A nonprofit grant is funding awarded to a mission-driven organization — typically one holding IRS 501(c)(3) status — by a foundation, corporation, or government agency, and it requires an active board, audited financials, and measurable outcomes before most funders will consider an application.
What you need before applying
- Incorporated as a nonprofit in your state.
- IRS 501(c)(3) determination letter — the single most important document for foundation grants.
- EIN from the IRS.
- Bylaws and board of directors — most funders require a real, active board.
- Annual budget and prior-year financial statements.
- Mission statement in 1–2 sentences a stranger can repeat.
- Program description with measurable outcomes.
- Fiscal sponsor (optional) — if you don't have 501(c)(3) status yet, a fiscal sponsor can hold grants on your behalf.
Where to find nonprofit grants
- Candid (formerly Foundation Directory Online) — the most comprehensive paid database. Free access at many public libraries.
- Grants.gov — federal grants for nonprofits.
- Instrumentl — paid prospecting tool that surfaces foundation matches.
- Local community foundations — almost every region has one and they often fund local nonprofits no one else funds.
- Your state's nonprofit association — usually publishes funding calendars.
Types of nonprofit grants
- General operating support — flexible, hardest to win, most valuable.
- Program/project grants — restricted to a specific program or activity.
- Capacity-building grants — fund staff training, systems, technology, strategic planning.
- Capital grants — buildings, equipment, major purchases.
- Seed grants — small grants to launch new programs or test ideas.
Common mistakes to avoid
- Applying for grants you don't qualify for — read every line of the funder's guidelines.
- Sending the same proposal to every funder — funders can tell, and they don't fund it.
- Asking for too much — match the request size to the funder's typical grant range.
- Skipping the relationship — most foundation grants follow a conversation, not a cold application.
- No outcome reporting plan — funders fund organizations that measure and report results.
Frequently asked questions
Can a brand-new nonprofit get grants?+
It's harder. Many funders require 2–3 years of operating history. Seed funders and community foundations are more likely to fund newer organizations.
Do nonprofits pay taxes on grant money?+
Grants for a 501(c)(3)'s tax-exempt purpose are generally not taxable. Unrelated business income is a separate matter.
What's a fiscal sponsor?+
An existing 501(c)(3) that agrees to receive grants on your behalf if your organization doesn't yet have its own tax-exempt status.
Where should a new nonprofit start looking for grants?+
Candid's Foundation Directory Online, Grants.gov, and your state's nonprofit association are the three highest-yield starting points.
Do I need a 501(c)(3) letter before applying anywhere?+
Most foundation grants require it. Government contracts and some corporate programs may work with a fiscal sponsor instead.
About our expertise
ASHÉ Legacy Builders is a Texas-based business education company founded by Jey Carrington. Our guides are written from operator experience across grant readiness, business formation, branding, and business credit — and reviewed against our editorial standards.
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