What Are the Pros and Cons of Applying For Grants

There are many amazing benefits to being awarded a grant. But there can be some drawbacks as well. You may be wondering what are the pros and cons of applying for grants. Now of course, there are many positives to receiving grants. In addition, with a grant listing service like GrantWatch, you can find a wide range of grant funding opportunities to choose from, including grants for individuals, businesses and nonprofits.

Below, we have listed some pros and cons to help you decide whether or not to consider applying for grants:

3 Pros of Applying for Grants

1. Grants are free. Unlike a loan, grants are a sources of free money and they do not need to be repaid. 
2. Likely to win more. Once you’ve been awarded a grant, other funders are likely to take notice of your success. That could make it easier for your organization to be awarded grants in the future.
3. Build credibility. Being awarded a grant can give your organization increased credibility. Private donors and corporate sponsors may take notice when they see that the government or a prominent foundation found your organization worthy of a grant.  

3 Cons of Applying for Grants

1. Strings attached. Many of the grants out there are very specific. In order to get awarded a grant, you must abide by the funder’s requirements. If your business or nonprofit is struggling, it can be tempting to use the funds for other purposes. Violating the funder’s requirements would likely invalidate the grant funding. You would then be required to return the grant funds to the funder. You may even be held criminally liable.
2. Complex reporting. Your organization will need to keep an accurate accounting of how the grant funds were spent and provide this information to the funder according to its reporting requirements. Account inaccuracies may jeopardize your chances of receiving future grant funding.
3. Waiting time. Grants do take time. It can take weeks or even months to find out if you win, let alone when it is you will actually receive the funding. Not only does submitting a grant application not guarantee you will be awarded the grant, you may not even hear back from a potential funder altogether.

Now that you know some of the pros and cons of applying for grants, you can decide for yourself whether applying for grants is right for you!

Looking for grants? With close to 8,000 grants currently available, GrantWatch.com is the leading grant listing directory for nonprofits and businesses. Upgrade to a MemberPlus+ subscription to view the full details, including eligibility criteria and application information.  For more information, you can also visit the GrantWatch FAQ page.