Do You Know the 5 Types of Grant Funding Sources?

May 24, 2024May 24, 2024 Nikita 2263 Views

When discussing grants, it is important to consider the various types of funding sources that provide them. While the government is a commonly known funding source, it actually accounts for less than 30% of all grants. This leaves 70% to be covered by other sources. What’s more, funding sources differ in how they distribute grants, and some are more suitable for individuals, while others are better suited for nonprofits or businesses.

Understanding the different types of funding sources will help you target specific grants that align with your organization’s needs. In response, GrantWatch provides information to identify the five main types of grant funding sources. In fact, we are so dedicated to our subscribers that we have a whole Category dedicated to Grant By Type. Inside you’ll find 8 options to choose from. Let’s start with the 5 types of grants first, which are as follows:

1. Foundation Grants

Private and public foundations and charities create these grant opportunities.
There are thousands of foundation grants available. However, most aren’t publicly available.
Each grant will have various requirements and are available to nonprofits, businesses and individuals.

2. Corporate Grants

Many corporations make grant funds available to meet a wide range of needs.
These can be available to nonprofits, businesses and individuals.
In most cases, corporations also tend to set aside money at the beginning of the fiscal year and host competitions to distribute funds.

3. Federal Government Grants

Federal grants draw from U.S. federal tax revenue and budget allocations.
They do not offer “free money” to individuals or businesses, only loans and social welfare benefits.
In addition, the federal government only gives grants to states and organizations to stimulate the national economy.

4. State Government Grants

In fact, these recipients generally include nonprofit organizations, schools, municipalities and research labs.
Usually, these grants are only for organizations working with government-funded programs and projects.
Also, by the nature of their limited scope, state government grants are smaller than federal grants.

5. Local City Government Grants

City governments and municipalities create these grants.
The grants are intended to directly stimulate the community around them.
Typically, these grants are also available to nonprofits, businesses and individuals.

As promised, in addition to the 5 different types of grants, GrantWatch offers 3 more options to streamline your search potential. They are as follows:

All Grants

View all current grant applications. This selection casts a wide net for grant funding sources.
In this section you’ll find nonprofit grants, for-profit grants, small business grants, and individual grants.
Even more grants are available with federal, state, foundation, corporate giving, and local grants.

New Grants

We update and archive the grants in our database daily.
Grants for nonprofits, municipalities, small businesses and individuals are available.
The list of grants on this page only seven days old. After a week they join the other grants.

Upcoming Grants

Our newest feature, this is a curated list of upcoming funding opportunities.
Note that the dates provided for any funding opportunity labeled “Upcoming” are tentative and subject to change.
They serve as an invaluable resource to prepare your organization or yourself for the upcoming grant application cycle.

The Bottom Line

In conclusion, having a clear understanding of the different types of grant funding sources is essential when searching for grants that best fit your organization’s needs. It is also important to consider the eligibility requirements and target audience of each funding source to avoid wasting time on grants that may not be applicable to your situation. For instance, if you are an individual or a small business, it may be more beneficial to focus your efforts on grants specifically tailored for individuals or small businesses, rather than federal grants which often have different criteria and priorities. By targeting the right grants, you can increase your chances of securing funding that aligns with your organization’s goals and objectives. And the three extra features we’ve added to our Grants By Type serve to deepen your experience and propel you toward grant funding success!

About GrantWatch

With close to 8,000 grants currently available, GrantWatch.com is the leading grant listing directory. Upgrade to a MemberPlus+ subscription to view the full grant details, including eligibility criteria and application information. For more information, you can also visit the GrantWatch FAQ page. To see the great value of all 20 of the top GrantWatch features, click here. See the latest episode of GrantTalk, powered by GrantWatch, with host Libby Hikind. You don’t want to miss this. Visit us on YouTube weekly. Get your copy of The Queen of Grants: From Teacher to Grant Writer to CEO, by Libby Hikind.

Please Note: There is no guarantee of grant awards as a result of this information.