Tool #4: Applying for funding
Once you’ve identified who controls your local HOT fund, the next step is understanding the process for applying to receive funds. It’s likely the application process is outlined online, but this is not always the case. Do your research and, if you can’t find anything, reach out to your municipal leadership or to the delegated authority and request some information.
Some things to keep in mind:
While the state does not dictate that only nonprofit entities may receive funding from HOT, municipalities are able to impose their own eligibility requirements and many do require proof of nonprofit status.
Ask if you must be a nonprofit organization to receive funding or if the municipality also funds individual artists and/or for profit organizations. In some cases, individual artists will need to apply for funding as a sponsored project (meaning, sponsored by a qualifying entity, such as a nonprofit organization). Either way, familiarize yourself with your city’s requirements.
Some things you’ll want to know before applying for funding:
The funding cycle. Check on how often funds are awarded and what is the window of time during which the funds awarded must be used.
Important deadlines. Make sure you check on the application deadlines and final reporting deadlines.
Available workshops for first-time applicants. Many communities offer workshops to explain the funding and application process. Check to see if these are mandatory and if so, mark your calendars. Don’t miss out on funding because you missed a meeting!
When funding is paid out. It’s important to keep the funding calendar in mind when planning for program or project expenses.
Reporting requirements. Research what the reporting requirements are and when any reports are due. Some funding processes may have mid-project reports and most all have final reports. Ask if they include audience survey requirements to make sure you plan accordingly.
Matching funds requirements. Many funding processes require a 1:1 cash match, meaning that for every dollar in HOT funds you receive, you will have to match that with non-HOT funds. Matching funds can often be from ticket sales, grants, memberships or other income sources.
Audit requirements. While it’s not common for municipalities to require a formal financial audit of your organization’s budget (if you are an organization) to be eligible for HOT funding, it’s a good idea to check to be certain.
Any restricted uses for the funds. Make sure when you apply for funding that you understand whether there are certain kinds of expenses that are restricted or prohibited, meaning that you may not be allowed to cover them in your project budget.
Most municipalities will have a formal application that must be filled out completely and returned by a specific date. In addition to the application form, you’ll likely need to share budget information—for the project and, if applicable, for your organization. Additional materials requested may include letters of support, testimonials from past participants, and other supporting documentation. Be sure to read the application and accompanying directions very closely—you will be expected to meet all of the requirements in order to be considered for funding.
Toolkit Tip:
Give yourself enough time! If the deadline is May 1, don’t wait until April 15 to read the directions. Some of what you’ll need to provide may involve several steps. Especially when applying for the first time, create a reasonable schedule for yourself and stick to it. You won’t be sorry you did.
Examples of funding application processes and procedures for several Texas cities can be found below:
