PTA group working on funding

The 5 Most Common Types of Grants

nce you decide to search for funding options, it can be easy to get overwhelmed. Not only is there a breadth of information to decipher surrounding specific foundations and terminology, but there is also numerous types of funding to consider. Most grants fall into one of five categories. Keep reading to find out which grant category would be most beneficial for you.

Program and Project Grants

Programmatic or project grants are the most common category, and they are intended to realize special projects or support programming. Grants can be used to fund supplies or materials necessary for the program. In some cases, program grants are eligible to support salaries for people involved. However, you should clarify this with the funder as some programmatic grants explicitly prohibit the use of grant monies for compensation.


General Operating Grants

General operating grants are designed to support infrastructure, emerging needs, and salaries of people involved in the operation of the grantee. At times, operating grants may also be used to upgrade technology. These grants are also sometimes referred to as unrestricted grants.


Capital Grants

This is the grant category that offers monies for building construction; building renovation, refurbishing, or maintenance; or land purchases. Capital grants also support the purchase of large equipment such as furnishings or building materials.


Capacity Building

Capacity-building grants help defray costs connected to developing an organization and keeping it running. Funding supports management systems and operations. This includes services such as training, coaching, and professional development; strategic planning; and human resources.



An endowment is an investment that is used to withdraw funds consistently. Many nonprofit organizations, institutions of higher education, and educational organizations use these funds to pay ongoing costs or emerging needs.





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