Nonprofit Capacity-Building Grants

The Initiative Foundation’s Nonprofit Capacity-Building Grants program is designed to strengthen the long-term effectiveness and sustainability of small nonprofit organizations operating in Central Minnesota. Administered by the Initiative Foundation, a regional philanthropic organization located in Little Falls, Minnesota, the program targets strategic organizational development rather than direct service delivery. Funding is intended to help eligible nonprofits enhance their internal operations, governance, and planning capabilities to more effectively pursue their missions. This grant supports a wide range of capacity-building initiatives such as strategic planning, succession planning, staff and board training, governance improvement, marketing and communication strategies, and exploration of alliances or mergers. Process improvement methods, including Lean or Six Sigma frameworks, and fund development planning at the strategic level are also supported. However, the program explicitly excludes funding for day-to-day program or project costs, general operating expenses, fundraising personnel, technology upgrades, and one-time events. Eligible applicants must be IRS-designated 501(c)(3) nonprofits with an annual operating budget of $1 million or less. They must currently operate within one of the 14 counties or designated tribal areas of the Leech Lake and Mille Lacs Bands of Ojibwe included in the Initiative Foundation’s service area. Organizations based outside the region or planning expansion into the area are not eligible. Qualifying nonprofits must provide services in one or more focus areas: basic needs (such as food and housing), economic programs (including life skills and apprenticeships), non-clinical mental health and substance abuse services, or support for individuals affected by discrimination or crime. The grant offers funding amounts ranging from $1,000 to $10,000. A nonprofit may only receive one award per 12-month period. In 2025, the program offers multiple rounds, with submission deadlines at 4:00 p.m. on April 1, August 14, and October 10. Applications must be submitted by the posted deadline, and award notifications are typically issued within two weeks. Final reports are required one year following the receipt of funds. Applications from organizations that have recently participated in the Foundation’s Nonprofit Academy training may receive priority. Applications can be submitted online through the Foundation’s portal. A complete submission includes adherence to eligibility criteria and alignment with program priorities. The grant administrator, Jessy Beto, can be contacted for further information or assistance. The opportunity recurs multiple times a year, and future rounds are anticipated to follow a similar timeline.

Participation in the Nonprofit Academy within the last six months may give priority consideration.