How to Apply for Government Grants as a Nonprofit

Government grants are a major funding source for nonprofits, but knowing how to apply for government grants requires understanding a system that’s genuinely more complex than foundation grant applications. The administrative requirements are real, the timelines are long, and the compliance obligations start at award — not at the end of the grant period.

This guide covers the full process from beginning to end: the types of government grants available to nonprofits, what you need to do before you can even apply, how to find opportunities, what a strong application looks like, and what post-award compliance actually involves.

Types of Government Grants for Nonprofits

Not all government grants work the same way, and the type you’re pursuing shapes every subsequent decision.

Federal Direct Grants

Federal agencies (HHS, DOL, DOJ, HUD, NEA, USDA, EPA, and dozens of others) award grants directly to nonprofits for specific programs, services, or research. These are the grants you find on grants.gov and in agency-specific databases.

Federal direct grants are subject to the most comprehensive compliance requirements: 2 CFR 200 (Uniform Guidance), agency-specific regulations, and the terms in your Notice of Award. They also trigger the Single Audit requirement if your organization expends $1,000,000 or more in federal awards in a fiscal year (for fiscal years ending on or after September 30, 2025; the previous threshold was $750,000).

Federal Pass-Through Grants (State-Administered)

Many federal programs flow through states before reaching nonprofits. The federal government gives money to a state agency, which then awards it to local nonprofits as “subrecipients.” Examples include CDBG through local governments, SAMHSA block grants through state behavioral health agencies, and TANF through state social service agencies.

Pass-through funds still carry federal compliance requirements — you’re spending federal money regardless of whether you got the check from your city or from Washington. But you’re applying to your state or local government, not to a federal agency.

State Grants (Non-Federal)

States also have their own grant programs funded entirely by state revenues — no federal dollars involved. These are simpler: you apply to a state agency, the compliance requirements are set by state law and agency policy, and there’s no federal audit threshold to worry about.

State arts councils, state health departments, state emergency management agencies, and state education departments all have direct appropriations for grant programs separate from federal pass-throughs.

Local Government Grants

Cities, counties, and regional planning agencies award grants to nonprofits for community services, economic development, parks programming, and other priorities. These range from small discretionary grants from city council members to formal competitive processes with detailed applications.

Local grants are often the most accessible form of government funding for newer nonprofits — less administrative burden, faster timelines, and decision-makers you can actually meet with.

Registrations You Need Before Applying for Federal Grants

For federal direct grants and federal pass-through grants, you need to complete several registrations before submitting any application. Start these as early as possible — last-minute registration failures are a common reason organizations miss deadlines.

Unique Entity Identifier (UEI) via SAM.gov

Every organization that receives federal awards must have a Unique Entity Identifier, obtained through SAM.gov. This replaced the old DUNS number system in April 2022.

To register:

Go to SAM.gov and create an account
Complete the entity registration, which requires your organization’s legal name, EIN, NAICS codes, and banking information for electronic payments
Allow 7-10 business days for processing (sometimes longer)
Renew annually — SAM.gov registrations expire every 12 months, and a lapsed registration will block your ability to receive awards

Don’t wait until you find a grant you want to apply for to register in SAM.gov. The registration should be maintained as an ongoing administrative task whether or not you’re actively pursuing federal grants.

grants.gov Registration

grants.gov is where most federal agencies post funding opportunities and where applications are submitted for many programs. You’ll need:

An organizational account (your E-Biz POC from SAM.gov has administrative authority)
Individual user accounts for staff who will submit applications

grants.gov is separate from SAM.gov. Registration there is straightforward and quick, but you need SAM.gov registration to complete it.

Agency-Specific Systems

Some federal agencies use their own grant management systems separate from grants.gov:

HHS uses GrantSolutions and the Payment Management System (PMS)
DOJ uses JustGrants
Some agencies use WebGrants or other platforms

The Funding Opportunity Announcement will specify which system to use. If it’s a system you haven’t used before, build in extra time to navigate the interface.

Finding Government Grant Opportunities

grants.gov

The federal government’s central portal for grant opportunities. You can search by:

Funding agency
Eligibility type (nonprofits, specifically 501(c)(3)s)
Category (health, education, arts, community development, etc.)
Keyword

Set up email alerts for your area of work so new opportunities come to you. Many grants are posted and closed within 60-90 days.

Agency Websites

Every federal agency has a grants section on its website. If you work in a specific domain (health, housing, workforce development), monitor the relevant agency’s funding page directly — sometimes opportunities appear there before being fully indexed on grants.gov.

State Agency Websites and Mailing Lists

For state grants and federal pass-through programs, state agency websites and email lists are essential. Sign up for notifications from your state’s relevant departments. Many states have consolidated grant notification systems.

Congressional Earmarks

Some federal grants come through appropriations earmarks — specific line items in federal spending bills directed to particular organizations or localities. These aren’t competed for in the traditional sense; they’re secured through Congressional relationships. For most nonprofits, this isn’t a primary funding strategy, but it’s worth knowing the mechanism exists.

Understanding the Notice of Funding Opportunity

When you find a potential grant, the most important document is the Notice of Funding Opportunity (NOFO) — also called a Notice of Funding Availability (NOFA), Funding Opportunity Announcement (FOA), or Request for Applications (RFA). Different agencies use different terms for essentially the same document.

The NOFO tells you everything about the grant:

Eligibility requirements
Funding amounts (minimum, maximum, and total available)
Application deadline and submission requirements
Required application components
Review criteria and how applications will be scored
Period of performance
Specific compliance requirements

Read the entire NOFO before investing significant time in an application. The eligibility section will tell you whether you qualify. The review criteria tell you how to structure your narrative for maximum score. The compliance section tells you what you’re agreeing to if you’re funded.

Pay particular attention to:

Page limits — narrative sections typically have strict page limits. Exceeding them can result in disqualification.
Required attachments — missing a required document is a common reason for rejection
Match requirements — some grants require you to provide matching funds
Indirect cost policies — the NOFO will specify whether indirect costs are allowed and at what rate

Application Components

While every NOFO is different, most federal grant applications include these components:

Project Narrative

The narrative is the core of your application. It makes the case for your organization, your program model, and your ability to deliver results. Typical sections:

Statement of Need — evidence that the problem you’re addressing is real and significant in the community you’ll serve. Use local data: local prevalence rates, service gaps, waitlists, demographic information. National statistics are weaker than local data.

Project Description — what you’ll do, who you’ll serve, and how. Be specific about activities, timelines, and staff roles. Reviewers are looking for evidence that you know how to execute this work.

Evidence Base — for many federal programs, especially in health and human services, you need to demonstrate that your program model is evidence-based or evidence-informed. This means citing published research, identifying the specific model you’re using, and showing fidelity to that model.

Evaluation Plan — how you’ll measure whether the program is working. This should include both output measures (units of service delivered, people served) and outcome measures (changes in knowledge, behavior, or condition). Federal funders have moved toward outcome-focused evaluation.

Organizational Capacity — why your organization is the right one to do this work. Highlight relevant experience, qualified staff, existing infrastructure, and community relationships.

Sustainability Plan — what happens after the grant ends. Federal funders don’t want to be permanent funders; they want evidence that you’re thinking about long-term program viability.

Budget and Budget Narrative

The budget should be detailed at the line-item level. The budget narrative explains and justifies each line. Treat the budget narrative as a second chance to tell your story — not just a financial document.

Key budget considerations:

Costs must be allowable under 2 CFR 200 and the agency’s specific regulations
Costs must be allocable — meaning they’re actually for the grant project
Costs must be reasonable — consistent with market rates

If you’re charging indirect costs, either use the de minimis rate (10% of modified total direct costs, available to organizations without a negotiated rate) or your Negotiated Indirect Cost Rate Agreement (NICRA). The NOFO will specify any limits on indirect cost recovery.

Required Attachments

Common required attachments:

IRS determination letter confirming 501(c)(3) status
Audited financial statements (usually the most recent two years)
Most recent Form 990
Organizational chart
Key personnel resumes
Letters of support or memoranda of understanding from partner organizations
Logic model
Conflict of interest policy

Prepare these in advance. Hunting for a two-year-old audit document at 11pm before a deadline is a solvable problem if you maintain an organized grants file.

The 90+ Day Application Timeline

Federal grant applications require significant preparation time. A realistic timeline from discovering an opportunity to submitting:

Week 1-2: Read NOFO thoroughly, confirm eligibility, make go/no-go decision
Week 2-3: Assemble the application team, assign sections, review prior applications if available
Week 3-8: Write and revise the project narrative; gather attachments; develop detailed budget
Week 8-10: Internal review and revision; budget review; compliance check against NOFO requirements
Week 10-11: Format application, upload to submission portal, resolve any technical issues
Week 12: Submit with buffer for technical problems

If the NOFO has a 90-day deadline, you have enough time for a quality application. If it’s 60 days and you discovered it on day 15, assess honestly whether you can produce a competitive application or whether you’re better off waiting for the next cycle.

After Submission: Review, Award, and Negotiation

After you submit, the process moves slowly.

Peer review — applications are reviewed by a panel of subject matter experts who score them against the published criteria. This typically takes 2-3 months.

Internal review and funding decisions — the agency’s program staff review scores, may conduct risk assessments on highly rated applicants, and make funding recommendations. This takes another 1-2 months.

Notification — if you’re in the competitive range, you may receive a pre-award notification asking for additional information. A Notice of Award (NOA) follows if you’re selected.

Negotiation — some awards involve budget negotiation before the NOA is issued. The agency may ask you to reduce the request or cut certain line items.

Total time from deadline to award: commonly 6-12 months.

Being Awarded vs. Having Money in Hand

This is the distinction that most surprises new federal grant recipients: receiving a Notice of Award does not mean money is in your bank account.

Most federal grants operate on a reimbursement or drawdown basis:

Reimbursement — you spend your own money first, then submit a request for reimbursement. Cash flow planning is critical; you may need a line of credit to cover expenses while waiting for reimbursement.

Advance draws — some programs allow you to request funds in advance of expenditures through federal payment systems (like the HHS Payment Management System). You must have internal controls to ensure advances are expended promptly.

Either way, there’s typically a process:

Incur allowable costs
Record those costs in your accounting system
Prepare a drawdown request with supporting documentation
Submit through the federal payment system
Receive funds (typically within a week for advance draws, several weeks for reimbursement)

Don’t plan your cash flow as if federal funds will arrive immediately at the grant period start.

Post-Award Compliance Basics

Receiving a federal grant means accepting the compliance requirements in your Notice of Award and in 2 CFR 200. These include:

Financial reporting — typically quarterly SF-425 Federal Financial Reports
Performance reporting — regular reports on program outputs and outcomes
Procurement — competitive bidding requirements for purchases over defined thresholds
Subrecipient monitoring — if you pass funds to other organizations
Records retention — at least three years from the date of the final financial report
Budget modifications — prior approval required for certain budget changes

For a thorough grounding in federal grant compliance requirements, read federal grant reporting requirements and the Uniform Guidance overview. And for organizations managing multiple government grants alongside foundation funding, the comparison of federal vs. foundation grants explains the meaningful compliance differences between the two.

GrantPipe’s grant pipeline management gives you a place to track every government grant from application through closeout — including expected award dates, reporting deadlines, and spend status. The restricted fund tracking ensures each government grant’s expenditures are cleanly separated in your financial records, and grant calendar deadline alerts flag reporting due dates before they become problems.

If you’re ready to structure your government grant operations for the first time, download the grant compliance checklist — it covers the administrative infrastructure you need before your first federal award arrives.

Free resource

Get the Nonprofit Grant Compliance Checklist

A practical checklist for post-award grant compliance: restricted funds, reporting cadence, audit prep, and common failure points. Delivered by email.