One of the biggest hurdles for nonprofit organizations is securing funds. Nonprofits need these resources to advance and sustain their mission. Though there are a lot of means available, like fundraising campaigns, nonprofit grants are also an excellent choice.
These financial donations are often offered by various entities such as government agencies, private foundations, and corporate philanthropies. If you’re a nonprofit organization seeking ways on how to apply for a nonprofit grant, this guide will help you go through a successful grant application.
Types of Grants for Nonprofit Organizations
Before we dig deeper into our article, let’s first go through the definition of grants for nonprofits and the most common grant types.
Nonprofit grants or fundraising grants are simply financial support given to an organization. The Society for Nonprofits states that receiving grants is a good way to establish your organization’s credibility, and once you receive one grant, you are more likely to receive others.
There are different types of grants which are:
1. Operating Support or Unrestricted Funding
Unlike restricted funds, with specific conditions attached, unrestricted funds allow nonprofits to allocate resources as needed. Among foundations that provide general operating grants, the average amount was approximately $41, 292, with a median of $21,312. Also, keep in mind that this average can vary significantly based on the specific foundation and its grantmaking practices.
Also, as per the 2024 Foundation Operations and Management Report, over 69% of foundations offered general operating support to their grantees.
2. Startup Grants
When starting a new nonprofit, getting startup grants is crucial to cover initial costs and ensure a smooth launch. These grants help with operational expenses, program development, and other foundational activities. But getting them can be tough due to competition and requirements like having 501(c)(3) status, which takes time to obtain.
That’s where fiscal sponsorship comes in handy. By teaming up with an established nonprofit as your fiscal sponsor, you can use their tax-exempt status. This not only lets you receive tax-deductible donations but also qualifies you for grants that demand 501(c)(3) status.
It’s also important to note that the competition for startup grants is often intense, and the process can be detailed and demanding.
3. Capital Support Grants
Capital Support Grants are designed to fund major projects and infrastructure improvements for nonprofits, such as renovations, equipment purchases, or facility expansion. The amount of funding varies significantly, with some grants offering a few thousand dollars for smaller projects, while others provide millions for larger infrastructure developments.
The variability in funding depends on the grantmaker’s budget, size, and focus area. For instance, like healthcare, education, and the arts often have more capital grant opportunities due to high infrastructure and equipment costs. Foundations and government agencies focusing on these areas may allocate a significant portion of their budgets to capital projects.
4. Program Development Grants
Program development grants are designed to support the establishment or growth of particular programs or initiatives within a nonprofit organization. The amount an organization receives varies widely depending on several factors, including the grantor (who is offering the grant), the objective of the program or initiative being funded, and the overall budget requirements of the project.
For example, The Emergency and Transitional Pet Shelter and Housing Assistance Grant program by the U.S. Department of Justice assists survivors of domestic violence and their pets with transitional housing and shelter services. Eligible entities, such as nonprofits, governmental agencies, tribal organizations, shelters, and animal welfare groups, can apply for grants ranging from $100,000 to $500,000.
Understanding the different grants for nonprofits will help you identify which one is suitable for your organization’s needs.
6 Steps in Applying for Nonprofit Grants
Here are four steps to help you navigate the nonprofit grant application process and improve your chances of success:
Prepare
Before searching for grants, ensure your nonprofit is well-defined by its mission, goals, and funding needs. Start with an internal evaluation to identify funding-requiring projects or programs. This can be done through team discussions and strategic planning.
You also need to refine your mission statement to clearly state your purpose, scope, and values, guiding your grant applications. Prepare necessary documents such as your nonprofit status proof (e.g., 501(c)(3) in the U.S.), financial statements, list of awards, and leadership team details. Take note that there may be additional requirements needed by the specific grant provider.
Preparing well will prevent delays and strengthen your appeal to funders.
Search for Grants That Fit Your Nonprofit Organization
After preparing all the necessary requirements and documents, it’s time to search for grants that align with your organization’s mission, goals, and needs. When searching online, it’s important to be specific since most grant providers are region-specific.
To refine your search, you can type keywords such as your mission + grant type + location. For example, you can type in “religious charity grant in Washington DC” if you want to receive faith-based donations.
You can also find grants in reputable sites like Grants.gov, the Foundation Directory Online, and GrantWatch. Check for important information such as the grantor’s funding history, areas of interest, and geographical focus. Recommendations from peers, partners, or board members who are familiar with the funding landscape also work.
Review the Requirements for the Grant
Once you have identified potential grants, the next step is to review the specific requirements set by each grant provider thoroughly.
Take note of:
- Submission deadlines
- Application guidelines
- Required Documentation
- Evaluation criteria
A clear understanding of these details is essential for creating a focused and fast application process.
Write a Tailored Application for Each Grant
After complying with the requirements, it’s now time to apply. Avoid a one-fit approach, as funders can easily spot generic applications. Clearly articulate how your project or program addresses the funder’s priorities and how it will impact your community or the issue you’re tackling. Include measurable outcomes and a plan for evaluating success.
Also, highlight your organization’s strengths, past successes, and the qualifications of your team to demonstrate capability and credibility. We will teach you more about how to write a grant proposal letter in the latter part of the article.
Review Your Application, Then Submit
Before submission, thoroughly review your application for completeness, accuracy, and adherence to the funder’s guidelines. Ensure that all supporting documents are included and that the application is submitted by the deadline, using the specified method (online, mail, etc.).
Give your proposal a thorough read-through, or hire a professional grant writer to review it for additional feedback. Once you feel confident that your application for grant money is ready, submit it before the deadline using the submission method provided by the grant provider.
Follow-up Procedures
After submitting your application, it’s important to follow up on your application. Some may welcome inquiries about your application’s status, while others may ask for no contact. Whatever the case may be, you need to know the progress of your application.
When everything works out well, the grant will be awarded to you. Once awarded, comply with the reporting and acknowledgment requirements. Timely and accurate reporting is crucial for maintaining a good relationship with the funder and potentially securing future grants.
In case of a decline, don’t be discouraged. Take note of what you could’ve done better and use these to strengthen future applications. Remember, persistence is key in the world of grant funding.
Post-Grant Processes
Once a grant is awarded, managing the funds wisely is essential. First, you must create a budget plan that matches the grant’s goals and limits. Also, keeping detailed records of your spending is crucial for audit and compliance purposes.
Second, submit quarterly progress reports that show how their money is being used and the impact it’s making. These reports should include financial statements, narrative summaries of activities, and evidence of success.
Also, even as one grant cycle ends, it’s essential to start planning for the next one. Start by critically evaluating the effectiveness of your current project, identifying both its strengths and areas for improvement. Then, actively seek out and research potential funders and upcoming grant opportunities.
Moreover, reflecting on past projects and lessons learned allows organizations to sharpen their strategies and proposals, boosting their prospects for future grant success.
Grant Funding Sources for Nonprofit Organizations
More options often mean a higher chance of success. Here’s a list of some key funding sources:
Government Grants
Nonprofit organizations can seek funding from government agencies at the federal, state, and local levels. These grants may be available for specific programs or projects that align with government priorities—examples of government grants include the following:
- Competitive grants: Necessitate organizations to craft meticulous proposals subjected to stringent evaluation criteria.
- Formula grants: Distribute funds based on preset formulas.
- Project grants: Cater to specific endeavors.
- Block grants: Provide broader funding for diverse activities within sectors like healthcare or education.
These federal agencies range from the Department of Health and Human Services to the Department of Education.
Private Foundation Grants
Many private foundations offer grants to nonprofit organizations working in specific fields such as healthcare, higher education, environment, and social services. Nonprofits can research and apply for grants from foundations that align with their mission.
Organizations, such as The Path Foundation, MacArthur Foundation, Mulago Foundation, and Bill & Melinda Gates Foundation, offer unrestricted grants to support nonprofits’ overall work.
Corporate Giving Programs
Many corporations also have philanthropic initiatives and corporate social responsibility programs. Companies like Google, Walmart, and Bank of America are known for their grantmaking programs, which support various causes. Through these initiatives, they grant funds and donate to nonprofit organizations.
In addition to building relationships with corporate partners, nonprofit organizations can explore various resources to enhance their understanding and access to corporate giving programs:
- Corporate Giving Directories: You can explore online directories such as grant databases such as the Foundation Directory Online or Corporate Giving Database. These directories comprehensively list corporate giving programs, including information on eligibility criteria, application procedures, and contact details.
- Professional Networks and Associations: Organizations like the Association of Fundraising Professionals (AFP) or the Corporate Social Responsibility (CSR) Network offer resources, events, and networking opportunities.
- Publications: Publications such as “Corporate Philanthropy Report” or “Corporate Giving Almanac” offer insights into trends, best practices, and case studies in corporate giving. Subscribing to these publications can help nonprofits stay informed about the latest developments in the field.
- Workshops and Webinars: Many organizations, including nonprofits, foundations, and consulting firms, offer workshops, webinars, and seminars on corporate giving and social responsibility. Participating in these events can provide valuable knowledge and networking opportunities.
It is also important to build a relationship with the grant funders to secure future support and foster long-term partnerships. By establishing open communication channels, demonstrating transparency, and showing appreciation for their contributions, we can strengthen trust and rapport. This not only enhances your chances of receiving continued funding but also allows you to better understand their priorities and align your goals accordingly.
Collaborations with Nonprofit Organizations
Collaborating with other nonprofit organizations can significantly enhance your grant-seeking efforts and increase the chance of securing grants. To effectively collaborate with other nonprofit organizations, look for nonprofits whose missions align with yours or whose work complements your own.
Also, having the right partners for nonprofits will help you succeed. Event Smart is one of the most trusted event managers for nonprofits. We help thousands of event planners plan, organize, and execute successful events. We do the tedious work of the registration and ticketing process for you.
Individual Donors
According to statistics, individual donors are the largest source of charitable giving, contributing $319.04 billion, representing 64% of overall giving in the United States. This demonstrates the significant impact of individual donors in free money and supporting various causes. A notable example is MacKenzie Scott, who has donated billions of dollars to multiple causes without imposing specific restrictions.
Religious Institutions
Religious institutions often have funds allocated for charitable activities and may provide grants to nonprofit organizations that align with their religious or social missions. These institutions are a great funding source for organizations that work towards similar goals. If your nonprofit organization aligns with the mission of a religious institution, it is worth exploring the possibility of obtaining a grant from them. Such grants can help your organization carry out its mission and positively impact the community.
Community Foundations
Another way to find grants for charitable organizations is to explore the opportunities offered by community foundations. These charitable foundations are local civic groups, service clubs, and community organizations that provide grants or sponsorships for community development and social welfare projects. Examples include the New York Community Trust and the Silicon Valley Community Foundation, which offer funding opportunities for organizations that meet their criteria.
Educational Institutions
Educational institutions, including universities, colleges, and educational foundations, often provide grants to nonprofit organizations. These grants typically support initiatives related to education, research, and community development. One example is the U.S. Department of Education Grants.
They offer various grant programs, such as Preservice Development Grants. These grants are available at Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and other Minority Serving Institutions (MSIs). Their goal is to diversify personnel serving children with disabilities.
Specialized Grantmaking Organizations
Many specialized grantmaking fund research organizations are devoted to providing financial support for specific causes or populations. For instance, the Robert Wood Johnson Foundation funds health-related initiatives, while the National Endowment for the Arts is dedicated to supporting arts organizations. These organizations play a vital role in promoting and advancing their respective areas of interest in contributing to the betterment of society.
Nonprofit Support Organizations
Some organizations, such as the United Way and the Boys & Girls Clubs of America, provide grants to their local affiliates or member organizations in local communities. These grants offer resources and support to local organizations to help them better serve their communities.
Crowdfunding Platforms
Crowdfunding platforms are particularly useful for smaller non-profit organizations needing more resources or visibility to attract more significant donations from traditional funding sources. These platforms allow nonprofits to reach a broader audience of potential donors, who can make small or significant contributions to support causes they care about.
Some online crowdfunding platforms, such as Kickstarter, Indiegogo, and GoFundMe, allow nonprofits to effectively raise funds directly from individual donors for specific projects or campaigns. Through social media and online networks, crowdfunding platforms have enabled nonprofits to raise millions of dollars in funding for innovative projects and various causes.
How to Write Grant Proposals for Fund Projects
For you to be able to write grant proposals for your fund projects, it is essential to understand and know how to write effectively. Here are the tips to consider:
1. Understand the Funder’s Objective
Before you begin writing, research the funding organization thoroughly. Understand its goals, priorities, and funding history. This insight will help you tailor your proposal to align with the funder’s interests.
2. Follow the Guidelines
Second, carefully read the grant application guidelines provided by the funder. These guidelines often include specific requirements for the proposal’s format, length, and content. Adhering to these instructions is crucial for your proposal to be considered.
3. Executive Summary
Another tip when crafting your grant proposal is to start with a compelling executive summary that outlines the key points of your proposal (including the problem, proposed solution, objectives, and the amount of funding requested). This section should grab the reader’s attention and make them want to learn more.
4. State the Problem
It is important when writing your grant proposal, you have to clearly and concisely describe the problem your project aims to address. Provide an evidence-based rationale for your project and use compelling storytelling to engage the reader. Tailor your proposal to the specific priorities and interests of the funding organization. This section should convince the reader of the urgency and significance of the problem.
5. Present your Solution
Once you’ve examined the issue, you should present your proposed solution along with its alignment to the problem at hand. You can use visualization data to create engaging presentations that interact with your potential funders. Describe the project’s aims, objectives, and planned activities. Ensure that your solution is practical and grounded in evidence or past achievements.
6. Project Design and Method
After presenting your solution, outline the project’s design and the methods you will use to achieve your objectives. This includes your specific project, timeline, strategies, and specific activities. Explain why you’ve chosen these methods and how they align with your goals.
7. Evaluation Plan
Describe how you will measure the success of your project. Include both qualitative and quantitative evaluation methods. An effective evaluation plan demonstrates your commitment to achieving measurable outcomes and learning from the project’s implementation.
8. Budget
You must provide a detailed budget that itemizes your funding request. Include all the project costs, such as personnel, materials, and overheads. Be realistic and justify each budget item and explain how it contributes to the project’s success.
9. Organizational Information
To make your grant writing more effective, give an overview of your foundation, including its mission, history, and accomplishments. Highlight your organization’s experience and capacity to manage the project and deliver the promised outcomes.
10. Conclusion
Last but not least, conclude your proposal by summarizing the key points and reiterating the importance of your project. Thank the funder for considering your application and expressing your willingness to provide further information.
Additional tips:
- Tailor each proposal to the specific funder.
- Use clear, concise, and persuasive language.
- Avoid jargon and technical terms that may not be familiar to the reader.
- Include testimonials or success stories from similar projects, if available.
- Hire a grant writer to increase the chances of obtaining funding opportunities.
By following these steps and tips, you create a compelling grant proposal that stands out to funders and increase your chances of securing the necessary funding for your projects.
Common Mistakes To Avoid in Grant Proposals
Though grant writing requires careful understanding and planning, there are some common mistakes that non-profit organizations should avoid when writing grant proposals.
Ignoring the Guidelines
One of the biggest mistakes an organization makes when writing a grant proposal is not paying attention to the grant guidelines. Each grant has its own specific requirements, and not following them can instantly disqualify your proposal.
Lack of Clarity
A lack of clarity in your grant proposal can undermine its effectiveness. To ensure clarity, you must provide detailed explanations of your project objectives, methods, and expected outcomes. Clearly articulate what you aim to achieve with your projects, how you plan to accomplish it, and what specific results you anticipate.
Also, avoid using vague or ambiguous language that could confuse the reader or leave room for interpretation. Instead, be clear and straight to the point and provide concrete examples, data, and evidence to support your claims. Being specific and transparent in your proposal will strengthen your argument and increase the likelihood of securing funding.
Weak Problem Statement
Your proposal should start with a strong problem statement that clearly identifies the issue you’re addressing and why it’s important. In order to ensure its effectiveness, provide a detailed and compelling problem statement. This will build a strong foundation for the rest of your proposal, demonstrating the urgency and importance of your project.
Copying the RFA’s/Opportunity Announcement’s Language
While it may be tempting to directly copy language from the Request for Applications (RFA) or Opportunity Announcement, it’s important to avoid this practice. Instead, view the provided information as a roadmap to tailor your proposal to the grant’s specific requirements and objectives. Analyze the language and key themes in the RFA carefully, then incorporate these elements into your proposal in your own words.
In addition, focus on understanding the underlying intent and expectations of the grant and craft your proposal to address these effectively. By avoiding direct copying and using the RFA as a guide, you’ll ensure that your proposal is original, relevant, and compelling to the grant reviewers.
Inadequate Research
Not doing enough research for your grant proposal can leave out important details. Thorough research means understanding the needs of the people you want to help and aligning your proposal with what the grant funder cares about. It involves looking at data and evidence to back up your ideas. Doing good research makes your proposal stronger and more likely to succeed.
Poor Budgeting
A poorly constructed budget can create doubts about your project’s ability to succeed. To avoid this, your budget should be carefully planned and detailed. It needs to be realistic, taking into account all the expenses involved in your project. Make sure every item in the budget is clearly aligned with your project’s goals and objectives. Break down costs, including estimates for materials, personnel, and any other resources needed.
By creating a detailed budget, you can demonstrate your project’s feasibility and credibility to the grant writers and reviewers.
Lack of Evaluation and Sustainability Plans
Not including solid plans for evaluating and sustaining your project can weaken your grant proposal. Funders want to know how you’ll measure your project’s success and ensure it continues to make a difference over time.
For evaluation, explain how you’ll track progress and gather data to show what’s working. For sustainability, outline how you’ll keep the project going after the grant ends, whether through securing more funding or building partnerships. Showing these plans demonstrates your commitment to long-term impact and accountability.
Failure to Engage Stakeholders
Grant funders like to see projects that include the community and work with other groups. To improve your proposal, explain how you’ll work with people from the community, organizations, or experts. Show how their ideas will shape the project and meet local needs. Also, describe how you’ll keep them involved throughout the project.
By involving stakeholders, you’ll show funders that your project is connected to the community and has a higher chance of success.
Conclusion
Securing a grant is a competitive process that demands patience, persistence, and a meticulously crafted strategy. This blog post serves as a guiding light for you and your organization in the intricate journey of grant acquisition. We continually gather more information to assist you on your path toward a brighter future. For additional resources and insights on nonprofit initiatives, we invite you to visit our website, Event Smart.
If you’re planning and organizing an event, choose us today for your registration and ticketing needs. We offer discounts to nonprofits and are committed to making your event a success. Let us handle the registration and ticketing work.
Start your 14-day trial and see for yourself.
Leave a Reply