You may be considering registering your business as a nonprofit. A nonprofit’s income is different from that of a for-profit business, which generates its revenue to benefit the private interests of the business or its shareholders. A nonprofit, on the other hand, does not exist to make money, and rather their goal is to make an impact.
Nonprofits rely heavily on these key contributions:
- Grants (monetary grants and/or in-kind grants)
- Selling Products or Services (charity gala tickets, or girl scout cookies, for example)
There are quite a few steps to registering a nonprofit, from appointing board members, obtaining an EIN number, filing articles of incorporation, applying for tax-exempt status, and setting up a DUNS number if you wish to apply for federal grants.
When searching for grants, you may regularly come across certain keywords and funding terms, such as an LOI (letter of intent) or RFP (request for proposal). It is best to familiarize yourself with the nonprofit glossary of terminology, so you can accurately distinguish what may be fundamental.
The 4 Grants Funders You Should Know, include:
Each grant has a different application process, regardless of the grant funder. Some applications are simple and designed to be completed without the need for a grant writer. Typically, however, larger grants require a more extensive application process. We recommend hiring a grant writer if you are not comfortable completing the grant application process yourself. You can also view our sample grant document collection, including grant proposals, business plans, and other documents you may need when preparing a proposal to submit funders.
Before applying for grants, we recommend reviewing our grant application toolkit. Your organization may also wish to join your local state nonprofit association, for additional resources and networking services.