Nonprofit Grants and Funding Sources
Community Development Financial Institutions (CDFIs)
CDFIs are specialized financial institutions certified by the US Treasury Department to serve low-income communities, rural areas, and populations that lack access to traditional banking services. There are over 1,300 certified CDFIs operating across the country, including community development banks, credit unions, loan funds, and venture capital funds. CDFIs receive funding from the federal CDFI Fund, banks fulfilling Community Reinvestment Act obligations, foundations, and government agencies, then deploy that capital as loans, grants, and technical assistance to local businesses.
CDFIs primarily provide microloans ranging from $500 to $50,000, with terms and interest rates more favorable than commercial lenders. Many CDFIs also administer grant programs funded by federal pass-through money, foundation grants, or corporate partnerships. These grants typically range from $1,000 to $10,000 and target specific business needs like equipment, technology, or working capital. The application processes are simpler than government grants, and the staff provides hands-on assistance throughout the process.
The unique value of CDFIs is their willingness to work with businesses that other lenders reject. If you have been turned down for a bank loan or an SBA-guaranteed loan, a CDFI may still fund you because their mission is serving the underserved, not maximizing profit on every transaction. They also provide technical assistance, business counseling, and financial literacy training alongside their funding, which helps borrowers succeed and repay their loans. Find CDFIs in your area through the CDFI Fund's online locator or by asking your local SBDC.
Community Foundations
Community foundations are philanthropic organizations that pool charitable donations from individuals, families, corporations, and other sources, then distribute grants to local causes. Over 900 community foundations operate across the United States, collectively holding over $100 billion in assets. While most community foundation grants go to nonprofits, a growing number have created specific programs for small business support, recognizing that business growth drives the economic health of their communities.
Community foundation business grants typically fund specific needs rather than general operations: startup costs, equipment purchases, storefront improvements, technology adoption, or expansion projects. Award amounts usually range from $1,000 to $25,000, and the application processes are simpler than government programs. Community foundations also operate donor-advised funds that individuals and corporations can direct toward small business development, creating additional funding streams that do not appear in the foundation's standard grant listings.
To find your local community foundation, search for "[your city or county] community foundation." Visit the foundation's website and look for sections labeled "Grants," "Apply for Funding," or "Community Impact Programs." If the foundation does not list small business programs on its website, call and ask whether any of their funds or initiatives support small business development. Staff members often know about programs that are not publicized online because they are funded through donor-advised funds with specific criteria that change based on donor preferences.
Economic Development Nonprofits
Many communities have nonprofit economic development organizations that operate independently from (though often in partnership with) government agencies. These organizations focus on specific missions: revitalizing downtown commercial districts, supporting businesses owned by specific demographic groups, developing industries in specific sectors, or building entrepreneurship ecosystems in underserved areas. They receive funding from a mix of government grants, foundation support, corporate sponsors, and individual donations.
Examples include local entrepreneurship support organizations that provide grants, mentorship, and co-working space to startups. Neighborhood development corporations that provide storefront grants and below-market commercial leases to businesses willing to locate in revitalization areas. Industry-specific development organizations that provide grants for workforce training, equipment, and technology in targeted sectors like manufacturing, agriculture, or technology.
These organizations are often the most responsive and flexible grant sources available because they operate with smaller bureaucracies than government agencies and can adapt their programs quickly to community needs. The challenge is finding them, because they operate under hundreds of different names and do not appear in centralized databases. Your SBDC counselor, Chamber of Commerce, and city economic development department all know which nonprofit development organizations operate in your area and can make introductions.
Industry and Trade Associations
Professional and trade associations sometimes offer grants, scholarships, and awards to members in their industries. The National Association for the Self-Employed (NASE) offers Growth Grants of up to $4,000 quarterly to its members. The National Restaurant Association Educational Foundation provides scholarships and grants for restaurant industry professionals. Technology industry associations offer grants for innovation and workforce development. Agricultural associations provide grants for farm-to-market businesses, sustainable agriculture, and rural business development.
Association grants tend to be smaller, $1,000 to $10,000, but they carry lower competition because eligibility is restricted to members, and many members do not realize the grants exist. Membership in your relevant industry association often costs $100 to $500 annually, and the grant opportunities, networking, and industry resources frequently justify the cost even without winning a grant. Check your primary industry association's website for "grants," "awards," "scholarships," or "member benefits" to identify available programs.
Philanthropic and Private Foundation Grants
Private foundations, family foundations, and corporate foundations distribute billions in grants annually, and while most of this funding goes to nonprofits, some foundations have created programs that fund for-profit small businesses. The Kellogg Foundation, Ford Foundation, and Gates Foundation have all funded small business development programs, typically through intermediary organizations that then provide grants and services to individual businesses.
Accessing private foundation funding directly is difficult because most foundations have specific grantmaking strategies and do not accept unsolicited applications. The more practical path is to connect with the intermediary organizations that foundations fund: CDFIs, business development nonprofits, microenterprise development organizations, and community-based organizations that provide services in your area. These intermediaries receive foundation grants and then distribute them to qualifying businesses through their own application processes.
The Foundation Directory, maintained by Candid (formerly the Foundation Center), is the most comprehensive database of foundation grants. While the full directory requires a paid subscription, many public libraries provide free access. You can search by foundation name, geographic focus, subject area, and grant type to identify foundations that fund small business development in your area. This research is most productive when you are looking for patterns, identifying which foundations fund your type of work, and then connecting with the intermediary organizations they support.
Accessing Nonprofit Funding
The most effective strategy for accessing nonprofit funding is building relationships with the organizations rather than searching for individual grants. Visit your local CDFI and introduce yourself and your business. Attend events hosted by your community foundation. Join your local economic development nonprofit's mailing list. Become a member of relevant industry associations. These relationships ensure that you hear about funding opportunities as they arise, often before they are publicly announced, and that the staff members who review applications know your business personally.
Nonprofit organizations that serve small businesses genuinely want to help you succeed because your success validates their mission and justifies their continued funding from foundations, government agencies, and donors. Approaching them as potential partners rather than ATMs opens doors to comprehensive support, including grants, loans, mentoring, training, networking, and referrals, that far exceeds the value of any single grant check.