Nonprofit Capacity Building Grant Program

The Nonprofit Capacity Building grant program is administered by the Vermont Community Foundation and is designed to support nonprofit organizations and municipalities in Vermont in their efforts to enhance strategic and financial sustainability. This program funds consultant-led planning efforts that help organizations improve their internal capacity, with a focus on those operating under constrained budgets. It emphasizes strategic development that bolsters mission clarity, leadership skills, revenue diversification, and long-term viability. The funder recognizes that many nonprofit organizations, especially those with smaller budgets, often lack the resources needed to engage in comprehensive planning. By offering targeted support through this program, the Vermont Community Foundation aims to strengthen the operational foundations of these organizations so they can better serve their communities. Eligible applicants include nonprofit organizations and municipalities located in or serving Vermont. The program specifically targets organizations with annual operating budgets under $1 million, with a stated priority for those under $250,000. Grants awarded through the program are capped at $5,000 and are intended to partially subsidize the cost of consultant services; applicants are expected to demonstrate other sources of funding in their budgets. These grants are not meant to fully cover the cost of services but can be used as challenge grants to help secure additional funding. The use of funds is strictly limited to consultant fees related to eligible planning activities. Eligible activities supported by the grant include strategic planning, financial sustainability assessments, merger planning, DEI (diversity, equity, and inclusion) policy development and implementation, and board and leadership training. Beginning February 2025, applicants are also permitted to seek support for consultant-led planning in response to financial challenges resulting from changes in federal policies or funding levels. Projects that do not fall within these specific categories must demonstrate a clear connection to the organization's mission and include evidence of board support. The program does not fund repeated grants to the same organization or project within a three-year window, nor does it support board recruitment, capital campaign feasibility studies, grant writing, startup costs, or consultant expenses unrelated to core planning (such as marketing, web development, or event planning). Additionally, salaries, benefits, professional development, operational training, and implementation of existing plans are not allowable costs. Applications from organizations with operating budgets exceeding $1 million are ineligible. Applications are accepted on a rolling basis, and decisions are typically made within two months of submission. However, the 2025 cycle will close on November 14, 2025, after which no new applications will be accepted until the program reopens in February 2026. Applicants should ensure that requested activities will occur after award notification to remain eligible for funding. All application notifications, whether approvals or denials, are delivered by email. Those interested in applying or who have questions are encouraged to contact Jane Mulcahy via email at [email protected] or by phone at 802-388-3355 ext. 381. Grant-funded activities must be completed within one year of receiving the award. The Vermont Community Foundation encourages applicants to review the general applicant guidelines available on its website to ensure eligibility and compliance.