the numbers game

i have tweeted, blogged and stated this before...

but i cannot reinforce strong enough that the secret to a strong application is in the numbers.

in addition to having at least 30% matching funds and a letter(s) from actual funders that will underwrite that 30+%, it is key to make sure your numbers presented on the financial portion of your application show that the project will be presented and completed in the most cost-efficient manner.

this means make sure you apportion costs so that most of the project budget will be used to support the most direct elements of the project. tangential and indirect costs can come from your working capital expenditures that will NOT be part of the funds requested from the government.

this brings us to the topic of taxes. the last communication i received from an inside source indicated that there is no certainty EVEN NOW that the grant funds from btop and bip will be exempt from taxes. the source's team was only able to get a speculative and not a definitive yes or no on the tax issue, even in spite of the IRS guidance which many agreed still left some holes and questions outstanding. worrisome, yes?

the source expressed frustration because s/he is deep in the middle of negotiating the final stages of funding and/or applying for round 2, depending on how everything pans out.

as all those who are checking and double checking their numbers right now leading up to the deadline this friday should know, it's important to know now and not later whether some of the budget will be used to pay taxes or not.

for a multimillion dollar project, the portion of the budget used to paying taxes can DEFINITELY affect the provisioning of service, the build out and definitely the bottom line.

what is a weary-eyed, exhausted project grantee or applicant to do? err on the side of caution and in the abundance of caution, i would say prepare for the possible situation when it will be determined (maybe later) that your grant would be subject to federal taxation.

best be safe than sorry. that is my motto. well, it's really my grandpop's motto, but i asked and he said i can share it with you all.

jokes! i got jokes this afternoon, ladies and gentlemen!

good luck! happy applying!

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oh and another thing, i think broadbandlawyer got hacked when i wasn't looking. whoever it is trying to dig in my digs, CUT IT OUT! if you ask nicely, i can give you a piece of my blog space. manners, people. ha!