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!

The Photos Are In!

What a crazy week it's been so far! Who got to experience the snow in Austin and other Texas cities?

Well, if you recall, last Wednesday I mentioned my goal of more than doubling the readership of this blog by the same time the following week. It's that time, and while readership hasn't quite doubled (my fault, for neglecting to post daily), it HAS increased a fair bit. Last Wednesday, the blog had nearly 450 page views. As of right now, those page views have jumped to more than 750! Not a bad gain, and the day's not over yet. Share the link to this blog with your friends, coworkers, and family via your social networking sites or good old-fashioned word of mouth. I'm confident we can get 150 more views by tonight! And by next week, I'm making the ambitious goal of doubling page views again.

In other news, Courtney Sames came through for me big time on photos to use in my Pepsi grant application. Through the photos and the rest of the application, I hope viewers and voters everywhere will be moved enough by Laredo's story to vote for this project. $250,000 will go a LONG way toward actualizing this dream--and achieving funding through other grant organizations, financial institutions, and/or the Small Business Association.

I have to run to a meeting, but I wanted to quickly update you all first. I'll post again tonight with an example of two of Courtney's beautiful work . . . and a few other updates!

Laredo Bookstore Updates . . . Overdue!

Wow. If any week has shown me what a challenge opening this bookstore will be, it's this one. Which is why, I'm sorry to say, I haven't posted since Sunday.

This week, after being on the market for a year and a half, our house finally got an offer. A full-price offer (granted, after we significantly lowered the price), at that. So, after settling quite comfortably, if guiltily, into the fact that the house may not sell for some time, my husband and I have been jarred into the reality of looking for a new place to live, packing, and moving . . . all in less than 30 days. That is, assuming the sale goes through as planned. All of this means that, in addition to Colin starting a new job this week, and my full-time work and grad school and planning for this bookstore, we've been apartment-hunting like crazy. It's a level of stress that's laughable.

In any case, selling this house (again, assuming all goes through) probably couldn't come at a better time. Because our lives are so in flux right now, we'll be renting for a while, rather than buying. That leaves us with some flexibility when it comes to bookstore plans.

And speaking of plans: Mine for this week are:

* Finish my Pepsi grant application, to be posted online for voting on March 1. Courtney Sames, who has been working with Fede Cavazos on filming a documentary about B. Dalton closing and what has come next, has offered to send me a few photos to use for my application. I can't wait to see what she's got for me!

* Email the president of Texas A&M International University in Laredo; since university students are one of my key demographics, I would love to keep him informed in hopes that he will communicate my plans to all TAMIU students. I'd love to get them reading this blog and contributing their ideas as to what they'd like to see in an independent bookstore.

* Finalize and send off magazine pitches to at least three national women's magazines. I'll let you all know which ones once the pitches have gone out.

* More research and more work on my business plan. When the plan is finished, I'll use it to apply for more grants, as well as a small business loan from local financial institutions and the Small Business Association. Once I have funding, I'll be able to give you all more details as to what I have in mind for location.

* Visit with Mary Benavides again over the phone to compare notes on our plans. I have some ideas as to how we can both achieve our goals while providing Laredo with bookstores that aren't in direct competition. Details to come!

Another update is that my sister, a senior at Texas A&M University in College Station, has the opportunity to work with an expert to develop a detailed project management plan. She's opted to work with me on developing a plan for the bookstore, which I'm SO excited about! This is something separate from the business plan, and should serve as a roadmap throughout the project. I'll be sure to keep you all posted.

Soon to come: my vision for the bookstore. The size, the look and feel, the books, the non-books, the refreshments . . .

Thanks for coming back this week despite my inconsistency. Your readership inspires me!

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!