If you are new to grant writing for a nonprofit, understanding the types of grants available can put you on a path to securing larger awards for your organization. It can be confusing at first, but this article breaks down the types of grants and give you examples of each. Onward and upward, novice grant-writer!
Grants fall into three categories: Federal, Corporate, and Foundation. Federal grants are distributed by government entities such as The Department of Education, The State of Florida, or even your local Department of Human Services. Corporate grants are those issued by companies. Corporate grants range from multi-billion-dollar giants like Walmart to your local credit union. Lastly, Foundation grants include organizations such as your city’s Community Foundation or a foundation started in remembrance of a family member.
Before you move forward with any of the grants listed above, you must first answer these three questions:
- Does my organization have the capacity to submit a well-rounded and competitive application?
- Does my organization and/or the project I am looking to fund align with their funding priorities?
- Will my organization be able to manage the grant in its entirety (i.e., tracking of data, reporting, execution of funds, etc.)?
If the answer to any of these questions is no, you may want to re-evaluate applying for the opportunity. Organizations around the globe go after grants because they need the funding and end up in hot water because they cannot fulfill the requirements of the grant. This can tarnish your relationship with the funder, diminish your chances of being funded in the future, and sometimes result in having to return the funds awarded.
What are Federal Grants?
Of all the grant opportunities out there, federal grants are by far the most difficult to apply for. When writing a federal application, you can estimate them taking anywhere from 35-70+ hours. This process includes writing the narrative, which can be up to 20+ pages, filling out the financial forms (SF-424, budget templates, etc.), and collecting your supporting documents. Submitting a federal application is not for the faint of heart. The process can take months if executed correctly. I highly recommend reviewing the Notice of Funding Availability (NOFA) or Notice of Funding Opportunity (NOFO) with a fine-tooth comb and scheduling a meeting with the funder’s grant management team before pursuing a federal grant. The majority of federal grants are on a reimbursement basis, so your organization must be able to sustain the project or program until the funds are actually received.
Contrary to popular belief, the real work begins once you submit the grant. The reporting process for a federal grant typically consists of monthly draw-down reports to receive the reimbursement, meetings with your grant administrator, and demographics reports on the clients you serve.
Examples of Federal Grants:
- Community Development Block Grants (CDBG)
- National Science Foundation (NSF) STEM Grant
- Department of Education Grants
- Department of Fish and Wildlife Grants
- HUD Funding (Rental Assistance, Affordable Housing, Supportive Housing and Services, etc.)
When researching a federal opportunity, use www.Grants.gov to read the NOFA/NOFO and review the eligibility criteria.
What are Corporate Grants?
Every year, thousands of businesses offer grant programs ranging from small grants ($5,000 or less) to the more competitive large grants ($100,000+).
Larger corporations may run more than one grant cycle per year to cater to their funding priorities. Though each grant funder is different, the most common priorities are as follow:
- Affordable Housing
- Animal Welfare
- Community Development
- Education & Leadership
- Financial Literacy
- Food Security
- Health & Wellness
- Human Services
- Work & Career Readiness
Many grant cycles have been created solely for programs that serve Low-to-Moderate Income (LMI) individuals and families. It is imperative that your organization track this and other relevant demographic information not only for grant purposes, but to allow you to focus on your target population.
Almost every corporate grant will ask for the following:
- A detailed program/project description
- Budget indicating both revenue and expenses for the program/project
- Description of the clients you serve and demographic data
- Your 501(c)3 letter
- Your most recent 990
- A W-9
- Your last completed audit
- Sources of income that have been secured
- Your plan for sustainability for the program/project after the grant has been exhausted
It is essential that your grants team has access to the most recent versions of these key items to ensure a successful grant package. When writing your program/project description, you must build a narrative that is both detailed and concise, so the reviewer knows exactly what you are requesting. Use your budget to paint a picture of what is needed to operate the intended program/project successfully.
Examples of Corporate Grant Funders:
- Bank of America
- Coca Cola
- DELL
- Dollar General
- Duke Energy
- Enterprise
- Ford
- New York Life
- Publix Super Market Charities
- Rotary Clubs
- Suncoast Credit Union
- TD Charitable
- Walmart
- Wells Fargo
To find the corporate grants that best align with your organization, check out platforms such as Grant Station, e-Civis, and GrantWatch.
What are Foundation Grants?
The most common grants in this category come from private family foundations. Family foundations range in asset size from a few hundred thousand dollars to upwards of 1 billion dollars. Based on their size, these foundations can grant funds anywhere from $500 to $500,000+. For nonprofits just starting their grant writing journeys, family foundations will be the place to start. The majority of these foundations operate on a relationship basis. Therefore, it is crucial for your organization to initiate a relationship with the foundation before applying. In some cases, family foundations only solicit applications to the organizations with whom they have been in contact before submission.
To get started, utilize a platform such as GuideStar to conduct your research. You want to look for foundations whose priorities align with your organization’s mission. Once you have identified funders, look at their website to determine if your organization is eligible. If the foundation does not have a website, review their most recent 990 to see what organizations they have funded in the past and their geographical location.
To introduce your organization to a new family foundation, send a Letter of Intent (LOI). This letter should include a brief overview of your organization, mission, clients you serve, and your current need. Include items such as photos, links to your website, and a success story to genuinely paint the picture of your organization. To find the foundation’s contact information, either check their website or pull the address from GuideStar.
Examples of Family Foundations:
- Richard M. Schulze Family Foundation
- Bill and Melinda Gates Foundation
- The Rockefeller Foundation
- Hall Family Foundation
- Martin Family Foundation
In the dynamic world of nonprofit grant writing, understanding the various grant opportunities is crucial for navigating the path toward securing vital resources. Remember, the journey may seem daunting initially, but the key is persistence and adaptability. With a clear understanding of the different types of grants, you’re well-equipped to strategically steer your organization toward success.
