Have A Question? Chat With Us.

This is a 24/7 chat service provided through Maryland AskUsNow!.

How to Find Grants for Your Nonprofit Organization

Is This Guide the Right Resource for You? 

This online guide is intended for nonprofit organizations in the United StatesFor the purposes of this guide, a nonprofit organization is a specific type of corporation that is: 

Small Org Letterpress

How to Prepare Your Organization for Success 

Many people think that finding money is the first step in starting a nonprofit.  But there’s a lot more to raising money than just having a good idea.  Since nonprofits and foundations exist in order to benefit the public, there must be a need for your organization and its work in the community.  After you’ve established that there is a need for your project, you also have to convince donors and funders that your organization has the ability to carry out what it says it wants to do!  Here are some of the most important things to consider:

  • Clear mission and vision, goals, and objectives
  • Committed board members
  • Capable management, staff, and volunteers
  • Legal standing to do business in your community
  • Appropriate tax status
  • Accounting systems
  • Programs that are vital to the well-being of the community
  • Fundraising plan, which seeks support from many different sources
  • Facilities, equipment, and maintenance.

What Is 501(c)(3) Status, and Why Is It So Important? 

When you are researching grant opportunities, you’ll see that many foundations are also nonprofits that give to:

  • “501(c)(3)” organizations
  • Fiscally-sponsored groups or individuals
  • Nonprofits than to individuals. 

501(c)(3)s are defined by the Internal Revenue Code:

  • See section 170 (c)(2)(B) of the Internal Revenue Code (also known as Title 26 of the United States Code).
  • Section 170 (c)(2)(B) will in turn refer you to section 501(c)(3) of the Internal Revenue Code, which lists types of charitable organizations to which foundations can safely make contributions to. 
  • In order to be officially recognized as a tax-exempt, public charity, nonprofit organizations must take numerous steps, including filing paperwork with the IRS.  Learn how to apply for tax-exempt status at StayExempt.

By law, a foundation can only give funds for charitable purposes – to support:

  • Religious, charitable, scientific, literary, education, and amateur sports organizations
  • Government entities and agencies
  • Operating foundations that provide charitable services to the community.

To ensure that a foundation is giving donations to qualified public charities, it usually requests a copy of each public charity’s 501(c)(3), IRS determination letter for the foundation’s files before it will give a grant to that organization.  This is because foundations must report their gifts and activities to the IRS each year.

If you think your organization might be missing one of the pieces to this puzzle, take a look at The Enoch Pratt Free Library/SLRC's Grants Collection's How to Start a Nonprofit in Maryland research guide.

What Is a Grant? 

Using the words of the Association of Fundraising Professionals, a grant is “a financial donation given to support a person, organization, project, or program.”  It is typically awarded to a nonprofit organization from a foundation, corporation, or governmental agency.

Grants are typically awarded to a nonprofit organization for a distinct program or purpose.  A grantmaker generally focuses its giving on:

Many people think that grants are an easy way of getting funded, because grant money is free.  In reality, even though you do not have to pay a grant back, you do have to invest a considerable amount of thought, effort, time, and money. In addition to “doing what you do really well,” you need:

So, before you look for grant funding, you need to get your house in order.  Make sure that you have the capability (knowledge and expertise) to carry out a program, before you ask for support for it.

How To Learn About the Grantseeking Process 

Going to workshops and professional meetings is a useful way of learning about grantseeking and fundraising. The Pratt Library's Grants Collection offers free workshops in the Fall and Spring. If you contact us, be sure to ask us to put you on our mailing list. Other organizations in the Baltimore-Washington region offer free or low-cost training for nonprofits, including:

How To Find Grant Opportunities for Your Nonprofit

Once you’ve established your nonprofit organization, you’ve figured out your project’s goals and funding needs, and you’ve read up on the world of philanthropy, you may feel ready to look for grant opportunities.

There are two major grant sectors to research:

Foundation and Corporate Funding

A foundation is a type of nonprofit organization that exists in order to give money away for charitable purposes. There are several types of foundations and related types of funders, including ones that are run by family members, members of the community, and corporations.

By law, tax-exempt foundations must file a yearly information return with the IRS (IRS Form 990 or 990-PF)

If you know the name of a particular foundation (i.e. independent, corporate, community, operating, or grantmaking public charities),  you can use:

"Corporate giving programs” rather than “corporate foundations” are not:

If you want to find the foundation and corporate funders:

When you are looking at the funder's record in these sources, compare your organization and its programs to the funder’s priorities. While you are researching, you might want to keep track of your prospects with worksheets.

Pay special attention to the funder's:

Once you have identified some funders that might help, it’s important to see if they really give to organizations or programs like yours. Do they have a history of giving to your cause and to organizations like yours? To find out more details:

Since funders’ interests and priorities can change, it’s a good idea to keep tabs on grantmakers in your regions. You may also want to follow the news, to find out about new foundations and corporate funding programs.

U.S. Government Funding

If you are looking for government funding for your organization or project, you need to research opportunities on three governmental levels:

Some federal agencies award funding directly to nonprofits – these are sometimes called “discretionary grants” – most federal money is distributed to state, county, or city governments, who then decide which local charities get funding.

Some parts of the process are similar, there are some key differences between foundations and government funders:

Another key difference between foundation and government grantseeking: it’s usually much easier to find information about federal grants for free on the Internet. Here are three websites that notify the public about funding opportunities:

State (Maryland) Funding 

If your nonprofit operates in Maryland, you may be able to get a grant from the Maryland state government using these resources:

How to Write Letters of Inquiry and Grant Proposals 

When you find funders that match your organization's mission, programming areas, and funding needs, learn more about how to approach them.  Methods of approaching funders are known as "initial contact." 

Examples of initial contact include by:

Sometimes after the initial contact, a funder may request the full proposal.  Our best suggestion on writing the grantgive the funders what they ask for from their guidelines. 

Learn more about the writing letters of inquiry (LOIs), filling out applications, and following the proposal writing process in low-cost training and free online tutorials. Other online resources are:

If you want to see examples of proposals for specific projects or types of nonprofits, check out The Foundation Center’s GrantSpace website.  One way to find examples is to select a subject, then scroll down to the bottom of the webpage for the "Sample Documents" section.

Other Funding Options 

Remember that grants are only part of your fundraising strategy. There are many other tactics you can use to acquire funding:

Pratt’s Grants Collection has a growing assortment of information resources that can help. Feel free to contact us for printed and online resources!

If You Need More Help 

Questions? Feel free to contact us by phone (410-396-5320), or email at grc@prattlibrary.org.

Grants Collection
Social Science and History Department
Enoch Pratt Free Library
Central Library/State Library Resource Center
400 Cathedral St.
Baltimore, MD 21201