5 Things You Need to Know About Capital Grants

There are so many terms and technical knowledge that surround grant funding. While this can be a challenge for so many, GrantWatch wants to help make the process simpler. This way, our subscribers have all of the information they need to make decisions, apply for grants, and give themselves the best possible chance of success.

At GrantWatch, one question we get asked a lot about is how to find capital grants or if there are any capital grants listed in our database. Capital funding is money that is awarded for the purpose of gaining capital. Some examples of capital grant usage are equipment, furniture, renovation, refurbishment, or any other needed capital investment of a facility or infrastructure.

5 Things You Need to Know About Capital Grants

1. Capital Funding should include one of the following elements:
  • Projects that address the root cause of issues and offer effective solutions to those problems.
  • Community-supported projects
  • Rural-based capital funding projects generally have issues obtaining capital from other sources.
  • Projects that address properties in areas like education, natural resources, healthcare access, and community development.
  • Projects that use energy-efficient solutions and prioritize “green technology.”
2. There are two common types of capital grants:
  • Matching Grants: When a funding source is awards a matching grant, they are essentially saying they will match up to a certain amount of funds that you raise. This amount can vary and could be 1:1 or 3:1, but it is generally up to a fixed amount. Generally, it is also within a certain time period. This could be 30 days, a year, or one week.
  • Challenge Grants: When a funder agrees to award a challenge grantת they are awarding funds based on the fundraiser overcoming a certain type of challenge. This could be: raise x amount of funds from new donors, reach a certain number of new and returning donors, etc.
3. What can capital grant funding generally be used for?

Commonly, funds are utilized for approved purchases by the funding source, which may or may not include:

  • Construction of new facilities.
  • Rehabilitation of existing properties, including various renovations for buildings that have outdated features.
  • Improving the energy efficiency of these buildings to lower costs.
  • Equipment, furnishing, and other material-related purchases.
  • The Purchasing of land.
4. Capital grant funding will almost never cover the total cost of your project –

As with most grants, these funds generally only cover some part of your project or initiative. This is why it is important to ensure to line up other forms of fundraising as well. Consider that your projected costs may not be the only expenses included, which is why it is critical to prepare.

5. This funding is open to both projects in the public and private sectors –

At first glance, it might seem like capital grant funds are available only to either the private or public sector. However, local government agencies, nonprofits, businesses, and even individuals like veterans can be eligible depending on the grant.

Top Five Capital Funding Grants

  1. There are grants available to U.S. agencies and nonprofits to remove barriers caused by transportation infrastructure.
  2. And there are grants available to climbing groups to replace falling and outdated equipment in local climbing areas.
  3. Grants of up to $50,000 to nonprofits, elected officials, and town employees for capital projects to revitalize public community spaces in rural areas.
  4. Grants of up to $1,000 to nonprofit shelters that provide housing for victims of domestic violence and their pets. Funding is for operational support or capital improvements specifically related to the maintenance and housing of pets.
  5. Finally, there are grants and loans available to USA nonprofits, agencies, and tribes to improve water infrastructure in eligible areas.

GrantNews Notes

Are you looking for more grants like the ones discussed here? GrantWatch features an entire category of grants just for Capital Funding. Check out this category to find grants that can help with operations, building improvements, and more. As with all other grants, we encourage you to read grant criteria as carefully as possible.

Also, make sure to give your organization the gift of GrantWatch this summer! Sign up to be a paid subscriber and you’ll receive access to more than 8,000 grants for nonprofits, small businesses, and individuals. This includes full eligibility criteria, contact information for grant funders, and application links.

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