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Grants for nonprofit 2021

Apr 14, 2021

Grants for nonprofit 2021

By Jurie Hendrik Human

Many nonprofits rely on grants as a key component of their total funding. For others, it’s what allows them to keep the lights on and operations running. Grants for nonprofits can range from a few hundred to millions of dollars and can come from a variety of sources, both governmental and private. However, the grant landscape is also complex and competitive. Nonprofit stakeholders need to educate themselves with the necessary background information to navigate it.

How to write grants for nonprofit organizations

Grant writing is a complete discipline aimed at maximizing your chances of success. These tips will help you to get started writing up grant applications:

  • Reaffirm your need and commitment to apply for funding: Applying for grants is a highly competitive undertaking and the process itself is time-consuming. Nonprofits generally require a dedicated funding team to handle these applications and see them through. So, before you even start, verify whether you actually need the grant and commit yourself to the process.
  • Establish whether or not you qualify: Grants are often aimed at specific nonprofit entities, sectors, etc. For example, a grant may only be awarded to nonprofits working in certain sectors such as health or the arts and culture or only nonprofits that work with particular groups such as women and children or minorities may be considered. Grants can also be limited in scope by state or region. Do your due diligence to avoid wasting both your own and the grantor’s time.
  • Tell your story: Storytelling can help your application to stand out from the rest as well as give it a humanizing element. You don’t just want to be seen as a faceless organization but as the face of those you are helping. Be sure to express your origins, your reason for being, goals, and vision. Bring individual stories to the fore and include any relevant marketing material you may have. However, your application should focus on achievable goals and have concrete outputs and outcomes.
  • Understand the grant process and requirements: Failing to follow the procedure to the letter is another common reason why grant applications are rejected. Make sure you understand what is required of you at every step and that you can supply the requested information while meeting deadlines. Each organization may process grants differently so it’s vital that you really take the time to understand each step of the specific grant being applied for.
  • Don’t underestimate good writing: Correct spelling and grammar, clear and concise communication and cohesively presenting your case are non-negotiables. Employing a professional writer can help you to draft effective copy that sells your organization. Engage decision-makers personally without resorting to over-embellishment or cheap tactics.

International development grants for non-profit

International sources of grants exist for governments and nonprofits located across the globe. Two examples of intergovernmental sources of international development aid are:

Organizations like these manage and organize developmental aid from bilateral and multilateral sources as well as being responsible for its distribution. Funds are usually dispersed across a portfolio consisting of both loans and grants

Certain countries also typically have an official government-sponsored international development funding organization. As the largest development aid provider in the world, the U.S’s efforts are led by USAID, the US Department of State, and the Millennium Challenge Corporation while in the UK, the main administrator of foreign aid is the Foreign, Commonwealth & Development Office (FCDO). The European Union is also a prominent provider of international funding.

Independent sources of funding may also be found using online services, such as DevelopmentAid.

Check grants for nonprofits.

Grant statistics by donors in the US

  • Although there is difficulty in collecting in-depth grant-related data internationally, some U.S.-specific data is available for recent years:
  • In the U.S., the federal government is still the largest provider of grants, committing 16% of its budget in support in the 2019 fiscal year to states and localities which amounted to US$721 billion in grants.
  • Also for the fiscal 2019 year, the NIH (National Institute of Health) had a total obligation by budget mechanism of US$39.4 billion. Of this, 57% (US$22.5 billion) was allocated to research projects, 6.8% (US$2.7 billion) to research centers, and 2.2% (US$865 million) to training.
  • In 2019, US$449.64 billion was donated by individuals, bequests, foundations, and corporations to nonprofits in the U.S with individual donations accounting for US$309.66 billion and US$75.69 billion originating from foundations. Corporations also contributed US$21.09 billion.
  • Grants by DAFs (donor-advised funds) totaled US$8.32 billion between January 1 and June 30 2020 in response to the COVID-19 pandemic, up 29.8% in the same period in 2019.

Grant statistics by sector

  • The healthcare sector was the largest recipient of government grants, receiving 61% of the US$721 billion distributed in 2019. The second highest was income security programs which received 16%.
  • Education, training, employment, and social services as well as transportation both received 9%.
  • Community and local development received only 2% with the remaining 3% allocated to other sectors.

Grant statistics by recipients

  • In the U.S., religious organizations were the largest nonprofit funding recipients with 29.6% of all receipts. Education came second with 13.9% followed by human services (12.2%), gifts to foundations (11.9%), and health (9.7%).
  • In 2017, foundations tended to favor health (28%), education (24%), human services and community/economic development (12%), and the arts and culture (8%).