Local grants for nonprofit organizations: funding guide

Unlike national grants, which can be highly competitive, local grants often have fewer applicants and focus on supporting organizations that directly improve their communities. Whether you're working on education, housing, food security, or any other cause, there are grant opportunities available—you just need to know where to look and how to apply.

In this guide, we’ll walk you through everything you need to know about local grants for nonprofits. From understanding different types of grants to crafting a strong application, we’ve got you covered.

Local grants for nonprofits

Local grants are funding opportunities provided by city governments, county programs, community foundations, and local businesses to support nonprofits working at the grassroots level. These grants are designed to help organizations that meet specific community needs, whether it’s feeding families, providing shelter, or improving education.

Why local grants matter

Unlike large federal grants, local grants are often easier to access and have fewer restrictions. Many focus on specific neighborhoods or causes, which means less competition and a higher chance of funding if your mission aligns. Plus, receiving a local grant can build relationships with community leaders and open doors to future funding opportunities.

How local grants help build stronger communities

When local nonprofits secure funding, it creates a ripple effect—jobs are created, families are supported, and communities become stronger. Local grants also allow small organizations to focus on impact instead of just survival. Whether it's a faith-based organization, a small grassroots group, or an institution of higher education, these grants provide critical support to keep programs running and growing.

Types of local grants available

Not all grants are the same. Understanding the different types of local grants for nonprofit organizations can help you focus your efforts and apply for funding that best fits your mission.

1. Government agency grants

City, county, and state governments offer grants to support local communities in areas like education, housing, healthcare, and small business growth. These grants are often funded by taxpayer dollars and require organizations to meet specific eligibility requirements.

• Examples: Community Development Block Grants (CDBG), state-funded arts or education grants
• Best for: Organizations focused on public services, social programs, and economic development
• Application process: Typically involves detailed reporting and compliance with government regulations

2. Corporate and small business grants

Many small businesses and major corporations invest in their communities by offering grant programs to nonprofits. These grants often support initiatives that align with the company’s values, such as sustainability, workforce development, or youth programs.

• Examples: Walmart Foundation, Google Ad Grants, State Farm Good Neighbor Grants
• Best for: Nonprofits that can demonstrate community impact or align with a company’s mission
• Application process: May require a proposal or an explanation of how funds will be used

3. Foundation and nonprofit-specific funding opportunities

Private foundations are a major source of grant funding for nonprofits. These organizations distribute funds to support causes they care about, ranging from local hunger relief to global health initiatives. Some foundations focus on faith-based organizations or institutions of higher education, while others are open to a wide range of causes.

• Examples: The Kresge Foundation, Robert Wood Johnson Foundation, local community foundations
• Best for: Nonprofits that align with a foundation’s specific focus areas
• Application process: Usually involves submitting a detailed grant proposal outlining your project and impact

How to find and apply for funding opportunities

Finding local grants for nonprofit organizations isn’t just about luck—it’s about knowing where to look and how to position your nonprofit as the right fit. Here’s how to get started.

1. Research local grant opportunities

Start by looking at:

• City and county websites – Local government pages often list available grant programs for community organizations.
• Community foundations – Many regions have local foundations that provide grant funding to nonprofits.
• Corporate giving programs – Companies like Walmart, State Farm, and Home Depot offer grants to nonprofits serving their communities.
• Nonprofit resource websites – Platforms like Candid (formerly GuideStar) and GrantWatch list funding opportunities across different sectors.

2. Identify organizations that meet funding criteria

Every grant comes with specific eligibility requirements—some fund small businesses, while others focus on faith-based organizations or institutions of higher education. Before applying, ask yourself:

• Does my nonprofit align with the grant’s mission?
• Can we meet all reporting and compliance requirements?
• Do we have the documentation needed to apply?

3. Refine your grant application strategy

Winning grants isn’t just about applying for as many as possible—it’s about applying smart. Instead of sending the same grant proposal to every funder, tailor each application by:

• Highlighting how your nonprofit serves local communities
• Using data and success stories to prove impact
• Following the application instructions carefully (missing details can lead to automatic rejection)

Finding and applying for grants takes time, but the payoff can be game-changing for your nonprofit. Focus on the opportunities that align best with your mission, and you’ll increase your chances of success.

The grant application process explained

Applying for local grants for nonprofits can feel overwhelming, but breaking it down into clear steps makes it much more manageable. Here’s what you need to know.

1. Writing a strong grant proposal

Your grant proposal is your chance to show funders why your nonprofit deserves their support. A strong proposal should:

• Clearly define your mission and how it serves local communities
• Explain how the grant funds will be used
• Provide measurable goals and expected impact
• Include financial details, such as a budget breakdown

Tip: Funders want to see real impact. Instead of saying, “We help children,” say, “Last year, we provided 10,000 free meals to low-income children in our city.”

2. Navigating the application process

Most grants follow a structured application process, which typically includes:

1. Pre-qualification – Checking eligibility requirements to ensure your nonprofit qualifies
2. Application submission – Filling out forms, submitting a grant proposal, and including supporting documents
3. Review period – Funders evaluate applications based on mission alignment, financial health, and projected impact
4. Award notification – If selected, your nonprofit will receive funding and instructions on how to use and report on the grant

Tip: Some grants are competitive, with hundreds of applicants. Double-check that you’ve included everything required before submitting!

3. Meeting eligibility requirements

Every grant program has different rules. Some funders focus on small businesses, while others support faith-based organizations or institutions of higher education. Common eligibility requirements include:

• Nonprofit status (501(c)(3) certification)
• A clear mission that aligns with the funder’s goals
• Financial transparency and reporting capabilities
• A track record of community impact

If you don’t meet a grant’s requirements, don’t force it. Instead, look for funding opportunities that match your organization’s strengths.

Maximizing your chances of securing grant funding

Applying for a local grant for your nonprofit is just the first step—winning the grant is the real goal. Here’s how to improve your chances of success.

1. Focus on mission alignment

Funders want to support organizations that meet their specific goals. Read the grant details carefully and make sure your grant proposal highlights:

• How your nonprofit’s work aligns with their priorities
• The specific problem you’re solving in your local community
• The measurable impact of your programs

Tip: Use real numbers and stories to show your impact. Instead of saying, “We help homeless individuals,” say, “Last year, we provided emergency shelter for 500 families.”

2. Build relationships with funders

A strong application helps, but relationships can make all the difference. Before applying, try to:

• Attend funder-hosted webinars or community meetings
• Connect with past grant recipients to learn from their experiences
• Reach out to the grant contact person to ask thoughtful questions about the application process

3. Strengthen your nonprofit’s credibility

Funders want to know their money is in good hands. To build trust:

• Keep financial records organized and transparent
• Show a history of success with other funding opportunities
• Demonstrate community support through testimonials, partnerships, or matching donations

4. Keep applying and learning

Rejections are part of the process, but each one is a learning opportunity. If you don’t win a grant:

• Ask for feedback on your application
• Keep track of deadlines and reapply next year
• Explore alternative grant programs or small business grants that align with your work

The more you refine your approach, the better your chances of securing the funding you need.

Fuel your impact with the right support

Securing local grants for nonprofit organizations takes time, research, and persistence—but the effort is worth it. These grants open doors to funding that helps you grow programs, reach more people, and make a lasting difference in your community.

Success starts with knowing where to look, crafting proposals that speak to funders’ goals, and staying organized throughout the process. Even if your first few tries don’t land, each one teaches you something new—and brings you closer to that “yes.”

And you don’t have to do it alone.

Harness is here to support you every step of the way. We’re more than a fundraising tool—we’re your full-service partner. Our platform is designed specifically for nonprofits and includes:

• Smart fundraising tools that turn one-time donors into recurring supporters
• Expert support from nonprofit professionals who understand how to grow giving
• Beautiful, branded websites designed and managed for you—no coding required
• Automated email and text outreach to keep your donors engaged year-round
• Impact-focused storytelling tools like blogs, donation forms, and updates you can send right to your supporters’ phones
• A central dashboard where you can track giving, campaigns, donor activity, and performance—all in one place

Whether you’re applying for grants, launching your next campaign, or just trying to make sense of donor data, Harness helps simplify the hard stuff—so you can focus on your mission.

Start exploring local grant opportunities today—and let Harness help you build a stronger, more sustainable future for your nonprofit.

Frequently asked questions

What are local grants for nonprofit organizations?
Local grants are funding opportunities provided by city or state governments, businesses, and community foundations to support nonprofits working in specific geographic areas. These grants help fund programs, expand services, and strengthen local communities.

How do I apply for funding as a nonprofit?
Start by researching funding opportunities that align with your mission. Carefully review the eligibility requirements, prepare a strong grant proposal, and submit your application before the deadline. Some grants also require follow-up reporting on how funds are used.

What are the eligibility requirements for local grants?
Requirements vary by funder, but most grants require nonprofits to be a registered 501(c)(3) organization, align with the grant’s mission and focus areas, demonstrate financial stability and impact, and submit necessary documents such as budgets and reports.

How long does the grant application process take?
It depends on the grant. Some applications take a few weeks, while others can take months, especially for government-funded programs. Always check the timeline in advance so you can plan accordingly.

What are the best grant programs for small nonprofits?
Some great options include Community Development Block Grants (CDBG), Walmart Foundation Grants, Google Ad Grants, and local community foundation grants.

Can faith-based organizations apply for grants?
Yes. Many grant programs offer funding for faith-based organizations, especially those that provide community services like food programs, education, or shelter. However, some grants may have restrictions on religious activities.

What are common mistakes in grant proposals?
Some of the biggest mistakes include not following application instructions, submitting incomplete or inaccurate information, failing to clearly explain the nonprofit’s mission and impact, and not tailoring the proposal to match the funder’s priorities.

Are there specific grants for institutions of higher education?
Yes. Many government agencies and private foundations provide grants for institutions of higher education, especially for research, community outreach, and workforce development programs.

How can small businesses benefit from nonprofit partnerships?
Small businesses often provide grant funding or sponsorships to nonprofits as part of their corporate social responsibility initiatives. Partnering with a local business can help both the nonprofit and the business strengthen their impact in the community.

What happens after I receive grant funding?

Most funders require you to track and report on how the money is used. Keep detailed records, meet reporting deadlines, and maintain good communication with the grant provider. Doing this increases your chances of receiving future grants.