Increasing the Capacity of Individuals, Families and Communities

Acquiring Public Grants

Federal Funding Overview | Grant Acquisition Process

Assessing Your Readiness to Apply for Funding

Do You Meet Minimum Eligibility Requirements for Federal Funding?
Nonprofit Status: Most discretionary grant programs provide assistance to organizations, not to individuals. Typically, organizations must first incorporate then acquire designation as a nonprofit organization in the state where they operate. The next step is to apply for and receive designation as a 501(c)(3) not-for-profit (nonprofit) organization from the Internal Revenue Service (IRS). This is the Federal tax code designation for nonprofit, charitable organizations that seek donations or grant funding. Articles of Incorporation, bylaws and a functioning board of directors are also typically required in order to successfully complete these steps.

Where to Find Help Online   On the Federal level, the IRS provides guidance on the process of getting the 501 (c)(3) designation on its website at www.irs.gov/charities/charitable/index.html. Additionally, the Center for Nonprofit Management offers a free guidebook, Get Ready, Get Set, with information about starting a nonprofit organization. It is available at www.cnmsocal.org/Services/p_grgs.html. Additional assistance is available in a guidebook from the Institute for Youth Development (IYD) at their website www.youthdevelopment.org for a small fee.		Receiving and maintaining your status as a nonprofit organization allows you to receive donations that are tax-deductible for the donors. It also makes you eligible to receive grant funding from both public and private sources. Establishing your status as a nonprofit organization is a critical step in preparing to seek Federal grants. Each state has its own requirements for incorporation and nonprofit designations. In some states, the Secretary of State’s office manages this process. Contact your state government to learn how to complete the process.
Other Program Eligibility Criteria: In addition to meeting the minimum nonprofit organization requirements, you must also determine if you meet the specific Federal program requirements to receive grant assistance and if your program idea qualifies for funding. For example, some programs may require applicants to have a minimum number of years of experience working with a specific population or providing a particular service. Other programs, such as the novice grantee program for Community Technology Centers at the Department of Education only accept applications from applicants who have never before received Federal funds. In some cases, programs require collaboration and partnerships among several organizations. Each Federal agency and program has its own eligibility requirements. It is a good idea to identify the agency that funds the type of work you are interested in and learn as much as possible about their programs and the types of organizations they fund. Access their website, research their programs and monitor their press releases, notices, program announcements and RFPs or RFAs.

As mentioned above, Federal, state and local agencies often offer technical assistance workshop opportunities to talk to program staff directly. They offer information about eligibility, program goals and objectives, administrative requirements and compliance. Attending a technical assistance workshop can be a critical step in preparing your organization to apply for assistance. Announcement of workshops are included in grant notices, press releases, newspaper advertisements and RFPs. If a technical assistance workshop is offered for a grant program you are interested in, attend if possible, or at least request the workshop materials so that you can review them.

These sources will provide you with information about:   who can apply (eligibility). what partners you will need if any. target populations (the group of people to be served). the amount of grants and what you might need to do to prepare to apply. if the grant program will further your mission or purpose.

If you still have questions about a program, contact the agency's program office. Federal, state and local agencies have program officers who work with potential applicants to answer questions and discuss program requirements. See the contact information listed in brochures, on websites, in program announcements and RFPs.

Assessing Your Goals and Motivations for Seeking Federal Funding
The first question you must ask is whether or not the program funding you are seeking is consistent with your organization’s mission and goals. Are you seeking funding to carry out your mission? Or are you simply motivated by the availability of the funding? In other words, are you "chasing the money"? It is very difficult to make a convincing case that an agency should fund your program if you have not had a previous commitment to the program area. Undertaking a program that is not consistent with your mission could also be harmful to your organization by distracting it from its primary work. Consider the following questions:

• Do you have an ongoing commitment to and an established track record of serving the grant program’s target population?
• Will your board of directors support a decision to apply?
• How will getting the grant impact your organization now and in the future?
• Will you be willing and able find ways to sustain the program after funding ends? Is this a long-term service commitment or a short-term effort to accomplish a specific, time-limited goal?

Discuss your interest in public funding with key stakeholders (board members, staff, clients, other organizations doing similar work, existing funders). All parties should be committed to the decision to seek funding since you will need their support for your application.

In addition to the issue of whether or not the funding is consistent with your organization’s mission, you and your stakeholders should address the following issues:

• Will accepting public funds change the character of who you are?
• How will public funds limit or expand the services you provide today?
• Does your staff have the skills, education and experience to deliver the proposed program?
• Do you have the capacity to manage a grant if you are successful in your application? (For more information, see the Managing Public Grants guidebook, part of the National Resource Center’s Intermediary Development Series.)
• Can you manage the growth that may occur as a result of the additional resources?
• Are you vulnerable to depending on public funds?
• How will your existing funders perceive the acceptance of public funds?
• Does the grant require collaboration or partners? If so, can you identify and work productively with them? (For more information, see the Establishing Partnerships guidebook, part of the National Resource Center’s Intermediary Development Series for help answering these questions.)

Assessing the Need for Services
Make sure that you have thoroughly researched the need for the program in your community. A good resource for demographic data about target populations is the U.S. Census Bureau web-site, www.census.gov. Contact state and local government departments and agencies that administer programs for your target population to help you determine whether there are unmet needs in your geographic and program area of interest. You should also contact others who are providing services similar to those you propose or who serve the same population you want to work with to learn more about service needs—building relationships with these other service providers will prove helpful as you prepare for the grant seeking process as grant programs often require partnerships.

All proposals must include an assessment of the need for the proposed program, documented and supported by statistical data. If the program you are considering is already being done locally, it may be difficult to justify your program to funders unless you can document the need for another program and distinguish your programs from others. How will it be different and more effective?

What Will Your Proposed Program Do?
Funding proposals must clearly set out the needs of the population to be served, the program goals, a means to accomplish them (program activities) and how progress or program impact (outcomes) will be measured. You must be able to logically explain what your program will do in terms of activities and outcomes. Activities are the actions will be taken. The outcomes are the changes that will take place as a result of program activities. You must understand and clearly articulate how you will evaluate/measure your program outcomes and explain how the proposed measures relate to your activities. (For more information, see the Measuring Outcomes guidebook, part of the National Resource Center’s Intermediary Development Series to learn more about defining and measuring program outcomes.)

Questions about Program Objectives/Using the Funds   Will you use funds to provide direct services? Do you need help building the capacity of your organization and/or others to serve your target population? Will you be starting a new program or expanding an existing one? Will your grant request fund a collaborative effort or a single agency?   Considering these questions will help you clarify your goals, narrow your search for assistance and determine the type of program and funding for which you will be eligible.

Federal Funding Overview | Grant Acquisition Process