A comprehensive guide to grant types
Navigating the landscape of grant types available to nonprofits.
There are lots of different kinds of grants available to nonprofits but it’s not easy to know what the difference is between them. In this blog post, we'll discuss and explore various grant types available to nonprofits, shedding light on their definitions, examples, and typical requirements. We’ll talk about program grants, project grants, general operating grants (the unicorns!), capital grants, and capacity building grants. Let’s dive in!
Program grants and project grants
Project or program grants are specific funds allocated to support a particular initiative, undertaking, or set of activities. These grants are often time-bound and tied to achieving predetermined objectives.Pros of government grants:
Examples:
A nonprofit focused on environmental conservation might receive a project grant to implement a tree-planting initiative.
A community-based organization addressing food insecurity may secure a project grant to establish a community garden.
Typical Requirements:
Detailed project proposal outlining goals, methods, and expected outcomes.
Budget breakdown indicating how funds will be utilized.
Monitoring and evaluation plan to track progress.
GEneral Operating Grants
General operating grants, also known as unrestricted grants, provide nonprofits with the flexibility to allocate funds where they are needed most. These grants cover day-to-day operational expenses, such as salaries, utilities, and administrative costs. We like to call these our unicorns, but they’re not quite as rare as those mythical beasts, they are hard to find and always appreciated by the clients we work with.
Examples:
A local animal shelter might receive a general operating grant that they use to cover staffing costs and facility maintenance.
A cultural organization may secure general operating funding to support ongoing programming and administrative needs.
Typical Requirements:
Overview of the organization's mission, goals, and impact.
Financial statements demonstrating fiscal responsibility.
Narrative explaining how funds will be used to further the organization's overall objectives.
Usually, to get general operating funding, trust is already in place between the grantee and the grantmaker (i.e. these grants are not often given to first-time grantees).
Capital Grants
Capital grants are designated for significant investments in assets, facilities, or infrastructure. These funds enable nonprofits to acquire, construct, or renovate physical assets that will contribute to the organization's long-term sustainability.
Examples:
A healthcare organization might receive a capital grant to build a new medical facility.
A youth center could secure funds for renovating its existing space to better serve the community.
Typical Requirements:
Comprehensive project plan outlining the capital investment.
Detailed budget with cost estimates for construction or acquisition.
Long-term sustainability plan for the asset.
Capacity Building Grants
Capacity building grants aim to strengthen a nonprofit's internal capabilities, helping them enhance their overall effectiveness and impact. These grants focus on organizational development, leadership training, and strategic planning.
Examples:
A youth development organization might receive a capacity building grant to train staff in new mentoring techniques.
An environmental nonprofit could secure funding for leadership development programs.
Typical Requirements:
Clear articulation of the organization's strengths, weaknesses, opportunities, and threats.
Strategic plan outlining the areas targeted for capacity building.
Evaluation metrics to assess the impact of capacity building efforts.
How do I find the right grants for my organization?
Grants are a great place where you can supplement your team's efforts with outside consultants. Capacita has a proven and successful process of systematically researching grant opportunities, evaluating fit, and then prioritizing your efforts, taking into account the pros and cons discussed above for our client partners.
At Capacita, we are passionate about the impact you are having on your community and understand that there are often not enough hands to get everything done! That's where come in, as an extension of your team that is invested in your success.
Get in touch with us today for a free consultation and we'll tell you all about how we can help.