The nonprofit sector must find alternate ways of raising funds for its operations. In particular, health and human services organizations rely heavily on private and public grant funding streams because they don’t generally profit from their service delivery. Grants provide nonprofits with a dependable revenue stream, alleviating pressure on fundraising efforts.
However, hundreds, if not thousands, of organizations, are vying for the same available grants. Requesting for the grant requires writing a grant proposal. Grant writing takes time, detailed preparation, and attention to detail. A grant application can take days to prepare, but it’s worth the investment when funding is approved.
A nonprofit, sometimes a fundraising grant, is a financial donation to a nonprofit organization. A foundation, corporation, or government agency typically gives grants. Many nonprofits are partially or entirely funded by grants they receive yearly.
Grant organizations, also known as grantmakers, are the foundations, corporations, or government agencies that provide grant funding. They usually specify how their gift should be distributed. Rather than giving a lump sum donation that the nonprofit can use to support general operations, grant organizations may stipulate that they want the funds to be used to support a specific program or initiative.
Grants allow not-for-profit organizations to deliver services to people who otherwise can’t afford them. Nonprofits benefit from grants in multiple ways, but the main advantage is using the funds to run the organization. What’s more, unlike loans, you do not need to repay a grant. Because grants are usually gifted to nonprofits from large companies, they are generally larger than those from individual donors. Large grants for nonprofits can give a much-needed cash injection to help fund a project, market the organization, purchase supplies or get an initiative off the ground. This can help the organization enter a new growth phase and attract new donors.
Because grants typically come from large, established organizations, they are often much more significant gifts than those from individual donors. Large, one-time gifts like grants can push your nonprofit to fund a much-needed program or purchase essential supplies or equipment. This can bring your nonprofit into a new growth phase, attracting increased attention and new donors.
Grants also build your nonprofit’s visibility and credibility. According to the Society for Nonprofits, once you receive one grant, you are more likely to receive others. In other words, once grantmakers see that other notable organizations have given to your cause, they are more likely to give to you themselves.
Funding is essential for nonprofits because it allows you to invest in your organization and improve overall impact. Nonprofits often rely on grants to help with operational costs, so securing funding is essential to keeping your organization running.
Grants contribute to the organization’s running and improve visibility and credibility. In most cases, a nonprofit receiving a grant from established businesses will enjoy greater credibility. This could spur other organizations to provide grants to the nonprofit as well. This means that once grantmakers see that other organizations are funding your nonprofit, they are more likely to donate funds themselves.
And so, grants are a vital resource that empowers nonprofits to make a difference in their communities and achieve their mission-driven goals.