Start here: how nonprofit grants work

The short version

Grants are money a funder gives your organization to do specific work, in exchange for doing that work and reporting on it. Most grant dollars go to registered 501(c)(3) public charities (or projects with a fiscal sponsor) that match a funder’s priorities. Winning them takes research to find the right funders, a clear and evidence-based proposal, and enough lead time, usually months.

Who gives grants

There are four broad kinds of grantmaker, and each behaves differently.

Private foundations, from small family foundations to large independent ones. Many accept proposals only by invitation. How each type works.
Community foundations, which pool local donors’ money and usually fund their own region. Often the best first call for a local nonprofit. Community foundations.
Companies, through corporate foundations, direct giving, sponsorships and matching gifts. Corporate giving.
Government: federal agencies, and states, counties and cities, which often pass federal money through to local groups. Government grants.

The process, in order

Get eligible. Most funders require 501(c)(3) status or a fiscal sponsor. Government funders also require registrations; federal grants need an active SAM.gov registration.
Get your basics in a folder. IRS determination letter, budget, recent financial statements or audit, board list, and program data. The readiness assessment shows what you’re missing.
Research funders. Build a short list of funders who already give to work like yours, in your area, at a grant size that fits. Grant prospecting and researching funders with 990s.
Make contact the way the funder wants. Some want a letter of inquiry first; others an online application; some only invite. Follow their instructions exactly.
Write the proposal. Work through each section in order, from need to budget. Start with the anatomy of a proposal.
Manage the grant. Spend as promised, track results, and report on time. That’s what gets you renewed.

What to expect

Lead time. Plan for months between first research and money in the bank. Funders publish deadlines and decision dates; build them into a grant calendar.
Declines are normal. Even strong proposals get turned down when funders have more good requests than money. Ask for feedback and reapply when it makes sense. Why proposals get rejected.
Grants rarely cover everything. Many are restricted to a project. Diversify with individual donors and other income, and ask about indirect costs.
Never pay to get a grant. Real funders don’t charge you to receive money. Grant scam red flags.

If you’re not a nonprofit

GrantBridge is written for nonprofits. If you’re an individual or a small business, be realistic about grants before you spend time searching.

Individuals: USA.gov states that the government doesn’t offer “free money” to individuals and that federal grants typically go to states and organizations. For help with food, health care, housing or utilities, start with USA.gov’s benefits finder and local agencies. Scholarships, fellowships and artist grants do exist, but they’re specialized.
Small businesses: the SBA says it doesn’t provide grants for starting or expanding a business. Its grant programs are narrow, such as SBIR and STTR for research and development. Most small-business funding comes from loans and investment. SBA’s grants page explains what exists.
A community project without a nonprofit: a fiscal sponsor can let you apply for charitable grants without forming your own 501(c)(3).