Grant Funding is a Powerful Source of Capital for Nonprofits
Is your nonprofit with an active 501c3 status looking for a way to generate funding? Grants are a great way to help you. There are many methods for increasing and improving the number of programs an organization offers and the quality of those programs. One of the most effective ways of doing this is through grant funding.
There are many options when pursuing grant funding and many grant funding organizations to approach. One option would be to utilize the many state and federal grants that are offered by the government. Another option would be to seek grants that are offered by private and corporate foundations. Typically the grants offered by the government are much more specific and follow strict regulations on the format of the proposal and the uses of the grant money. Foundations are generally more flexible and allow for the same proposal to be used in approaching multiple foundations. There are billions of dollars available in both options and a combination or mix of the two sources is typically most effective.
Some of the different types of grants are specified to help start programs and others place more emphasis on improving existing programs or providing the funding necessary to keep programs functioning. Grant funding can be an excellent tool in helping get the equipment or supplies necessary to get a program off the ground. It can also be used as a valuable tool in expanding the program in an effort to better serve more participants. Sometimes this boost in revenue is all that is needed in order for an organization to cover the costs in beginning to offer a new program. Once the program is established many organizations are able to continue operating the program with the fees the program charges to participants or through fundraisers and other revenue streams. However, in many cases these activities do not generate enough revenue to get the programs actually started.
As always receiving grant funding is a numbers game and the more proposals you can get out or the more funding sources that you are able to approach the more successful you will be in terms of ultimately securing funding. It is this reason that many organizations find private and corporate foundations easier to approach due to the fact that they are not as specific in their proposal requirements. If you would like to use the grant money to add a new program or expand the programs that your organization is currently offering it is important to specifically outline the program and the need for grant funding. This will help the funders to understand how their money will be spent and how it will go towards furthering the organization’s mission.
Once grant funding is secured it is critical that you remain in compliance with any regulations imposed by the funding organization and keep detailed records of how the funds were used to further the program. This is critical in the organization’s ability to receive additional grant funding from the funder or continuation grants to fund the program in the future. It can also be used as an important tool in securing grants from other organizations in the future by demonstrating that your organization is fiscally responsible and has the ability to use the funds it receives as planned. This is very appealing to grant funding organizations to know that the funds they distribute are going toward their intended causes.