would have to invent a program, serve a population you don't know, or bend your mission to match the notice, the award will pull you off course. The best federal grants fund work you already believe in. ### 2. Eligibility: are we clearly eligible? The notice of funding opportunity names who may apply. Read it literally. Also check your registrations: federal rules require applicants to be registered in SAM.gov before submitting, and to keep that registration current while an application or award is active. Grants.gov access runs through the same SAM.gov registration, so start early. ### 3. Match: can we meet cost share with real resources? If the notice requires cost share, it must be real and documented. Under the Uniform Guidance, cost share has to be verifiable in your records, not counted toward another federal award, necessary and reasonable, and allowable. Cash and third-party in-kind contributions, including volunteer services valued at comparable rates, can count. If the notice does not require cost share, do not volunteer it unless the notice explains how it will be scored. Whatever you commit, you will have to document. ### 4. Indirect costs: will the award cover our real costs? If you have a negotiated indirect cost rate, federal agencies must accept it unless a statute or regulation requires something different, and pass-through entities must accept it too. If you do not have one, you may charge a de minimis rate of up to 15 percent of modified total direct costs. That base leaves out items such as equipment, rent, participant support costs and the portion of each subaward above $50,000. Read the notice for any program-specific limit before you build the budget. ### 5. Reporting: can we carry the reporting load? Expect financial reports at least annually and as often as quarterly, with quarterly or semiannual reports due within 30 days of the period's end and a final report due within 120 days of the end of the award (90 days if you are a subrecipient). Performance reports must tie spending to results. If your total federal spending reaches $1,000,000 or more in a fiscal year, you will need a single audit. ### 6. Partners: are they committed in writing? Letters of support are easy. Signed agreements that spell out who does what, for how much, and on what timeline are harder. If a partner's role is essential to the design, get that commitment before you submit, and decide early whether they will be a subrecipient or a contractor. ### 7. Timeline: do we have enough runway? Federal agencies should generally keep funding opportunities open for at least 60 calendar days, and may shorten that window, though generally not below 30 days. Count backward from the deadline. Subtract time for registrations, partner signatures, budget review and internal approvals. What is left is your writing time. ### 8. Capacity: can we manage the award, not just win it? Before making an award, federal agencies weigh an applicant's risk, including financial stability, management systems, history with past federal awards and audit findings. Ask the same questions of yourself. Who will track time and effort, draw down funds, monitor subrecipients and submit reports? If the answer is "we'll figure it out," that is a risk. ### 9. Cash flow: can we float the costs? Federal rules favor advance payments for organizations with adequate financial systems, but reimbursement is used when an agency or pass-through entity sets a specific condition, when the recipient asks for it, and for construction. On reimbursement, payment is due within 30 calendar days of a proper request. That means you pay staff and vendors first and wait to be repaid. Model how many weeks of expenses you would carry, and where that cash comes from. ## Score it Give each factor zero, one or two points. Be honest. A score of one means "possible, with work."FactorTwo pointsZero pointsFitCore work we already doA program we would invent for the moneyEligibilityClearly eligible; registrations activeUnclear eligibility or lapsed registration (hard stop)MatchNone required, or secured and documentedRequired and unidentified (hard stop)Indirect costsNegotiated or de minimis rate fully allowedAward leaves real costs uncoveredReportingSystems and staff in placeNo one assigned; first single audit unplannedPartnersSigned roles and budgetsVerbal interest onlyTimelineComfortable runway after registrationsDays, not weeks, to writeCapacityGrant management experience on staffNo one to run the awardCash flowReserves or credit cover the reimbursement lagCannot front payroll (hard stop) - 14 to 18 points: Go. - Nine to 13 points: Go only if you can fix the low scores before you start writing. - Eight or fewer, or any hard stop: No-go. Track the program for its next round instead. Want the scoring sheet on paper? [Download the go/no-go checklist (PDF)](https://www.vikingimpact.com/downloads/federal-grant-go-no-go-checklist.pdf) and run it with your finance and program leads. ### What this means for nonprofits Run this checklist with your finance lead and your program lead in the same room, before you commit staff time. The program side tends to see the mission; the finance side sees the cash. A go/no-go decision needs both. And write down why you said no. That note becomes your readiness plan for the next round. ## A no can become a yes next round Federal funding rewards organizations that are ready before the notice drops: registrations current, an indirect rate in hand, partners aligned and cash planned. The checklist that tells you no also tells you what to fix. Weighing a federal opportunity? [Start a conversation](https://www.vikingimpact.com/contact-us) with us, and we will score it with you. ## Sources - [2 CFR 200.1, Definitions (modified total direct costs)](https://www.ecfr.gov/current/title-2/section-200.1) - [2 CFR 200.204, Notices of funding opportunities](https://www.ecfr.gov/current/title-2/section-200.204) - [2 CFR 200.206, Federal agency review of risk posed by applicants](https://www.ecfr.gov/current/title-2/section-200.206) - [2 CFR 200.208, Specific conditions](https://www.ecfr.gov/current/title-2/section-200.208) - [2 CFR 200.305, Federal payment](https://www.ecfr.gov/current/title-2/section-200.305) - [2 CFR 200.306, Cost sharing](https://www.ecfr.gov/current/title-2/section-200.306) - [2 CFR 200.328, Financial reporting](https://www.ecfr.gov/current/title-2/section-200.328) - [2 CFR 200.329, Monitoring and reporting program performance](https://www.ecfr.gov/current/title-2/section-200.329) - [2 CFR 200.414, Indirect costs](https://www.ecfr.gov/current/title-2/section-200.414) - [2 CFR 200.501, Audit requirements](https://www.ecfr.gov/current/title-2/section-200.501) - [2 CFR 25.200, SAM.gov registration requirements for applicants](https://www.ecfr.gov/current/title-2/section-25.200) - [Grants.gov: Organization Registration](https://www.grants.gov/applicants/applicant-registration/organization-registration) Maria J. Posey is CEO and Founder of Viking Impact Advisors. [Contact Us](https://www.vikingimpact.com/contact-us). ## More from the Blog [All posts](https://www.vikingimpact.com/blog) [AI in the Workforce System ### Before You Let AI Near Your Case Files: Five Questions for Workforce Programs Five governance questions workforce programs should answer before AI touches participant records, eligibility decisions, or case...May 12, 2026](https://www.vikingimpact.com/blog/ai-case-files-five-questions)[Boards That Lead ### Who Speaks for Workforce? This Month, it's You! Now is the time for workforce advocacy. September is Workforce Development Month, but uncertainty looms. 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