10 Oct Implementation
Implementation grants are used to pay a portion of the identified and separable costs associated with a transaction including the thirdparty costs of lawyers, accountants, and consultants, the cost of breaking leases, onetime technology costs, or severance pay for employees, etc. Implementation grants cannot be used to pay for any allocated staff costs or for any costs related to the ongoing operation of the organization(s). Implementation grants can be used to pay a portion of all the transactionrelated costs or, if the nonprofits so elect, to pay a larger portion of cost items that are particularly difficult to fund or are most sensibly paid for by a neutral party.
Prerequisites include formal board approval for the transaction by each organization; a formal written plan detailing the scope of the collaboration; implementation steps such as establishing a timeline, and pre- and post-transaction budgets; and an agreed-upon set of metrics to measure the success of the transaction (and the associated reporting templates and governance structure to ensure that such metrics are produced and acted upon).