Generally, grants can be used for any purpose as detailed in a profit and loss statement for a business or non-profit. Some care is to be taken however as some grants allow for major capital expenditures like buildings, while other grants do not, however, grants are usually quite specific about use restrictions.
The following are five of the most common uses of grant funds:
- “Program and Project Development”: used to develop new programs or projects that align with your organization’s mission and goals. This could include research and development, product development, community outreach initiatives, and new market development.
- “Capacity Building”: used to strengthen your organization’s infrastructure and capacity, including hiring staff, purchasing equipment, facility improvements, and upgrading communications technology. Can also be used to move to a larger facility.
- “Marketing and Communications”: used to develop marketing and communication strategies to promote your organization and its work. This could include creating social media campaigns, producing videos, developing a website, and attending trade shows.
- “Training and Professional Development”: used to provide training and professional development opportunities for staff and volunteers. This could include attending conferences, trade shows, workshops, taking online courses, or working with consultants to improve specific skills.
- “Capital Projects and Facility Improvements”: used to support capital projects like purchasing a new facility, facility improvements, signage, lighting, landscaping, and equipment upgrades. Grants that allow capital expenditures nearly always specify this use of funds, and will often specify if this is not an acceptable use of funds for construction or acquisition of a new property.
Consideration of grant fund usage is optimized when incorporated into a mid range to long term growth plan for a business or non-profit entity. Decisions of this scope, impact, and importance should be undertaken only after detailing, review, and board or partner approval.
Finally, all grant expenditures require reporting, with an eye to include the impact of the grant usage. The reporting is highly optimized when recurring communication links are established between the grantor and the grantee. This opens the door for future grants from the same grantor, and ensures alignment of missions between the grantor and grantee.
So, what is your story? We’d love to hear it. Please visit our website at grantsforyou.org.
Warm Regards,
Neil Reid