What Is A Grant?
LaCharla Figgs
Last Update há 3 anos
For a nonprofit, a grant is an amount of money awarded by a grantmaker to support the overall organization or one or more of its programs.
Grants typically come from grantmaking foundations and other nonprofits, government agencies, and corporations.
Nonprofits typically conduct research to identify grantmakers that support programs and causes like theirs. That research will show that each grantmaker has its own requirements for grant seekers. Typically, though, a grantmaker will ask for a written (electronic) proposal that describes the organization, its program(s), and its budget and details the way the nonprofit plans to use the grantmaker's funds.
Unlike loans, grants typically have no repayment requirements. But that's not always the case. Many grantmakers require recipients to sign grant agreements. Those agreements describe any restrictions related to the way the funds may be used.
Some grantmakers are lenient with their grant terms, while others are not. (Government agencies tend to be strict.) If a recipient doesn't spend its grant funds on time and according to all restrictions, the grantmaker may demand repayment.
Other Sources
Grants are not the only source of nonprofit revenue. Others include contributions from individuals, fees for service, loans, event proceeds, contract fees, crowdfunding donations, income from sales, and bequests.