I’m glad that FLI put this FAQ out, but I’m nervous that several commenters are swinging from one opinion (boo, FLI) to the opposite (FLI is fine! Folks who condemned FLI were too hasty!) too quickly.
This FAQ only slightly changed my opinion on FLI’s grantmaking process. My best guess is that something went very wrong with this particular grant process. My reasoning:
I’d be surprised if FLI’s due diligence step is intended to be a substantial part of the assessment process. My guess it that due diligence might usually be more about formalities like answering—can we legally pay this person? Is the person is who they say they are? And not—Is this a good grant to make?
It seems like FLI would be creating a huge hassle if they regularly sent out “intention to issue a grant” to prospective grantees (with the $ amount especially), only to withdraw support later. It would be harmful for the prospective grantees by giving them false hopes (could cause them to change their plans thinking the money is coming), and annoying for the grant maker because I suspect they’d be asked to explain why they changed their mind.
If indeed FLI does regularly reject grants at due diligence stage, that would update me towards thinking nothing went too badly with this particular grant (and I’d like to know their reasons for doing that as I’m probably missing something).
Note—I’m speaking for myself not CEA (where I work).
If indeed FLI does regularly reject grants at due diligence stage, that would update me towards thinking nothing went too badly with this particular grant
The FLI FAQ does say this:
… 4) [Inform the grantee of our intention to issue a grant] is done via an informal email, but in some cases (including this one), the grantee requested a letter of intent.
I’m glad that FLI put this FAQ out, but I’m nervous that several commenters are swinging from one opinion (boo, FLI) to the opposite (FLI is fine! Folks who condemned FLI were too hasty!) too quickly.
This FAQ only slightly changed my opinion on FLI’s grantmaking process. My best guess is that something went very wrong with this particular grant process. My reasoning:
I’d be surprised if FLI’s due diligence step is intended to be a substantial part of the assessment process. My guess it that due diligence might usually be more about formalities like answering—can we legally pay this person? Is the person is who they say they are? And not—Is this a good grant to make?
It seems like FLI would be creating a huge hassle if they regularly sent out “intention to issue a grant” to prospective grantees (with the $ amount especially), only to withdraw support later. It would be harmful for the prospective grantees by giving them false hopes (could cause them to change their plans thinking the money is coming), and annoying for the grant maker because I suspect they’d be asked to explain why they changed their mind.
If indeed FLI does regularly reject grants at due diligence stage, that would update me towards thinking nothing went too badly with this particular grant (and I’d like to know their reasons for doing that as I’m probably missing something).
Note—I’m speaking for myself not CEA (where I work).
The FLI FAQ does say this: