4.2: Funding from Government
Keep in mind that grants from the U.S. government often require a great deal of organizational capacity for grant seekers – to obtain, operate, and manage grant funds – because these programs are often extremely competitive.
As mentioned in Unit 2, grant administrators who apply for funding from the U.S. federal government should be familiar with the Federal Register and Grants.gov, which offer daily listings of proposal requests with descriptions, guidelines, and deadlines for upcoming federal grant opportunities. Take a look at their Grants Learning Center and their federal grant funding search tool.
It is important to understand the requirements before you pursue these opportunities since your organization may need to expand its operations to comply with them. For example, recipients of federal grants may need to hire or contract external grant reviewers or perform an annual external financial audit. Read all of the materials carefully, and be sure to build any additional costs into your budget when you write your proposal.
Read this article for an additional overview of federal grant opportunities in the United States. Notice the different types of grants, such as block and earmark grants.
A list of funding sources, including government agencies, foundations, associations, and research centers, is at the bottom of this page.
How do you and your organization maintain contact with your elected federal, state, and local government representatives? Their staff can provide invaluable guidance on navigating the government funding process and alert you to available grant funding opportunities.
Your government representatives may be able to introduce you to those who work at grant funding organizations or help monitor the progress of your proposal. As we mentioned in Unit 2, these local politicians may write a letter on your behalf, describe the good services your organization provides their constituents, or otherwise support your grant application.While the U.S. Internal Revenue Service (IRS) prohibits nonprofit 501(c)(3) organizations from getting involved in political campaigns, you can "educate" your political representatives about your activities and describe how you help their constituents and contribute to your community.
Read this notice from the IRS, which outlines the restrictions on nonprofit organizations' lobbying activities.
Funding from State and Local Government Agencies
Most state and local governments offer grant programs to nonprofit organizations within their jurisdictions. These grants can support projects at local K-12 schools, higher education institutions, arts agencies, and other local endeavors.
State and local governments derive grant funds from tax revenue and federal funding appropriated to them as block grants, which they are authorized to disperse at their discretion. A great deal of funding could be available.
Obtaining grant funding from state and local agencies is similar to working with other government agencies. Start by researching the grant opportunities listed on their website. Ask questions and seek out organizations that have received this type of funding. Create an ongoing relationship with your state and local representatives – it is always easier to approach them when they know what you do for their constituents.