As we come closer to the end of the financial year, many organisations are taking stock: reviewing budgets, refining strategies, and setting fresh goals. For purpose-driven , this is also the perfect time to sharpen your grant-seeking approach. |
When we talk about grants, we often talk about them as one big metaphorical bucket of money. But did you know there are different types of grants you can be targeting, each with their own positives and negatives?
Knowing the difference between private grants and public grants and the potential benefits of each to your organisation can really help you nail down your funding strategy and see more success for your efforts.
What is a private grant?
Private grants are those provided by non-public entities including corporations, foundations and philanthropists.
They are funds these organisations make available purely because they want to. It might be that they care for a particular cause or issue, want to contribute to the development of a particular community or cohort, are looking to gain social licence to operate, or to deliver on their priorities.
Corporate grants are those offered by corporations – often bigger businesses like banks and mining companies – that deliver funding in key areas related to their operations or the communities they operate in. For example, a mining company planning to open a new mine in a particular community might offer environmental grants to give back to the community they’re working in and improve the public perception of the work they’re doing.
Foundation grants are those offered by foundations – often non-profit organisations or charitable trusts – set up to deliver funds on key issues or causes they care about. For example, the Humpty Dumpty Foundation was established to raise and allocate funding for specialist medical equipment to hospitals to improve the health outcomes of babies and children.
Philanthropic grants are those offered by high wealth individuals and families for purposes important to them, usually related to addressing social issues. This can be done through foundations or through Private Ancillary Funds (PAFs) that allow wealth to be distributed to causes they care about in a structured way. For example, the Paul Ramsay Foundation – named for the late healthcare entrepreneur – was established to distribute Ramsay’s $3.3 billion fortune to reduce disadvantage across communities in Australia. Philanthropy can be structured or unstructured, depending on the philanthropist’s wishes, and often goes beyond traditional grants to investing in ideas and initiatives that have big impacts.
These private grants have no public reporting or notification requirements, as many have their own internal governance and reporting arrangements. The funding body can alter the amount, the time limit or even the purpose of the grant at any time, subject to the terms of the grant agreement.
What is a public grant?
Public grants are those provided by government of all levels – local, state and federal. These grants are made to address particular issues and improve community cohesion.
Often these grants are designed to expand or replace government service delivery. Government can’t do everything it wants to do so they outsource to organisations through grants to deliver on their priorities. Sometimes government outlines what kinds of programs it wants to fund while at other times, it allows the sector to come up with the ideas and initiatives that will work best.
Public grants can include core funding for operational expenses related to delivering services or advocacy, as well as project-specific grants for programs and events that deliver specific services to groups or communities. Public grants can also fund research, growth and expansion of industry, or even arts, culture, sport and recreation.
For example, government may have a focus on youth crime and seek initiatives from the community sector on how to keep kids engaged in school. This gives organisations the opportunity to develop a program that delivers on government’s objectives while being tailored to the needs of that community.
As public grants are taxpayer’s money, assessment panels consider not only the social or cultural need being met but also the economic one. These grants are subject to strict probity and reporting requirements, with regional spread, fairness and value prioritised. Funding cycles are often known well in advance.
Apply for private or public?
That is the question and it all comes down to eligibility and alignment. What are you eligible for and does it align with what the funding body is trying to achieve? Don’t waste your time applying for something you can’t win.
Whichever funding option you take, there are some things all funding opportunities have in common: a need to demonstrate value for money.
In a pool full of applicants, you must stand out by demonstrating that you’re the best option. Show don't tell. Show the assessment panel that your idea aligns with their goals, delivers what they care about and does it economically.
