In the ongoing COVID-19 environment, many companies have recognized the need to pivot. Whether that means creating new products or services or changing the business model, very few companies are doing business the same way now as they did a year ago. Budgets were cut. Revenue and profits have shrunk. There are fewer resources to meet today’s challenges. To counteract that trend, many companies are looking into opportunities through grants to obtain the infusion of cash they need to expand and achieve their growth goals.
Types of Grants
Grants come in all shapes and sizes. They provide seed money needed to achieve the goals of government agencies, nonprofit organizations, educational institutions, public housing organizations and even for-profit companies. They are awarded by government entities or private businesses. Unlike a loan, businesses do not have to repay a grant. Common types of grants include:
- Program and project grants intended to realize special projects or support programming.
- General operating grants designed to update technology and support infrastructure, emerging needs and salaries of people involved in the operation of the grantee. These grants are also sometimes referred to as unrestricted grants.
- Capital grants that offer money for construction and maintenance, land purchases or large equipment such as furnishings or building materials.
- Capacity building grants to support management systems and operations including services such as professional development, strategic planning and human resources.
- Endowments used to withdraw funds consistently. Many nonprofit organizations, institutions of higher education and educational organizations use these funds to pay ongoing costs or emerging needs.
The type of grants businesses apply for will be dependent on the company’s purpose and how it aligns with the mission of the funder. When developing the grant proposal, it is essential to connect the request to the funding organization’s overall purpose. Veteran grant writer, expert fundraiser and professor of Fundraising for Nonprofit Organizations at Villanova University Roberta Healey says a well-constructed grant request should contain more than a dry accounting of facts and figures. “Create a sense of emotional drama,” Healey suggests. “When you have successfully communicated your case for support, you will be igniting a burning passion for your mission in the hearts and minds of your donors.”
Where to Find Grant Opportunities
There are multiple sources for seeking grant funding. Government grants are the most common. Consider starting with Grants.gov, which offers a database of current grants available, and is searchable by area, timeframe, eligibility and government agency. Other options include the U.S. Small Business Administration and U.S. Chamber of Commerce websites.
Nonprofits, institutions, and large corporations may provide funding opportunities as well, but finding them can be a little trickier. Stay on top of new grant funding options by consuming financial news, consulting with experts and considering local funding entities. We recommend directories like Grantwatch.com and Candid.org, which provide grant alerts, news, guides and detailed insights about the organizations that provide funding.
The Grant Application Process
Completing an application for a grant can be a complex and multi-step process, and the competition for grants is fierce. For these reasons, it is critical for organizations applying for a grant to have someone on their team with strong research and writing skills—someone who is experienced with the nuances involved with grant-seeking and how to ensure the completed application will be attractive to the funding entity. The grant application process involves:
- Identifying the problem that needs funding
- Researching the foundation or organization offering the grant
- Evaluating the grant’s purpose and requirements
- Conducting thorough research about the subject of the proposal
- Writing a tailored proposal
- Gathering supporting documentation, especially financials
- Ensuring all proposal requirements are met
- Revising, editing and proofreading the proposal
- Submitting the proposal
- Following up.
Most importantly, the grant proposal must provide a detailed business plan that includes a strong value proposition. It needs to showcase exactly how the company intends to use the funds for research, product or service development. Additionally, it should identify the target market and current competition and demonstrate how the applicant’s approach to business provides something no one else does. Succinctly and persuasively conveying your competitive advantage and value proposition is a vital grant writing skill.
What Happens After Submission?
Every funding organization has its own review and approval process. Typically, proposals undergo an initial review to verify they meet all requirements and guidelines. Those proposals that pass the initial review are then evaluated by a board or committee. Once award decisions are made, grant applicants are notified and receive formal grant agreements that detail all terms and conditions.
After a decision is made to fund a proposal, organizations enter the post-award phase. During this period, grant recipients must ensure they meet all grant requirements and timelines. Over the life of the grant, recipients are monitored for progress and adherence to the grant’s purpose and terms. This auditing process ensures transparency, which helps fight fraud and funding misuse and aligns the goals of the funder with the funded.
Know Your Options for Grants
Especially in a challenging economy, knowing how to generate an additional infusion of cash becomes a priority for many companies. In addition to considering business loans, partners, angel investors, crowdfunding or selling assets, organizations can add grants to their list of financial opportunities. Those companies that execute the process efficiently and effectively unlock a variety of new options to keep the business on sound financial footing.
