The world of grant research can be overwhelming. It helps to narrow your search. One of the best ways to filter grant lists is by “government” or “foundation.”
Government grants and foundation grants are very different. Which is best for your organization?
Why I love foundation grants…
Since they are awarded by foundations, families, and corporations, there is an opportunity to develop relationships and win recurring awards for years to come.
Foundation grants typically support specific geographic locations and specific causes, so there is less competition.
Funding from foundations is typically less restrictive than government grants, and most foundation grant administrators are receptive to answering any questions that may come up during the grant cycle.
Once you are awarded a foundation grant, the reporting is usually low maintenance.
Grant Writing Tip of the Day
Always prepare a budget with a strong justification. Unreasonable budgets lose grants.
Why I love government grants…
Government grants can be allocated by local, county, state, or federal agencies and can offer significant financial stability because they are typically much larger amounts than foundation grants. They can be allocated for multiple years, but after the funding has run out, that is the end.
The applications are more difficult and take longer, but the payout can be HUGE, so it is worth it in many cases.
Median largest award from a foundation: $10,800
Median largest award from the federal government: $425,000
The guidelines are usually more strict than other types of grants. It is important to understand whether your non-profit has the resources to meet all guidelines and reporting requirements.
It is not uncommon for a non-profit to hire a staff member to handle guideline adherence and reporting for a large government grant.
I wrote and was awarded an ARPA grant for my client. It was the largest grant they had received, and it was exciting. The contract was revised seven times before being finalized, and the monthly reporting was tedious. They finally hired a staff member to handle the management of the grant to make sure we adhere to guidelines.
One of the penalties for not adhering to the guidelines is that the non-profit has to pay back the grant. That is a nightmare that can force a non-profit to close its doors.
Before you consider applying for a government grant, make sure your non-profit has a DUNS number, Sam.gov account, and Grants.gov registration. Federal grants can take up to 100 hours to complete, so be ready. And once the grant is awarded, follow the guidelines and make sure you have a firm understanding of 2CFR200.
My approach with most clients is a healthy mix of government and foundation grants. As with most things, diversity and moderation is key.
Until next time,
Write Epic Grants