Operating Grants (Community Needs focus)

Operating Grants (Community Needs focus) is sponsored by Daniel Foundation of Alabama. Supports nonprofit agencies serving communities across Alabama's key counties, including Jefferson, Mobile, Montgomery, Madison, and others, focusing on early childhood development, K-12 academic improvement, adult skills and independence, arts organizations, youth mentoring, basic needs, and healthcare.

Operating Grants | Daniel Foundation of Alabama Please note this information is for operating grants only. There are different requirements for each of our grant opportunities. Please review each one carefully to determine the proper fit for your project or programming.

This opportunity is best suited for qualifying organizations based and doing work in the following counties: Autauga, Baldwin, Blount, Cullman, Elmore, Etowah, Jefferson, Lauderdale, Lee, Limestone, Madison, Mobile, Montgomery, Morgan, St. Clair, Shelby, and Tuscaloosa. The following priority areas will be eligible for operating grants up to $25,000 .

Giving kids birth to 5 a positive start and preparing them to be successful in school. Programs working on academic improvement and better educational outcomes for children in Kindergarten to Grade 12. Programs for adults that teach skills leading to independence and life success.

Support for arts organizations with year round programming. Groups working with children and youth who directly mentor or teach skills needed to be successful in school and life. Primarily addressing short term needs for food, emergency shelter, clothing, safety, etc. Programs providing health screenings and medical care and services for low income individuals and families and the uninsured.

Programs supporting mental wellness through counseling and therapeutic services and activities. Programs related specifically to veterans. Organizations must meet all the following criteria to be eligible for consideration of an operating grant.

IRS Determination Letter must indicate an effective date of exemption that is at least two years prior to the submission date of the LOI. Organization must have filed Form 990/990EZ within the last two years. 990-N does meet this qualification.

Revenue (line 12, Form 990)/ (line 9, Form 990EZ) cannot exceed 5,000,000. Revenue mix must not include more than 75% government grants or contracts. Organization must have at least one paid employee.

Organization must be based in Alabama; funding will only be considered for the benefit of Alabama residents.

We have strategically narrowed our priority areas; the following areas will no longer be considered during the Operating Grants opportunity: Public schools and public school foundations Summer learning (we will continue to participate in the SAIL (Summer Adventures in Learning) opportunities) Greenspace projects such as parks, playgrounds, trails, etc. Long-term affordable housing Adult Leadership programs Maximum request amount of $25,000.

Organizations awarded funding must sit out one year before being eligible to apply for future funding (e.g., if an award is made in 2026, application cannot be made again until 2028). For 2026, we will not be considering organizations that have never received board funding from the Foundation.

Open for Letters of Intent Open for Letters of Intent Open for Letters of Intent Each cycle will accept letters of intent from any of the eligible priority areas. Cycles are no longer issue specific. We appreciate your patience as we work through the logistics of our new opportunities.

We are making some changes to help with our internal processes and to better match our opportunities with our resources. The following changes go into effect on February 23, 2026. Rural Opportunities no longer begin with an e-mail.

They will start with a LOI submitted through our online grants management system. Special Projects no longer begin with an e-mail. They will start with a LOI submitted through our online grants management system.

Special Projects are no longer accepted year round. They will following the calendar presented on the Special Projects page. For 2026, Special Projects will not be accepting LOIs from organizations new to Daniel Foundation – those having never been board funded.

See FAQs for more information on “board funded”. All Rural Tier 1 and Tier 2 counties should submit opportunities through the Rural Cycle only. The 17 non-rural counties should choose either Operating Grants or Special Projects, whichever best fits your request.