What it is
A grant is money given by a funder, such as a government agency, a foundation, or a company giving program, to support a specific purpose. Unlike a loan, a grant is generally not meant to be paid back. In return, the funder usually expects the money to be used as described and may ask for updates.
Grants basics fall into three stages. First, you find grant opportunities that fit your organization. Second, you write a proposal that explains your need, your plan, and your budget. Third, if you receive an award, you manage the funds and report on how they were used and what happened.
Funders often have eligibility rules. Many support only organizations with recognized tax-exempt status, and some support particular places, populations, or topics. Whether your group qualifies depends on its structure and on the funder's current guidelines, so it is always worth reading those carefully.
How it’s traditionally been approached
Finding grants has traditionally meant research. Organizations browse funder websites, review public databases of foundations and government programs, read past award lists, and sign up for funder newsletters. Many also look to local community foundations and businesses, which sometimes focus on nearby groups.
A grant proposal is traditionally a written application. It often includes a short summary, a statement of need, a description of the project and its goals, a timeline, a budget, and information about the organization and its leadership. Some funders use online forms with word limits, while others accept a letter of inquiry first.
After an award, grant reporting has typically been done by sending progress or final reports, financial summaries, and sometimes stories or examples of the work. Organizations often keep careful records throughout the year so reports are easier to complete. Requirements differ by funder and can be detailed, especially for government grants.
How the right fundraising consultant may help
The right fundraising consultant or grant professional may help you sort through a large field of options. They may help you think about which funders seem like a good fit for your size, mission, and location, and which may not be worth the effort. They may also help you build a simple calendar of deadlines.
A first conversation is generally a chance to share your mission, your project idea, and where you are in the process. A consultant may ask about your tax-exempt status, your budget, your records, and who on your team can help. Helpful questions for you to ask include how they approach research, how they work with your staff or volunteers, what they will and won't handle, how fees are structured, and how they handle confidentiality.
Some consultants may also help review a draft proposal, organize supporting documents, or set up a system for tracking expenses and outcomes for reporting. No consultant can promise that a grant will be awarded, since funders make their own decisions. It can be wise to ask how they set realistic expectations and how they stay within ethical practices.
The bigger picture
Applying for grants can feel stressful, especially for a small group with limited time. Deadlines, detailed forms, and waiting for a decision can create worry, and a declined application can feel personal even though it often is not. Taking it one step at a time, and sharing the work with others, may make the process feel more manageable.
Grants also touch on financial peace of mind, since a group may be tempted to rely on a single source. Many organizations find comfort in mixing several kinds of fundraising ideas over time. If the pressure of running an organization is affecting your wellbeing, Providers.plus may help you find supportive resources.
Keep in mind
- Grant rules, eligibility, and deadlines vary by funder and change over time, so always read the current guidelines.
- Charitable solicitation registration requirements vary by state, so check with your state and local offices about what applies to your organization.
- Tax-deductibility of gifts depends on the recipient's tax-exempt status and current IRS rules, so confirm details with a tax professional.
- This page is educational only and is not legal, tax, or financial advice. No one can guarantee a grant will be awarded.
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Frequently asked questions
What are grants basics for a small nonprofit?
Grants basics include finding funders that fit your mission, submitting a proposal that explains your need, plan, and budget, and reporting on how funds were used if you are awarded one. Small nonprofits often start with local funders, such as community foundations or businesses. Always read each funder's current guidelines first.
How do I find grant opportunities that fit my organization?
You can search public grant databases, funder websites, and past award lists, and ask peers which funders support similar work. Look for matches in mission, location, and the type of support offered. A fundraising consultant may help narrow the list, though results are never guaranteed.
What goes into a grant proposal?
Most proposals include a summary, a statement of need, project goals and activities, a timeline, a budget, and background on your organization. Some funders ask for a short letter of inquiry first. Each funder sets its own format, so follow its instructions closely.
Do I need to be a registered nonprofit to apply for a grant?
Many funders require recognized tax-exempt status, while some work with groups through a fiscal sponsor or support other kinds of applicants. It depends entirely on the funder. Check the eligibility section of each grant and confirm your status with a qualified professional if you are unsure.
What is grant reporting?
Grant reporting is how you update a funder on how money was spent and what the project achieved. It may include progress reports, financial summaries, and examples of the work. Requirements differ by funder, so review them before you accept an award and keep good records from the start.
Can a fundraising consultant help me apply for my first grant?
A consultant may help you research funders, organize your materials, and review a draft, depending on their services. They cannot promise an award, since funders make their own decisions. Ask about their process, fees, and how they work with your team before you decide.
Educational resource. Fundraiser.biz shares general information and connects people with independent fundraising consultants. It is not professional advice. Talk with a qualified professional about your own situation.