What Are the Types of Grants for Nonprofits?

Jon Tyrell

Jon Tyrell

In the world of grants, there are various options available. Oftentimes, it can be overwhelming when seeking the right types of grants for your organization. Hence, in this article, we will highlight the various grant options available for nonprofits and their many benefits.


Types of grants
Types of grants


  • Nonprofits can receive grant extensions if they build a good relationship with the funder
  • Submitting a high-quality grant proposal can help you win a competitive grant.

Types of Grants for Nonprofits

We will delve into the various types of grants for nonprofits as well as the benefits that accompany each option.

1. Competitive Grants

Competitive grants require a nonprofit to submit a proposal. Afterward, a panel of reviewers will assess and evaluate each request, before choosing the best one that meets the requirements for financing.

For the majority of highly competitive government grants, the proposals with the highest scores are chosen. Each proposal gets a score based on a set of criteria.

2. Continuation Grant 

A nonprofit may extend the original grant it has been given thanks to continuation funding. By and large, the growth of the nonprofit’s relationship with the funder is frequently able to promote these funding prospects. This can be achieved in several ways, including constant communication, striving to achieve the grant’s results, and fulfilling all reporting dates. However, not all funders give continuation funds. Some rules will explicitly declare that it is a one-time funding. 

3. Pass-through Grants 

Federal funds allocated to state or local governments are pass-through grants and can be utilized for a variety of objectives. Applicants may apply to states or municipalities for federal assistance to assist with local impact.

4. Formula Grant 

Formula grants are non-competitive and award funds given to groups that meet certain requirements. This ensures that all candidates who match the needs will obtain the grant. However, the amount will depend on certain performance standards. For instance, states may allot funds to organizations for a certain activity. The sum given to a particular organization may depend on the number of people it serves or the population area in which it is located.


Once you’ve decided which category of nonprofit grant you want to apply for, you can discuss with your board and staff about your decision. Also, ensure you build a strong application that details why you should be given the grant and how you intend to utilize the funds.

We would love to know if this article was helpful to you. Please share your comments and suggestions with us at the bottom of the post.

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