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New Nonprofit Organizations

There are many challenges in starting a new or trying to grow a small nonprofit with mostly volunteer staff members and no cash flow. The most difficult challenge is raising money to support the overall organization including daily operations and programs or services.

We receive many inquiries asking for our assistance to seek grants for start-up costs. Some think they can win grants of $250,000 to several million in start-up funds when their new nonprofit organization has $50,000 or less in annual income.

Grantmakers will not invest in an organization that does not have income streams above the amount they are requesting to replace the grant funds once they expire. This is true for all types of grantmakers including different levels of government, foundations, and corporations.

Plus, many more grantmakers will not accept grant proposals from new nonprofit organizations that have operated for less than three years, the period that the Internal Revenue Service (IRS) considers probation for new tax-exempt charities.

Unfortunately, you cannot use grants to start your nonprofit. Yes, there are those that will tell you there is all this free money through grants for just this purpose.  We want you to understand the truth: these types of grants do not exist.

Other points to consider for new or extremely small nonprofits:

  • You cannot secure grants while your nonprofit status is pending. Even though you filed your paperwork with the IRS to receive a designation as an Internal Revenue Code (IRC) 501(c)(3) tax-exempt charity, no grantmaker will provide you with a grant to operate your programs based on speculation. The only way you could secure a grant at this early stage is to work with a fiduciary agent such as another nonprofit with an established track record.
  • With new nonprofits, the annual income for start-up costs must be derived from sources other than grants. As stated earlier, grants are not the source for start-up costs for your organization. You must understand the nature of fundraising and learn how to solicit individuals, encourage all of your board members to make annual financial contributions, and secure corporate sponsors. Take a course or two from the nonprofit service organization within your state or at a local university that offers a certificate program in fundraising. Go to the library or online and obtain books on fundraising. Whatever you do, learn what it takes to raise money annually to support your organization. Please see our Resources and Workshops pages for a listing of books and classes.
  • Grants for general operating support are very rare. Since the early 2000s, there has been a shift in the way grantmakers want to support organizations. Nearly all want to provide grants to well-established organizations for new programs and one-time only projects including capital items such as buildings, renovations, and equipment purchases. Others only want to fund programs that have a direct impact on the target population that you serve and satisfies their mission. Only until you have an established relationship with a grantmaker that supported your past program efforts will you be able to possibly secure an annual grant to assist with your general operating support costs.
  • Continuation grants are even rarer. Foundation and corporate grantmakers no longer guarantee grant awards from year-to-year. In fact, many blatantly state that if your organization does not meet the outcomes outlined in your proposal, your program personnel do not file their reports on time, or the funds allocated through the grant were incorrectly spent, they have the right to revoke any future funding to your organization. Bottom line: you cannot rely on grants to be a perpetual source of income for your organization.

2022 Training Calendar

Mar
22
Wed
10:00 am Understanding and Competing for ... @ Webinar
Understanding and Competing for ... @ Webinar
Mar 22 @ 10:00 am – 12:00 pm
Understanding and Competing for Federal Grants @ Webinar | Vernon | Connecticut | United States
More than $5.8 trillion in federal grants were awarded in 2021. The bulk of the funds went to programs that help communities and the people that live in them including health and human services, education,[...]
Apr
26
Wed
9:00 am Grants from Foundations & Corpor... @ Webinar
Grants from Foundations & Corpor... @ Webinar
Apr 26 @ 9:00 am – 11:00 am
Grants from Foundations & Corporations: Workshop #3 of the AFP Connecticut Chapter’s Principles of Fundraising Series @ Webinar | New Haven | Connecticut | United States
The Association of Fundraising Professionals (AFP) Connecticut Chapter is proud to announce: Spring 2023 Principles of Fundraising Certificate Program Nonprofit organizations often seek grant support for their new or existing programs, capital campaigns, capacity-building efforts,[...]
May
17
Wed
10:00 am Introduction to Grant Writing @ Webinar
Introduction to Grant Writing @ Webinar
May 17 @ 10:00 am – 12:00 pm
Introduction to Grant Writing @ Webinar | Great Barrington | Massachusetts | United States
From developing the proposal idea to completing the details of the budget, this workshop provides an outline to use to prepare clear, concise, comprehensive, and competitive proposals. Participants will learn to develop measurable project goals,[...]
Jun
6
Tue
10:00 am Advanced Grant Proposal Writing @ Webinar
Advanced Grant Proposal Writing @ Webinar
Jun 6 @ 10:00 am – 12:00 pm
Advanced Grant Proposal Writing @ Webinar | Boston | Massachusetts | United States
Nonprofit organizations often seek grant support but fall short in receiving an award. Competition for grants continues to grow as government funding dwindles. Learn how to present your case for support no matter the type[...]
Sep
27
Wed
9:00 am Grants from Foundations & Corpor... @ Webinar
Grants from Foundations & Corpor... @ Webinar
Sep 27 @ 9:00 am – 11:00 am
Grants from Foundations & Corporations: Workshop #3 of the AFP Connecticut Chapter’s Principles of Fundraising Series @ Webinar | New Haven | Connecticut | United States
The Association of Fundraising Professionals (AFP) Connecticut Chapter is proud to announce: Fall 2023 Principles of Fundraising Certificate Program Nonprofit organizations often seek grant support for their new or existing programs, capital campaigns, capacity-building efforts,[...]
View Calendar

News from The Write Source

Philanthropy Massachusetts, the voice for philanthropic giving in the state, invited Diane Gedeon-Martin, President of The Write Source, to be among a select committee of 15 that will update and revise the Massachusetts common grant application and report forms.

We are proud to welcome our 300th client, the Berkshire Regional Planning Commission.

Recent Grant Successes

The Center for Civic Education (CA) won a three-year, $11.0 million grant from the Supporting Effective Educator Development (SEED) program of the U.S. Department of Education to provide civic education for under-resourced students in upper elementary and middle schools across the country.

mHUB (IL) received a $350,000 grant from the We Rise Together program at the Chicago Community Trust to support its new Catalyze Initiative to reduce structural barriers to entrepreneurship and innovation in manufacturing for women, Black, Indigenous, and People of Color.

mHUB (IL) is one of 60 finalists of the $1.0 billion Build Back Better Regional Challenge from the Economic Development Administration (EDA), U.S. Department of Commerce. Their proposal for the 2025 Clean Tech Economy Coalition (CTEC) received a $500,000 Phase 1 grant.

MATTER (IL) received a $1.3 million, three-year Venture Capital grant from EDA, U.S. Department of Commerce to scale their Venture Acceleration (VA) program.

The Massachusetts Coalition for the Homeless received a $115,889, one-year grant from the Massachusetts Department of Public Health to scale its technology and create policies to serve 100 patients at three, high-need federally qualified health centers operated by the Community Care Cooperative.

The United Way of Connecticut received the only $1.83 million, three-year contract from the State of Connecticut, Department of Mental Health and Addiction Services (DMHAS) to develop the Statewide Adult Recovery Call Center for Crises.

Be sure to visit our Winning Grant Awards page for more information about these and other awards our clients received.

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