
Securing seed money for a nonprofit can be a daunting task, but with the right guidance, you can increase your chances of success. According to the National Center for Charitable Statistics, there are over 1.8 million registered nonprofits in the United States alone.
To start, it's essential to understand the different types of grants available. The Corporation for National and Community Service provides grants for various purposes, including disaster relief and community development. These grants can range from $10,000 to $1 million or more.
Nonprofits can also explore alternative funding sources, such as crowdfunding. A successful crowdfunding campaign can raise up to $1 million or more, as seen with the example of the Indiegogo campaign for the nonprofit organization, DonorsChoose.
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Seed Money Sources
Seed Grants are available from private foundations and corporations, with over 6,000 grants given to nonprofits in the United States.
These grants are typically two to three years in length, with increasing amounts each year, starting at $2,500 and reaching up to $7,500.

Y Combinator, a well-known startup accelerator, also provides seed money for nonprofits, making donations and not taking a stake in the organization.
The grants from private foundations and corporations can be a game-changer for small nonprofits with an annual budget of $250,000 or less, allowing them to have a significant impact on their budgets.
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Seed Savers Exchange
Seed Savers Exchange is a great resource for those in need of seeds. They donate seeds to schools, community gardens, seed libraries, and nonprofits who give them away for free.
Their disaster relief seed donation program helps get seeds to those affected by disasters. To qualify, you'll need to complete their application process.
Herman Warsh and Maryanne Mott's financial support helped establish Seed Savers Exchange's headquarters in Decorah, Iowa. They have a special program, Herman's Garden Seed Donation Program, which donates seeds to organizations and gardens in need.
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Seed Grants
Seed Grants are a type of funding that can be a game-changer for small organizations.
Seed Grants typically range from two to three years, with increasing amounts each year: $2,500 in year one, $5,000 in year two, and $7,500 in year three, if the organization meets certain benchmarks.
These grants are designed for organizations in their start-up phase, with an annual budget of $250,000 or less.
Eligibility for Seed Grants is limited to organizations with a budget of $250,000 or less, ensuring that the funds have a significant impact on their budget.
Seed Grantees are encouraged to use these grants for internal capacity building, but there are no formal restrictions on how the funding can be used.
By providing Seed Grants, foundations can support and work with social entrepreneurs building early-stage ventures.
Y Combinator, a well-known accelerator, also offers Seed Money for non-profits, providing a unique opportunity for non-profits to learn from successful business minds.
In fact, Y Combinator's non-profit profile has expanded, with 7 out of 75 companies in their Winter 2014 batch being non-profits.
There are over 6,000 Seed grants available for nonprofits in the United States, provided by private foundations and corporations.
These grants can be a vital source of funding for small organizations looking to get off the ground.
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Grants and Funding Options

There are over 6,000 seed grants available for nonprofits in the United States, funded by private foundations and corporations.
Seed Grants are a type of funding that provides increasing amounts each year, starting at $2,500 in year one, $5,000 in year two, and $7,500 in year three, if certain benchmarks are met.
Eligibility for seed funding is generally limited to organizations with an annual budget of $250,000 or less, to ensure the funds have a significant impact on the organization's budget.
Nonprofits can use seed grants for internal capacity building, although there are no formal restrictions on how the funding is used.
Grants for US Nonprofits
There are over 6,000 seed grants available for nonprofits in the United States, funded by private foundations and corporations. These grants are designed to support organizations in their start-up phase.
Seed Grants are two- to three-year grants with increasing amounts each year: $2,500 in year one, $5,000 in year two, and $7,500 in year three, if the organization meets certain benchmarks. Organizations with an annual budget of $250,000 or less are eligible for these grants.
To be eligible for a Seed Grant, your organization's annual budget should be $250,000 or less. This ensures that the funds have a significant effect on the budget of selected organizations.
Review Process

The review process for grants can be a bit mysterious, but I'm here to break it down for you.
Seed applications are reviewed by staff, who will reach out to set up a phone call to learn more about your work and ask any clarifying questions.
Staff uses a rubric to gauge how well a project aligns with the Grassroots Fund's Guiding Practices, and they're particularly interested in how a group makes decisions and determines priorities.
They also want to hear about how a group has been able to determine if their work aligns with other efforts within the community.
Funding decisions and grant amounts are guided by the final rubric score.
You'll be notified of the final decision via email, and if you're approved, you'll be asked to sign a grant agreement letter before receiving the funding.
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Foundations and Organizations
The American Psychological Foundation Inc offers Visionary Grants to support research, education, and intervention projects that solve social problems, including understanding the connection between behavior and health, and preventing violence.
These grants focus on specific priority areas, such as applying psychology to at-risk populations and eliminating stigma and prejudice.
The Alfred P Sloan Foundation provides funding for the Creating Equitable Pathways to STEM Graduate Education initiative, which aims to remove barriers and create opportunities for equitable learning environments in STEM graduate education.
Grants up to $500,000 will be awarded to U.S. higher education institutions and organizations developing equitable pathways to STEM graduate education.
Here are some of the priority areas for the Alfred P Sloan Foundation's initiative:
- Establishing seamless pathways from Minority Serving Institutions (MSIs) to master’s and doctoral degree programs in STEM fields
- Addressing policies, processes, and practices that reinforce existing barriers to student access and success in graduate education
- Examining or redesigning graduate recruitment, admission policies and processes, mentoring practices, departmental climate, or other gatekeeping structures
Curtiss & Mary Brennan Foundation
The Curtiss & Mary Brennan Foundation was established in 1988 to support archaeological field research, particularly in regions where early centers of complex culture or civilization originated.
They view their grants as seed money, meant to catalyze significant archaeological projects and help them gain further support from traditional funding sources.
The foundation prioritizes projects that increase understanding of early cultural complexity and civilization in a specific region.
They consider factors such as the project's potential to leverage additional funding, the need to rescue threatened archaeological resources, and the professional standing of the individuals and institutions involved.
The Curtiss & Mary Brennan Foundation emphasizes the importance of field excavation and only considers post-excavation activities in connection with previously funded field projects.
We Only Fund:
The American Psychological Foundation Inc only funds groups that do local, grassroots work in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, or Vermont.
These groups don't need to have formal tax status or a fiscal sponsor, but they do need a bank account in the group's name.
Groups that are volunteer-driven or have no more than 2 full-time paid staff members are also eligible for funding.
These groups should have an approximate annual operating budget under $100,000.
Here's a summary of the funding criteria:
Update for 2022:
The Grassroots Fund has made some changes to their guidelines for 2022, and it's worth noting that groups can still receive funding from different grant programs per calendar year, as long as each individual grant is received in a different grant round.
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One of the key takeaways is that groups can receive a maximum of two grants from the same grant program per calendar year, but only if each individual grant is for a different project and received in a different grant round.
The Grassroots Fund is working to clarify and update some of their guidelines based on feedback from the community, which is a great way to ensure that the funding is going to the groups that need it most.
To give you an idea of how flexible some of the guidelines are, the Grassroots Fund notes that their guideline for groups having a budget under $100,000 for Seed and Grow is just an approximation, and that cost of living varies widely across communities.
Here are some key points to keep in mind:
- Groups can receive funding from different grant programs per calendar year, as long as each individual grant is received in a different grant round.
- Groups can receive a maximum of two grants from the same grant program per calendar year, as long as each individual grant is for a different project and received in a different grant round.
- The guideline for groups having a budget under $100,000 for Seed and Grow is an approximation, and the guideline that only groups in New England states are eligible for funding remains strictly followed.
Frequently Asked Questions
Is seed money considered revenue?
No, seed money is not considered revenue as it's a capital contribution, not income. This means you won't have to pay taxes on it, but it will impact your cost-basis for future sales or dissolutions.
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