Finding Hidden Grant Opportunities in Small Foundation Grants

It’s easy to get caught up in the chase of your “white whale” grants. Think the huge six-figure awards, with high publicity attached. But these potential big ones will come with equally sizable competition and expectations. Sometimes, chasing those “white whales” is what can sink a nonprofit.

There are many more grant opportunities out there than you may realize, if you’re willing to explore. Here, we'll explain why smaller funding opportunities can be the real catch for your grant programs.

What Counts as a Small Foundation Grant?

Small foundation grants refer to grants from funding sources with relatively modest asset bases. This could include fundraising sources such as private foundations or family foundations, as well as independent donors. There’s not an exact value for what counts as a “small foundation grant”. Roughly, any grant application that nets you under $25,000 could be considered a small foundation grant. Some are even worth just a few hundred.

These grants are generally less visible than others, and may not be widely advertised. On the flipside, they often have a simpler application process, as they are usually managed by less staff. Generally, they’ll have a local or niche focus to them.

Why Small Foundation Grants Are Worth Your Time

Small Foundation Grants are of particular interest to nonprofit organizations for a few reasons. Here’s the quick breakdown.

• Less Competition: Small Foundation Grants have less competition compared to things like larger federal government grants , or grants from other large donors. This gives even small nonprofits to find success with their grant writing.
• Faster Decision Times: These kinds of grants are often overseen by relatively small teams or boards, and they can respond more quickly to your grant applications. This lets you avoid wasting time trying to find funding.
• Relationship Building: Organizations that give smaller grants are often more candid and open with their needs. Building relationships that last with these organizations is easier than with large, more impersonal government agencies.
• Leveling Up: If your nonprofit organization is very new, these sorts of small grants can give you a good early track record, improving your chances of success. While not all small foundation grants are “automatic wins”, they often will have much less stringent eligibility criteria.
• Flexible Funding: Some small foundations offer more flexible options in their grant funding. This could include, for example, general operating support, instead of more restricting project funding. These are all good ways to easily improve the sustainability of your nonprofit in its early days.

Where to Find Small Foundation Grants

So lets say that you think that small foundation grants are a good fit for your funding priorities and growth initiatives. Now, you’ll need to actually go find some small foundation grants. This process might be a bit different than your usual grant-seeking process - the following are some places to start.

• Local Community Foundations: Local community foundations serve specific towns, cities or regions. Generally, these kinds of foundations will run small grant cycles that are appropriate for grant proposals from grassroots or new nonprofits. These sort of local foundations are generally quite approachable, and might even offer capacity-building support for local initiatives.
• Regional Grantmaker Associations: Similar to a local community foundation, a Regional Grantmaker association is geography specific. Instead of providing grants directly, they’ll support and connect funders within a specific state or multi-state region. Many will publish member directories, which you can use to find smaller or more niche potential funders.
• Family Foundations: Family foundations are private foundations operated by individuals and families. Some family foundations are quite famous, like the Gates Foundation. But there are also many that are small and rather under-the-radar. You can find many such organizations right here on GrantStation. If you can build a close relationship with such a foundation, you can have a steady supply of new grant opportunities.
• IRS Form 990 Searches: Fun fact - all private foundations are legally required to file a Form 990-PF, which discloses the nonprofits they support, the amount given, and other helpful data. You can use this to “reverse-engineer” a funder’s interests, seeing who they’ve supported and how often.
• Word of Mouth and Networking: Sometimes your best grant leads will end up coming from informal sources - board members, partner organizations, volunteers, LinkedIn connections, industry connections or community leaders that you work with. These personal connections can open doors that no online database can.
• GrantStation: Remember that GrantStation allows users to filter funders by asset size, typical grant amounts, or geographic scope. This helps you quickly locate funders who match your nonprofit’s scale.

How to Approach Small Foundations

Dealing with nonprofit grant proposals with small foundations may be a very different experience than interactions with larger sponsorship providers. There are a few things your grant writers should keep in mind before preparing the grant proposal.

• Do Your Homework: Just as with any donor, take the time to research giving history, mission alignment, and eligibility. There may be less information available, so don’t be afraid to reach out for more - see the next tip! Use grant databases like GrantStation to learn what you can.
• Personalize Outreach: With small foundations, you have the chance to be more personalized in your outreach. Emails, social media connections or phone calls before are more acceptable, and a good way to start a relationship.
• Tailor Your Proposal: Small foundations will really appreciate customized applications, not generic ones. Don’t treat the proposal like sending out a massive amount of federal grants, as an example.
• Highlight Local Impact: Smaller funders often deal in local areas - try to hone in on how you can make the largest impact on their local area.
• Respect Informal Processes: Some may have informal or rolling deadlines—be flexible and professional.

Build a Long Term Relationship

Getting these small grants can be a great way to get your nonprofit’s operations rolling. But Small Foundation Grants can be so much more than that. They’re a way to build lasting relationships within a charitable niche or local area. It’s worth it to turn these into long-term relationships. Make sure to send sincere thank-you notes and updates, even for small grants. Don’t take even these small wins for granted. Stay in touch, invite funders to visit your programs, and always be ready to show how small investments made a big difference.