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Where to Find Grant Money for Nonprofits

Raising money for nonprofits is challenging. There are more than 1 million charities operating in the United States, many of which are fiercely competing for the same funds from the same donors. Still, American citizens and philanthropists, corporations and foundations are very generous. Collectively, they give billions each year to help nonprofits fulfill missions. Each of them represents grant and income opportunity.

  1. Foundations

    • Foundations are the main source of grant income for nonprofits. There are nearly 1,500 private foundations in the United States, and in 2008, they gave more than $25 billion in funding to nonprofit organizations. Getting a foundation grant requires researching individual foundations. Many foundations support very specific missions, such as health or environmental causes and have peculiar application requirements. In general, most foundations require you to submit a comprehensive proposal that demonstrates the need your organization is trying to meet and introduces your organization's solutions and programs.

    Government

    • The federal government annually grants more than $500 billion to states, nonprofit and community organizations. State and local government agencies provide millions more. Government grants are awards of financial assistance for nonprofits to carry out a specific public purpose. Almost all grant programs are tied to legislation that outlines the mission and the level of funding Congress appropriates for grants. Grants.gov is the federal clearinghouse of grant opportunities. Contact the state or local agency covering your subject matter to find additional grant announcements.

    Corporations

    • Corporations play a vital role in supporting charitable organizations and using their resources to solve social problems. In a survey by the Committee Encouraging Corporate Philanthropy, the 171 participating companies reporting provided more than $12 billion to nonprofit organizations. Corporations not only provide funding, but many nonprofits seek them out for event sponsorship and in-kind support such as office equipment, bookkeeping and legal services. Many companies also provide volunteers to charities.

    Individual Donors

    • According to GivingUSA, Americans gave more than $300 billion to charity. Therefore, your fundraising strategy must include reaching individual donors. Direct mail is one option, which involves sending an appeal through the mail. In addition, customized solicitations can be sent to high-net-worth individuals. Moreover, many nonprofits use fundraising dinners, award ceremonies and other events to raise money from a mix of individuals, foundations and corporations. Finally, reaching new donors requires offering online giving opportunities, through your website, social networks and text messaging.

    Check Out the Competition

    • Nonprofit organizations with a budget of $25,000 or greater are required to file IRS Form 990, which is something like a nonprofit tax return. The form requires charities to disclose who gave them money and other information a grant-seeking organization might find useful. GuideStar posts all filed 990s on its site, which is accessible after free registration.

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