Philanthropic organizations help communities and individuals by carefully investing money in programs and donation efforts that will solve current problems or prevent social issues from developing. These organizations use a number of different methods to achieve their goals, but all need money to get started and continue operating. Grants are one major funding source for philanthropic organizations.
Types
Philanthropy startup grants can take several different forms. Some grants are available to any organization that works to solve a particular problem or address a specific social need, such as organizations that focus on community housing issues or education. Other grants are more general, allowing applicant organizations to make cases for the needs of their communities, whatever they may be.
Sources
The two major sources for philanthropy startup grants are government agencies and private businesses. Government, including state, local and federal agencies, all devote resources to grants. In many cases, specific departments offer grants to philanthropic startups that seek to address the same issues that the department is responsible for. For example, the National Endowment for the Arts makes grants available to help fund artists, furthering the agency's mission to bring art to the public. Businesses often offer grants in line with their interests or field. For example, a manufacturing business may invest in workforce development grants for philanthropy startups that want to establish job training centers in a community where the company has a factory.
Process
The grant application process for a philanthropy startup is not the first step in becoming established. Most grant-giving organizations will only accept applications from philanthropy groups that already have nonprofit status, a name, a board of directors and a mission statement. However, without money, these groups may still be in the startup or planning phase. Philanthropy startup grant applications will ask for basic information about the organization's mission, including its plans for the money, as well as the histories of its directors and their experience in philanthropy.
Outcome
Unlike loans, grants never need repayment, which is one of the elements that makes them so appealing to philanthropy startups that plan to give away a portion of the money they take in as part of their operations. However, philanthropy startup grants may be one-time funding sources that aren't available once a philanthropic organization is well established. Other grants will become available, especially as an organization builds a history of effective work in the community, but endowments, investments and other sources of funding are likely to be necessary to keep a philanthropic group running.
