Three Types of Grants for Small Nonprofits

Today on the blog, we’re discussing three different types of grants that nonprofit organizations can apply for: operational support grants, program support grants, and capital investment grants. As a nonprofit consultant who specializes in helping organizations in the startup phases, I often advise my clients to seek out one or more of these types of grants to apply for depending on their specific needs.

In the following paragraphs, I define the three major types of grants that new and growing organizations should seek. And I discuss multiple examples of scenarios that might prompt to organization to seek out such a grant.

Organizational Support Grant

Operational support grants, also known as general operating grants, are designed to help cover an organization's day-to-day expenses, such as rent, salaries, and utilities. These grants are often unrestricted, which means that the organization can use the funds for whatever they deem necessary. Operational support grants are particularly helpful for small or new organizations that need to establish a stable foundation and cover their overhead costs.

Program Support Grants

Program support grants, also known as project grants, are intended to support specific programs or projects within an organization. These grants are typically restricted, meaning that the funds must be used for a specific purpose or project. Program support grants are often awarded to organizations that have a proven track record of success in a particular area or have a strong proposal for a new program or initiative. Program support grants can help organizations expand their reach and impact by providing funding for specific projects or initiatives.

Capital Investment Grants

Capital investment grants, also known as capacity-building grants, are designed to support an organization's long-term growth and development. These grants are typically used to fund capital expenditures, such as purchasing equipment or renovating facilities. Capital investment grants can help organizations become more efficient and effective in delivering their services by providing them with the resources they need to grow and improve.

So, which grant should you apply for? The answer depends on your organization's specific needs and goals. If you're a new organization just starting out, you may want to focus on securing operational support grants to cover your overhead costs. If you have a specific program or project in mind, program support grants may be the best fit. And if you're looking to invest in your organization's long-term growth and development, capital investment grants may be the way to go.

No matter which type of grant you decide to pursue, it's important to have a clear plan and strategy in place. Make sure you understand the requirements and restrictions of each grant, and tailor your application to meet the specific guidelines. And don't forget to emphasize the unique value and impact of your organization in your proposal.

As a nonprofit consultant who specializes in helping organizations in the startup phases, I can guide you through the grant application process and help you identify the best opportunities for your organization. Schedule 30-minutes with me to pick my brain, and I can help you figure out what type funding you need to level up your nonprofit organization.