Federal Grants for Nonprofits: Where to Start

Nonprofits can compete for many federal grants, but every opportunity sets its own eligibility, so start by reading the eligibility section of each funding notice. Before you apply, finish three registrations: SAM.gov (with your Unique Entity ID), Login.gov and Grants.gov. Expect federal rules on financial management, reporting and audits to come with the money, including a single audit once you spend $1,000,000 or more in federal awards in a fiscal year.

This guide is for nonprofits that are new to federal funding or want a clearer process. It covers who is eligible, the registrations to finish first, how to find opportunities, the role of state pass-through funding, and the rules that apply after an award. Each rule links to its official source as of October 2026.

Is your nonprofit eligible?

Eligibility is set opportunity by opportunity. Grants.gov uses standard applicant categories, and each funding notice says which ones may apply. For nonprofits, there are two separate categories:

• Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education.
• Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education.

This means 501(c)(3) status is not always required. Some programs are open to other tax-exempt organizations, and some are limited to 501(c)(3) organizations. A few programs are open only to specific types, such as community action agencies, tribal organizations or faith-based organizations meeting set criteria. Read the notice.

Also check whether the program is open to nonprofits as the prime applicant or only as partners. Many federal programs fund state and local governments directly, and nonprofits take part through subawards.

Finish these registrations first

Registration is the step most first-time applicants underestimate. Start at least a month before any deadline.

SAM.gov and the Unique Entity ID

Your nonprofit needs a full, active entity registration in SAM.gov. Registration is free, assigns your Unique Entity ID (UEI), and must be renewed every 365 days. Grants.gov advises allowing up to 10 business days for a registration to become active. See our SAM.gov registration guide for the steps.

Login.gov and Grants.gov

Each staff member who works on applications needs their own Login.gov account. Your E-Business Point of Contact then sets up your organization in Grants.gov and assigns the Authorized Organization Representative role to the people who will submit. The Grants.gov registration steps explain the order.

Agency systems

Some agencies also require their own system for submission or award management. The funding notice will name it. Register early in those as well.

Where federal funding for nonprofits flows

Direct federal grants

These are grants where your nonprofit applies to the federal agency and receives the award directly. They appear on Grants.gov as competitive opportunities. Direct grants give you a direct relationship with the federal program office, but they also carry the full set of federal reporting and compliance duties.

Subawards through states and other pass-through entities

A large share of federal money reaches nonprofits through a pass-through entity, often a state agency, that receives a federal award and then makes subawards. Under 2 CFR 200, the nonprofit is then a subrecipient. Subawards still follow federal rules, but the application usually goes to the state agency, not to Grants.gov, and the state sets its own deadlines and forms. Watch your state agencies' grant pages as well as Grants.gov.

Subawards are often a sensible first step. The scope is smaller, the pass-through entity provides guidance, and you build a record of managing federal funds before applying directly.

Partnerships with larger organizations

Universities, hospitals and larger nonprofits often apply as the prime applicant and include community partners as subrecipients. If your organization brings community reach or specific expertise, a partnership can bring federal funding without you leading the application.

How to find opportunities

Grants.gov is the official place to search federal funding opportunities. The FTC notes that it is the only place to find a free list of federal grants. On Grants.gov you can filter by eligibility category, agency and category of funding activity.

Useful habits:

• Search by program, not just keyword. Every program has an Assistance Listing number. Once you find a program that fits, you can track it year to year.
• Look at forecasts. Agencies post forecasted opportunities before the full notice. A forecast gives you months to prepare.
• Review past awards. Past awards are public. Seeing which organizations were funded under a program tells you a lot about fit. Our Federal Awards Explorer helps with this.
• Ignore paid lists. The FTC warns against paying for lists of government grants.

You can also browse open opportunities on our federal grants pages, which link to the official notice for each listing.

Are you ready to manage a federal award?

Federal awards come with obligations. Before applying, check that your organization can:

• Track costs by award. Your accounting system must separate costs for each grant and show they were allowable under 2 CFR 200.403.
• Document staff time. Salaries charged to a grant must be supported by records that reflect the work performed.
• Follow written procurement procedures when buying goods and services with grant funds.
• Report on time. Most awards require periodic financial and performance reports.
• Handle cash flow. Many federal grants pay on a reimbursement basis, so you may spend first and draw funds later.

Our Federal Grant Readiness Checklist walks through these points.

Indirect costs for nonprofits

Nonprofits can usually recover a share of their overhead through indirect costs. If you do not have a negotiated indirect cost rate, 2 CFR 200.414(f) lets you elect a de minimis rate of up to 15 percent of modified total direct costs. It needs no documentation to justify, and a pass-through entity cannot force a lower de minimis rate unless a statute or regulation requires it. Our guide to indirect costs and the de minimis rate explains how to calculate it.

The single audit threshold

Under 2 CFR 200.501, a nonprofit that expends $1,000,000 or more in federal awards during its fiscal year must have a single audit, or in limited cases a program-specific audit, for that year. The Federal Audit Clearinghouse explains that the $1,000,000 threshold applies to fiscal years beginning on or after October 1, 2024, and the earlier $750,000 threshold applies to fiscal years that began before then.

Two points matter for planning:

• The test is federal awards expended, not received, and it counts federal funds you receive as a subrecipient through a state or other pass-through entity.
• Below the threshold, you are exempt from the federal audit requirement for that year, but your records must still be available for review.

A single audit costs money. Budget for it once your federal spending approaches the threshold, and ask your auditor early whether they perform single audits.

Building a strong first application

1. Pick one program where your work clearly matches the stated purpose and you are an eligible applicant type.
2. Read the full notice twice: once for fit, once for every requirement.
3. Contact the program officer named in the notice with specific questions, if the notice invites it.
4. Write measurable objectives and a plan to report on them.
5. Build a budget where every cost ties to an activity, using our budget guide.
6. Collect letters of support and partner commitments early.
7. Submit at least two days before the deadline, as covered in our Grants.gov application guide.

Watch for scams aimed at nonprofits

Nonprofits receive the same fake grant offers as individuals and businesses: unsolicited messages saying you qualify, requests for an up-front fee, or offers to "guarantee" funding. The FTC's guidance is clear that the government will not contact you out of the blue about grants and that you should never pay up-front fees. Our guide on how to spot a grant scam lists the warning signs.

Writing a strong needs statement

Most federal notices ask you to describe the problem your project addresses. Reviewers look for three things: evidence that the need is real, evidence that it exists in the community you serve, and a clear link between the need and your proposed activities.

• Use public data and cite it. Federal statistical sources, state agencies and local health departments publish data you can cite. Give the source and the year for every number.
• Make it local. National figures set context, but reviewers want to know about the people and places your project will reach.
• Add your own evidence. Waiting lists, service records, and partner input show that you know the need firsthand.
• Connect each need to an activity. If you describe a need you do not plan to address, reviewers will notice the gap.

Reporting after an award

Winning the grant starts a new set of tasks. The notice's Post-Award Requirements section and your award terms set the reporting schedule. Most awards require regular financial reports and performance reports, and a final report at closeout. Missed or late reports can delay payments and affect future applications with the same agency.

Set up a reporting calendar the week the award arrives. Assign an owner for each report, and collect the data you will need from the start rather than reconstructing it later. If your project changes, for example a key staff member leaves or the budget needs to shift between categories, check your award terms to see whether you need the agency's prior approval before making the change.

Common first-year mistakes

• Spending before the award start date without checking whether pre-award costs are allowed.
• Not tracking staff time in a way that supports the salaries charged to the grant.
• Mixing grant costs with general operating costs in the accounting system.
• Missing the first report because nobody owned it.
• Letting SAM.gov expire during the award, which can interrupt payments.