Have you ever wondered what the difference is between the types of funding? And which grantmakers are best to approach for your nonprofit? When starting out in researching potential grantmakers and grant opportunities, it can be confusing and overwhelming.
There are 2 central types of funding.
- Private Funding – nongovernmental, nonprofit organizations focused on grantmaking and providing funds to charitable activities and are supported by one or a small group of sources generally.
Some types of private funding are:
- Community Foundations
- Independent Foundations
- Corporate Giving – This includes corporate foundations and corporate giving programs.
Foundations focus on equipping nonprofits to carry out particular programs. When researching foundations, it is wise to focus on the four main areas of geographic scope, subject area, funding cycle, and type of funding/amount of funding.
- Public Funding – public organizations that make grants to other organizations and are supported by many different sources such as private foundations, individuals, government agencies, and fees for service.
This is generally any type of government funding – federal, state, or local levels of government. Public Funding focuses on:
- health
- education
- social services
- environment
- cultural programs
- humanities
If your nonprofit works in one of those areas, government funding would be a good place to look. Just be aware government funding tends to fluctuate year to year whereas foundations and corporations tend to be more similar.
Knowing the differences the types of funding can help you make the best decisions for your nonprofit.
For more information, read The Council of Foundations information on Foundation Basics.
Which type of funding does your nonprofit generally go after?
