Today, more than ever, churches are seeking grant funding to supplement the diminishing income that they once received from parishioners and philanthropists. While this strategy is risky, if successful, it does create an opportunity to diversify their current income-base and thereby withstand today’s economic crisis. However, churches must keep a few things in mind when considering applying for church grant funding.

Foundations and government entities that award faith based grant funding most likely do so with the intent to fund a program that benefits the broader community, not just the congregation. Does your church have an outreach program? For example, do you currently operate a food pantry, literacy program, or senior day services? If you do not, creating a church outreach ministry program may be an excellent way of serving your community. Having programs like these will also make your organization more successful when submitting a church grant proposal to a funding source.

Now that you’ve chosen a church outreach ministry program, you can begin researching foundations that will possibly fund your program. Make use of your resources and search a variety of different locations in an effort to find potential funders. The internet, church members, and community contacts are excellent places to start compiling a list of funders interested in providing support to church outreach ministry programs like yours. Make sure that the funding sources mission or area of interest matches with your organization’s mission statement. Foundations and government entities will state the types of projects that they want to fund and some may even provide examples of projects that they’ve funded in the past. Compare your church outreach ministry program to the information that they provide; if your organization’s mission matches their mission, they may have strong potential as a possible church grant funder.

After creating a list of potential funders you now need to begin contacting them to see if they are interested in funding your church outreach ministry program. Each funding organization has a different method of preferred contact. Many request a letter of inquiry after submitting a letter of inquiry the organization will request a full proposal if you match their criteria. Other organizations ask that the full proposal is the first method of contact. After initial contact with the funding organization, continue following their procedures as they indicate. If your organization does not match with the funding organization’s mission continue to research other church grant funders. Remember as always, grant funding is a numbers game, so get your proposal to as many different organizations as possible in order to increase your chances of receiving possible church grant funding. Submitting your proposal to only one or two organizations is not a successful strategy in seeking any type of faith based grant funding.

The last step in the church grant funding process is to write a great proposal. If the funding organization provides an application form, remember to answer all of the questions in as much detail as possible. If the foundation requires a general proposal, remember to include all of the major components of a grant proposal, including a description of your target demographic, program narrative, and a budget. Funders want to see that you understand your target community and their needs. The proposal will demonstrate this knowledge and show how your organization and/or church outreach ministry program will be of benefit to the community. Since you are a church this benefit to the community must be precise and clearly stated to ensure that you are indeed serving the entire community rather than simply your congregation.

In addition to faith based grant funding, churches should continue to conduct fundraisers as an additional source of income. Grant funding is not guaranteed. For all nonprofit organizations establishing and maintaining a diverse source of incomes is essential in building a financially stable organization that is able to stand the test of time. Thousands of public entities apply for grant funding each year, making it extremely competitive. However, each day, organizations are awarded the money necessary to maintain their vital community services, with diligence, your church may be one of these successful organizations.

Andy Linke is a Consultant with ChurchNet USA. Our mission is to serve as a resource center for churches and faith-based organizations nationwide. We offer assistance in all aspects of a religious or community-based nonprofit. For more information about Church Resources or Church Grants please visit us online today!