How To Use Community Grant Funding

A community grant fund is a resource that addresses the financial problems of a community, whether through publicly managed or owned projects, which had considerable impact to the general economic circumstances of a community or the grantee. The purpose of granting the fund is to give back to the people its supportive and nurturing goals. In granting the fund, it is expected that conditions of middle and low-income persons are improved.

Source of Funds

Funds that are distributed to grantees are funds that have been pooled by the Foundation to support qualified programs or projects in support of education or literacy, spirituality, human and health service needs, arts, and the environment.

Use of Community Grant Funding

Any municipality with legitimate projects can apply for funding from any grant organizations. The grant funds must be used according to the guidelines of the granting organization, which is within the limit of the award for a type of program. Whatever type of grant funding you need, there are guidelines to be followed:

  • When granting funds, the institution requires a match in funding from the requesting body.
  • Grantee should use the granted fund for a specific purpose for which the request was made. A valid documentation should accompany the reimbursement submission.
  • Project grants must be linked to an institution’s service or project.
  • The grant can be used to cover the daily administration and personnel expenses, including program costs.
  • The grant may be invested to give income for organizational support.
  • Can be used as seed money to establish a new project by covering salaries and other management expenses.
  • Can be used to support capacity building activities
  • May be used as capital funds to support renovation or construction of a facility.

There are policies for expenses that may be allowed for grant funds. Such funds must be used for purposes only specified by the foundation. The foundation can choose to grant any type of requests. But then again, unless it were a detailed program, it is unlikely that the committee would grant the request. Although the committee will deem operating or capital funds, preference will be favored to grants that fall into categories such as: project, seed money, or capacity building. Other considerations may be imposed by the funding institution or the Foundation: Is the project, program, or organization sustainable to warrant the requested funding? In other words, will there be an assurance that the initiative will carry on after funding institution support ends?

Grants may be given to charitable institutions or to groups or individuals that are requesting support for a charitable mission. It should help the greater good of the community or population.

Community grant funding cannot just be used for whatever purpose that may suit the organization. As the previous paragraph says, there are conditions by which a request for community fund may be approved. Once approved and released, the fund would be spent for the project with which the funding was requested. Some foundations grant funds on a reimbursement basis.


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