Government Funding: Federal/National

A federal/national government grant is a financial award funded by tax dollars. These grants include stringent compliance and reporting requirements to ensure the money is well spent.

Before you apply for a federal or national government grant, it might be wise to apply to a number of private grantmakers. Even if your requests are declined, the experience of preparing a proposal to a private grantmaker will make applying for a federal or national government award considerably easier.

Private funders often like to know what government funding opportunities are available for your organization, so it’s smart to explore potential government programs prior to applying to other sources. Find out what government funding might be available, then document why you have not applied, or if you have applied, when you will learn if your organization has been funded.

Consider applying to multiple agencies. For example, if you now receive funding from the Department of Education, you may want to consider also applying for science and technology funding from the National Science Foundation. Diversity within government funding is a smart move!

Consider applying for federal funding, but try to keep your initial requests fairly low (below $100,000) until your organization is comfortable with both the application and reporting processes.

Smaller organizations with budgets under $100,000 are at a competitive disadvantage when compared to larger nonprofit organizations when attempting to secure government support. Consider collaborating with other organizations in order to broaden the project impact and demonstrate a stronger case for support.

Federal and national government proposals take a long time to prepare (often up to 200 hours), and there is a substantial lag time between when you apply, when the award is approved, and when you receive the funding. Carefully think through and incorporate a projected timeline into your planning.

Awards of federal or national government grants or contracts indicate to other funders that your organization has attained a certain level of credibility. Always note government awards when you submit applications to other funders.

When considering applying for federal or national government support it is important to be ahead of the game. This means you need to have a fair amount of the planning completed, partners in place, and a draft budget before the RFP is announced.  If you do not have these pieces in place, you may not have enough time to prepare a competitive request.

Consider using donations of products and services as a match for government support. In the State of Grantseeking Report, many respondents indicate using in-kind gifts toward the required match in a U.S. Federal award.

If your organization is based in the U.S., go to GrantStation’s U.S. Federal section. If your organization is based in Canada, go to the Canadian Government section and review the page for national opportunities.

Make a schedule to stay organized. Break the application down by section and organize mini-deadlines for each part. This way, the submission deadline won’t sneak up on you.

Plan to submit well before the deadline to leave room for any unexpected problems. Keep in mind that a government agency can ask you for clarification if you submit before the deadline. However, once the deadline has passed, requests for additional information are no longer possible.

Keep in mind that the competition for government funds is fierce. A U.S. study released in early 2020 indicated that on average, about 200 proposals out of 2,700 applications get funded at the federal level. That doesn’t mean you shouldn’t try! But it does mean that your proposal needs to be strong and show a definite and measurable impact.

Submitting applications to government agencies can be a complicated and time-consuming process. Before you apply, make sure you have the staff and volunteer capacity to effectively manage government support and have your accounts set up so you can easily comply with government regulations and requirements.

If you are awarded federal funds of up to $750,000 per year, your organization is obligated to comply with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, more commonly known as the “Uniform Guidance.” Review these guidelines to determine how you need to handle the accounting and reporting requirements.

If you are awarded federal funds in excess of $750,000 per year, you are required to undergo a single audit. Now may be the time to adjust your accounting so you can apply for larger awards.

Government agencies typically do not provide the money in advance. They reimburse you after the money has been spent. If you do apply for government funding, it is helpful to develop a relationship with your regional bank or an organization such as the Nonprofit Finance Fund, as they can help you bridge that financial gap.

Every time you receive a grant award from a federal or national government agency, be sure to study the agency’s rules and regulations regarding grants. If you are in the U.S., also review the Office of Management and Budget Circulars that specify the administrative rules regarding grants.

Government grants come with more red tape than foundation or corporate support. Your top executive officer or board chairperson will need to sign and return award documents. Be sure to return paperwork by the required deadline.

A grant award from the government increases your organization's capacity to serve the community and shows that funders are willing to invest in your work. Let the public know when you have received an award, highlight your organization's commitment to the cause, and publicly thank your funder for the support. It's a good investment in community relations, and funder relations, and may even help build future support for what you're doing.

Receiving a government award often includes free technical assistance to help you deliver services or improve your technology. Consider taking advantage of this additional help, as it will strengthen your program, endear you to the agency, and make the reporting process easier.

As a government grantee, you may be introduced to other funding agencies or private funders that can help you build or sustain your work. Try to cultivate these new contacts, as they may become future supporters of your work.