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When an individual or group donates money to a non-profit organization, that money is called nonprofit grant.Nonprofit grants are funding from certain individuals or organizations to your organization for nonprofit purposes.

Your nonprofit organization needs the money to fund its projects, and to achieve its nonprofit objectives. For example, your organization has many volunteers to work on your environmentalprojects for free but if you do not have money for transportation, food, and materials, then your volunteers will not be able to do their job. Your noble objectives will not materialize. You need support funding to function properly.

To receive a nonprofit grant from funding agencies and organizations, you need to submit a project proposal. It is a written document requesting nonprofit grant. It includes a profile of your organization, the project that needs funding, and a budget for the project.

There are directories of charitable foundations, corporations, and individual philanthropists who regularly provide funds to support nonprofit organizations.Once you have identified the potential grantor(s), determine your eligibility. Thencarefully review their guidelines for granting funds.

Their guidelines describe what types of programs and projects they are willing to fund, the amount they will fund, and deadlines of submitting applications.

Follow their instructions carefully. These guidelines may be referred to as Terms of Reference (TOR.) Submit your nonprofit grant proposal and find out about the date you may expect to be notified of proposal acceptance (or rejection.) Your proposal will be assessed based on the grantor’s criteria, guidelines, or TOR.

A few of the judging criteria used by grantors are:

1. The project or program has a clear and compelling mission and objectives;

2. It is sustainable or replicable;

3. It addresses a social problem and has a potential for effecting change;

The recipient of a nonprofit grant has an important obligation—providing a report of how the funds were spent and if the project’s objectives were met.