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Grants are a vital part of nonprofit funding. With over 1.8 million nonprofits operating in the United States in 2024, securing the right funding is more important than ever. Grants support community programs, cover operational costs, and help organizations grow. Whether you are a 501(c)(3), charitable trust, or foundation-backed nonprofit, understanding how different types of grants work is key to building a strong funding strategy.
Not every grant fits every organization. Program grants often come with strict deliverables, while general operating grants offer more flexibility. Capacity building, corporate giving, and government funding each have different requirements. Choosing the right one depends on your mission, staff capacity, and reporting tools.
In this guide, you will get to know the types of nonprofit grants, how to find them, and what to look for when researching grants that align with your goals, structure, and programs.
What are Grants for Nonprofits Organizations?
Grants for nonprofit organizations are non-repayable financial awards provided by government agencies, private foundations, corporate giving programs, and philanthropic institutions to support mission-driven initiatives. These funds play a critical role in helping nonprofits deliver community programs, launch new services, expand operational capacity, or invest in infrastructure—without the burden of repayment.
In 2023, private and corporate foundations awarded over $140 billion in grants, while government agencies contributed more than $300 billion, according to data from the Lilly Family School of Philanthropy and Candid.
Grants can support specific projects, general operations, or infrastructure growth. While competitive, they offer strategic value when aligned with funder priorities. Most require detailed proposals, impact metrics, and ongoing reporting—making them both a funding source and a long-term accountability partnership.
Read more: Grant Management Guide 2025
What are the Different Types of Grants for Nonprofits?
While government, foundation, and corporate grants are common, nonprofits are also tapping into donor-advised funds, regional awards, and sector-specific programs. These funding sources vary in eligibility, application steps, and reporting needs. Understanding this broader grant landscape helps nonprofits align funding with their mission and build more sustainable support.
1) Government Grants
Government grants are one of the most significant funding sources for nonprofits. These are public funds awarded at the federal, state, or local level and are intended to support initiatives like public health, education, environmental conservation, infrastructure, and more.
Best suited for: Nonprofits with dedicated grant-writing capacity, organized back-office systems, and experience managing restricted or regulated funds.
Federal Grants
Federal grants are the most substantial in terms of funding and scope. Agencies like the Department of Health and Human Services (HHS), Environmental Protection Agency (EPA), and Department of Education offer a wide range of grants tied to national priorities.
To explore federal funding opportunities, nonprofits should start at Grants.gov, the main portal where you can search by keyword, eligibility, funding agency, or grant category. The application process typically includes registering for a Unique Entity Identifier (UEI) and responding to a Funding Opportunity Announcement (FOA).
While the funding potential is high, competition is intense. The process demands rigorous proposal writing, comprehensive budgets, and clear articulation of outcomes. Many federal grants also come with strict reporting obligations. Organizations must have strong internal systems to track grant spending, ensure compliance, and maintain financial controls, especially when audits or detailed reports are required by the awarding agency.
Note: Federal funding priorities can shift with policy changes. Always review award notices carefully and ensure compliance throughout the grant lifecycle.
State Grants
State governments often distribute federal funds or allocate their own through various departments, such as State Arts Councils, Health Departments, or Education Boards. These grants are typically more accessible than federal ones and are often designed to meet regional or community needs.
To find state grants:
- Visit your state government’s official website.
- Look for grant portals or subscribe to funding alerts.
- Attend state-hosted information sessions or workshops.
- Contact relevant departments or state representatives directly.
Start by visiting your state’s official website and searching for grant portals or alerts. Many states allow you to subscribe to funding updates or attend workshops.
In Virginia, for example, there’s a state grant portal. In Washington D.C., you can sign up for email alerts about new opportunities.
State grants may be more flexible, and building relationships with agency contacts or attending state-organized training can help you stay competitive.
Local Grants
Local government grants are typically the smallest in terms of funding but highly targeted. They focus on community-based programs—such as youth development, public safety, local arts, and neighborhood revitalization.
Finding local grants may require more research:
- Explore your city or county’s official website
- Look for economic development or community affairs departments
- Reach out to local elected officials for guidance
These grants are often less competitive but may still require a solid proposal and clear alignment with local priorities. Winning a local grant can also boost your nonprofit’s visibility and build trust within your community.
Pro tip: Calling your local government office can help uncover smaller grant opportunities not listed online.
2) Foundation Grants
Foundation grants are one of the most flexible funding sources available to nonprofit organizations. These grants come from structured institutions that exist to support public benefit work. Some foundations serve broad causes like education, health, and social justice, while others focus on local needs or specific community issues.
Most foundations fall into three categories: private, community, and corporate.
Private Foundations
Private foundations include well-known institutions like the Bill & Melinda Gates Foundation, the Ford Foundation, and the Walton Family Foundation. These entities often support large-scale efforts in public health, education, human rights, and poverty reduction.
Private foundations usually fund nonprofits that align with their mission statements. Funding decisions are made by dedicated boards or leadership teams, with grant cycles that may include pre-proposals, detailed narratives, and budget plans. Successful proposals clearly explain impact goals, community benefit, and long-term sustainability.
Community Foundations
Community foundations are built to serve specific regions. They support local solutions to local issues—ranging from food access and affordable housing to youth services and environmental protection. Grants from community foundations are usually smaller but more accessible, especially for smaller or newer nonprofits.
Working with a community foundation often involves local relationships. Organizations with existing connections and community credibility stand out during selection processes. Local collaboration is a strong asset when applying.
Read more: Top 10 Grant Management Tips for Nonprofits
How to Find and Apply for Foundation Grants?
Foundation grants aren’t always easy to spot. Some small or mid-size foundations don’t even have a website. But with the right tools, you can uncover opportunities that are a perfect semantic match.
Start your search with these databases:
- Candid.org – rich profiles on thousands of funders
- GrantWatch – real-time listings by category and region
- Community Foundation Locator – helps identify region-specific funders
Bonus Tip: Before applying, check reviews on GrantAdvisor.org. You’ll get insights into how foundations work with grantees, what they expect, and how flexible they are.
3) Corporate Foundation Grants
Corporate foundations are nonprofit branches of well-known companies. They fund causes that match their business values, community goals, or employee interests. These programs help companies support social change while strengthening their public image.
Some major examples include:
- Google.org, which backs tech-based solutions in education, crisis response, and climate action
- Walmart Foundation, which supports food access, job training, and local giving linked to employee service
- Coca-Cola Foundation, which funds water programs, women's leadership, and emergency relief
- Land O’Lakes Foundation, which focuses on rural growth, school support, and food systems
Many companies also fund smaller local projects near their offices or stores, especially where employees are involved. These grants often have simple applications and faster replies.
Corporate giving often fits into larger programs called Corporate Social Responsibility (CSR). These efforts combine business goals with public good. For example, Google Ad Grants helps nonprofits run free online ads, and Microsoft Tech for Social Impact offers tools and software to improve nonprofit work.
What makes corporate funding valuable is the chance to build strong relationships. One grant can lead to future support, skilled volunteers, or public campaigns that benefit both your nonprofit and the company. To find the right match, look into businesses that share your mission and tailor your request to show how your work supports their goals.
4. Specialized Grants
Beyond traditional funding sources, nonprofits can tap into several targeted grants designed to support long-term growth, daily operations, and specialized initiatives. These grants help organizations build stronger infrastructure, expand impact, and meet specific goals. Below are key types you should know:
Operating Grants
Nonprofit organizations depend on operating grants to maintain core services. These funds are not tied to a specific project. Instead, they help cover everyday costs like rent, staff pay, and utilities. Funders usually expect to see evidence of consistent service delivery and a clear link between operational support and mission success.
Project Grants
Programs and initiatives that focus on a clear outcome benefit from project grants. These grants provide financial support for work with defined timelines and goals. A strong proposal includes the problem being addressed, the solution planned, and how results will be measured.
Read more: 9 Common Grant Management Challenges and How to Overcome Them
Capacity Building Grants
Internal systems within a nonprofit can be strengthened through capacity building grants. These support areas like leadership training, technology upgrades, and better financial management. Funders want to see how the investment will improve the organization’s long-term ability to deliver impact.
Capital Grants
Facilities and physical assets are the focus of capital grants. These funds support building improvements, equipment purchases, or space expansion. Proposals should include cost estimates, plans for use, and how the improvements will support program delivery.
Research Grants
Studies and data-driven efforts receive support through research grants. These are especially common in healthcare, education, and environmental work. Successful applications describe the research goal, explain the method, and show how findings will benefit the wider community.
Endowment Grants
Investment funds help nonprofits build lasting income through endowment grants. These are placed into accounts where only the interest is spent. Funders look for financial responsibility, long-term planning, and a strong track record of service.
Read more: 5 Advantages of Grant Management Software
Technical Assistance Grants
Professional services like legal help, financial advice, or digital security audits are covered by technical assistance grants. These are valuable when expert input is needed to solve problems or improve internal operations. A strong application outlines the issue, the support needed, and the expected outcome.
Technology Grants
Digital tools and systems are funded through technology grants. These might include new software, cloud platforms, or upgraded IT infrastructure. Funders usually want to see how this will improve efficiency, increase access, or support program delivery.
Matching and Conditional Grants
Fundraising efforts are often supported by matching or conditional grants. These grants may require a nonprofit to raise a set amount before the award is given or to meet specific goals first. This model encourages broader support and ensures accountability. Proposals should show a clear plan for meeting the required conditions.
In-Kind Grants
Products and services rather than money are offered through in-kind grants. Items like office furniture, vehicles, or tech tools may be donated by corporate partners. These gifts help reduce overhead and often come through business-led giving programs.
Seed Grants
New organizations and early projects benefit from seed grants. These funds help launch services where a clear community need exists. Although competitive, they are ideal for groups with a strong vision and early signs of momentum. Funders want to see leadership readiness and a path for future growth.
How to Choose the Right Grants for Your Cause?
Nonprofits and community groups often face a tough question—how do you know which grants are worth your time? With so many options available, it helps to know what truly fits your mission and capacity. Applying for grants that are not aligned with your work can waste energy and delay real progress. Here’s how to focus your search:
- Know what you need money for: Decide if the funding is for a project, daily costs, staff, or new programs. This helps you focus on the right type of grant.
- Pick grants that fit your nonprofit’s size: Smaller nonprofits might do better with local or community grants. Larger ones can handle bigger grants with more requirements.
- Look to corporate grants for support and exposure: Community-focused organizations can benefit from corporate funding that may come with visibility, volunteer help, or donated products.
- Check where the grant is meant to be used: Many grants are only for certain places. Search for grants that fund work in your city, state, or region.
- Use grant search tools and ask other nonprofits: Use websites like Candid or GrantStation to find grants. You can also talk to other nonprofits to learn about grants they’ve found useful.
Apply Strategically, Report Confidently
Whatever type of grant you pursue, the key is alignment with your mission, your current capacity, and your future goals. Applying for every grant that crosses your inbox may feel productive, but can lead to mission drift and burnout.
Instead, take the time to assess:
Does this grant align with your existing priorities
Can your team confidently deliver on its requirements?
Will the reporting expectations distract from your core work?
A thoughtful funding strategy starts with clarity and is sustained through intelligent systems.
How Pebble Impact Helps?
Winning a grant is only the beginning. The real work begins after the award — managing funds, meeting compliance, and demonstrating results. That’s where Pebble Impact comes in.
Pebble Impact helps nonprofits strengthen the post-award phase of the grant lifecycle by providing tools to:
Want to simplify how your organization manages, measures, and tells the story of your grants? Talk to our team and see how Pebble Impact helps you build funding strategies that are as strong as your mission.
