Thursday, June 3, 2010

Dear Leadership Grants of America, Would You Like to Give Me Some Money?

As some of you know, I've been preparing a grant application for Pepsi Refresh for some time now. The idea behind this grant is that individuals and organizations can apply for grants of $5,000, $25,000, $50,000 or $250,000; those grant applications are posted online, and viewers can vote on them daily. Each bracket has a different amount of grantees that will be awarded each month--but here's the catch: Pepsi only accepts the first 1,000 submissions it receives starting midnight EST on the first of each month.

Unfortunately, the system has been a little flawed.

Or perhaps that's unfair. What is undeniably true, though, is that a LOT of people are applying for these grants, and the high activity level tends to make the Pepsi submission site a bit uncooperative. When I logged on to submit my grant application (at EXACTLY midnight EST), the site froze up immediately and didn't let me continue. Ten minutes later, 1,000 submissions had been received. Frustrating, to say the least, and so far Pepsi has said there's nothing to be done but try again next month. Okay, I will.

But in the meantime I've been looking into other grant opportunities. Have you ever tried looking for or applying for grants? There are a LOT of them out there, but they all have specific eligibility guidelines, so it can take a while to weed through and find the grants that are applicable to you. Fortunately, I found one: Leadership Grants of America. Wonderfully, the Leadership Grants Organization awards funds to entrepreneurs looking to start or expand their small businesses.

So, I got in contact with the organization, and just today my initial application was confirmed. The next step is to submit a business plan and cover letter no later than July 16. If the proposal meets the organization's criteria, I'll be told what due diligence items are required, and the amount of funds awarded. So exciting! And I love that I have an official deadline for when to complete my business plan. Hey, I'm a writer--I like deadlines.

I'll keep you posted!

31 comments:

  1. Are you able to verify the grant recipients? Their hitch is that they require a business plan and offer a $2100 service to do one for many of their applicants (who, unlike yourself, can't write). Cynical old me, I just don't see "free money" too likely unless it's related to the government and you are a designated minority, veteran, etc.

    I know they accepted the grant application (and business plan application) for someone who was purchasing a franchaise which violates their "start up business mandate"

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  2. I have completed and submitted a business plan to Leadership grants on July 9th. I wrote mine by myself. I just got notification to submit due diligence items...essentially items needed to verify the claims you made in the business plan. They are asking me for copies of certifications, licenses, education, etc. All of this is if fine....the only thing that slightly bothers me is that they want a copy of my credit report.

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  3. Since you wrote your own plan you are not being scammed (I don't think giving a credit report is that big a deal) but it could still be an overall scam even if they give away small grants. (I would be curious if anyone who wrote their own business plan and didn't pay to have it done ever received a grant? -- Their list of recipients is untraceable

    If their grant revenue is coming from the same folks who charge people to write business plans (the solicitation for the BP writing comes off the grant site I'm told) and that business plan revenue exceeds the amount they pay out in grants I would say it is at best very unethical.

    I know a large number of people who don't have $2100 to pay for a plan do so with dreams of $300K grants dancing in their heads.

    My axe to grind is that I wrote 12 plans where Businessplansolutions.biz charged the customers $2100 each and I was supposed to get 1/3 of the revenue. They paid me nothing and I finally had to tell the poor saps who paid for their plans that I could no longer work for free. I have kids to feed and 200 hours of unpaid labor was a pretty big hit.

    But good luck to you. You should try and get some writing work with the academic publishers. I've done this and it is decent work.

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  4. Anything new on the due dilegence items? I too wrote up my own business plan in application to this company and Im wondering how well this place matches up.

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  5. I just submitted my business plan on July 23rd. I am looking to expand my business. I am keeping my fingers crossed that this is legitimate. It would be nice to see that there are actually organizations out there that are not out to scam you. I also wrote my own plan, but did hire an independent consultant who my accountant referred me to. I spent $1800.00 for the help (which I really didn't have) because I was so overwhelmed by the Plan requirements that Leadership Grants outlined. I will keep you posted as well.

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  6. On their site they had business plan examples that you can download for free. I got one that was over 60 pages. I simply used their outline and put in my own information. I too was asked in round two for more due diligence. I am sending a credit report, HOWEVER, I am blotting out all SSN and ACCT# info so i may limit my risk if this is a scam.

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  7. That is a good idea. Thank you! How long did it take from the time you submitted your Plan until they asked for more info. I'm curious, is Ann Ross your contact there?

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  8. Here's to hoping it's not a scam either. We just received confirmation that they received the due diligence items. Ann Ross is our contact as well. We did talk to her over the phone.

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  9. I just received my request for due diligence items. They're due by August 15th. We shall see!

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  10. Wow! I'm so sorry I'm just now seeing all of your comments.

    I've actually been directly contacted now by three people who feel uneasy about Leaderships Grants Organization. To make a long story short, I did a lot of research and concluded that, yes, it seemed very likely that it's a scam, so I did NOT end up applying for a grant with them. I'll blog about this later today. Feel free to contact me directly if you would like to talk about this in further detail. katie@legacyeditorialconsulting.com.

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  11. Well thats no good. Care to share your experience soon?

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  12. Hi Katie & Everyone,

    First, thank you so much for all of the information. It is so disheartening!! From the start, I was also concerned about everything you said -- from the list of "supposed" grant recipients to where Leadership was getting their funding from. But, like all of us, I had hope, and l wanted to have faith that there could be a group out there that truly did just want to help worthy small businesses get their start.

    I went out and paid $2,000 (that I didn't really have) for a consultant to help me write my business plan (not thru Leadership Grants, thankfully, but someone my accountant recommended). Then spent about another $100 to print and ship the 3 plans overnight delivery to their address at "55 Madison Ave". Since receiving your e-mail I have tried finding out if there actually is a Leadership Grant Organization in that building. The building directory doesn't have it. What's more disturbing is that I sent my plans via UPS to this address and it was delivered by UPS. UPS indicated delivery to "office" and signed by "Marie (i think)". When I tried to get UPS to tell me if the office was in fact called Leadership Grant Organization, they said they couldn't track that information and that the driver wouldn't remember. That was even after I told the UPS rep that we believe they are a fraudulent business. They told me that all I could do was contact the police. How frustrating is that?!

    Then I researched Sarah Morgenstern and believe it or not found a Sarah Morgenstern that is part of Wharton Business School @ the University of Penn! I just don't know what to think, other than to just accept the fact that it is probably a "scam" to get people to spend a fortune on business plan consultants who they receive kickbacks from.

    I will be posting this on your blog for other people to see. If anyone has a different experience with them and actually receives money, I would love to know.

    You're a wonderful writer and I wish you the best of luck!!

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  13. I looked them up on BBB didn't find any negative comments. I think if this is confirmed as a scam, it's our duty to make sure everyone who comes across this website knows. It's an awful lot of trouble to scam people.

    Also anyone know how the information we shared could be used. It's a lot information about our business.

    I plan to report them to the FTC if this is confirmed. Thanks all!

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  14. Has anyone blogging this site ever been awarded funds from Leadership Grants of Am.? I too have submitted the due diligence items 2 weeks ago. Nothing yet.

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  15. Hello All, I have also sent a business plan and my Leadship Grant Rep, Ann Ross, said the funds would be granted after the funding cyle...(July) she then said an award letter would come via mail after six weeks if I was selected to receive funds. I then asked if I would receive a letter if I don't get selected to receive funds, she said unfortunately not. Six weeks after July It will probably close to September. :(

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  16. Hi everyone,

    Ann Ross was my contact as well--I haven't heard from anyone yet whose point of contact was someone else. Did anyone here actually use Capital Business Service, the "outside consulting firm" recommended by LGO? Were social security numbers part of the due diligence items requested? Would all of you who have submitted due diligence items keep the rest of us posted on what happens next?

    Thank you all for sharing your experiences!

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  17. I sent due diligence documents Aug 15th.
    No social security numbers were required.

    Grants are accepted and funds are awarded quarterly.
    I was told by Ann that decision were made within six weeks of the end of the quarter So something should be decided by the end of October/ Early November....since I submitted my business plan in the the third quarter.

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  18. Does anyone wonder why the only contact is this "Ann Ross"? Anybody have anymore info... good or bad?

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  19. Hello all, yes Ann Ross is also my rep. as well,I am now in the waiting stage as many of us are. my funding cycle is to end 8/31/10 then i was told that a letter would be sent to say if aproved for the grant. Sent in my own business plan /grant request,so if this is a scam only cost me time and my hopes of growing my business. best to all and just maybe this is real. jbey-owner beys novelties & gifts -kansas city,mo.

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  20. Hello Katie,and and everyone eles,has anyone heard or had any positive things happen inregards to their grants-from this organization?

    It seeems that our rep.ann ross would have info on the progress of our grant request and keep us informed,any new news would be great to hear. thank and blessing to all-beys novelties & gifts kansas city,mo.

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  21. Hi Katie and all, I just got my application confirmation and directions to submit my plan by Oct 29. And, yes, it was from Ann Ross! More and more I'm beginning to believe that this is another example of "if it seems too good to be true, it probably is..." I was in the microfinance business for a while and we did legitimate grants as well as loans, but that was for microenterprises (less than $1000). I guess I'm torn as to whether to submit my business plan or not. Ironically, my business is a Small Business Consulting practice that needs marketing funds!

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  22. Ok, I submitted my application in August and have been approved to apply for grant money. Because I have no experience in grant writing I asked for an extension of my due date. Initially it was Sept. 10th now it is Oct. 8th. I have been speaking with a David Hatton (has anyone had any contact with him. He has given me an 866 number and his personal number which I thought he might be legit). who explained to me about his company's services to assist those that are not experinced in writing a business plan. He stated it would cost me $2000 and that they would need an intial $750 to begin with $750 increments. It is now 09/15 and I am suppose to give him an answer as to whether or not I want his services. You see I borrowed the money from my CU and I am reluctant to call him to let him know I have the funding now. After reading all the comments I may pull out. I can actually use this money to catch up on some bills. Wish I knew if anyone actually have received grant money. Plus my other thought is if my due date is 10/08 why is he still having me believe they will be able to put together a business plan in such a short time if I have to send additional information. Plus this Ann Ross did not seem very accomodating for me at the beginning. When I emailed her she immediately forwarded my message to someone in Canada which makes me wonder as well. Also I was supposed to have gotten a packet which I never received. I believe I did receive something recently in the mail but have not had the chance to really look over it. Been too busy trying to get funding for the business plan. Will go and look over later tonight. Thanks to everyone that has posted. I am going to wait one more day or the end of the week

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  23. I talked to this "Ann Ross" person on the phone and it gave me a weird feeling. It seemed like she kind of chuckled under her breath after she said her name was "Ann Ross". This all happened before I had read any of this blog. I got an extension on my business plan submission for Oct 8. I am going to look around some more for 'legit' ways of getting federal funding because this seems like a waste of time. It's either they are genuine and only hope to catch people looking to get a business plan written as well, or they are a scam that asks for inappropriate information and intend to benefit from the harm they cause to your growing company.

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  24. Also, I just read some things on this page (http://community2.business.gov/t5/Loans-Grants/Is-this-grant-Legit-Leadership-Grants-Organization-for-Small/td-p/26249/page/2) that might help some of you form your opinions more concretely.

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  25. Hi,Beware. I just completed a 3 months dealing with Leadership grant and yes,I thought it was for real, because they didn't ask for money and I had a real contact person(Ann Ross); but they receive my plans she couldn't help me any more. Needless to say I was rejected for the grant because I didn't have matching cash funds. Even though I had already spent $8000 toward my business $4500 in inventory it didn't matter. The only time it is mentioned about matching funds is in the Q&A on the website. It is not mentioned in the applicant aggreement,grants and programs nor the funding guildlines. Their overview state 50%preparness and 50% business plan, when it should be 75%cash,25-25. I did my business plan myself and worked on it for 3 weeks to make sure that all the researching, data and financial statement were prepared correctly. They receive my plan on 6/25 and then due deligient items on 7/25. They knew from the day they received my business plan and then again when they receive my due deligient items that I didn't have any more matching funds,but they still made me wait another 2 months to get receive a rejection letter. I really didn't understand why they needed my credit report. There is also a Leadership grant of America in Canada and we all know how many scams come out of Canada.
    Hope this helps
    Evelyn Wade

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  26. This comment has been removed by the author.

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  27. I figured that I would not post here, but after reading how many of you have been mistreated, I thought I would give you some information.

    Leadership Grants is really a creatively-designed company when you understand how it ACTUALLY works.

    Here is how it works:

    - Leadership Grants takes the information grant applicants provide by either filling out an application online or when they are contacted by a representative from the company after filling out a contact form through the website itself. The name of the representative you will speak with, whomever they may be is not real. They are using a fake name for protective reasons.

    - Once you have answered a set of questions, your profile is subdivided by information you may need to complete your application. For example, do you have a business plan? Do you have a website? Etc.

    - Leadership Grants then sells your contact information to third party companies who are focused on your areas of need. Business Plan Writing companies, website designers, etc. These companies pay or "sponsor" Leadership Grants to obtain access to this information.

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  28. Continued...

    - If you do not have a business plan they require for application submission, they will follow up with you by email (to ensure you are aware of application deadlines and thus create a more pronounced affect of urgency) their contact list to assist you in finding a company or consultant who can assist you in completing your plan for a fee.

    - Companies and individuals who have submitted their applications to this company should understand that the company gives out only a fraction of the money it collects. It is really quite a simple and effective platform to operate from.

    - Sarah Mortgenstern sounds awfully similar to Darren Mortgenstern (Ashley Madison and a number of other similarly shady companies), and should cause any applicant to be suspicious. If you are able to obtain more delicate information about the company, you would find that Mr. Mortgenstern is one of Leadership Grants founding Directors and Sponso. You are likely sending your business plans to addresses which are really no more than a mailing address in an alternate location where they are hardly reviewed by anyone of interest.

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  29. Continued...

    - David Hatton, worked or still works for a company called SBFC and has solicited me numerous times to write a business plan for us. We felt uncomfortable with his information and met with him near his company's office downtown and found him to be utterly uninformed when it came to providing any relevant information in respect to government grants and loans available. You should look up the amount of complaints that government offices and companies across Canada have had dealing with this company and its employees.

    - Overall, Leadership Grants or its Sponsors are not in fact lying when they say they give out money to companies every X period of time. They do this to maintain their NPO standing and avoid any issues with government agencies. However, they are VERY UNETHICAL when it comes to presentation since they do SELL YOUR INFORMATION TO OTHER COMPANIES (SOME OF WHICH THEIR DIRECTORS OWN SHARES OF) FOR REVENUE. THOSE COMPANIES ONLY MAKE MONEY IF YOU BUY THEIR SERVICES AND WILL ONLY CONTINUE TO SUPPORT LEADERSHIP GRANTS AS LONG AS IT IS PROFITABLE.

    - If you are contacted by companies like BUSINESS PLANS INTERNATIONAL (www.businessplansinternational.com) you should understand how these companies came into contact with your information and how companies like these are exploiting companies and individuals in more than just Canada.

    My only advice to you all is question why there are so few government grants available nowadays to consumers and how exactly a company like Leadership Grants operates. When companies give out money "just to be nice" it is probably too good to be true.

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  30. Here is a link to the complaint I filed against Leadership Grants in Ontario:

    https://mwco.app.bbb.org/complaint/view/1244662/c/27kb2e

    I wasted 12 weeks of time, numerous hours of provincial business development assistance, and the time and effort of my business mentors on this charade. A class-action suit is warranted, but if I had that kind of wherewithal, my business would be further along.

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  31. Here's the settlement I proposed of Leadership Grants and requested through the Better Business Bureau:

    1. We require proof of Leadership Grants paying out the full amount of requested grant funds over the amount of $25,000.00 (USD or CDN) for at least one applicant in the U.S. and one applicant in Canada for the funding period ending 10/31/2011.

    2. We require independent review of these applicants AND their submitted business plans, AND the amount of funds granted such that the auditor can question them to verify their authenticity. The lack of any one of these data will not suffice to remove the suspicion of consumer fraud from Leadership Grants.

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