Federal Grants for Nonprofits in 2026: The Complete Guide

Federal grants represent one of the most significant -- and most underutilized -- funding sources available to nonprofit organizations. Each year, the federal government distributes hundreds of billions of dollars through competitive grant programs, yet many nonprofits never apply. Some assume the process is too complex. Others believe federal funding is reserved for large institutions. Both assumptions are wrong.

This guide walks through everything a nonprofit needs to know about pursuing federal grant funding in 2026: which agencies offer the most relevant programs, how to determine eligibility, where to find opportunities, and how to avoid the mistakes that sink otherwise strong applications.

If you are new to the federal grants landscape, start by exploring opportunities through our grant finder or browse all available grants to get a sense of what is currently open.

Why Federal Funding Matters for Nonprofits

Federal grants provide a level of funding stability that most private foundations and corporate donors cannot match. A single federal award can range from $50,000 for a community-level project to several million dollars for multi-year initiatives. Beyond the dollar amounts, federal grants carry institutional credibility. An organization that has successfully managed a federal award signals to other funders that it can handle rigorous reporting requirements, comply with federal regulations, and deliver measurable outcomes.

There are also structural reasons to pay attention to federal funding right now. The Bipartisan Infrastructure Law and Inflation Reduction Act continue to push new dollars into environmental, energy, and community development programs. Several agencies have expanded their outreach to smaller and community-based organizations, particularly in environmental justice and rural development. For nonprofits working in these areas, the window of opportunity in 2026 is unusually wide.

Key Federal Agencies That Fund Nonprofits

Not every federal agency funds nonprofits, and those that do tend to focus on specific issue areas. Here are the agencies most relevant to the nonprofit sector in 2026.

Environmental Protection Agency (EPA)

The EPA runs several grant programs specifically designed for nonprofit and community-based organizations. These include the Environmental Justice Collaborative Problem-Solving (EJCPS) program, Community Change Grants, and Brownfields Assessment and Cleanup grants. Many of these programs prioritize organizations serving disadvantaged communities and do not require extensive prior federal grant experience.

The EPA has been particularly active in expanding funding for environmental justice work, with new allocations flowing from the Inflation Reduction Act. Nonprofits focused on pollution reduction, community health, and climate resilience should explore these opportunities. Visit our EPA grants page for a current listing of open EPA programs.

U.S. Department of Agriculture (USDA)

USDA funding extends well beyond farming. The Community Facilities Direct Grant Program supports nonprofits in rural areas seeking to build or improve essential community infrastructure -- health clinics, childcare centers, public safety facilities, and similar projects. The Rural Energy for America Program (REAP) funds energy efficiency and renewable energy projects. The Community Connect Grant Program supports broadband deployment in underserved rural areas.

For nonprofits operating in rural communities, USDA programs are often the best fit because they are explicitly designed for organizations working outside major metropolitan areas. Our USDA grants page provides a comprehensive overview of current opportunities.

Department of Housing and Urban Development (HUD)

HUD funds nonprofits working on housing, homelessness, and community development. The Community Development Block Grant (CDBG) program channels funds through state and local governments, which then sub-grant to nonprofits. The Continuum of Care (CoC) program funds homelessness services and supportive housing. HUD also administers the Fair Housing Initiatives Program, which supports organizations doing fair housing enforcement and education.

Department of Energy (DOE)

The DOE has expanded its nonprofit funding substantially through the Inflation Reduction Act. Programs like the Energy Efficiency and Conservation Block Grant (EECBG) and various clean energy demonstration projects now include pathways for nonprofit applicants. Organizations working on energy poverty, building weatherization, and community solar should pay close attention to DOE funding announcements.

National Oceanic and Atmospheric Administration (NOAA)

NOAA funds nonprofits working on marine conservation, coastal resilience, and fisheries management. The Marine Debris Removal program, Sea Grant, and various coastal zone management grants all accept nonprofit applicants. These programs are especially relevant for organizations operating in coastal communities.

Other Relevant Agencies

Several additional agencies fund nonprofit work in specific domains:

• National Science Foundation (NSF): Funds education and STEM outreach programs, including the Tribal Colleges and Universities Program (TCUP)
• Department of Education: Funds literacy, workforce development, and educational equity programs
• Department of Health and Human Services (HHS): Funds community health, substance abuse prevention, and social services through agencies like SAMHSA and HRSA
• Department of Justice (DOJ): Funds victim services, violence prevention, and community safety programs

For a broader view across all agencies, explore our grants for nonprofits page.

How to Determine Eligibility

Before investing time in any federal grant application, confirm that your organization meets the basic eligibility requirements.

501(c)(3) Status

Most federal grant programs require applicants to be recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. Some programs also accept 501(c)(4) organizations, tribal governments, or other entity types, but 501(c)(3) status is the most common requirement. Have your IRS determination letter readily available -- you will need it for virtually every federal application.

SAM.gov Registration

Every organization seeking federal funding must register in the System for Award Management (SAM.gov) and obtain a Unique Entity ID (UEI). This registration process can take several weeks, so do not wait until you find a grant to begin. If your registration has lapsed, renew it immediately.

Grants.gov Account

You will submit most federal grant applications through Grants.gov. Create an organizational account well in advance of any deadline. The account setup process involves multiple steps and authorization levels that can take time to complete.

Organizational Capacity

Federal agencies want to know that your organization can manage the funds responsibly. This means having:

• Established financial management systems and internal controls
• Experience managing grants or contracts (not necessarily federal)
• Adequate staffing or a realistic plan for hiring
• An independent financial audit (required for organizations spending $750,000 or more in federal funds annually under the Single Audit Act)
• Documented policies for procurement, conflict of interest, and financial management

If your organization is newer or smaller, do not be discouraged. Many programs -- particularly EPA environmental justice grants and USDA rural programs -- are designed to be accessible to organizations without extensive federal grant histories. Our guide on building an organizational capacity statement covers how to present your organization's strengths effectively.

Step-by-Step Guide to Finding the Right Grants

Finding the right federal grant is as important as writing a strong application. Applying to the wrong program wastes months of effort.

Step 1: Define Your Project Clearly

Before searching for funding, articulate exactly what you want to accomplish, who will benefit, where the work will happen, and what outcomes you expect. Federal grants fund specific projects, not general operations. The more precisely you can describe your proposed work, the easier it will be to match it to the right program.

Step 2: Search for Opportunities

Start with these resources:

• Grants.gov: The official federal grants portal lists all discretionary grant opportunities. Use keyword searches and set up email alerts for relevant terms.
• Agency Websites: Individual agency grant pages often provide more context than Grants.gov listings, including pre-announcement information and program priorities.
• Granted's Grant Finder: Our grant finder tool lets you search across federal and non-federal opportunities filtered by your organization type, issue area, and location.
• Federal Register: New grant programs and funding announcements are published here before they appear on Grants.gov.

Step 3: Read the Notice of Funding Opportunity (NOFO)

Every federal grant has a NOFO (sometimes called an RFA or FOA) that spells out exactly what the agency is looking for. Read the entire document before deciding to apply. Pay particular attention to:

• Eligible applicant types
• Matching or cost-sharing requirements
• Application page limits and formatting requirements
• Review criteria and point values
• Reporting requirements

Step 4: Assess Fit and Competitiveness

Ask honestly whether your project aligns with the program's stated priorities. If the NOFO emphasizes community engagement and your project is primarily research-focused, it may not be the right fit -- even if the topic area matches. Review any available information about past awardees to understand the agency's preferences.

Step 5: Plan Your Timeline

Federal grant applications typically require 6-12 weeks of preparation. You will need time to gather letters of support, develop a detailed budget, coordinate with partners, and revise multiple drafts. Start as early as possible after the NOFO is published.

Common Mistakes Nonprofits Make When Applying

After reviewing thousands of federal grant applications, certain patterns of failure emerge consistently. Avoiding these mistakes will significantly improve your competitiveness.

Not Following Instructions

This is the most common and most avoidable mistake. Federal applications have specific formatting requirements, page limits, and required sections. Failing to comply with these instructions can result in your application being rejected without review. Read the NOFO twice. Follow every instruction exactly.

Weak Needs Statements

Many applicants describe their organization's needs rather than the community's needs. Federal agencies fund projects that address documented problems affecting specific populations. Use data -- census figures, health statistics, environmental monitoring data -- to establish the scope and severity of the problem your project will address.

Vague Objectives and Outcomes

Reviewers want to see specific, measurable outcomes. Stating that your project will "improve community health" is not sufficient. Specify what will change, for whom, by how much, and by when. Our guide on how to write a grant proposal covers this in detail.

Unrealistic Budgets

Budgets that are too low signal that you do not understand the true cost of the work. Budgets that are too high suggest waste. Every line item should be justified and tied directly to project activities. For detailed guidance, see our grant budget justification template.

Missing the Evaluation Plan

Federal agencies require a plan for measuring whether your project achieved its stated goals. Many applicants treat this section as an afterthought. A strong evaluation plan demonstrates that you are serious about accountability and results. Our guide on building a grant evaluation plan walks through this in detail.

Ignoring Review Criteria

Every NOFO includes the criteria reviewers will use to score applications, often with specific point allocations. Structure your narrative to address each criterion explicitly, in the order listed. Do not force reviewers to hunt through your application to find relevant information.

Building Organizational Capacity for Federal Grants

If your organization has never managed a federal grant, consider taking incremental steps to build capacity before pursuing a large award.

Start with Smaller Awards

Many agencies offer planning grants, technical assistance awards, or smaller project grants that provide an entry point for organizations new to federal funding. EPA's environmental justice small grants program, for example, has historically offered awards in the $30,000-$100,000 range with simpler application requirements.

Develop Financial Systems

Federal grants require strict financial accountability. Ensure your organization has:

• Accounting software that can track expenses by grant and budget category
• Written financial policies covering procurement, travel, and personnel costs
• A system for tracking staff time (timesheets or equivalent) by project
• Segregation of duties in financial management

Build Partnerships

Federal agencies increasingly favor collaborative applications. Partnerships with universities, government agencies, other nonprofits, and community organizations strengthen your application and expand your capacity. Strong letters of support from partners can make a meaningful difference in how reviewers perceive your organization.

Invest in Grant Management Staff

If you anticipate pursuing multiple federal grants, dedicate staff time to grants management. Federal awards come with substantial reporting requirements -- financial reports, progress reports, and compliance documentation. Having someone who understands these requirements prevents problems down the line.

Tips for First-Time Federal Grant Applicants

Applying for your first federal grant can feel overwhelming. These strategies will help you navigate the process more effectively.

Contact the Program Officer. Every NOFO lists a point of contact at the funding agency. Reach out before you apply. Program officers can clarify ambiguous requirements, confirm that your project fits the program's scope, and sometimes provide insight into agency priorities. They cannot review your application in advance, but they can save you from submitting to the wrong program.

Attend Pre-Application Webinars. Most agencies host informational webinars after releasing a NOFO. Attend them. They often reveal details about what the agency is looking for that are not fully captured in the written NOFO.

Request Previous Winning Applications. Under the Freedom of Information Act (FOIA), you can request copies of previously funded applications. This gives you a concrete model for what a successful application looks like for a specific program.

Use a Compliance Checklist. Before submitting, create a checklist of every requirement in the NOFO and verify that your application addresses each one. Have someone who was not involved in writing the application review it against the checklist.

Submit Early. Grants.gov can experience technical difficulties near deadlines. Submit at least 48 hours before the due date. If you encounter submission errors, you will need time to resolve them.

For a deeper dive into first-time applicant strategies, see our guide on first-time federal grant tips for small nonprofits.

Budget and Cost-Sharing Considerations

Federal grant budgets require a level of detail and justification that many nonprofits are not accustomed to providing. Understanding the basics will strengthen your application.

Direct vs. Indirect Costs

Direct costs are expenses specifically tied to your project -- staff salaries, supplies, travel, equipment. Indirect costs (also called facilities and administrative costs) cover overhead expenses like rent, utilities, and organizational administration. If your organization has a federally negotiated indirect cost rate, you can charge indirect costs at that rate. If you do not, most programs allow a de minimis rate of 10% of modified total direct costs.

Cost Sharing and Matching

Some federal programs require applicants to contribute a portion of the project cost from non-federal sources. This is called cost sharing or matching. It can be cash (your own funds or other non-federal grants) or in-kind contributions (donated goods, volunteer time, use of facilities). Not all programs require matching, but those that do treat it as a firm requirement. Check the NOFO carefully.

Allowable Costs

Federal grants are governed by the Uniform Guidance (2 CFR Part 200), which defines what costs are allowable, allocable, and reasonable. Some common restrictions:

• Food and beverages are generally unallowable unless directly tied to a conference or training event
• Construction is not allowed under most grant programs unless specifically authorized
• Equipment purchases over $5,000 may require prior agency approval
• Pre-award costs are only allowable if the NOFO specifically permits them

Understanding these rules before you prepare your budget prevents costly errors during the project period.

Using AI Tools to Streamline the Application Process

The federal grant application process generates enormous amounts of repetitive work -- compliance checking, formatting, budget calculations, and narrative drafting. AI tools are increasingly capable of handling the mechanical aspects of this work, freeing grant writers to focus on strategy and substance.

Where AI Adds the Most Value

AI tools are most effective for:

• Drafting initial narrative sections based on your organization's existing documents, past applications, and the NOFO requirements
• Compliance checking to verify that your application addresses every requirement in the NOFO
• Budget calculations and justification narrative generation
• Editing and tightening prose to meet page limits without losing critical content
• Summarizing lengthy NOFOs to quickly assess fit before committing to a full application

Where Human Judgment Remains Essential

AI should augment your grant writing process, not replace it. Strategic decisions about which grants to pursue, how to frame your organization's unique value, and how to present sensitive community data all require human judgment and subject matter expertise. The strongest applications combine AI efficiency with human insight.

Getting Started with AI-Assisted Grant Writing

If you are interested in using AI tools for your next federal grant application, our guide on how to use AI for grant writing provides a practical framework. You can also explore our grant finder to identify opportunities that match your organization's mission before beginning the writing process.

Next Steps

Federal grants are not easy money. They require significant investment of time and organizational resources. But for nonprofits willing to build the systems and skills needed to compete, they represent a reliable, substantial source of funding that can transform organizational capacity and community impact.

Start by assessing your readiness: Is your SAM.gov registration current? Do you have the financial systems to manage federal funds? Can you articulate a specific, measurable project that aligns with a federal agency's priorities?

If the answer to those questions is yes, you are ready to begin. Use our grant finder to identify opportunities, review the relevant agency pages, and start building your application timeline. The funding is there. The question is whether your organization is prepared to go after it.