Definition Of Grant
A grant is a non-refundable donation – in the shape of cash or in-kind contribution – that can vary in size. Usually, it comes to an organisation funding a non-profit, but in practice, it’s easy to encounter different scenarios.
Behind the concept of Grant
A granter, indeed, can be a company as well as an individual or a foundation. Either way, the purpose is the same, that is, to guarantee the continuity of a non-profit’s core business. Also, grants can be a financial source for universities or even for individuals.
As far as there are a lot of grantmaking organisations in the world, we don’t have to forget that there are many grant-seekers, too. This means that sometimes a sort of competition can arise among them. That is, the ones managing to receive the donations are those whose projects and investments best align with the grantmaker’s identity and values. It must be underlined that in order to receive a grant, a charity/person must write a proposal and submit the request through specific channels.
Moreover, we don’t have to mix grants with donations. While the latter consists of cash or in-kind giving made to the non-profit as such, the former can be more complex, since it refers to an overall process aimed at funding a single and specific project and it generally implies a bigger amount of money.
How do nonprofits find grants?
Nonprofits will find grants by asking potential granters for funds: individuals, companies or foundations. In the latest cases, they need to write an awesome grant proposal in order to convince it that your project is the right to fund.
How do foundations make grants?
The first step is to make a grant management plan. On this document, grantmakers plan ahead the goals of the grant and how to achieve them. It is very important for them in order to streamline their process.
The second step is to open the candidatures for funding. Projects in need of funding will turn with the foundations with proposals. Then, the foundation has to review those to select the right project according to its goals.
After that, the project can take place and the organisation see what impact its grants have had.