Foundation grants may not be the hospital your financial problems. To many times people walking in nonprofit organization think that grants is the beat type of financing. In fact, most people believe that Grants help nonprofit organizations get started, meet their bills or save them from closing up. Days a huge misunderstanding on how nonprofit find an organization and the rules foundation grants play in the funding.
The following are some realities about foundation Grants that nonprofit organization need to understand before making applications.
Grants may not help you start your non-profit organization
Foundations open up grants to organizations that I’ve already established. This means that condition Graham is not the perfect place to look for new charity or static funds.Most founders use their own resources to start their businesses the get private lenders to fund them. Sometime, it is easy for charity organisations to get bank loans. Even so, bankers will ask for collateral or a guarantee that the loan will be re-paid. Also, they need to know that the business plan is good with an excellent path and high expectations. Some charities start with other methods which include fiscal sponsorship. In general, do not count on borrowing grants until you establish the organisation and create a self sustaining system.
The foundation grants come in multiple varieties.
Project grants are meant to support a specific project for a given period of time. Capacity building grants are grants used for the organisation to increase their abilities. Operating fund grants are for ongoing support and research grants are meant for academic research
Most foundation grants will not fund any operating costs
It is very rare to find a foundation that provides you with the cash to keep your organisation running. The sole purpose of grants it’s to help you create a new programme or grow a well doing one. Grants are not meant to sustain your organisation or even a programme on your organisation. Some operating expenses can be included in the funding if they are under a specific programme. Grant applications will ask you how you want to sustain the projects in the future before they can consider you.
Foundation grants cater for a small part of any organisation’s finances
Foundation grants account for a small percentage of money given out to charitable organisations. Most of the money dispersed to such organisations comes from individuals. Foundation grants are not even meant to support most non profit organisations. These organisations support themselves and earn their money through contributions from people. Just like any other business, non profit organisations are meant to fund their own charities.
Grants will take you a very long time
You should not expect to receive a grant as fast as you would a basic loan. they are neither quick nor instant; it takes you a long time to find the perfect foundation and an even longer time t develop the right proposal. After this, you will have to wait longer for the foundation grants to e accepted or rejected. The conditions and restrictions imposed on grants will make you not want to apply for them again. Grants are meant to address some particular issues and there issuer makes sure they are spent strictly on those kinds of projects.