The one category where the money is genuinely there
Most of the guides on this site spend their opening paragraphs explaining that a category is smaller
than it looks. This one is the exception.
Federal grant programs name nonprofits as eligible applicants across an enormous range of
fields. Private foundations fund 501(c)(3) organizations almost exclusively. State, county and city
agencies both grant to and contract with nonprofits routinely. Where a small business searching for
grants is mostly finding out it does not qualify, a nonprofit’s problem is the opposite: too many
plausible options and not enough capacity to pursue them.
So the constraint here is research and capacity, not eligibility. Which changes what good advice
looks like.
Read the filings, not the websites
The highest-leverage habit in nonprofit fundraising is reading 990 filings.
Every private foundation files one, and it lists the grants actually made — recipient, amount, often
purpose. That is evidence. A foundation’s website states priorities, which are aspirational and
frequently out of date.
The gap between the two is routinely large. A foundation whose site describes broad national
interests may turn out to have given almost entirely within one county, at a consistent $25,000, to
organizations with budgets under $2 million. That tells you whether to approach it, what to ask for,
and whether you are the right size — none of which the website would have told you.
ProPublica’s Nonprofit Explorer makes this free. It is a better prospect research tool than most
paid databases, and it is the reason paying for a grant list is rarely necessary.
Claim your overhead
The 2024 Uniform Guidance revision raised the de minimis indirect cost rate from 10% to 15% of
modified total direct costs. No negotiation, no justification, no rate agreement required.
A great many nonprofits are still budgeting at 10%, or at zero, out of a sector culture that treats
overhead as something shameful. It is not. Rent, accounting, insurance and administration are real
costs of delivering the program, and an organization that systematically declines to recover them is
funding the government’s work from its own reserves.
Claim the 15%. It is the single easiest budget improvement available.
The routes nonprofits under-use
Pass-through funding. A large share of federal money reaches small nonprofits as subawards
through state agencies or larger intermediaries. Competing for a state subaward against a handful of
local organizations is a much better proposition than competing nationally against everyone.
Government contracts. Nonprofits deliver public services under contract constantly, and that
revenue is often larger and more stable than grants. It is a purchasing relationship, not a
competition for support — and it uses the same SAM.gov registration.
Who this guide is not for
Organizations without 501(c)(3) status or a fiscal sponsor. Most private foundations require it.
Fiscal sponsorship is a legitimate, well-established route while you build.
Small organizations chasing large federal awards. Federal compliance is real work — financial
reporting, procurement standards, and a Single Audit past $1 million in annual federal expenditure.
An award you cannot administer is a liability. Start with foundation and pass-through funding and
grow the back office alongside.
Anyone hoping to skip the research. There is no list that substitutes for reading filings and
NOFOs. That is the work, and it is the part that compounds.