What Is a Grant?
A grant is a financial gift provided by a government or organization. Usually, the money is paid back to the recipient over a set period of time. It can be for a specific purpose, such as education, or for general use. Some grants are awarded by private organizations, while others are funded by the federal government. You should check out the details before you apply for a grant.
Federal grants
Federal grants help support a variety of public services, from health care to clean water to housing. These programs also provide funding for colleges and universities, as well as for businesses. They are also a source of funding for research institutions.
There are three main phases in the process of applying for a grant. The pre-award phase involves the announcement of a grant opportunity, the Request for Proposals phase is when you submit your application, and the awarding phase is when you receive the funds. Each phase requires a different set of rules and regulations. In some cases, there may be very detailed requirements, while in other cases, a simple application might be sufficient.
To qualify for federal grants, applicants must demonstrate that they are eligible to receive the funds. This is often done through the application, but it can also be accomplished by submitting a financial audit. Applicants should always be prepared to meet the regulatory requirements of the program, and should be aware that they are still subject to a patchwork of agency-specific provisions.
When a grantee applies for a federal grant, they are given a contact person to direct them through the application process. Their contact person will explain the grant process, and may even refer applicants to technical assistance workshops at their local agencies.
Often, grantees will be required to participate in national evaluation surveys. If a grantee is selected, they will also be required to complete periodic performance reports. Many grantees also must submit a final report, and some will be asked to produce a single report for a year-long project.
Grants are a significant source of funding for many nonprofit organizations, but they are also subject to a host of regulatory requirements. Fortunately, federal agencies have experts to help applicants navigate the grant process. However, there are some basic requirements that all applicants should know.
Those applying for a federal grant should be aware of the difference between mandatory and discretionary programs. Mandatory programs are set in law, while discretionary grants are allocated annually by the federal government. Both types of grants must be announced and awarded to the public.
Most government grant applications require financial and organizational budgets. Applicants should contact their state or federal agency to request this information. Some grant programs will also ask for key staff resumes. Applicants can also visit their state capital to communicate with an official in person.
Grants are the main source of funding for most nonprofits. Nonprofits should be prepared to track and document the funds they receive from the federal government, and should consider internal or external procedures to manage the grant. Additionally, grantees should document that they are not paid with grant funds, and should keep a log of their time working on the grant.
In-kind services
In-kind grants are a form of financial aid for nonprofit organizations. This type of funding comes in the form of equipment, materials, and labor. Generally, these are granted by companies, organizations, or individuals who want to contribute to a worthy cause. If you’re planning to apply for in-kind support, you’ll first need to identify what types of help your organization will need.
Identifying resources that your group will need will depend on the types of programs you plan to run, and you’ll need to target local businesses and organizations that can help. You may also need to reach out to churches, financial institutions, and other organizations to ask them for donations.
When applying for in-kind donations, it’s important to know what the IRS considers to be an in-kind donation. While some services are not tax deductible as charitable contributions, others are, especially if they are provided at a discounted price to nonprofits. For example, an alcohol company could donate cases of wine to a refugee organization. Likewise, a magazine could give its free ad space to a nonprofit organization.
One of the easiest ways to identify in-kind contributions for your organization is by mapping out your assets. Often, a large company will have a website with links to its corporate social responsibility or community involvement efforts. Other businesses, such as schools, will likely have websites that list what they need and what they can offer.
Once you’ve identified potential in-kind contributions, you’ll need to create a wishlist. Amazon is one site that allows you to do this. A wishlist is a list of items that donors are interested in donating to a nonprofit. You can share this list with other organizations to raise awareness and encourage contributions.
To find in-kind donations, you’ll need to identify companies that can supply you with the items you need. You can start by searching through the Foundation Directory. The Directory lists prospective prospects by location and grant types, and you can search for a specific item or subject filter.
During the granting process, you’ll be asked to detail your projects and provide a clear measure for evaluating success. Make sure you have a well-defined and quantifiable plan for how you will use the funds. Consider the impact the project will have over the short term and over the long term. It should have a good chance of delivering measurable results.
Once you’ve determined the types of items and resources you need, you’ll need to determine a fair market value for them. Usually, people are happy to donate their time or resources to a cause, and you can often get a discount on the prices. However, it’s always a good idea to seek an expert’s advice if you’re unsure of how to best assess your needs.