As a small business owner looking for ways to help your company succeed, you might look at how a small business receives a corporate grant. A corporate grant is a grant that comes from a public or private company. Many companies hand out grants as part of a charitable foundation and writes off those grants as charitable deductions at the end of the year. You need to know the different types of grants and how to write a proposal and business plan before getting those funds.
Individual vs. Business Grants
Before you look at how a small business receives a corporate grant, you need to look at the difference between an individual grant and a business grant. An individual grant is a smaller grant that goes to the owner of the business rather than the business itself. You can use those funds for almost anything associated with the running of your company. A business grant is usually larger in size and goes to the business. Many companies limit what you can do with those funds and will only award grants to companies that already exist. A corporation will generally not give a business grant to someone with a start up idea or plans to start a business.
Writing a Grant Proposal
As part of the application for a business grant, you usually need to draft a grant proposal. Professional writers charge hundreds of dollars to write these proposals, but you may find their help and knowledge worthwhile. The proposal should include a section on the history of your business such as when the company opened its doors, the number of workers you employee and your annual profits. It will also include a financial section that explains the amount of grant money you seek and exactly how you will use that money.
Creating a Business Plan
In addition to a grant proposal, many corporations will also ask for a copy of your most recent business plan. This is the same plan that you show potential investors and give to the bank when applying for a small business loan. Entrepreneur suggests taking a conservative approach when talking about future projections and being realistic about your current situation. If you think that you’ll double your profits in the coming months, include that statement but back it up with facts on why you believe this will happen.
Getting Your Funds
When you look at how a small business receives a corporate grant, you probably want to know how you will actually get those funds. Corporations and their foundations have dedicated panels and departments that look at all applications. You may need to attend an interview session or meet with representatives from the corporation to further talk about how you will use that money. If you qualify for a grant and have approval from that panel, the company will usually mail you a check, but some can automatically deposit the funds in your business’s bank account. The company may have an awards ceremony that all grant recipients attend too.
Related Resource: What is a Corporate Grant?
Corporate grants come from both corporations and their charitable foundations. To qualify for one of these grants, you usually need to submit an application that includes both a grant proposal and business plans. Those looking at how a small business receives a corporate grant will find that corporations usually award those funds in the form of a check.
