If you need enough funds to kickstart the new projects for your nonprofit organization, opt for grants. If you pick other options of fundraising like loans, you have to pay it back. On the other hand, choosing Grants for Nonprofit Organizations, you don’t have to pay it back. However, there are several things, that you should know before opting for these grants. Learn about its different types and benefits. Let’s dive deeply into the concept.

What are the types of nonprofit grants?

There are several grants that as a nonprofit organization you can access. It may be confusing to find the right one as per your requirement. But, here are four most common types, that will make the process easy for you.

Continuation grant

It is the grant in which you will get the funding awarded a little at a time. If your organization requires a lot of funding at a time, this may not be the right type for you. But if you want to have a fixed income stream, then continuation grant is a valuable option.

Competitive grant

To get awarded with competitive grant, every interested organization submit a response to the proposals. In their response, they describe, why their purpose fits the funding criteria. Each proposal is evaluated by a group of reviewers, who give scores to the submissions and accordingly award the funds.

Formula grant

To receive this grant, the interested associations apply for the grants and meet the required criteria. There is no any competitive process and no scoring like system. All the nonprofit organizations that fulfill the criteria will be awarded by the funding. But the funding amount depends on certain benchmarks.

Pass-through grant

These grants are funded by US federal government grants and further dispersed to state and local governments to allot. In order to get pass-through grants, the nonprofit organizations need to apply to local or state governments.

Benefits of nonprofit grants

Receiving and using grants for nonprofit organizations come up with several benefits and these include:

·         Receiving grants for your nonprofit organization builds its prestige and credibility as it represents that grantor finds you reliable and responsible.

·         Nonprofit organizations get large money amount through the grants. it will greatly help them in obtaining their goals for the particular communities that they are serving.

·         There is no need to pay back the grants as in the case of loans.

·         After receiving one grant, the chances of receiving other grants will be increased because the funders find you more dependable and accountable candidate.

What are the significant tips for finding grants?

Establish a budget

 Before applying for the funding, ensure to make a budget that how you will be using the grant money. When looking for the grant, start by outlining the project you require the money for and decide the exact required amount.

Use different search engines

There are a number of millions of dollars in grant money available to nonprofit organizations working in every sector including religious groups and poverty relief. The main thing to consider is finding and applying to the grant matching with the needs of your organization. Usually grants come from two sources that are government (state, local, federal) and corporations or foundations.

Match the criteria

Once you have found some grants as per your needs, next thing to do is matching the grant criteria. Take your time for appropriately matching the criteria and then finalize.

Have your documents ready

The funding agencies can ask for different documents, as per the grant type and the criteria. Ensure to submit the required documents on time.

End note

In order to get the right and needed US federal Government Grants for your nonprofit organization, contact USAGrantApplication. Visit their website to know about the application procedure and other important things regarding grants.