So, you’ve done your grant research and found an exciting funding opportunity…now what?
You might be eager to get started with the application process right away. Before you do, don’t miss this very important next step — determining grant eligibility.
Why is this so important? It’s very common for nonprofits to spend hours on a grant application, only to realize their organization or program doesn’t meet the eligibility requirements. If you take a few moments for due diligence now, you’ll thank yourself later!
So, how do you determine if a grant is a good fit for your nonprofit?
Read the grant guidelines, then read them again!
The best and fastest way to learn if you are eligible to apply is by reading through the grant guidelines. Each grantor has a specific set of rules for their funding opportunity. These rules outline eligibility criteria for organizations, projects and expenses. Each grant is unique; however, here are some commonalities that grantors look for:
Organization eligibility
Location: Most grantors have location requirements. Some are broad allowing for national applicants, while others are restricted to provincial or local organizations.
Organization type: Many grantors will only fund organizations that hold registered charitable status. Others will fund municipalities, schools, or Indigenous Nations. Occasionally, grantors will open up applications to nonprofits without charitable status.
Operating budget: Some grantors only provide funding to grassroots charities under a certain operating budget, others prefer to grant to larger, more established charities. It’s also common for grantors to decline organizations based on financial instability, or an unexplained deficit or surplus in their financial statements.
Equity, Diversity & Inclusion: It's common for grantors to ask for your EDI policies and procedures. Some grantors will only fund organizations led by the populations they serve. For example, an organization serving BIPOC communities must be BIPOC-led.
Program/service eligibility
Focus area: Some grantors have broad focus areas such as “providing support to underserved community members”, others have niche focus area such as “supporting Indigenous communities with access to clean, drinkable water”. Your program should strategically align with the funder’s goals and focus area.
Program history: Some grantors want to fund new and innovative programs, while others want to fund programs that are more established with demonstratable impact over several years.
Program length: Some grantors will fund programs that are ongoing and sustainable, others will fund one-time events or projects.
Priority populations: Look for words such as “priority”, this is a hint that the funder will prioritize your application if you focus on a specific community (seniors, youth, women, BIPOC, LGBTQIA+ etc.)
Ineligible programs: Some common ineligible programs include: programs that are restricted to membership, religious activities, fundraising activities, lobbying etc. This will vary greatly based on the funder.
Budget eligibility
Administration: Unfortunately, many grantors still have restrictions on how much of your program budget can be designated towards administrative activities. The standard is typically about 10% - 15%, but this will vary between funders. They may also have varied definitions of what activities are considered administrative, so make sure to read this section in the grant guidelines before submitting your budget.
Common ineligible funds: Common ineligible funds include expenses such as bursary/scholarship programs, capital costs, substances such as liquor, governance related expenditures, administrative fees, contractor fees etc.
Not sure what to do next?
We can help! Schedule a free 30-minute consultation call with us, we’re happy to help you with grant research, grant writing, and grant management.
Contact the grantor: If the funder has an email address or phone number, be sure to contact them and ask questions. This is also a great way to start building a relationship and improve your chances of being funded!
Attend an information session: Many grantors have free information sessions that walk grantees through the eligibility requirements and the application process, be sure to attend or watch the recording.
PS, have you downloaded our free grant calendar yet? Grab it here!