Should Your Center Pursue Grants?

“Are there any grants available for organizations like us?”

This is by far the most common question I receive from Teen Challenge centers. Of course, the question itself contains more than simply a request for information related to available grants, but also an inquiry into whether or not there are groups that are willing to give grants to organizations (like Teen Challenge) that integrate spiritual instruction and support throughout every component of their programs. The short answer is, yes, to both inquiries. However, knowing the purpose of grants, their role in your overall funding strategy, and when to pursue such opportunities is a key to understanding whether or not grant funding is a smart and viable option for your center.

A grant is an amount of money given to an organization for a particular service or project that does not have to be repaid. In these difficult economic times, it has become an attractive resource for many non-profit organizations struggling with staggering individual or church donations. I have often heard of it called ‘free funding,’ however it is significant to note that at the very least, you will be required to perform the activities for which the funding was received, so it is in no way without its obligations.

In understanding the purpose of grants, it is important to distinguish between the two different types (or categories) of grants. There are federal grants (direct grants given to organizations from state or federal agencies such as the Department of Health and Human Services) and private grants (or those grants given from community, local, or family foundations and trusts). Federal grants are often the types of grants first thought of by most non-profit organizations. With the exception of some research and capacity-building grant opportunities, federal grants for program and projects do require that faith-based elements of programs are separated from program activities funded with federal grant funds (as these are grants funded by tax dollars). Therefore, such grant opportunities should be carefully examined before actively pursuing such funding to fully understand all expectations and obligations.

On the other hand, private grants’ guidelines and expectations are established by the foundations or trusts themselves. There are hundreds of Christian foundations and family trusts nationwide that give grants, and want to give grants, to Christian-related causes. While it is still important to review such opportunities carefully, these types of grants are typically the types of grants that Teen Challenge centers have benefited from the most. Why? Because these centers have connected with (most often times, local) donors that understand their process and the purpose of their program (including all of the faith-based elements that are incorporated within it) and desire to contribute to the center’s services or programs because of its evangelism, outreach, and/or discipleship focus.

Furthermore, it is important to know that grant funding should only be a portion of a well-defined funding strategy. Grant funding can be unpredictable, therefore it is important to plan accordingly. For example, with the difficulties in the stock market this past year, thousands of foundations lost hundreds of thousands of dollars – dollars they were anticipating would be given in grant funding. Therefore, many foundations completely stopped accepting applications or reduced the amount of grants given in 2009. In short, grant funding can be a great way to supplement operating budgets or project costs but should not become something on which your center becomes completely dependent.

Christina Ryder, MA is the CEO of The Grantwell, LLC. The Grantwell LLC provides non-profit social service groups (including faith-based, community-based, and grassroot groups) with quality and affordable grant support, grant writing, and technical assistance. Christina has assisted various Teen Challenge centers across the country with grants and grant-related efforts.

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