Click here to view the transcript from the Facebook Live event, on January 25^th

Please reference glossary of terms here.

Selection Criteria

Q: What are the selection criteria?

A: Please review the written description of the types of projects and values held by organizations that we are looking to fund. We have included all criteria in those already- published grantee criteria.

Q: What types of organizations are eligible to apply?

A: Organizations exempt from taxes under sections 501c3 or 115(2) of the Internal Revenue Code, as well as 501c6 organizations and/or for-profit entities are eligible to apply. Any for- profit organization wishing to apply must clearly articulate the charitable purpose of its proposal, and the Foundation will conduct a review of that proposed charitable purpose.

The Foundation anticipates this portfolio of grantees will mostly consist of traditional Entrepreneurship Support Organizations (ESOs), though we also intend to potentially fund organizations that may not readily identify as ESOs. These latter organizations could be non- profits working in fields in which Kauffman has not typically been active, but have a logical connection to the experience of entrepreneurs. These organizations also could be for-profit entities, governmental agencies or membership organizations that have developed an effective way to remove barriers for entrepreneurs.

The Foundation cannot fund any individual entrepreneurs to support their business directly.

Q: Our proposal calls for partnering with another organization to expand their proven programming into our community. The partner is a previous Kauffman grantee. Is this allowed/desirable?

A: This is allowed, as long as the applicant in question is not the organization previously funded by the Foundation. We are open to new organizations partnering with previous/current grantees in order to expand best practices.

Q: Is the Foundation more interested in supporting high-growth entrepreneurs or small businesses and main street entrepreneurs? Does the Foundation prioritize certain regions?

A: We believe all are important. We intend to support entrepreneurship in all its forms for all individuals across the United States, though our goals are to emphasize growth in the middle of the country.

Q: Do Puerto Rico-based organizations qualify to apply for the Inclusion Open RFP?

A: Yes, we will accept applications from organizations based in Puerto Rico.

Q: Is there a preference for programs that support entrepreneurs in the middle of the country versus the coasts?

A: There is a small pool of funds for projects already located in Kansas City.  Other than that, we are evaluating projects with an eye towards serving systemically underserved individuals.

Q: Are organizations who already receive grant support from the Kauffman foundation still eligible for this grant as well? Are past grantees eligible for this grant?

A: We are currently not accepting applications from current or past grantees in an effort to fund new programs and organizations through this RFP.

Q: Are international organizations working towards U.S. expansion eligible for this RFP?

A: It would be allowable in specific circumstances. We would need to evaluate the proposal further in order to determine eligibility.

Q: Do Puerto Rico based organizations qualify to apply for this?

A: Yes

Q: Can you clarify criteria related to for-profit business consideration for the grant?

A: No grant money can be put towards the private benefit of a company. Please refer to the EMKF Charitability Memo for more information.

Q: Are collaborative applications allowed? If a collaborative application is submitted, can we also submit an application for just our organization?

A: Collaborative applications are allowed and will be considered for funding. Please submit one application with a lead applicant and indicate that it is a collaborative grant. If your organization wishes to submit an application with a collaborating organization as well as an individual application, that would also be allowed, however please refer to the Q&A below regarding multiple application submissions.

Q: Is there a limit of number of applications per organization?

A: Organizations are allowed to submit multiple applications, however please be aware that doing so would raise serious questions regarding the intent of the organization’s involvement and priorities in relation to this RFP. We strongly recommend organizations submit only one application.

Q: Have you had sector specific grants in this program? How do you feel about this?

A: While we do not structure our grants to focus on a specific sector, we are extremely open to proposals within a specific sector.

Q: How old must the organization be to apply? Can it be a startup itself if it fits the RFP?

A: There are no minimum requirements for age of organization.

Q: Are organizations who already receive grant support from the Kauffman Foundation still eligible for this grant as well? Are past grantees eligible for this grant?

A: We are currently not accepting applications from current or past grantees of the Inclusion Open RFP in an effort to fund new programs and organizations through this RFP.

Q: We do not lobby, but we do advocate and educate on employment and entrepreneurial policies. We will not go into political activity/lobbying but will talk to elected officials. Is that allowed for funding?

A: Yes, this is allowable.

Q: Do you have a preference for middle of the country versus the coasts?

A: There is a small pool of funds for projects already located in Kansas City.  Other than that, we are evaluating projects with an eye towards serving systemically underserved individuals.

Q: Does a KC applicant have to be physically based in KC?

A: In order to be considered a KC applicant, the organization needs to be physically based in the KC metro area and serving entrepreneurs within the KC metro area. Please refer to the Inclusion Open glossary for clarification on what is considered to be the KC metro area.

RFP Requirements

Q: Are all grants required to last for two years or can we propose a one-year grant?

A: Most grants will be for a two-year period. We would consider one-year grants as well.

Q: Are grant award amounts listed somewhere or are we proposing the amount to support the program or scope of work proposed?

A: For KC organizations, there is a maximum amount of $100,000 per grant. For national organizations, there is a maximum amount of $450,000 per grant. All applicants should propose the amount requested within these limits.

Q: Is it possible to get the character limitations for each section?

A: Yes. Listed below are the character limits for each Round 1 section:

Q: If an applicant is invited to Round 2, can they slightly modify their proposal and requested amount from Round 1?

A: Yes.

Q: Can you describe some of the activities and requirements of the due diligence process in Rounds 2 and 3?

A: The due diligence process can vary based on the specific circumstances and structure of an applicant organization. Requested information will include audited financials, biographical information, organizational history, organizational budgets, and more. We will also conduct interviews with each of the applicant organizations and may conduct site visits if time allows and are deemed necessary. The Foundation will likely have additional clarifying questions regarding the proposed project that advances to the final round.

Q: Does the Kauffman Foundation require letters of support for a grant application?

A: No. In fact we do not offer a place for you to provide them, so you don’t need to worry about preparing them.

Q: Our plan calls for extending some support in the form of a network via regrants to partner non-profits. Would Kauffman allow that?

A: Yes, we would allow that. We would need to know who those organizations are and the work they are performing in service of the program to validate the amount being regranted.

Q: In describing the outputs and outcomes, we will track outputs through the two-year project, but we will also be tracking outcomes for a longer period of time. Is there an expectation that all outcomes will occur during the two years of the project?

A: Outputs and outcomes included in the grant must be contained within the two-year grant period. We understand that you may track additional outcomes on a longer timeline, and we would be interested in learning about what you are tracking on a longer-term basis.

Q: We proposed a two-year grant where in the first year we would be in a planning stage, and year two would be the implementation stage. Can part of the grant cover planning?

A: The Foundation would allow for an initial planning period in the grant.

Q: For us to adequately explain the project description within the application field, we may have to touch on a project we are not asking you to fund. How should we do that?

A: You can include a URL in the text of your responses that will provide us with information

Q: Where can we find additional information about creating effective outputs and outcomes?

A: Please review Kauffman’s guide “Developing Expected Outputs and Outcomes” which can be found here  .

Q: How would you like us to cite research mentioned in the project description section?

A: There are word limits to every answer box. We appreciate that applicants might want to cite research, but considering the limited space we recommend modifying your citations or inserting hyperlinks.

Q: How heavily weighted are third-party evaluations and what criteria makes a strong third- party evaluator?

A: Third-party evaluations are not weighted or required. They are encouraging to see, however they do not move an application to approval.

Q: Can we submit a proposal focused on solutions that both Test New Ideas and Scale Already-Proven programs or must we select one focus or the other?

A: Yes, if it makes the most sense for your proposal to combine the two focuses, we are open to proposals that both test new ideas and scale already-proven programs.

Uses for Grant Funds

Q: Can you provide more detail on eligible uses for the grant funds (e.g., capital improvements vs. operating/staff costs, etc.)?

A: Funds cannot be used for:

• Capital improvements (for example, purchasing a building)
• Providing funding directly to entrepreneurs (investing in an entrepreneurs business)
• Activities outside the United States
• Indirect costs

We can approve an exception to the indirect costs rule up to 10% of the total budget depending on the project and specific circumstances. We will work with final candidates to discuss these possible costs in later application rounds.

Q: What are some of the actual expenses the grant funds can be used for?

A: Examples of eligible grant activities (this list is not comprehensive) include program development, personnel, marketing and events, curriculum, equipment, outreach, technology development / improvements, evaluation, research, scholarships and travel stipends for participants, and organizational capacity building. Other uses may also be eligible, but all are subject to Foundation approval.

Q: Can funding be used for the salary of the program manager(s) or would you prefer we leave staff salary out of the budget?

A: Yes, funding can be used for salaries if directly tied to the proposed project.

Q: The budget cannot be used to provide any money for companies and startups, but can any of the funding be used for fellowships to students or student teams to develop prototypes? 

A: We would need details on what a fellowship entails, but generally yes.

Q: We are looking to improve capacity through staffing; is that looked upon favorably?

A: We are open to funding staffing, if that is what provides for the most impactful program.

Q: May grantees use grant funds for advocacy?

A: In certain situations the funds can be used for advocacy. Advocacy cannot be the sole purpose of the grant and the grant cannot be the only source of funding for the advocacy activities. All activities are subject to the approval of the Kauffman Foundation.

Q: Is there an overarching philosophy on where the Foundation sees its funding role in percentage of project budget?

A: We have distributed grants where our funding is 100% of the budget and where our funding is only 5% of the budget. We have no preference for either situation. On average our funding covers 48% of the budget.

Q: If the organization is venture focused, could the use of funds be for the support of the entrepreneurs i.e. operations as opposed to direct investment?

A: No grant money can be put towards the private benefit of a company. Please refer to the EMKF Charitability Memo for more information.

Q: Are there restrictions on using awarded funding on lending capital or loan loss reserves?

A: For 501c3 organizations that lend money in the course of their IRS approved mission, no, there are no restrictions.

For other types of organizations, the answer is yes, there would be restrictions.  In future rounds we will ask additional question to understand whether the lending activity would qualify as charitable (e.g. lending targeted specifically and solely to economically disadvantaged areas).

RFP Timeline

Q: When will awards be announced?

A: The RFP will open in January 2019, progress through three rounds of reviews to narrow the field to leading candidates and culminate in award decisions in the summer of 2019. Reviews will be conducted by Kauffman Foundation associates and leadership.  In specific circumstances, Kauffman Foundation staff might seek outside council on specific content and program areas.

We anticipate making final awards in June 2019.

Q: What is the next step in the selection process?

A: The Kauffman Foundation will follow a rigorous evaluation process to review the Round 2 applications. No more than 30 will advance to Round 3, which will consist of due diligence, interviews with the applicant organizations and further discovery. Final decisions will be made after Round 3.

Grant Selection

Q: How many grants will be awarded?

We anticipate we will award no more than 25 grants, and we may fund far fewer.

Q: What are your goals for this program?

A: We have several goals for this program:

• Reduce direct barriers to entrepreneurship for markets systemically left behind.
• Build a community of practice focusedon leveling the playing fieldfor entrepreneurs in communities systemically left behind, and sharing best practices.
• Establish baseline organizational values entrepreneurship supportorganizations must employ when running a program or project solution to reduce barriers.
• Contribute to our overall Eship goal of supporting qualityexperiences for entrepreneurs and, by 2024, helping 200,000 entrepreneurs develop valuable knowledge and skills to start or grow a business.
• Support our overall Eship goal of, by 2024, entrepreneurs in Kansas City and at least 200 other communities will have more supportive environments that enable them to start and grow their businesses.

Q: How is this funding different from previous Inclusion Open RFP’s?

A: This is a continuation and an expansion of that funding program. Please review the 2019 project overview for specific information about our focus areas for this year and the values we expect grantee organizations to demonstrate.

Q: What are the reporting requirements for the grant?

A: We anticipate a typical two-year grant will consist of four reports with two reports scheduled per year. The Foundation may increase or decrease the frequency of reporting if deemed necessary and appropriate.

Q: Should applicants consider this a one-year grant budget or should it cover the budget for the entire grant?

A: This budget form should cover the entire duration of the grant. If you are proposing a two- year grant, please complete the form for a two-year budget.

Q: Does the Kauffman Foundation plan to offer additional funding opportunities in the future?

A: The Kauffman Foundation plans to run a yearly Inclusion Open RFP (though we have the ability to change those plans). Please follow the Kauffman Foundation on social media and subscribe to our newsletter for additional information. Applicants to the Kauffman Inclusion Open will also be added to our email distribution list for future RFPs.

Organizations that are successful in securing an Inclusion Open grant are eligible, based on impact and strategic alignment to apply for a very limited pool of follow-on funding at the end of their grant. No grantee should assume they will receive follow-on funding.

Q: Is there a hard date for the start dates for grants? Would the grant start date be decided by the Foundation?

A: We anticipate that first payments will go out no later than mid-July, 2019. Your organization would get to decide the date based on what is needed for your particular project, if you are successful in securing an Inclusion Open grant.

Q: How do you envision the grantees collaborating together and working together?

A: We are in the process of working with current grantees to understand how to best facilitate that in a way that helps everyone do their job better, without being a burden. We project developing a “community of practice” in 2019, and will have more details on that in the coming months. As a bare minimum, Market Gaps grantees come together for an in-person convening once a year, paid for by the Kauffman Foundation.

Q: Outside of the funds, is the Kauffman Foundation able to help grantees implement their programs?

A: We will be selecting projects and organizations that we think have the skills to implement the projects that they are proposing. While the Kauffman Foundation will do everything we can to be supportive, we do not have the staff to support grantees other than through high-level project monitoring and advising. Recipients of a 2019 Inclusion Open grant may have external consultants made available to them through the Foundation, but that is not guaranteed.

Q: If selected, how much control will we and our partners have over the initial announcements and PR associated with the award?

A: The Foundation will announce the awards after grants have been approved. Grantees will be asked to wait until after the Foundation’s announcement before releasing their own announcements. Any PR materials that mention the Kauffman Foundation must be submitted to the Foundation for approval.

Q: There has been new research and thinking around how to measure impact of organizations that are working with traditionally underrepresented groups of entrepreneurs. Are you open to new ideas for measuring impact or do you have a standard set that we would need to use?

A: We do have some standard, top-line goals that all grantees will be subject to tracking, however our evaluation department will work with you to determine outputs, outcomes, and metrics that work best for your organization and program.

Further Questions

Q: How do I contact the Kauffman Foundation with questions regarding this funding opportunity?

A: Questions may be emailed to InclusionOpen@kauffman.org. We will also be hosting a Facebook Live event on Friday, January 25th at 10am CST to talk about the application and answer questions at that time. Due to the volume of applications, Kauffman program officers will not be able to participate in 1:1 meetings, and to ensure fairness in the process, we will not answer questions individually. We will update this FAQ document as we receive additional questions.

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