If you’re in the not-for-profit industry, you know that one of the hardest parts of running a nonprofit is securing funding.
Without adequate funding, an organization may not be able to carry out its mission or fulfill its goals. Most not-for-profit groups, charities, and foundations rely on donations from individuals, corporations, and government grants to support their work.
As such, nonprofits need to implement effective strategies for fundraising and obtaining the money they need to succeed. Applying for grants is a big part of that.
Today, we wanted to touch on how grants work for nonprofits, including our own local charities. If you work for or run a nonprofit in Garden Grove, here’s what you need to know.
What Are Grants?
Grants are a form of financial assistance provided by government agencies, corporations, foundations, and other organizations to support the activities of nonprofits.
For nonprofits, grants provide a reliable source of revenue that can be used for a wide variety of initiatives. They are typically awarded based on a wide range of criteria, including the organization’s needs, merit, and achievements.
If a nonprofit successfully applies for and obtains a grant, either from the government or a private foundation, it will likely need to use the funds as specified in its grant application. The grant provider will usually specify how the gifts should be used or distributed so that the funds can be put to the best use. This ensures that the money is allocated to benefit people in need and is less likely to be squandered or misused.
Typically, grant funds are intended to support…
- Research projects
- Educational initiatives
- Social services
- New programs or projects
- Infrastructure development
- Staff training
- Equipment purchases
- Building/housing needs
The Most Common Types of Nonprofit Grants
There are various types of grants that nonprofits can apply for, each with its own unique purpose and criteria. Here are some of the most common types of nonprofit grants.
Foundation grants usually stem from nonprofit organizations or charitable trusts that fund and support other nonprofits. There are both private and public grant foundations. Private foundations are usually funded by an individual, family, or corporation, while public foundations are charitable grantmaking organizations that receive funds from the general public.
A government grant is a financial award given by a governmental body for a determined beneficial project. Nonprofits awarded government grants are not expected to repay the money. Instead, they are expected to use the funds for their stated purpose, which typically serves some kind of larger good.
Corporate grants are tax-deductible funds that are sent to a nonprofit based on certain eligibility criteria. The donating company can set the requirements that nonprofits must meet for the opportunity to apply for the grant, as well as the overall grant amount, and what the goal is for the money.
A conditional grant is a grant that includes a condition set by the donor that must be met before the nonprofit recipient can receive the promised assets.
Simply put, research grants are available monies granted to organizations for the express purpose of funding research for a determined issue.
A project grant is given to support a specific activity with a set beginning and end to the project and a predetermined cost. When a funder gives a project grant, it usually comes with restrictions and must be used for only that project.
A capital grant is a limited-time subsidy with specifically set objectives for nonprofit advancement. Capital funds are given for the purpose of purchasing equipment, making renovations, building new structures, preserving land, etc.
The Benefits of Grants for Nonprofits
A common question we hear is, “how do grants work for nonprofits?”
There are many reasons to pursue grants as a nonprofit. Unlike loans, grants don’t need to be paid back. Once awarded, there are a few strings attached to them, but the money is the nonprofit’s to use appropriately.
As a result, grants can be one of the best sources of funding for charities and not-for-profit groups. They provide the necessary finances to help meet goals and objectives, as well as additional resources to achieve set missions.
Grants also provide organizations with an opportunity to build relationships with potential donors, as well as increase their visibility in the community. By understanding how grants work and taking advantage of them, nonprofits can ensure they are getting the most out of the assistance and funds available to them.
How Can Nonprofits Apply for Grants?
To receive a grant, nonprofits must demonstrate that they meet the criteria set forth by the granting party and show that their proposed project is viable. Nonprofits should also be aware of any restrictions or requirements associated with the grant money.
There are thousands of grants available for nonprofits out there – but it can prove challenging to find the grants that are relevant to your specific organization. Fortunately, there are several helpful websites that can help you discover grants that you can apply for. Here are some helpful sites for finding available grants:
- Foundation Directory Online
Once you’ve discovered and chosen the right grants to pursue, you’ll need to submit the proper documentation and any necessary resources with an application, as well as take some additional steps.
The resources and documents needed will vary depending on the type of grant. Some commonly required documents include the applying organization’s…
- Mission statement
- Financial statements
- Project plans
- Evaluation plans
Nonprofits should also be prepared to provide evidence that their proposed project meets the grant criteria specified by the funding agency.
Helping Nonprofits Locally – Here in Garden Grove
The Garden Grove Strawberry Festival doesn’t offer grants, but we do offer ways for local nonprofits to get involved and make money. We’re committed to helping our local charities and not-for-profit organizations succeed, however we can.
If you want to get involved in our upcoming Strawberry Festival, sign up to be a vendor or apply to receive capital expenditure funds, when the application period is open. Over $100,000 is given from the previous year’s profits each year!
Since 1958, the Garden Grove Strawberry Festival Association has raised more than $7 million for local charities. If you’re part of a nonprofit, take advantage of this opportunity and reach out to our team today. Let us show you how we can help.
About The Garden Grove Strawberry Festival:
Garden Grove Strawberry Festival is an annual 501(c)(3) non-profit FREE event produced by the Garden Grove Strawberry Festival Association, a dedicated volunteer group, which has raised more than $7 million for various charities since its inception in 1958. Now, 64 years later, the annual Strawberry Festival, held on the Village Green at Euclid Street and Main Street in Garden Grove, CA on Memorial Day Weekend, features a free Strawberry Shortcake Grand Opening Ceremony, Free Music and Shows in the Garden Amp Amphitheater and on the Showmobile, a Free Parade filled with Celebrities, Civic Leaders, Miss Garden Grove and Her Court, and Garden Grove Organizations, a VIP Pancake Breakfast, Meet and Greet Celebrity Autograph Signings, Food Vendors, Carnival Rides and Games, and Fun Contests with Prizes, including Berry, Berry Beautiful Baby Contest, Tiny Tots King and Queen Contest, the Redhead Roundup Contest and more. The Festival’s mission and goal is to give back to the community serving Garden Grove citizens by donating to nonprofit organizations which provide services for children, seniors, youth, in the community.. To learn more and for updates on this year’s Festival, please visit, www.strawberryfestival.org
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