It’s not always easy for grantseekers to understand how foundations operate, or how to access them. Grant guidelines are a valuable tool to communicate your interests and strategies, clarify what you fund, and explain how to apply. The clearer your guidelines, the more likely you’ll receive proposals that align with your goals.
Clear guidelines also save time. They reduce the number of ineligible or off-target applications and provide a consistent framework for evaluating those that do fit. Likewise, applicants can avoid spending time on proposals unlikely to be successful. That said, remember: these are just guidelines. You always have the flexibility to make grants outside of them if needed.
What to Include in Your Grant Guidelines
Use one or two pages to clearly explain your foundation’s priorities and requirements. At minimum, consider covering the following:
Mission, Vision, and Values
What are the goals that guide your giving? How do you want the world to be different because of your foundation’s work?
Brief History of the Foundation
Share the origins and motivations behind your giving. Is your work driven by a donor’s legacy, a personal passion, or deep community roots? What past experiences shape your current interests?
Program Interests
What broad areas (e.g., education, social justice, health) do you support? Have you identified a specific niche within them? Consider talking with community leaders or nonprofits to identify unmet needs where your foundation can add unique value.
Geographic Focus
If your mission doesn’t define a geographic focus, think about whether one is needed. A foundation with a targeted issue focus might not need geographic limits, while those focused on a specific region or community should clearly state it. Specificity helps reduce ineligible applications.
Grant Restrictions
Clarify what and whom you don’t fund. Common restrictions include:
- Type of organization: Many foundations limit giving to 501(c)(3) public charities—especially those with a 509(a)(1) or (2) designation—or to government agencies to avoid additional compliance requirements.
- Size of organization: Some funders focus on organizations under a certain operating budget, aiming to maximize impact with smaller grantees.
- Funding purposes: You may choose not to fund individuals, religious activities, fundraising events, or litigation.
- Repeat grantees: Some fund the same organizations long-term; others rotate funding or require grantees to skip a year before reapplying.
- Unsolicited proposals: If you don’t accept unsolicited proposals, say so clearly. Even so, guidelines are helpful for educating invited applicants.
Getting Proposals Underway
When foundations initiate proposals, they control which organizations are invited to apply. This works well if you have a clear strategy or strong knowledge of your funding area, but it may limit exposure to new ideas. Many funders take a hybrid approach: proactively making most grants but reserving some funds for innovative or unsolicited opportunities.
When grantseekers initiate proposals, they rely on the clarity and accessibility of your guidelines. This approach may bring in unexpected and valuable ideas, especially useful for newer foundations or those exploring new areas of interest.
Common Grant Types
Most foundations focus on one or two types of grants but may offer others when appropriate. Consider which of the following align with your goals:
- General operating support: Flexible funding that allows the grantee to decide how best to use the funds.
- Capacity building: Supports internal improvements such as leadership development, strategic planning, or technology upgrades.
- Project support: Funds a specific program or initiative.
- Scholarships: Provides individual support for travel or study (requires IRS approval unless administered by a third party).
- Seed funding: Launches a new organization or program.
- Challenge/matching grants: Encourages others to contribute by requiring matching funds.
- Program-related investments (PRIs): Loans or investments that generate a return while supporting your mission.
- Capital grants: Supports the purchase or construction of buildings, land, or major equipment.
- Endowment grants: Builds long-term financial stability for grantees.
- Innovation grants: Funds projects experimenting with new solutions to complex problems.
Determining Grant Sizes
Grant size is strategic. Ask:
- Would a few large grants create more impact than many smaller ones?
- What is manageable given your foundation’s time and resources?
- Are multiyear grants possible? These reduce the administrative burden for both funder and grantee.
Note: Be mindful of “tipping” small charities. A large grant can unintentionally shift a public charity into private foundation status.
How to Apply
Application requirements vary widely. Some foundations require only a brief email or letter. Others ask for more. Legally, you’re only required to confirm a grantee’s tax status—so your process can be as simple or as detailed as needed.
Ask only for what’s necessary to determine fit. Consider:
- Accepting a common grant application used in your region
- Using electronic submissions or online forms
- Requesting a letter of inquiry (LOI) as a first step—a one- to two-page summary outlining the mission, amount requested, program details, needs, and outcomes
Set clear expectations. If you require a full proposal, specify format, page limits, and deadlines.
Contact Person
Even the clearest guidelines won’t answer every question. Provide a contact name and email or phone number for inquiries. Many lean funders go further, hosting info sessions or grantseeker calls to explain their process.
As Nancy Wiltsek of the Pottruck Family Foundation shared, short calls with grantseekers cut ill-fitting proposals in half, saving time for everyone.
Publicizing Your Guidelines
Make your grant guidelines easy to find. Use:
- Your website
- A downloadable PDF or brochure
- A listing in foundation directories
- Your voicemail greeting (for key deadlines or requirements)
- Direct outreach to specific nonprofits
For example, Katy Pugh Smith of Piedmont Healthcare Foundation noted that moving their materials online greatly reduced phone inquiries and simplified the application process.
Websites are especially helpful. They can also display your recent grantees, Form 990 or 990-PF, and contact info.
Letting the Public Know You Give Grants
Whether you’re a new or established foundation, consider the following to broaden awareness:
- Post your mission and guidelines online and at local nonprofit gatherings
- Connect with peer funders—ask them to refer nonprofits to you
- List your foundation in regional or national directories
- Update your profile in Candid’s Foundation Directory
- Invite nonprofits to meet with you or attend events
- Issue an RFP (request for proposals) to announce your funding interests
- Host Q&A sessions or webinars for potential grantees
Clear guidelines help you attract better-aligned proposals, strengthen relationships with grantees, and focus your grantmaking for greater impact. Whether your foundation is just getting started or refining its practices, investing in well-crafted guidelines is time well spent.