Can a Grant Pay for a Grant Writer? Exploring Operating and Capacity Building Grants for Nonprofits

“We know we need help with grants, but we simply don’t have the budget for a grant writer right now.”

As a grant writer and fundraising consultant, I hear this all the time.

Many nonprofit leaders understand the value of investing in fundraising, grant writing, strategic planning, technology, and marketing, but when budgets are already stretched thin, these investments often get pushed to the bottom of the priority list.

The good news? Some funders recognize that strong nonprofits need strong infrastructure. They understand that investing in an organization’s capacity can lead to greater community impact, stronger programs, and increased sustainability.

Grant writing is not just about writing and submitting one grant application. Grant management is a long term strategy that requires careful planning, research, follow up, post grant requirements, planning to reapply for grants, building relationships, and so much more. The magic happens year over year, not just with a short burst of submitting a few grants.

However in the short term, nonprofit leaders are faced with the stress of day to day programs and with a limited budget.

That’s where Operating Grants and Capacity Building Grants come in.

What Are Operating Grants?

Operating grants, sometimes called general operating support grants, or grants for unrestricted funds, provide money that can be used for the overall needs of your organization rather than a specific program.

Depending on the funder’s guidelines, these grants may help cover:

• Salaries and staffing
• Technology improvements
• Fundraising and grant writing support
• Marketing and communications
• Strategic planning
• Professional development
• Administrative costs
• Organizational growth initiatives

These grants provide nonprofits with flexibility and can be incredibly valuable because they allow organizations to invest where support is needed most.

What Are Capacity Building Grants?

Capacity building grants are designed to strengthen an organization’s ability to fulfill its mission over the long term.

Rather than funding direct services alone, these grants help nonprofits build the systems, infrastructure, and expertise needed to become more sustainable and effective.

Capacity building funding may support:

• Strategic planning
• Board development
• Fundraising planning
• Grant writing and grant management
• Technology upgrades
• Website development
• Marketing and visibility initiatives
• Staff training
• Financial systems
• Evaluation and impact measurement

In short, these grants help nonprofits become stronger organizations.

Can a Grant Pay for a Grant Writer?

The answer is:

Sometimes, yes.

There is no universal “grant for grant writing.” However, many operating and capacity-building grants can support fundraising activities, organizational development, and professional services that strengthen an organization’s long-term sustainability.

This may include:

• Hiring a grant writer
• Fundraising consulting
• Strategic fundraising planning
• Donor development systems
• Marketing and visibility initiatives
• Website improvements
• Technology that supports fundraising growth

The key is understanding the funder’s priorities and carefully positioning your request.

Why Funders Invest in Capacity Building

Think about it this way.

A nonprofit may serve hundreds or even thousands of people each year. If investing in grant writing or fundraising strategy helps that organization secure significantly more funding over time, the impact of that initial investment can multiply for years to come.

Funders increasingly recognize that:

Stronger organizations create stronger communities.

Investing in infrastructure often leads to:

✅ More sustainable programs
✅ Increased financial stability
✅ Greater community impact
✅ More efficient operations
✅ Better long-term outcomes

Five Examples of Operating and Capacity Building Grants to Explore

1. Blue Cross Blue Shield of Michigan Foundation . Proposal Development Grants

The Blue Cross Blue Shield of Michigan Foundation offers Proposal Development Grants to support organizations in preparing competitive proposals for larger funding opportunities.

Funding may be used for:

• Grant writing consultants
• Proposal development
• Planning activities
• Research and evaluation support

This is an excellent example of a funder directly investing in an organization’s ability to pursue additional funding.

2. Dunham Foundation

The Dunham Foundation, serving organizations in Illinois and surrounding communities, has historically supported:

• Capacity building initiatives
• Strategic planning
• Organizational development
• Infrastructure investments
• Professional services that strengthen nonprofit sustainability

For many organizations, funding that supports organizational growth can have a lasting impact far beyond a single program.

3. The Lawrence Foundation

The Lawrence Foundation provides grants to organizations across the United States and is known for its willingness to support:

• General operating expenses
• Organizational needs
• Capacity-building activities
• Infrastructure improvements

Because of its flexibility, it can be an excellent opportunity for nonprofits seeking to strengthen their overall fundraising capacity.

4. W.K. Kellogg Foundation

The W.K. Kellogg Foundation frequently invests in:

• Organizational development
• Leadership capacity
• Community engagement
• Long-term sustainability initiatives

Many of their grants recognize that achieving meaningful change requires strong and resilient nonprofit organizations.

5. Charles Stewart Mott Foundation

The Charles Stewart Mott Foundation supports initiatives that strengthen communities and civil society.

Their funding has historically included support for:

• Organizational capacity
• Community leadership
• Infrastructure development
• Strategic growth initiatives

The foundation understands that strong organizations are essential to creating lasting change.

Other Places to Look for Capacity Building Funding

Beyond national foundations, don’t overlook:

• Community Foundations
• United Way organizations
• State nonprofit associations
• Local family foundations
• Corporate foundations
• Technology grants
• Government capacity-building initiatives

Many of these funders offer opportunities that can strengthen your organization’s infrastructure and fundraising capacity.

Why This Matters More Than Ever

The nonprofit sector continues to face increasing challenges:

• Rising costs
• Increased demand for services
• Donor fatigue
• Growing competition for grants

Investing in your organization’s ability to raise funds, communicate your impact, and build sustainable systems is no longer a luxury. It’s a necessity.

Sometimes the best grant you can apply for isn’t the one that funds a specific program.

It’s the one that helps your organization become stronger, more sustainable, and better equipped to raise funding for years to come.

Final Thoughts

At Impact Funding Solutions, we often remind our clients that fundraising is an investment, not simply an expense.

The organizations that consistently secure funding are often the ones that invest in:

• Grant readiness
• Strategic planning
• Fundraising systems
• Visibility and marketing
• Professional expertise
• Long-term sustainability

Operating grants and capacity building grants can provide an incredible opportunity to strengthen your organization and create a foundation for future growth.

Because sometimes the best way to increase your funding is to fund your funding. 

We always prioritize operating and capacity building grants when doing our research and planning out the grant calendar for each client.

CONTACT US FOR MORE INFORMATION

Frequently Asked Questions

What is an operating grant?

An operating grant, also called general operating support, provides funding that can be used for an organization’s overall expenses and infrastructure rather than a specific program.

What is a capacity building grant?

Capacity building grants support activities that strengthen a nonprofit’s long-term effectiveness and sustainability, such as strategic planning, technology, fundraising, and organizational development.

Can a grant pay for a grant writer?

Sometimes. Some operating and capacity-building grants allow nonprofits to use funds for professional services that strengthen fundraising and organizational capacity.

Can grants pay for fundraising expenses?

Certain grants may support fundraising planning, technology, strategic consulting, marketing, and other activities that improve a nonprofit’s ability to raise funds.

How do I find grants that support organizational capacity?

Look for funders that specifically mention operating support, capacity building, organizational development, strategic planning, infrastructure, or nonprofit sustainability in their funding guidelines.

Does Impact Funding Solutions work with nonprofits in both the United States and Canada?

Yes. We proudly serve nonprofit organizations throughout the United States and registered charities across Canada through grant writing, grant management, fundraising consulting, and nonprofit visibility services.