Source 11: Advantages and Barriers
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Source 11: Advantages and Barriers



  • These grants can be a good financial beginning for new and distinct projects or initiatives.
  • A grant proposal can serve as a planning tool to help refine goals, objectives, strategies, and timetables.
  • The process is straightforward, and one person can take the lead with minimal need for committees and coordination.
  • Foundation and government support can leverage other sources of funding and increase an organization’s prestige.
  • Foundation or government reporting requirements can promote better recordkeeping and accountability systems that document impact.
  • Funders can provide technical assistance to help make a project successful and increase organizational effectiveness.


  • Grants are limited in size and duration. Most last 1-3 years.
  • Most are not renewable and rarely grow larger as time goes on.
  • Grants are restricted in use. Expenditures have to be specified in the grant budget.
  • Restricted funding may reduce an organization’s autonomy and flexibility.
  • Decision-making is often near the start of the fiscal year, causing uneasiness as to whether an organization will have sufficient funds.
  • Many small nonprofits don’t have enough money to pay for professional grant-writing staff.
  • Many grants require nonprofits to use existing funds to pay for incurred expenses until they’re reimbursed.
  • Some foundations and government agencies have extensive reporting and licensing requirements that are time intensive.

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