What is a Grant?
In general, a grant is funding provided by a charitable-giving foundation, public charity, or a government agency to a nonprofit organization that enables the nonprofit organization to perform specified activities for the common good. Grants may also be made by corporate giving programs or nonprofit intermediaries, which pass through funding from another source.
What is a Grant Proposal?
A grant proposal is a narrative description of the work that a nonprofit organization plans to undertake to fulfill both its own and the grantmaker’s goals. The proposal includes, at minimum, a description of the problem to be addressed, a detailed plan for addressing the problem, what it will cost, and what results the grantmaker can expect from the proposed project or initiative. After the proposal is accepted by the grantmaker and a grant award is made, the grant proposal forms the basis for a legally binding contract between grantmaker and grant recipient. By signing the contract, the recipient (grantee) agrees to perform mutually agreed-on plans of work and to report its progress toward fulfilling the terms of the grant and achieving the goals set forth in its grant proposal.
Who Qualifies for Grants?
Most grants are made to nonprofit 501(c)(3) organizations: designated public charities made exempt from federal income tax under IRS code 501(c)(3). Nonprofit 501(c)(3) organizations include such institutions as schools, hospitals/clinics, religious organizations, homeless shelters and services, social service agencies, arts/cultural organizations, universities, and many others. To maintain its 501(c)(3) status, a public charity must pass a public support test showing that it receives its financial support from a broad segment of the general public. Therefore, a nonprofit organization should not seek most of its funding from one source. If it does so successfully it could forfeit, or "tip," from its nonprofit status, making it ineligible for any other charitable gifts. Private foundations are restricted by law to fund only public charities and some government agencies, such as police and fire departments, unless they follow a lengthy and complicated process called "expenditure responsibility." Community foundations and government agencies may fund a non-501(c)(3) if the grant is for a charitable purpose such as relief of poverty, advancement of education or religion, promotion of health, government or municipal use, or another purpose that would be beneficial to the community. Grants to individuals are rare except in the case of scholarships and instances such as commissions for artworks, translations, or scientific research. (There are many resources on the specialized topic of grants to individuals; they are not covered in this book.)
Who Writes Grants?
Most often, grant proposals are written by the director or other staff member of the applying nonprofit organization. Individuals who work in development or fund-raising often are called on to have grantwriting skills. There are also professional grantwriters who write grants for a fee, which is paid by the nonprofit organization.
The job of a grantwriter may or may not be limited to the actual writing of a grant proposal. The level of involvement varies based on the individual grantwriter’s level of skill and knowledge, the position the grantwriter has within the applicant organization, and the type of approach used in grantseeking.
What Do Grants Fund?
Grantseeking is a form of fund-raising in which money is requested for a defined purpose and a specified time period. Most grants fund programs or projects developed by the nonprofit organization to respond to a specific problem or need. Other...
