“Grant” covers a lot of ground, and the differences matter when you decide where to apply. Some grants pay your rent and salaries; others only fund a single project. Here are the main types, what each covers, and who gives them.
Government (federal, state, and local) grants
Public funding from agencies at the federal, state, county, or city level. Federal grants are listed on Grants.gov and often carry detailed reporting and compliance rules; state and local grants tend to be smaller and tied to a region or issue.
Foundation grants
Money from private foundations set up specifically to give money away. They publish focus areas and give to matching causes; many require a letter of inquiry before a full application.
Corporate grants
Grants from a company or its corporate foundation, usually through a giving or community-relations program. Often favor issues near the company's offices or industry, sometimes bundled with employee matching.
Community foundation grants
Grants from a public foundation that pools donations to fund needs in one geographic area. Because they focus locally, they're one of the more approachable sources for a small, place-based nonprofit.
General operating (unrestricted) grants
Flexible funding for whatever keeps the organization running — rent, salaries, utilities, insurance. The most useful money to receive and the hardest to get.
Program or project grants
Restricted funding tied to one specific program or initiative. You can only spend it on the work described in the proposal, and you'll report on how that effort performed.
Capacity-building grants
Funding to make your organization stronger over time rather than deliver a service today — staff training, technology, strategic planning, or a key hire.
Capital grants
Larger grants for physical assets and one-time investments: buying or renovating a building, major equipment, or construction. Often paid in stages tied to milestones.
Matching or challenge grants
A pledge to give only if you raise a set amount from other sources, often dollar-for-dollar. Used to motivate other donors, since a matched gift feels like it goes further.
In-kind grants
Support given as goods or services instead of cash — donated software, office space, or professional services. It doesn't hit your bank account, but it lowers costs.