CHAPTER 1

Which Type of Grant Is Right for You?

Tin cup fundraising is antiquated. Modern fundraising gives donors theopportunity to invest in exciting initiatives and programs. Donors want a chanceto change their corner of the world.

—Richard B. Ajluni, Director of Major Gifts,Catholic Charities of Santa Clara County

The first order of business for a new grant writer is to know what's out there.This chapter decodes some of the terminology that is used to describe the manyways grant dollars are awarded. Before we look at the types of grants, it makessense to review the seven most common purposes for writing a grant proposal.Knowing your purpose will help you to narrow the search for the appropriate typeof grant. Familiarity with these purposes also helps you to know what to ask forin your grant proposal.

Grant Purposes

Project Grants

If a grant guideline says that the organization only funds project grants, youwant to make sure that's what you submit. This means that you ask for support ofa specific project such as the study of penguins in the Antarctic, theacquisition of equipment for a computer lab, funding of a new art exhibition. Aproject has an end to it. These sample projects end when the penguin studyconcludes, the computer lab is equipped, and the art exhibit opens. Projectgrants are not ongoing. While the computer lab will have ongoing operatingcosts, your request for equipment is for a specific onetime expense. Thepurchase happens only once. While the art gallery will always have exhibits,bringing one specific exhibition to the gallery can be called a project. Youbring it only once, even if the exhibit is there for a year.

Program Grants

Sometimes funders want to support ongoing efforts. This can be an educationprogram at a zoo, a mentoring program at a YWCA, a job-preparation program withThe Salvation Army, and so on. Programs are usually ongoing or multiyear.Funders often like to help implement new programs or expand programs whenthere's a need in the community. Program grants can help to supply materials,equipment, and brochures and pay for any number of events and activities. Somegrants may cover staff costs. The thing to remember is that all the requestedfunds must go entirely to that specific program. Thus, if you want a grant forthe salary of a program mentor and that person works in three programs, thenonly one-third of her salary can be requested in that grant or whatever portionyou determine contributes to that program. As you'll learn in the comingchapters of this book, you ask only for the items identified as allowableexpenses for the grant, whether they fund project or program grants.

Operating Grants

Every organization has operating costs, that is, the monthly expenses to keepthe organization operational. This includes overhead such as rent, utilities,ongoing equipment rentals, and staff costs. The organization still has tojustify the necessity of the costs and what impact the funds will have. Thefunder expects more than just keeping the organization going for a few months.Funders expect results, whether that is hiring a new grant manager to helpincrease income or paying the rental deposit for an organization to move to alarger facility to increase its reach in the community.

Organizational Effectiveness Grants

These types of grants help organizations to improve their way of doing business.You could request an organizational effectiveness grant to perform a study ofyour practices, to hire a consultant to help you develop a program, to carry outthe recommendations of a consultant, or to implement your organization'sinternal strategies to improve your efficiency, competence, or outcomes inperforming your mission. For example, say that your organization wants toincrease revenue, and you're considering revamping your fee structure for theservices your organization provides. You first may want to hire a consultant,who will bring expertise that your staff does not have, to guide you in yourdecisions. Such an expert will ensure that your organization doesn't priceitself out of the marketplace, maximizes your income potential, and may evenhelp with your marketing strategy to publicize the new fees.

Capacity-Building Grants

Funders want organizations to be sustainable, that is, to increase theircapability to support themselves. What could your organization do to becomeself-supporting? That's what capacity-building funders want to hear about. Fartoo many organizations in the nonprofit sector don't look beyond the currentyear. They keep relying on the same income that they've always had. (But notguerilla grant writers.) You might request these funds to implement an annualcampaign program, to purchase one of the corporate and foundation onlinedirectories that will help you to find new funders, or to build a new exhibit inyour museum that will bring more visitors and thereby increase your revenue.Staff development (improving skills) could qualify as well.

Capital Grants

Capital expenses (anything above $100,000) are for things that have a long life,such as structures, buildings, and major equipment, although specializedvehicles also may fall into this category. Major renovations to buildings, suchas adding an exhibit hall to an aquarium, count as a capital expense. Thevariety of opportunities means that there are a number of ways to request thesefunds. Some might require an extensive grant application process, whereas othersmay require a packet of your materials with a letter. Your research will revealthe way to make a capital grant request. Often the grant application is only thefirst step before a capital grant is awarded. Funders at this level are verycommitted to the organization and its mission or to the community theorganization serves. They often will provide the funding in multiyear paymentswith...