Leadership Grants Organization: Oh, the sweet smell of a scam

In the last several weeks, I've been contacted directly by no less than six or seven people who have submitted--or are considering submitting--applications to the Leadership Grants Organization. It makes me realize that I really should have shared my conclusions about this organization much sooner. So below is the breakdown of the research that convinced me AGAINST moving forward with the grant application process. (Those of you whom I've e-mailed directly will recognize this!)

As you know if you've read previous blog posts, I was initially thrilled when I came upon the Leadership Grants Organization website. It's extremely difficult to find grants for which one is eligible as an individual, and I thought this could be the solution I'd been looking for. However, my excitement was tempered with just a hint of suspicion, rooted in the fact that the only mention of actual grant recipients was a list with first names and last initials. No press releases, no links to winners' websites or projects--nothing. I've worked in publicity, and it seemed extremely strange to me that the organization would choose not to promote its work or that of its grantees.

So, first I found the site's IP address, then tried to match that with a physical address. The physical address given by the organization is on Madison Avenue in New Jersey--but the IP address is in Canada. To double-check, I did a search for the company in the directory of the Madison Avenue building it's supposed to be located in and couldn't find anything. Then I found the owner of the IP address: Darren Morgenstern. This charmer is the founder of ashleymadison.com, which caters to married people who want to cheat on their partners with other married people (more discreet that way, I suppose). Weird connection, so I looked further, and it looks like he was investigated in 2001 (in Canada) for a domain name scam. There are also accusations of a scam with a home staging teaching company he owns, but he hasn't been indicted for either (and he made some big bucks when he sold ashleymadison.com). Then I looked on BBB to see that Leadership Grants Organization has been assigned a rank of F because it was only established in April. Odd, since the website shows that some people won grants BEFORE then. Also on the BBB site, I saw that a Sarah Morgenstern is listed as a chief operating officer of the organization. So I thought--wife of Darren Morgenstern? Either way, this wasn't looking good, but I couldn't figure out where the "scam" would be. I did some MORE looking, and found that there are people complaining online that they paid between $2700 and $4000 to an "outside business plan consulting company" that Leadership Grants Organization had recommended--but these people had never (a) received help on their plans or (b) heard back from Leadership Grants Organization. So I e-mailed the woman I'd been in touch with to ask directly if the site/organization is linked to either Morgenstern. In response, she copy/pasted the contact page listed on the website, basically just ignoring my question.

As Paul and others have mentioned, my conclusion is that if people just submit their business plans, as I would have done, there would be no loss of money--just a waste of time. But I worry that it would be more harmful for those who hire this consulting company to help them create or edit their business plans. (I also did the same IP address/physical address search on this consulting company, Capital Business Service but, to be honest, can't remember the results as in detail as the ones I gave above. But they were just as fishy.)

To be clear (don't want any lawsuits here!), my "findings" are more suggestive than definitive, but they convinced me against proceeding with the organization, and I'm advising anyone who asks to be cautious in moving forward. It also seems that, at the very least, this company should be investigated by those with more resources than me to determine its legitimacy.

Have you submitted a grant application with Leadership Grants Organization? Worked with Capital Business Service? Has anyone reading this WON a grant from them? Please share your experiences in the comments, and feel free to contact me directly if you'd like to discuss this further.

And for the record, I think it's DISGUSTING and so, so disheartening that would-be entrepreneurs could be derailed by a scam like this. I hope none of you have been.

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!

I'm Still Alive!

After not posting on the blog for a week, all I can do is take one from my grandma's mouth and say que verguenza! Some of you who know me in person know that I've spent the last week pretty under the weather. I missed most of my MFA classes, which was upsetting, and could burst into bitter sobs at any moment, like an exhausted child. (My poor husband.) Clearly, it was not the most productive week for me, and I'm sorry to say that posting fell by the wayside along with everything else.

But I'm back! I'm thrilled to say that my Facebook Page has more than 160 fans, some of whom have been interacting with me and one another on my Wall. And it's humbling that, when I review the fan list, I see that many have been, up to now, complete strangers to me. So thank you to everyone who is taking part in this journey with me.

I mentioned in a recent post that my sister, Amanda, has the opportunity to work with a project plan expert, and she's chosen the bookstore as her project. The development of the plan began last week, and she called me with a few well-edited questions to get things going.

"I know you're going for financing through grants and loans," she said, "but how much money do you think you'll need?"

It's a good question, and one whose answer I thought I would share with you all. By my estimates, I will need approximately $1.7 million to get the bookstore up and running. I have two favorite locations in mind, one of which would require the purchase of land and new construction, and the other which would be leased. If I go with the first, I expect to pay $750K for the land. Then I believe construction of a 6,000 square-foot store will cost between $250K and $300K. Based on my research, I can expect to pay up to $300K for initial fixtures and inventory. The rest of the funds will go toward interior design, advertising, payroll, and other expenses.

It's a lot of money; there's no doubt about that. But if I can raise half the funds through grants, I'll feel comfortable achieving the rest through a small business loan. This week, I'll post a list of grants I'm planning to apply for. And if you all know of any you think are appropriate, by all means, throw them at me!

Other stuff to come this week:

* How are booksellers adapting to the digital age?
* Part I in a series of posts I'll be calling, "But How Will You Make Money?"
* Commentary on an article enticingly called, "An Idea Every Independent Bookstore Should Steal"
* Commentary on a Slate article called, "What Are Independent Bookstores Really Good For? Not Much"
* The blog's first book review, which I'm excited about!
* Updates on the business plan, grant applications, and blog and Facebook analytics

And maybe a personal lamentation or two about the pains of moving--and the excitement of Colin and I buying our first house together :)

What else would you like to see on the blog?

It's True--Pepsi Refresh Reached March Application Quota

So, I spent all last night in a deep but confusing sleep in which I dreamed of my Pepsi Refresh grant application for what seemed like hours. I woke with a headache--and purpose. I needed to find out what was going on. But alas, what I feared last night is true: In about 20 minutes, Pepsi received more than 1,000 applications for grants. I'm in disbelief, but I also feel angry at myself. I should have known to try submitting in the first minutes--but that's not a mistake I'll make next month.

So what's the plan for the next 30 days?

I'm going to use the time to my advantage. I plan to write at least the majority of my business plan this month and use those specifics to further hone my grant application. I also saw a fantastic video made by my new friend Janet Geddis, who is opening a bookstore in Athens, Georgia late this year. She also tried applying for a Pepsi grant this month, but she had the additional frustration of her application being LOST! In any case, Janet made a really lovely video using iMovie, which has inspired me to try and do the same. (Anyone out there want to tutor me??) I'll also use this month to research other grants, which I'll be able to apply for once the business plan is done. And finally, an extra 30 days will give me even more time to build a community on this blog and on my Facebook Page--a community that will, I hope, help me get out the vote once the application is up and running.

Have any of you ever applied for grants? What have your experiences been?

Pepsi Grant Application a Bust for this Month?

The rain is falling quietly outside as I write this, and all I can see out the windows is a reflection of our living room. Ever since we received (and accepted) an offer on our house, I've been looking around with newly sentimental eyes: How can I drink my morning coffee without seeing the angular shadows the sun makes on these particular wood floors? Can we really sell the couches we've cuddled up on for the last three, four, years? And what of the view from our back deck? Surely a little patch of yard can't replace that. Selling a house you've loved is a bittersweet thing, for sure.

Tonight, too, is bittersweet. I expected to rattle off an exuberant post pointing you all in the direction of my grant application on Pepsi Refresh, and beg for you to spread the word in all the ways you can. I've been preparing for that moment ever since I first heard of the Pepsi Refresh Project, which will award $1.3 million in grants every month in 2010 to the projects that receive the most votes online. But an hour--an HOUR--after applications started being accepted, I was informed that Pepsi had already received their 1,000-application quota for the month of March. The site politely asked me to try again on April 1.

Is this a mistake? Brought on, perhaps, by a sudden influx of traffic? Or some mishap during the scheduled maintenance earlier tonight? I hope so. I'll be getting in touch with someone from the company bright and early tomorrow morning.

Now for the sweet part of the evening: I created a Facebook Page for Provocation and Privacy! I've gotten many requests for one in the last couple of weeks and finally had a couple of hours to sit down and make it happen. Then I had the pleasure of watching as my night-owl friends and supporters started becoming fans. Very exciting stuff! I hope they'll share the page with their networks and so on. It'll be a great place for you to get quick updates in between these longer posts--and interact with others who care about books, reading, and literacy. Find the page here.

Also, we've broken 1,000 pageviews on the blog. :)

Thank you all, as always, for your support. I'll let you know what's going on with the Pepsi Refresh grant application as soon as I find out!

If We Build It, They Will Come

"If we build it, they will come," Mary Benavides said to me on the phone this afternoon.

I was in my car on my way to my usual parking lot in San Marcos, where I'm an MFA student at Texas State. I had spent the morning working on the book I'm co-writing with the fantastic Corey Blake (www.roundtablecompanies.com), hurriedly cleaning the house in preparation for the Austin Energy Audit we're having tomorrow, and looking at yet more online photos of apartments. Then I'd spent the afternoon trekking through apartments that were all beginning to look eerily alike, and talking to leasing people whose cheerfulness I was really starting to doubt. So hearing Mary's voice, despite the fact that it was only the second time we'd spoken, was decidedly refreshing.

We spoke for about twenty minutes, give or take, filling each other in on the status of our plans. "I want to help you in any way I can," she said. "I want us to work together on this."

"So do I," I told her, thrilled that we were still on the same page (okay, pun intended).

She told me that she's in the process of choosing a location and securing investors, and I told her about a conversation I'd had with my mom recently about the choice between funding the bookstore through investors versus taking out a loan.

With investors, it gets complicated, my mom had said. They will eventually want a return, and they'll expect that their ideas are heard and some of them incorporated. "That's hard for me," I told Mary. "I mean, if their ideas are in line with your vision, that's great. But what if they're not? How much do you owe an investor because he or she has helped you start this venture?"

"Katie, we're exactly in the same place!" she exclaimed. "Plus, I'm proud. It's hard for me to ask for help like that."

"Me too," I said.

At another point, she told me of the difficulty of actually securing investors for a project like this. "But I just keep saying, if we build it, they will come," Mary said.

Stuck in traffic, after just spitting out a bite of a sandwich with disgusting wasabi mayonnaise, I felt goosebumps rise on my arms. "I love that," I said.

"What we're doing is bigger than you and me, Katie. It's about community. It's all about community."

We again promised to keep each other posted, and Mary told me that she'll be in and out of San Antonio in the coming weeks in preparation for her daughter's wedding. I let her know that I'd love to drive down and meet her so that we can talk about our plans in person.

"I think the key is going to be that each of our stores offers something the other doesn't," I said. "That way, we're complementing each other, rather than competing."

"Katie," she said, "I don't want to be in competition with you in any way, shape, or form. We're partners in this."

And I truly feel like we are, which in itself is kind of miraculous. Mary, if you're reading this post, can't wait till we meet in person!

First Grant Application: In Progress!

Yesterday, I started filling out a $250,000 grant application on www.refresheverything.com. Pepsi is giving $1.3 million in grants each month to the ideas that seem most refreshing, positive, and feasible—and which earn the most votes from people who go onto the site. So, starting March 1, GO VOTE (I’ll attach the link when it’s up)! Two ideas per month will win the $250,000 grant amount.

I was so excited to see that Pepsi is doing this! Before learning about the program, I had read of a bookstore in East L.A., which is heavily populated with Latinos, that was granted a $500,000 MacArthur grant. Until that point, I hadn’t thought of grants as a potential funding resource—but as soon as I read the article, I knew that applying for them would need to be a priority. My goal is to win as much in grants as possible so that I can present that capital to banks and the Small Business Association when applying for a small business loan. But I digress.

I meant to say that, on my first search for grants, I was a little discouraged. I found that many of the grants for which this project is well-suited require nomination, rather than application. For others, I tend to fall in between the listed categories: The bookstore is not yet in business, so I can’t apply as a business requesting funds. But individual applicants are often required to submit proof that their idea can be executed in a shorter amount of time than this one realistically will. I still have much more research to do, but these were my preliminary findings. Which is why I was thrilled to see a commercial for Pepsi’s grant program! I’ll be working on the application this week so that I can submit it as soon as possible; only 1,000 ideas per month are accepted. I’ll let you all know when I finish the application and—most importantly—when it’s online and ready for voting!