Government grants provide vital funding for nonprofits, boosting credibility and opening doors to future opportunities. These grants support various initiatives, from community development to scientific research. However, understanding and applying for government funding can be complex.
Despite these hurdles, the potential benefits make government grants an attractive funding source for many nonprofits.
This guide offers comprehensive insights into government grants for nonprofits. We'll explore the advantages and challenges, highlight top grant programs, and share valuable resources to support your funding journey.
Table of Contents
Understanding government grants for nonprofits
Top 5 government grant programs for nonprofits in 2024
Where to find government grants for nonprofits
Final thoughts on government grants
FAQs on government funding for nonprofits
Understanding government grants for nonprofits
Government grants are funding provided by federal, state, or local governments to support specific projects or programs. These grants aim to further public policy goals in areas such as education, healthcare, and community development.
Unlike loans, government grants don't require repayment, but they come with strict guidelines on how the funds can be used. Recipients must demonstrate accountability and often provide detailed reports on project outcomes.
Securing a government grant can significantly boost a nonprofit's credibility and it often leads to increased trust from other funders and can open doors to additional funding opportunities.
Pros of government grants
- Boosts credibility: Government funding enhances your organization's reputation, attracting potential donors and positioning you for future funding opportunities
- No debt: These grants provide funds without repayment obligations, offering stability for nonprofits with limited resources
- Wide availability: Government grants range from small state awards to large federal grants, allowing nonprofits to find funding that matches their specific project needs
Cons of government grants
- Lengthy process: Applying for government grants demands extensive documentation and resources, with proposals needing to meet strict criteria and stand out from competitors
- Slow disbursement: The prolonged process from application to fund disbursement can be challenging for nonprofits with time-sensitive projects
- Restrictive use: Government grants often come with specific purposes, limiting nonprofits' flexibility in using funds for other organizational needs
Top 5 government grant programs for nonprofits in 2024
1. The National Endowment for the Arts Grants
The National Endowment for the Arts (NEA) is a federal agency that gives grants to 501(c)(3) organizations focused on art. It funds projects that engage the public and provide access to different art forms. The NEA offers several distinct types of grants:
- Challenge America provides $10,000 to small organizations for projects that extend the reach of the arts to underserved communities.
- Grants for arts projects support public arts engagement and arts education. They also help integrate the arts with community well-being and capacity building.
- Our town is a creative placemaking program that funds projects integrating arts, culture, and design into community-strengthening efforts.
- Partnership agreement grants help two main groups. First, they support the 56 state and area arts agencies (SAAs) in the US. Second, they assist six regional arts groups (RAOs), which work with SAAs in their area.
- Research awards fund studies on the impact of the arts on communities.
2. AmeriCorps State and National Grants
AmeriCorps State and National gives grants to many organizations, including nonprofits, public agencies, Native American tribes (referred to as "Indian Tribes" in official grant terminology), colleges, and faith-based or community groups. These grants support projects that address critical community needs in areas such as health, education, jobs, veteran support, the environment, and disaster relief.
Currently, the organization is accepting applications for the following opportunities:
- Fiscal Year (FY) 2025 AmeriCorps Seniors RSVP Opportunity
- AmeriCorps NCCC Traditional
- AmeriCorps NCCC Traditional Disaster Response
- AmeriCorps NCCC FEMA Corps
3. Housing Opportunities for Persons with AIDS Program
The Housing Opportunities for Persons with AIDS (HOPWA) Program offers housing and supportive services for low-income individuals with HIV/AIDs. Two types of grants are available under the program:
- HOPWA formula grants
- HOPWA competitive funds
Nonprofit organizations can apply under HOPWA competitive funds for projects that offer:
- Long-term housing solutions
- Short-term rent, mortgage, and utility help
- Supportive services like substance abuse treatment
Funds are awarded through a rigorous national review and selection process. You need to submit a detailed and innovative proposal that shows how you plan to meet the housing needs of individuals with HIV/AIDS. Make sure your proposal proves it can make a real difference.
4. Community Facilities Direct Loan & Grant Program
The Community Facilities Direct Loan & Grant program assists community-based nonprofits in developing essential facilities in rural areas. It supports projects that offer crucial services to local communities. Common types of facilities funded include:
- Healthcare facilities such as medical clinics, nursing homes, hospitals, and more
- Public facilities such as town halls, medical clinics, nursing homes, and more
- Educational services such as private schools, libraries or museums
- Local food systems such as food pantries, community kitchens, and more
The grant amount is available to eligible applicants based on a graduated scale. Projects for smaller communities with lower household incomes are eligible for higher funding.
5. Nonprofit Security Grant Program (NSGP)
The Federal Emergency Management Agency's (FEMA) NSGP provides funding for physical security upgrades and activities. The Nonprofit Security Grant Program (NSGP) helps nonprofits at high risk of terrorist or extremist attacks.
The State Administrative Agency (SAA) handles applications for this grant. Only the SAA can apply to FEMA, so eligible nonprofits must submit their requests to the SAA. In turn, the SAA includes these nonprofits as “sub-applicants” in their application to FEMA.
Where to find government grants for nonprofits
1. Federal government grants
Federal grants are provided by the US government using funds from general federal revenue. The best place to look for these grants is GRANTS.GOV, where all federal government funding opportunities for nonprofits are listed.
The website provides details on grant creation, application processes, and application status tracking. It also includes a list of federal awards. For those seeking unfunded opportunities, check out other government-run websites, such as the Federal Register and SAM.gov.
2. State government grants
Access to state grants can vary by location, so it’s important to check your state and local government websites for grant portals or alert subscriptions. Examples include Virginia's grant portal and DC's subscription service for funding alerts.
GrantWatch is one of the top websites for finding grants in Canada and the US, but it requires a paid subscription. It features active opportunities from federal, state, and local funding sources. You can also contact elected officials to find potential state funding opportunities.
3. Local government grants
Local grants can be easier to obtain but may be harder to locate, as they are specific to your municipality or local county. Some local grants are also listed on GRANTS.GOV, Grant Finder, and GovGrantsHelp.com. Additionally, you can contact your City Council and County Commissioner to learn more about available local government grants.
Final thoughts on government grants
Government grants are important for nonprofits, but applying requires significant time and effort. Before you start, determine how the funds will be used, as this is a crucial aspect of your proposal. Additionally, check eligibility criteria to avoid applying for grants you cannot obtain.
It's helpful to speak with a professional grant agency first, as they can give you a clear idea of what to expect and the best way to approach the process.
Explore Zeffy’s resources on grant writing and fundraising strategies. We offer a 100% free fundraising platform to help nonprofits maximize their funding potential and save every dollar possible on transaction and platform fees.
