Public government grants come in two types:
A competitive grant is one where applicants compete against each other for a limited amount of funding.
A formula grant is awarded based on a predetermined formula (a set amount of money per person) established by the funding agency. Formula grants aren’t considered competitive. For example, community action agencies are funded formula grants, in part, through the Community Services Block Grant (CSBG) program. These grants are awarded on a service-population-based formula. The agencies receive these funds year after year by merely updating the previous year’s application and resubmitting.
In the following sections, I explain what type of public-sector grant money (or grantor) will pay you to implement your idea, project, or program.
Federal funding: Raiding Uncle Sam’s stash
The first place to look for big pots of money is in Uncle Sam’s closet of federal funding agencies. In Chapters 4 and 5, I explain public-sector grants and wade through the main federal e-grant portal, Grants.gov.
Many newly established nonprofit organizations think that they should apply for government grants before raising seed funding from local foundations and corporations. Your organization needs an established, credible track record for implementing, evaluating, and prudently managing funding from smaller fish in the sea before jumping into the federal grant application process.
To find active or current grantfunding opportunities from Uncle Sam, go to
www.grants.gov
, which gives you daily funding announcements on money you can apply for now, provided your organization is an eligible grant applicant.
State and local government funding: Seeking public dollars closer to home
Each state receives grant monies from the feds and from tax revenues that are funneled into and out of the state's general funds. After taking their fair (or unfair) share for administrative overhead, states re-grant the money to eligible agencies and organizations in the form of competitive grants or formula grants.
You can search the Internet to find state agencies that award grants. Examples of some of the state agencies that re-grant federal monies are agriculture, commerce, education, health, housing development, natural resources, and transportation. You can also contact your state legislator’s local office for assistance in identifying grant opportunities in your state.
There’s a wide variation in state grantmaking. It’s always best to meet with your state-level elected officials and funding agency representatives to pave the way for successful grantseeking.Researching Private-Sector Grants
Foundation and corporate grantmakers are private-sector funders. The rainfall of private-sector grant money continues to be conservative, due to the pandemic and an anticipated declining economic outlook, but it’s also continuously available to grantseekers who meet this type of grantor’s area of interest.
Where can you find out more about these grants? You can locate sources by visiting a Funding Information Network (FIN) location (usually at a large public library, state university library, community foundation, or other nonprofit information center). These sites are the only places where you can access Candid Learning’s Foundation Directory Online for free. Otherwise, you need to subscribe at one of the levels that best fits your grant-research needs. (To find a FIN site, visit https://candid.org/find-us
.)
If you’re targeting private-sector funders, start with local foundations and corporate grantmakers to improve your odds of receiving funds.
Identifying foundations that award grants
Private foundations typically get their monies from a single-donor source, such as an individual, a family, or a corporation. Others raise funds from a variety of donor sources. You can find hundreds of private foundations in the Foundation Directory Online by Candid or by typing “list of private foundations” or “private foundations” plus your state’s name into your favorite search engine.
Public foundations, on the other hand, are supported primarily through donations from the general public. That’s a no-brainer, right? Public foundations also receive funding from foundation and corporate grants, as well as individual donors. Again, the Foundation Directory Online by Candid website can give you loads of information on these types of foundations. Visit https://learning.candid.org/resources/knowledge-base/what-is-a-foundation
.
The grantseeking and grantmaking processes may differ for public and private foundations. Always contact potential foundation funders to introduce your organization, start to build a communications bridge, and inquire about their grantmaking processes.
Finding corporations that award grants and in-kind donations
Did you know that many of the biggest businesses in the nation set 5 percent or more of their profits aside for grants? Why is that, you ask? The reason is corporate social responsibility and community engagement — which are the approaches that successful businesses take when they decide to make a financial commitment to the community where they are headquartered or where they have operating locations.
Corporations that award grants usually have a website link labeled something like Community, Community Relations, Community Engagement, Social Responsibility, Local Initiatives, Grants, or Corporate Giving. Use Foundation Directory Online by Candid to view corporations with giving programs.
Corporate funding sources typically look to give funding to organizations operating in areas that they serve. Corporate funders frequently will let potential applicants know their geographic range, but you can also consider what corporations have headquarters or a major presence in your area as a source of insight.
Getting Acquainted with Grant Submission Requirements
One of the biggest keys in grant writing is recognizing the different application formats that funders require you to submit. Some grantors require more information than others. Today, at least 90 percent of funders with websites require online e-grant applications. Others require traditional paper-written narratives, forms, budgets, and mandatory attachments. In Chapter 23, I cover online e-grant portals and submission processes.