grant-providing-organizations

What Are Grant-Providing Organizations And How Can They Help My Nonprofit?

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Daniel

Many nonprofits are supported through the generosity of individuals. However, another popular funding avenue is with grants. While individual donations are helpful, they do not always give a nonprofit the amount that it needs to both keep the lights on and work toward its mission.

Established nonprofits and startup nonprofits alike can take advantage of grant funding. But that is easier said than done. How do you actually find these nonprofit grant opportunities? That is what we are here to explain with this guide on grant-providing organizations.

Let’s go!

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What Is a Nonprofit Grant?

A nonprofit grant, also referred to as a fundraising grant, is a monetary donation that an organization makes to a nonprofit. Grants from organizations are typically more beneficial than donations from individuals because these organizations can provide more sizable funding. 

Grantmakers can award unrestricted funding, meaning you can use it for day-to-day operations, specific fundraising efforts, and everything in between. Typically, however, these organizations award grants for specific programs or purposes — aka restricted. Regardless of how you use the money, an obvious benefit of obtaining a grant is that you do not need to pay it back. 

Pro Tip: You can keep track of what grants you apply for and what grants you receive with a nonprofit grant management software. If paying for this type of service is not within your budget, at the very least, employ a detailed spreadsheet to keep track of everything.

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What Is a Grant-Providing Organization?

A grant-providing organization — alternatively known as a grantmaker — is a foundation, corporation, or government agency that offers startup grants, matching grants, or other types of grants to nonprofits. Upon awarding a grant, it generally stipulates how to use the money.

Corporations

A corporate grant is a type of grant that comes from a major corporation — think Walmart, Target, Tyson, and Coca-Cola. A lot of these corporations set aside a chunk of money at the start of the fiscal year and award grants to nonprofits that they consider worthy. Do keep in mind that small businesses might also hand out grant money. 

grant-providing-organizations-how-to-findCorinne is ready to start learning about grant-providing organizations!

One reason large corporations and small businesses may dole out grant money is because they have taken a pledge of corporate social responsibility. These entities are concerned with the well-being of the communities that they are a part of. In addition, a corporation that gives back shows the general public that it cares, which can go a long way in improving its reputation. Plus, giving charitable donations can result in sizable tax deductions.

Receiving a grant from a corporation usually involves completing an application and/or submitting a proposal. Applicants have to show the services they offer, the money they spend, and the money they need for future success. In some cases, applicants also have to submit a document that details how they intend to use the grant money.

Foundations

Foundations are nonprofits that give grants to other organizations. There are private and public foundations: 

  • Private foundations get their money from individuals, families, or corporations. These types of foundations must give away a certain amount of their assets every year, which is also known as a payout requirement. This money has to go to other 501(c)(3) organizations.

  • Public charities get money from several sources. Their IRS regulations are far less restricting, so they can give their funding to entities and individuals. 

Foundations must submit annual filings to the IRS, which are public documents that provide information about their finances and employees. On these documents, private foundations are required to list all of the grants that they paid that year. Public foundations only do this voluntarily.

Governments

In the United States, there are federal, state, and local government agencies that can supply nonprofits with grants. Nonprofit government grants fund projects that provide public services or stimulate the economy.

The process for federal grants follows three phases:

  • Pre-Award Phase: The grant-providing agency develops a grant program and announces the funding opportunity. Then, it accepts and reviews applications.

  • Award Phase: The government notifies applicants of acceptance or rejection. It puts a legal framework into place that outlines how much money it is giving and for what purpose. Then, it disburses the funds. 

  • Post-Award Phase: A grants management officer at the agency oversees the nonprofits’ reporting compliance. Recipients must supply proof of compliance with any legal requirements on a regular basis.

Pro Tip: A grant proposal is a document that outlines why the applicant needs funding and what they intend to do with that funding. Many nonprofits hire grant writers to compose proposals, as they have the time to dedicate to this task and the expertise to be persuasive. 

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How To Find Grant-Providing Organizations

Finding grant opportunities can be as simple as performing an online search. So, hop on Google! Just be sure to narrow your search parameters by considering geographic location, grant type, nonprofit cause, and more. 

If you still feel overwhelmed by this task, we have taken some of the guesswork out of it for you by providing information on various corporation, foundation, and government grants below.

grant-providing-organizations-final-thoughtsMatt is looking up some grant-providing organizations!

Corporations That Give Grants

There is a nearly endless number of corporate grants, each with its own focus. However, the following are some examples of popular corporate grant providers:

  • Exxon Mobil focuses its funding on malaria prevention, the economic development of women, and math and science education. 

  • FedEx accepts grant proposals by invitation only. The company focuses on sustainable logistics and global entrepreneurship. 

  • Google helps nonprofits achieve more exposure through its nonprofit advertising grant called Google Ad Grants. Recipients get thousands of dollars of free funding each month to put toward advertising their cause.

  • Pfizer tailors its grant programs toward health care and education. It supports independent research and education initiatives that intend to improve patient outcomes in underserved areas.

Foundations That Give Grants

If you are looking for grant-giving foundations, a good place to start is with the Foundation Center. This is a nonprofit organization that serves as the nation’s leading authority on nonprofits and the grantmakers that support them. You can visit its website, Candid, to search its database for grants and grantmakers. 

The following notable foundations are a small sampling from this database that give hundreds of thousands of dollars of financial support every year to nonprofits:

  • The Bill & Melinda Gates Foundation is the largest private foundation in the United States. It provides funding in the areas of global development, health, and education.

  • The Ford Foundation seeks to reduce poverty and injustice and promote democratic values to advance human achievement. It awards roughly 1,500 grants a year to applicants that have "transformative ideas and scalable solutions" that greatly impact the communities they serve.

  • The Kellogg Foundation looks to support nonprofits that educate children, promote children’s health, and support racial equity and civic engagement. 

  • The Streisand Foundation supports nonprofit work on environmental issues, women’s advocacy, civil liberties, and civil rights. 

Government Resources for Grants

As previously mentioned, nonprofits can look to federal, state, and municipal grants for funding. For local/state funding, contact the relevant departments. For example, if your nonprofit aims to provide healthcare to a poverty-stricken area of your state, you can search your state’s Health and Human Services Department website. 

grant-providing-organizations-final-thoughtsNancy is feeling confident with her newfound knowledge!

For federal grants, the U.S. government has a searchable online database on the website Grants.gov. If you join the mailing list on this website, you will receive daily or weekly updates on current federal funding opportunities. Here are some government agencies that provide federal grants:

  • AmeriCorps provides community service in the areas of education, environmental protection, public safety, public health, and homeland security. It offers several funding opportunities, such as the Volunteer Generation Fund, which focuses on funding volunteer management practices to increase volunteer retention and recruitment.

  • The Office of Energy Efficiency and Renewable Energy (EERE) looks to the research, development, and deployment of solutions to bring America to clean energy sources. Most EERE grants support the advancement of clean energy technology. 

  • The U.S. Department of Agriculture (USDA) grant programs focus on promoting agricultural sustainability that helps feed Americans and the world. 

  • The U.S. Department of Education promotes equal access to education and educational excellence. 

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Final Thoughts

Now that you have a basic understanding of grant-providing organizations, finding grants that match your nonprofit's mission should be at least a little easier. There are plenty of grant opportunities out there, so keep your eyes peeled!

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FAQ

💡What is a grant organization?

A grant organization provides grant funding to nonprofits. Find out more. 

🔑 Where is the best place to look for grant providers?

The easiest way to look for grant providers is to use Google. You can narrow your search by looking at geographic location, grant purpose, and other search parameters. Find out more. 

📝 What are some popular grant-providing organizations?

Grant-providing organizations include corporations, foundations, and government agencies. Find out more.  

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Daniel
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