How to find grants for nonprofits: A step-by-step guide 

Securing grant funding is one of the best ways to fuel your nonprofit’s mission.

However, the process can be daunting, with many organizations facing challenges such as limited resources, information overload, and difficulty identifying suitable funding opportunities. 

Despite these challenges, with the right approach, you can simplify your search and improve your chances of success.

This guide walks you through where to find nonprofit grants, how to prepare for applications, and the best strategies to secure funding. 

Here’s what we’ll cover

What are grants for nonprofits? 

Grants are financial resources provided by government agencies, private organizations, and foundations to help nonprofits like yours fund important projects.

Unlike loans, grants do not need to be repaid, making them a powerful tool for advancing mission-driven work. 

Grants typically call into four main categories: 

Federal grants

These grants are provided by the government and often support large-scale or nationwide projects.

They’re ideal for nonprofits with ambitious, far-reaching goals.  

State and local grants

These grants, offered by regional agencies, are designed to address community needs.

They’re often a great fit for small businesses or grassroots initiatives.  

Private are corporate grants

Foundations and businesses frequently fund initiatives that align with their values, such as education, sustainability, or healthcare.  

Industry-specific grants

These are targeted at organizations working in specialized sectors like technology, agriculture, or the arts, offering support tailored to unique challenges and opportunities.  

Is a grant the right funding option for your nonprofit? 

Before you start applying, assess whether your nonprofit is in a strong position to receive a grant.

Consider these key questions: 

Do you have a strong leadership?

Funders invest in people as much as projects.

A capable team with a track record of success can increase your chances of securing funding. 

Are your programs effective?

Grantmakers want to fund initiatives that have a real impact.

Ensure your programs are well-designed and data-driven. 

Is your financial management solid?

Many grants require financial reports, budgets, and accountability measures.

A clear financial plan strengthens your proposal. 

Is your 501(c)(3) status active?

Many grants require nonprofits to be tax-exempt.

Verify that your 501(c)(3) designation is current before applying. 

If your nonprofit meets these criteria, grants could be a great funding avenue. 

Where to find grants for nonprofits 

Finding the right grant for your nonprofit requires research and strategy. Follow these steps to improve your search: 

1. Research prospective funders 

Look for organizations that have funded similar projects in the past.

Check government agencies, corporate foundations, and industry associations that align with your mission.

Tailoring your applications to funders’ specific goals and past funding trends can increase your likelihood of success. 

2. Use strategic keywords in searches 

When using grant databases, refine your search with specific keywords.

For example, if your nonprofit supports community health in urban areas, search for “urban health grants” or “community wellness funding.”

Being specific in your searches can help filter out irrelevant results. 

3. Explore local funding opportunities

Many grants focus on specific regions.

Check with state agencies, city foundations, and local businesses for funding tailored to your community’s needs.

Local and regional funders often have fewer applicants than national grants, making them a valuable resource for smaller nonprofits. 

4. Keep your GuideStar profile updated 

Funders often check GuideStar (now part of Candid) to verify a nonprofit’s credibility.

Maintain a complete and up-to-date profile with key information about your mission and finances.

An updated profile can attract more funding inquiries from potential donors and grantmakers. 

5. Build relationships with funders

Attend industry conferences, networking events, and webinars where grantmakers are present.

Establishing connections increases your chances of funding success.

Nonprofits with existing relationships with funders are more likely to receive grant renewals and additional funding over time. 

6. Work with organizations that share your values

Identify funders who prioritize the same causes as your nonprofit.

If their mission aligns with yours, they’ll be more likely to support your work.

Funders are more inclined to support organizations with aligned values, as it ensures mission continuity. 

7. Develop a detailed budget 

A well-structured budget demonstrates responsible financial planning.

Clearly outline how the funds will be used, whether for staffing, program costs, or outreach.

Applications with a well-documented budget are more likely to be approved than those with vague financial projections. 

8. Consider hiring a grant writer 

A professional grant writer can improve your proposals, ensure eligibility requirements are met, and increase the likelihood of securing funding.

Nonprofits that use professional grant writers often see an increase in grant approval rates compared to those that handle applications in-house without specialized expertise. 

Steps for successful grant applications 

Once you’ve identified the best way to find grants and selected one to apply for, following a structured approach greatly improves your chances of success.

Here’s a step-by-step to help you effectively navigate the grantmaking process and excel in your role as a grant manager: 

1. Identify suitable grants 

Begin by thoroughly researching grants that align with your nonprofit’s mission, objectives, and operational needs.

Understanding the specific funding priorities of grantmakers can help refine your selection process. 

2. Gather necessary documentation 

Organizing your paperwork in advance can prevent last-minute roadblocks.

Essential documents include: 

Financial statements

Income statements, balance sheets, and cash flow reports to illustrate your nonprofit’s financial health.

Tax returns

Verification of tax-exempt status and compliance history. 

Budget plans

A clear and realistic breakdown of how grant funds will be allocated. 

Legal documentation

Business registration, nonprofit status verification, and other certifications required by funders. 

Supporting materials

Case studies, impact reports, and success metrics to demonstrate your track record and credibility. 

3. Create a compelling proposal

Your grant proposal should clearly communicate your nonprofit’s purpose, goals, and measurable outcomes. Use data and real-world examples to illustrate impact.

A strong proposal will include: 

• A well-defined problem statement that highlights the need for funding. 

• Specific, measurable objectives that align with the grantor’s priorities. 

• A detailed methodology outlining how funds will be used. 

• A sustainability plan demonstrating how your nonprofit will continue its impact beyond the grant period. 

4. Complete the application form

Carefully review all grant application instructions before submission. Incomplete or incorrect applications can lead to automatic disqualification.

Double-check for consistency between your proposal and financial documents. 

5. Follow up

After submitting your application, stay engaged.

Monitor the grant status, respond promptly to any follow-up questions, and be proactive in maintaining communication with grant officers.

Using nonprofit grant tracking software can help monitor progress and streamline documentation. 

6. Prepare for interviews or presentations

Some grantmakers may require an in-person or virtual interview.

To make a strong impression: 

• Rehearse your presentation with key team members. 

• Prepare clear, concise responses to anticipated questions. 

• Use visuals such as graphs or case studies to reinforce key points. 

Emphasize how your nonprofit’s goals align with the funder’s mission. 

Common errors to watch out for when applying for grants 

When learning to apply for grants, avoiding common mistakes is also key to submitting a strong and competitive application. Here are five frequent errors and strategies to prevent them: 

1. Incomplete applications

One of the most common reasons for disqualification is submitting an application that lacks the required information or supporting documentation.

Overlooked fields or omitted files can make it seem like your team isn’t fully prepared, often leading to automatic rejection. 

How to avoid:

• Use a detailed checklist to ensure you’ve included all necessary documents. 

• Double-check the application guidelines before submission to confirm compliance. 

• Have a team member review the application to catch any oversights.  

2. Missing deadlines

Strict deadlines are a hallmark of grant applications, and failing to meet them can negate all your hard work, no matter how well-crafted your proposal is.  

How to avoid:

• Create a timeline for each grant opportunity, breaking down key dates such as submission and document deadlines.  

• Set automated reminders to keep your team on track.  

• Allocate extra time for revisions or unexpected delays. 

3. Ignoring eligibility criteria

Applying for grants without fully understanding the eligibility requirements can waste your time and resources.  

How to avoid:

• Carefully read the grant’s requirements to confirm that your organization qualifies. 

• If unclear, contact the grant provider for clarification. 

4. Poorly articulated goals 

A grant proposal that fails to clearly define or align your objectives with the grant’s purpose can come across as unconvincing.  

How to avoid:

• Clearly outline your organization’s goals and demonstrate how the grant will directly support them. 

• Use concise, compelling, and results-oriented language to make your case. 

5. Insufficient financial documentation 

Inaccurate or incomplete financial records can raise concerns about your organization’s credibility and ability to manage funds responsibly. 

How to avoid:

• Ensure your financial statements are up-to-date and accurate.  

• Include all requested documents, such as tax returns and profit-and-loss statements. 

If you’re part of a small business, work with an accountant or financial professional to prepare your documents.  

Simplify the process of finding grants with nonprofit accounting software 

Finding grants for your nonprofit can be challenging, but with the right tools and preparation, the process becomes much more manageable.

A well-organized approach allows you to identify the best funding opportunities and meet application requirements with confidence.  

Nonprofit accounting and management software can be invaluable in streamlining your grant search.

These tools help your team organize by managing financial records, tracking compliance requirements, and keeping documentation accurate and accessible.

With the administrative workload simplified, you’ll have more time to focus on researching funders, crafting compelling proposals, and securing the funding needed to fuel your nonprofit’s growth and impact. 

Ready to make grant-seeking easier?

With the right tools, your team is set to thrive!