AMPERAGE Marketing & Fundraising

Grant Funds and Their Role in Capital Campaigns

As a result of the coronavirus pandemic, relief funds have been poured into communities in an effort to revitalize our economy and industries. States and counties throughout the U.S. have received American Rescue Plan funds also known as ARPA, to disperse to projects that would stimulate growth or relieve the negative impacts experienced by the coronavirus pandemic. In some states, such as in Iowa, economic development departments have created grant fund programs to support the state’s tourism, business and nonprofit sectors. These new funding opportunities have encouraged nonprofits to think of new ways to expand their services in the community. But what happens when the nonprofit’s idea or project is not selected for funding or is underfunded through these resources? Many nonprofits may wonder how they will raise the remaining funds if they do not receive sufficient grant funds to accomplish their new vision.

In reality, grants typically make up a small percentage of the total funds received for a campaign. As with annual funding sources, nonprofits receive an average of 15% of their campaign funds from grants in the corporate, foundation and government sectors. The remaining 85% of capital campaign funds are received from individual donors.

Although grant funds can help build momentum in a capital campaign, the majority of dollars raised are contributed by individuals through major gift asks. In fact, many grant funders, especially foundations, want to see evidence there is community support for a project before they will decide to contribute.

• As an organization, have you done your due diligence and assessed the level of community support for your project with a feasibility study?
• Have you developed a compelling case for support?
• How much funding have you secured from other sources in the community?

By checking these boxes, you’ll increase your chances of securing the smaller but important portions of funding that can come from grant funds.

Has your nonprofit identified a need to build, renovate or expand its services, but your grant application was underfunded or not funded at all? Consult with one of our AMPERAGE fundraising advisers at jrubel@amperagefundraising.com or 319-268-9151, to determine the right next steps for you to fulfill your organization’s strategic direction.