During my quarterly calls with my non-profit clients, one of the main topics we discuss is their areas of need.
Are they launching a capital campaign? Do they need to hire program or administrative staff? Are they launching a new program that needs equipment? Do they struggle to pay rent and need general operating funds?
Understanding their needs is paramount. Winning a grant for an equipment purchase when they really need to hire a staff member is not helpful to the organization.
Once I understand their needs for the upcoming quarters, I can tailor my grant research and applications to best suit them.
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According to grantmaking data, only about 32% of foundations provide general operating support to their grantees. Only 18% provide capacity-building or organizational effectiveness grants to the majority of its grantees, while 29% of foundations say they provide program grants only. Less than 10% of foundations will award capital campaigns or improvement grants.
There are four main types of grants available.
First, there are program grants. These are the most common, designed to fund a specific program. The expectation is that the non-profit will measure outcomes in some way, and at the end of the grant cycle, they can communicate the tangible impact of the funding.
Next, there are general operating support grants. Winning one of these grants is like hitting the lottery. The grant is mostly unrestricted and can be used for administrative expenses, staff salaries, rent, utilities, program development, and most day-to-day costs.
A capacity building grant is funding to help a non-profit strengthen its infrastructure, systems, and skills in a way that allows it to support the mission better. This funding is an investment in the future of the organization and allows it to adapt and change. Examples of capacity building projects are board training retreats, hiring consultants, leadership development, staff training, technology and systems improvement, volunteer recruiting, and fundraising development.
Lastly, a non-profit capital grant is very specific funding to support a significant, one-time expense related to purchasing, constructing, or renovating facilities. Sometimes, it can be used for a major equipment purchase. These grants have a more detailed review process, and the non-profit must prove how the capital investment will contribute to the long-term sustainability and growth of the organization.
Understanding your non-profit’s quarterly needs and matching them with the appropriate type of grant funding will help support the grant budget and effectiveness of your grant seeking.
Until next time,
Write Epic Grants
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