How do nonprofits get grants?

Updated October 2026 · How we answer

Short answerNonprofits get grants by researching funders, building relationships, and submitting strong proposals that match the funder's priorities. Most grants require 501(c)(3) status or a fiscal sponsor.

Where to Find Grants

Nonprofits can apply to private foundations, community foundations, corporate giving programs, and government agencies (federal, state, local). Each has different eligibility and application processes.

Use databases like Foundation Directory Online, Grants.gov, or state grant portals. Local United Ways and nonprofit associations often share opportunities.

Networking matters. Attend funder info sessions, join nonprofit listservs, and build relationships with program officers before applying.

  • Private foundations: often invite-only or open LOI process.
  • Community foundations: focus on local needs.
  • Corporate funders: may prioritize causes aligned with their business.
  • Government grants: competitive, with strict compliance requirements.
  • Fiscal sponsors: allow groups without 501(c)(3) to apply.

The Application Process

Most funders require a letter of inquiry (LOI) first, then a full proposal if invited. The LOI is a short summary of your project and request. If approved, you'll submit a detailed proposal with budget, evaluation plan, and organizational documents.

Government grants often require registration in SAM.gov and Grants.gov, which can take weeks. Start early. You'll also need to comply with reporting and audit requirements.

After submitting, follow up politely if you haven't heard back. If rejected, ask for feedback and keep the funder on your list for future cycles.

Building Capacity

Strong nonprofits have clear missions, track outcomes, and maintain good financial records. Funders look for evidence of impact and sound management.

Diversify funding sources. Relying on one grant is risky. Combine grants with individual donations, earned income, and events.

Invest in grant writing skills or hire a consultant if budget allows. Many community foundations offer free grant writing workshops.

Common mistakes

  • Applying to funders whose priorities don't match your mission.
  • Waiting until the last minute and missing deadlines.
  • Failing to follow up or thank funders after a decision.
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