There are many types of grants that a foundation may make. A foundation may or may not choose one particular strategy, but use a range of grant types depending upon the circumstances. Here is a list of the most common types of grants:
General Operating Support
Grants which allow the grantee to decide how funds will be used.
Capacity Building Grants
Fund core organizational skills and capabilities such as leadership, fundraising, management, etc.
Project Support Grants
Fund a particular program or project with expected outcomes.
Most commonly, fund individuals for a particular purpose usually for travel or study. Special IRS approval is necessary for this type of program.
Provide start-up funds for a new organization or program.
Provide funds to an organization with expectation (or on the condition) that additional funds are raised from other sources.
Program Related Investments (PRIs)
Provide low-interest loans, loan guarantees, etc. to nonprofits.
Funds the purchase (or construction) of a building, land, or major equipment.
Builds an organization’s endowment fund which can help a grantee to achieve financial stability.
Funds projects which experiment with new solutions to social problems—things that would generally would not be funded by government because of the associated risk.