Grants are defined as a form of funding that does not require repaying the grant proceeds. They may come from many sources, including individuals, businesses, government, and international organizations. They typically may be classified into three categories: unrestricted, restricted, and in-kind. All three types of programs are great choices if you are looking for grants for non profit organizations.
The great deal about unrestricted grants is that they may be used for any purpose. They help to fund the existence of a nonprofit organization in general, as well as to accomplish specific goals. While it is crucial by a definition of a nonprofit organization to use all proceeds to accomplish the organization’s mission, such grants may be used for everyday expenses, such as payroll, office rental, supplies, and any others.
The major factor that distinguishes restricted grants from other kinds of grants for nonprofits is that they must be spent exactly according to grant proposal. This money may not be used for any other purpose besides the stated financing need. Restricted grants are great for financing specific programs and events.
An in-kind grant is a form of grant for nonprofits that does not involve monetary funding. Instead of money, a nonprofit organization receives free products and services, such as equipment, tools, literature, computer software, and so forth. Even with no money involved, such grants are of great help to nonprofits as they allow them to receive something of value free of charge. In-kind grants may go directly to people that receive help from a nonprofit organization, for example: a vaccine for children in Africa, or clothing for low-income families.