FAQs

Most grantmakers place very specific limitations on their giving to individuals or “for-profit” organizations, since provisions for grants to such entities require advanced approval of the program by the IRS. For this reason, grantmakers usually cannot make exceptions to their program guidelines, even if you present a compelling case for them to do so. This limits the number of grants available for individuals and “for-profit” organizations, although they do, indeed, exist.

Since most foundation funding is awarded to nonprofit organizations, the individual and “for-profit” grantseeker should expect to encounter stiff competition for grant dollars. It is essential, therefore, that you research all potential funding sources within your own discipline or geographic area.

Although there are grants that can be secured by individuals or “for-profit” organizations (college scholarships, support for writers, support for artists, college fellowships, business start-ups, preservation ventures, etc.), there is an extremely limited number of proposal writing resources geared specifically to these grantseekers. Furthermore, prototype proposals for individual or “for-profit” grant projects are usually unavailable for public access (via print or the Internet), since these are typically very project specific to the writer requesting funding as well as the donor’s mission, and they work only within that context. Additionally, the highly specific criteria for most funders that fund individuals or “for-profit” organizations has made it difficult to create a comprehensive “how-to” guide for such grantseekers.

While the Grants Development Team is extremely well-qualified to assist individual and “for-profit” grant seekers in their quest, our specialty lies with assisting schools and nonprofits with their funding goals.

Meanwhile, there is one very good resource that you may want to begin with: Judith B. Margolin’s The Individual’s Guide to Grants provides suggestions on carrying out a search for grants and writing a proposal (Chapter 7).

Most grants awarded by foundations and corporate giving programs can be categorized as one of two types: (1) general purpose or operating support grants and (2) program development or project support grants.

General purpose or operating support grants: When a grantmaker gives your organization an operating grant, you can use it to support the general expenses of operating your organization, from a specific program to the heating bill. An operating grant means the funder supports your organization’s overall mission and trusts you to make good use of the money.

Program or project support grants: Aside from general purpose or operating support grants, most other grants are intended for program or project support. In general, a project grant is given to support a specific, connected set of activities, with a beginning and an end, explicit objectives and a predetermined cost. When a funder gives a grant for a specific project, it is generally a restricted grant and must be used for that project. In general, project grants are given to support projects related to the mission of the charity receiving the money. There are dozens of kinds of project grants.

Some of the most common types of program or project grants include:

Planning grants: If your organization is planning a major new program, you may need to spend a good deal of time and money just figuring out what it will look like. Before you can even write a proposal to fund the new effort, you may want to research the needs of your constituents, consult with experts in the field, or conduct other planning activities. A planning grant supports such initial project development work.

Seed money or start-up grants: A start-up grant helps a new organization or program in its first few years. The idea is to give the new effort a strong push forward, so it can devote its energy early on to setting up programs without worrying constantly about raising money. Such grants are often for more than one year, and frequently decrease in amount each year. For instance, a grant might be for $25,000 the first year, $15,000 the second year, and $7,000 the last year. The funder assumes that the new organization will begin to raise other funds to replace the decreasing start-up grant.

Management or technical assistance grants: Unlike most project grants, a technical assistance grant does not directly support the mission-related activities of the charity. Instead, it supports the charity’s management or administration ‹ its fund raising, marketing, financial management and so on. Such a grant might help hire a marketing consultant or pay the salary of a new fund-raiser position.

Facilities and equipment grants: Sometimes called “bricks-and-mortar” or capital grants, these grants help an organization buy some long-lasting physical asset–a building, computer or van, for example. The applicant organization must make the case that the new acquisition will help it serve its clients better. Funders considering a request like this will not only be interested in the applicant’s current activities and financial health but will also ask about financial and program plans for the next several years. They want to be sure that if they help an organization move into a permanent space, for example, the organization will have the resources to manage and maintain it. No funder wants to help pay for a new building, only to have it close in four years because it is too expensive for the charity to maintain.

Endowment grants: Some nonprofit charities have set aside money that is invested and earns interest. The charity spends only the interest and keeps the original sum (the principal) untouched. Such a fund is called an endowment and is commonly found within charities with large physical plants, such as hospitals and colleges. Periodically, charities launch fundraising efforts to start, or add to, an endowment. Like facilities and equipment grant proposals, endowment requests will prompt funders to ask hard questions about the long-term financial outlook of the applicant. The funder wants to be sure that its gift to an endowment will stay in the endowment earning interest, and not be drawn out of the endowment to meet annual operating costs.

Program-related investments (PRIs): In addition to grants, the IRS allows foundations to make loans, called program-related investments (PRIs), to nonprofits. PRIs must be for projects that would be eligible for grant support. They are usually made at low interest, or even no interest. Unlike grants, PRIs must be paid back to the grantmaker. PRIs are often made to charities involved in building projects.

A foundation is a nonprofit organization that supports charitable activities to serve the common good. Foundations are often created with endowment money given by individuals, families, and/or corporations. They generally make grants or operate programs with the income earned from investing the endowments.

There are three basic types of grantmaking foundations:

Independent Foundations: Independent foundations are the most common type of private foundation. They are generally founded by an individual, a family or a group of individuals. They may be operated by the donor or members of the donor’s family (a type often referred to as a family foundation) or by an independent board.

Corporate Foundations: Corporate foundations are created and funded by companies as separate legal entities, operated by a board of directors that is usually comprised of company officials. Corporations may establish private foundations with endowments, make periodic contributions from profits, or combine both methods to provide a foundation’s resources. Some companies operate in-house corporate giving programs, which unlike corporate foundations are under the full control of the company and are not required by law to follow the same IRS regulations. Many corporations maintain both a foundation and a corporate giving program.

Community/Public Foundations: Community and other public foundations are publicly supported foundations operated by, and for the benefit of, a specific community or geographic region. They receive their funds from a variety of individual donors and provide a vehicle for donors to establish endowed funds without incurring the costs of starting a foundation. Community/public foundations are administered by a governing body or distribution committee representative of community interests.

There is also a type of foundation that does not generally make grants, called an operating foundation. The majority of an operating foundation’s funds are expended to operate its own charitable programs.

Yes. Although some foundations give nationally or internationally, most foundations give within their own local state or region. Often, it may not be where a foundation is located, but where they give, that is most important.

With that in mind, we have created a searchable database that can focus in on the geographic region that each foundation serves.

There are several types of resources that can help you learn about grants or locate potential donors in your area of interest. Our GrantSelect database, for example, which profiles more than 20,000 funding sources, combines directory-type information with recent grant information in a convenient, fully searchable online format. The database can be searched and sorted by field of interest, geographic focus, types of support, and many other categories.

You might also read Philanthropy News Digest (PND), an online compendium of weekly news abstracts on foundations and grants. There are two searchable PND archives, one dating back to January 2001 and the other from January of 1995 through 2000.

In print, you will find a number of directories of foundations that concentrate on information about the funders themselves rather than their grants. Each entry typically includes the foundation’s stated funding interests, when available. An extensive subject index to foundation fields of interest is also typically included, as are selected grants for the larger foundations.

Foundations are also listed in directories that cover a particular subject field, population group, or type of support. Littleberry’s Directory of Research Grants is an example of a specialized funding directory.

Following extensive research and investigations involving hundreds of potential funding organizations, Schoolhouse Partners has uncovered the ten top reasons that grant proposals fail to be approved. Go to our Tips Page for a detailed list of these reasons.

Littleberry possesses literally dozens of samples of successful grant proposals in its file, and we are willing to share a few of these upon request. Meanwhile, dozens of sample proposals can be found quickly using Google.

Yes, Littleberry will assist any organization or individual in completing a grant proposal. In fact, we specialize in writing proposals for all types of non-profits, including (but not limited to): public and private schools, libraries, historical societies, parks, and community service groups. Simply contact us for further details.

Although there are dozens upon dozens of helpful web sites offering insight on state and federal government grants, we have narrowed the list to most helpful. For a detailed list of state and federal government grant web sites, please go to the GrantSelect Helpful Links page.

This is not easy to predict, but corporate and foundation funding sometimes requires 6 months to a year. The right time to begin searching and inquiring is always now. Most foundations accept and fund proposals throughout the year and award grants 2 to 4 times a year. Corporations often make funding decisions once a year, usually several months before the end of their fiscal year (usually December 31 or June 30.) Federal grants have a slightly longer lead time. Applications are typically received 12 to 18 months before an award.

If you are an individual student or school district seeking help with funding for your higher education tuition costs, you are urged to pay a minimal fee to access Littleberry’s funding database, GrantSelect. Meanwhile, you should also consider contacting the financial aid office at the college or university you plan to attend.

For a list of colleges and universities with financial aid offices on the World Wide Web, see FinAid’s directory of Financial Aid Office Web Pages. Direct financial assistance from your college, federal and state subsidized loans and grants, work-study programs, and support from local clubs, alumni, or religious groups are all possibilities. Some corporations offer scholarships or tuition-aid programs to their employees or to children of employees. Only after all of the above resources have been exhausted should you consider approaching foundations or other outside funders on your own.