Are you looking to grow your organization with operating grants for nonprofits? Grants come in all forms and sizes, each with its own guidelines, requirements, and purposes. Winning a grant award can feel like winning the lottery, except grant applications take months of hard work and documentation instead of the luck of the draw. Plus, once the application is in, your organization is competing against numerous other worthy
Before embarking on the long path to (hopefully) receiving operating grants for nonprofit organizations, take a look at the kinds of grants out there and the other options available for nonprofit funding.
Summary
What is General Operating Grants for Nonprofits?
General operating grants are awarded to support a nonprofit organization’s objective or mission, more accurately, its daily operations rather than a specific program or project. When cash flow runs low, operating grants for nonprofits are there to fill in the gaps due to working capital shortages. For example, payroll and rent are basic operating needs crucial to an organization’s survival. By obtaining an operating grant, the nonprofit can focus its efforts on meeting the community’s needs and accomplishing its program goals instead of worrying about the nuts and bolts.
What are Foundation Grants?
Foundation grants typically do not cover operating expenses and are not for nonprofit startups. Instead, they are intended to create or support specific projects or programs that can benefit from a quick cash infusion. Also, because foundation grants are meant to fund specific projects or programs, all funds must be attributed to a particular purpose. Finally, unlike operating grants for nonprofits, foundation grants require strict reporting compliance and may include specific conditions, such as finding other funds before awarding the grant.
What are Community Grants?
Local community grants are what they sound like: grants awarded to support local nonprofits. Community grants can be awarded to help a local nonprofit serving the general local community or nonprofits serving a specific local demographic group. The types of community grants range from air quality initiatives to supporting a local artists’ community. Typically, community grants are smaller monetary awards and can come from federal, state, or local governments. Community-based corporations sometimes also award specific grants or operating grants for nonprofits.
What are Education Grants for Nonprofits?
Most parents of college-bound children are familiar with education grants to help pay for tuition and other college expenses. However, education grants for nonprofits also exist to support and fund nonprofit organizations offering all forms of education, from early education and literacy to cultural education. They also fund specific educational initiatives, such as environmental conservation and social justice. Most organizations seek to obtain operating grants for nonprofits to cover daily expenses and education grants to further their educational mission.
What are Construction Grants for Nonprofits?
Construction grants (also called “capital grants”) are designed to assist nonprofits complete building improvements or expanding existing facilities. Building repairs, structural improvements, and groundwork are all costly endeavors that community donations may not cover or that operating grants for nonprofits cannot. Applications for construction grants require renovation project budgets, forecasts, and possibly detailed blueprints, in addition to lengthy descriptions of how the construction improvements support the nonprofit’s mission.
What Are Unrestricted Grants for Nonprofits?
Most nonprofits prefer to receive unrestricted grants for their organizations. Unrestricted grants can be used for any purpose the organization sees fit, which usually involves operating expenses, like operating grants for nonprofits. On the other hand, restricted grants must be used exclusively for the purpose that the funds were awarded and have strict guidelines attached to them. For example, foundation grants are restricted grants.
Nonprofit Line of Credit
As we’ve noted, grants cannot be won easily or quickly. Grant applications are long and arduous, and then you may wait months to hear back. In the meantime, nonprofits need a way to make ends meet if the project or expense can’t wait, such as payroll, rent, or an emergency repair.
A nonprofit line of credit is a fixed amount of money that a nonprofit organization can access whenever needed for whatever purpose. It’s an inexpensive emergency backup fund that can help a nonprofit organization stay afloat when cash flow is lower than expected. And, as you know, a nonprofit’s cash flow is often temporarily delayed when funding reimbursement is late or during seasonal slowdowns.
Financing Solutions, a leading provider of business loans for nonprofits in the form of a 501c3/not-for-profit line of credit, is one of the only alternative lenders that work with nonprofits. We started the company knowing we wanted to cater to specific industries, and we carved out the niche of providing nonprofits with a much-needed business line of credit. Today, Financing Solutions is now the leading provider of lines of credit to smaller nonprofits throughout the United States.
At Financing Solutions, we have years of experience helping nonprofits run their organizations better. Although some lenders require personal guarantees for lines of credit, Financing Solutions does not.
With the Financing Solutions Line of Credit, you can also take advantage of our easier application process:
- There are no costs to set it up or keep it in place
- The easy 2-minute application online application
- If approved, you’ll receive a same-day, no-obligation offer letter
- The fastest setup, 48-72 hours
- Once you have the line of credit, requests for funds are wired to your bank in minutes
- You can use your line of credit whenever needed
- Inexpensive when used (low fees)
- There are no restrictions in place or collateral required
- No personal guarantee is required, either
- Financing Solutions is a leading provider of lines of credit
- We are a reputable company with an A+ & 5-star rating
- You can pay off the line whenever you are ready
- The credit line is easy to renew and renews yearly
- You have a secured account portal access 24 x 7
A nonprofit line of credit is a good funding resource that is available while you wait for an operating grant for nonprofits to come through. If you want to see if your nonprofit would be approved and for how much, please fill out the no-obligation, 2-minute line of credit application here.