Finding nonprofit grants can be a challenging but rewarding process. Grants can provide much-needed funding for your organization’s programs and initiatives, allowing you to diversify your income stream and make a greater impact in your community. In case you’re still unsure about adding grants to your nonprofit’s development plan, consider this: in the most recently reported tax year, 26,935 foundations made 499,583 grants to nonprofit organizations across the United States with contributions totaling $77.1 billion.
Understand the different types of grantmaking organizations
It’s helpful to understand the different kinds of nonprofit funders that exist and some trends around their grantmaking activity. In general, grants to nonprofits come from foundations, corporations, and government agencies. Some common foundation types are mentioned below, including links to additional information on each foundation type:
Private foundations: These foundations are typically funded by a single source, such as a family or an individual. Private foundations are often established to support a specific cause or set of causes. Note that family foundations, which are a type of private foundation, can be more difficult to approach as they often won’t accept unsolicited funding requests.
Public foundations: These foundations are charities supported by various sources, such as foundations, individuals, corporations, or public entities, and use their funds to make grants.
Community foundations: These foundations are created to support the needs and interests of a specific geographic area. Donated funds from individual community members and businesses are typically pooled and used to support local nonprofits.
Corporate foundations: These foundations are established by corporations and typically make grants to nonprofits that align with their interests and priorities.