Did you know that you can tap into your state and city government agencies for grants or contracts for your nonprofit organization?
Yep, you can.
First you might be interested in where your state or territory comes up with grant funding (side note: this is geared toward U.S. state and territory grants).
Where do State Grant & Contract Money Come From?
Federal Pass-Through Money
A lot of state and territory grant and contract money is derived from federal monies. This is called federal pass-through funding as it is money from the federal government awarded, “and the state governments then make subawards to other organizations to carry out the public purpose of the grant program within their state’s jurisdiction. This gives the state governments more flexibility and autonomy over the use of the federal grant funds.”
Basically this means…The federal government will award states different types of money,, and then the state is able to then fund nonprofits or other agencies grants from that money.
Taxes and Allocations
And then of course there are taxes in your state, and money that’s generated in your state. Through these allocated funds (for specific purposes) your state then awards certain monies for nonprofits, organizations, businesses, individuals, and so forth.
Grant or Contract?
Grant funding
Grant funding is given out (usually via grant competition) and then the state will create an agreement on awarding the funds to you if you spend them how you outlined in your grant budget.
They will also most likely demand a whole bunch of receipts and reports to ensure you are spending the money the way you said you would spend the money.
Contract funding
Now a contract on the other side is actually legally binding. They can take you to court if you don’t spend the money the way you said you were gonna spend the money. But at the same time, there’s a little bit more flexibility in the funding.
For reports to draw down contract money, you may just need to show the monthly or quarterly deliverables in the scope of work (not all the receipts for every penny).
If you met under budget and you still met all of your goals, you will still be awarded the money under the contract, whereas with a grant you might only be reimbursed for what you actually spent.
So there could be a little bit more flexibility and less reporting with contracts. However, you will have a legally binding contract for due diligence.
If you can get a contract, go after the contract. If you can get a grant, go after the grant. If you can go after both. Go after both.
Where to Find State Grants & Contracts
Now, where do you find this state money?
State and City Agency Websites
You can definitely find it by looking at your state agency and city agency websites. The issue with websites is that each state and city government agency may not use the same language on their website to announce their grant and contract opportunities.
Some key words to look for include: “RFP,” “Announcement,” “News,” “Grants,” and so forth.
Newspapers
Another place you can find out about state and city agency grants and contracts is in the newspaper.
I know we haven’t heard about the newspaper in a long time, but believe you me, a lot of these agencies must publish their announcements and they still use the newspapers.
Social Media
Follow the state and city agencies that might have grant or contract opportunities for your nonprofit! Some of these different agencies are now active on social media and will also publish their announcements there.
You can also see what else is going on at these agencies and find some great statistics or reports that might resonate with your nonprofit.
Reach out to a Point of Contact at State or City Agency
You can even call a state or city agency program officer and ask if they can add you to their email list (if they have one), so you can stay up-to-date with announcements.
Importance of State Grants & Contracts
And why are these types of funding important?
Well, because if your nonprofit is serving in your certain geographic area of that city agency or that state government agency, then that is a win. State and city governments primarily give out funding in their geographic area to move forward their priorities!
So don’t fall into the trap of only looking for federal or foundation grants! There is a huge money pot available for you in your city and state. Try the above ways to tap into it and let me know what you find!
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