How Nonprofits Apply for Government Grants

null

A grant is a financial award from the U.S. Government that funds your ideas and projects that benefit the public. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Annual Publication of Assistance Listings (APAL). Many nonprofits rely on additional funding to support their projects. Nonprofit finance opportunities can be found in the form of grants.

Some organizations and nonprofits apply for grants to secure funding for projects, research, or other initiatives that exceed their financial capacity.  Grants contribute to societal, educational, and community projects. For example, a grant may help researchers at a hospital develop new medicine or help a community get back on its feet after facing a natural disaster.

SAM.gov Assistance Listings is the main source of information about programs that provide Federal grants, loans, scholarships, insurance, and other assistance awards. 

Determine if You Are Eligible 

Before applying for a grant, determine if you are eligible. You could waste a lot of time, money, and resources applying for a grant that you cannot receive. Typically, nonprofits fall into two categories:

  • Nonprofits having a 501(c)(3) status with the Internal Revenue Service (IRS), other than institutions of higher education
  • Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education

You can use this tool to check your eligibility.

How to Apply for Government Funding

Once you’ve determined your eligibility, the grant process begins. The grant process includes creating the funding opportunity, applying, making award decisions, and successfully implementing the award. Read the timeline below to find nonprofit grant application tips.

Pre-award Phase

  • Planning an Opportunity: The grant-making agency plans and develops a funding program based on its mission, the administration, and congressional initiatives.
  • Grant Announcement: The grant-making agency announces the funding opportunity and a call for proposals. They will publish details of the funding opportunity on Grants.gov.
  • Search for Opportunities: Potential applicants use the Grants.gov search tool to find funding opportunities.
  • Register for Grants: Applicants find grant opportunities and register with Grants.gov. Applicants should also check the funding opportunity for additional registration requirements specified by the grant-making agency.
  • Complete the Application: Completing a grant application and securing nonprofit funding can take weeks. Depending on the grant, you must provide basic organizational information, a description of the proposed work, financial data, etc. When an application package is complete, it can be submitted through Grants.gov.
  • Application Received: The application goes through a screening process. It is routed to the appropriate agency program for consideration if it passes the initial screening. When the grant has been received, the applicant receives an email notification. They can check their status by communicating with the grant-making agency.
  • Finishing the Review Process: The review process takes time, depending on the grant type. As it takes place, grant-making agencies may update applicants on the status of their application.

Award Phase

  • Notification: When the review process is complete, the funding agency notifies the applicants whether or not they will receive the grant. The agency also begins working with the award recipient to finalize the legal framework for the funding agreement. Following this, the funds are disbursed.
  • The Project Begins: After an applicant receives a Notice of Award and the funds have been disbursed, they can begin their project. The award recipient is responsible for meeting all administrative, financial, and programmatic reporting requirements.

Post-award Phase

  • Support and Oversight: After the applicant receives the grant, a grants management officer at the funding agency oversees the awardee's reporting compliance. The reporting requirements, schedules, and systems vary for each grant. Review the grant terms and conditions carefully for this information.
  • Reporting Progress: Award recipients conduct two primary types of reporting to the funding agency:
    • Financial reporting
    • Programmatic reporting
  • Award Closeout: The closeout step is where the grant process ends. Ensure you pass along all reports and financial data to the grant agency and that all requirements have been met. Once the applicant has completed all the closeout requirements, the grant lifecycle comes to an end.