For many nonprofits, grants represent an invaluable yet underutilized resource. While often viewed as a source of financial support, grants encompass far more than cash. They can include in-kind donations like assets and services, which help organizations overcome barriers and amplify their impact. In 2023, U.S. foundations awarded over $100 billion in grants, with corporate giants like Google.org and the Walmart Foundation leading the charge. These grants offer nonprofits diverse opportunities, from financial funding to technology and pro bono services.

In this article, we explore how nonprofits can leverage grants to secure cash, assets, and in-kind support, strategically align their missions with funding opportunities, and use grants to achieve long-term growth and sustainability. Whether you’re a small startup nonprofit or an established organization looking to scale, grants can be transformative.

Types of Grants: Beyond the Cash

Grants come in several forms, each providing unique advantages to nonprofits. By understanding these categories, organizations can maximize their impact and resource utilization.

1. Cash Grants

• Cash grants are the most straightforward type of support, awarded by foundations, corporations, and government agencies. These funds are often allocated for specific projects, operational costs, or capital needs.

How to Use Them: Cash grants cover salaries, program costs, administrative expenses, and outreach efforts.

Example: Foundations frequently support causes like education or healthcare, and nonprofits can secure funding by crafting proposals that align with the grant-maker’s priorities.

2. In-Kind Grants

In-kind grants provide goods or services instead of money, helping nonprofits reduce costs and reallocate funds to other priorities.

Examples:

1. Technology: A nonprofit receiving free software licenses from Microsoft to digitize operations and scale programs.

2. Assets: Donations of real estate, vehicles, or equipment for organizations in sectors like housing or education.

3. Free Services and Pro Bono Support

Many corporations offer pro bono services as part of their corporate social responsibility (CSR) initiatives. These can include legal advice, marketing, and consulting.

Examples:

• A law firm providing free legal counsel to help a nonprofit navigate regulations.

• A marketing agency creating a branding strategy for a nonprofit to improve visibility and engagement.

How Grants Drive Growth

Grants do more than provide funding—they act as catalysts for growth, allowing nonprofits to expand their capacity, strengthen operations, and achieve sustainability.

Building Capacity and Scaling Programs

Grants enable nonprofits to:

• Hire additional staff to improve services.

• Expand outreach efforts into underserved areas.

• Invest in resources like educational materials or program tools.

For example, a nonprofit focused on education could use a grant to increase its reach, providing resources to more students in low-income communities.

Establishing Sustainability

Beyond immediate needs, grants help build long-term sustainability by diversifying funding sources and reducing reliance on a single revenue stream.

• Endowments: Some nonprofits use grants to establish endowment funds, generating consistent income over time.

• Efficiency: In-kind donations, like software or office equipment, optimize operations and free up funds for other initiatives.
  

Aligning with Funding Opportunities

To secure grants, nonprofits must align their mission and goals with the priorities of grant-making organizations. Here’s how to increase your chances of success:

1. Research Funders

• Review grant-makers’ priorities, past projects, and funding criteria.

• Use resources like grant directories and online databases to identify potential funders.

2. Tailor Your Proposal

• Customize applications to reflect the funder’s objectives and show how your mission aligns with their goals.

• Highlight measurable outcomes and the specific impact their support will enable.

3. Build Relationships

• Network with grant-makers at events or through introductions.

• Maintain regular communication to stay informed about future opportunities.

Case Study: Small Nonprofit, Big Impact

A small nonprofit dedicated to STEM education leveraged grants to transform its operations. By pooling family donations and securing corporate grants, the organization now provides $250,000 annually in scholarships to underserved youth.

1. In-Kind Support:

   • A tech grant provided software that streamlined their application process.

2. Pro Bono Services:

   • A marketing agency helped boost their visibility, attracting more donors.

These efforts enabled the nonprofit to break cycles of poverty by equipping students with skills for high-demand careers.

Grants as Catalysts for Social Impact

Grants are more than financial lifelines; they are strategic tools for growth, sustainability, and impact. By aligning your nonprofit’s mission with available funding opportunities and leveraging the full spectrum of support—from cash to in-kind services—you can build a roadmap to success. Whether it’s scaling programs, increasing efficiency, or creating a sustainable foundation, grants provide the resources nonprofits need to thrive.

So, how will your organization use grants to amplify its mission? By taking a strategic approach, you can unlock the full potential of grants and drive meaningful, lasting change in your community.