Government grants, available from federal, state, and local agencies, are a significant source of funding for the nonprofit sector, particularly for organizations in health, education, and human services. While these grants can be transformative, the application process is notoriously complex, time-consuming, and highly competitive.

Government grants are almost always "restricted," meaning the funds are designated for a specific project or purpose outlined by the agency. Opportunities can be found on centralized databases like Grants.gov for federal funding or on state-specific portals. These grants often support long-term projects, such as environmental or infrastructure initiatives that may run through 2027 or even 2035.

To apply for federal grants, organizations must first register with Grants.gov and then use its "Workspace" system to complete and submit applications. Success requires careful, long-range planning, as the process is multi-stepped: the call for applications opens, there is a firm closing date, a shortlisting period, and then a final approval process that can take many months.