Federal Grants: A Primer

Federal Grants: A Primer

(Excerpted with permission from Federal Funds for Organizations that Help Those in Need, a publication of the White House.)

How do federal agencies use grant money?
The Federal government uses two kinds of grants:

• Grants awarded by an agency of the Federal government (also known as 'discretionary' grants) - for instance, a homeless assistance grant given out by the Department of Health and Human Services to a homeless shelter.
  
  
• Grants that put Federal money in the hands of States, cities, or counties for them to distribute to charities and other social service providers, usually under their own rules and regulations (also known as 'formula' or 'block' grants). Therefore, you can apply directly to the Federal government or you can apply for funds to an entity that distributes money it receives from the Federal government.

How can our organization find out about funding opportunities?
First, you must become familiar with what's available. The list supplied in the government brochure Federal Funds for Organizations that Help Those in Need, contains general information on more than 100 programs operated by multiple Federal agencies. Use this list as a starting point. Agency web sites also contain information on funding opportunities. In particular, faith-based and community groups should check for information on the web sites for the White House Office of Faith-Based and Community Initiatives, as well as on the web sites for the Agency Centers for Faith-Based and Community Initiatives. Many States and cities also have liaisons that can help faith-based and community applicants identify grant opportunities.

We've found some programs we're interested in. What's next?
All Federal grants have to be announced to the public. These announcements (sometimes called a "Program Announcement," "Request for Proposal," "Notice of Funding Availability," or "Solicitation for Grant Applications") are the government's way of looking for charities and other groups to provide a Federally-funded service. Each grant announcement will contain instructions on how to apply, including where to get an application packet, information the application should contain, the date the application is due, and agency contact information. Grant announcements are issued throughout the year. Unfortunately, there is no single document that contains every Federal grant announcement and no uniform format for these announcements, although the President's Administration is working to change this. In the future, it hopes to have all Federal agencies publish grant announcements electronically, in a single format and on a single web site. Currently, most grant announcements are listed in the Federal Register, a daily publication that can be accessed on the Internet and at major public libraries. The Catalog of Federal Domestic Assistance also contains information about grant announcements.
 
How can our organization get more help?
Most Federal agencies have experts who are available to help organizations apply for and manage their grants. Applicants should call the contact identified in the grant announcement or contact an agency's regional office. These agency staff are available to answer questions over the phone. They may also refer applicants to local or nearby technical assistance workshops or to organizations that are under contract with the Federal government to provide this kind of assistance. A listing of agencies' regional and local offices can be found on the CFDA's web site. Assistance may also be available from one of nearly two dozen organizations funded by the Department of Health and Human Services's Compassion Capital Fund. These organizations help small faith-based and community organizations learn about the grants process. They may also help small groups with other challenges, such as training volunteers and staff or expanding the reach of the services they provide. They do this at no cost to your organization. In addition, for general questions about writing a grant proposal, many state governments and cities provide grantwriting workshops, as do a number of non-profit organizations and foundations.