What "Community Organization" Means to Funders
The term "community organization" covers a wide range of entities: neighborhood associations, faith-based organizations, tribal governments, housing authorities, community development corporations (CDCs), workforce development organizations, local arts councils, and more. Not all of these qualify for the same programs, and eligibility often comes down to your legal structure (nonprofit, government entity, tribal nation), the geography you serve, and the type of activity the grant funds.
This guide maps the major federal programs, explains the federal/state/local funding hierarchy, and covers what you need to know before submitting your first application.
Federal vs. State vs. Local: How the Money Flows
Most government funding for community organizations doesn't flow directly from Washington to your organization. It flows through a layered system:
- Federal agencies (HUD, USDA, EDA, EPA, etc.) release competitive grant programs and also allocate formula funds to states and local governments.
- States receive federal formula allocations and run their own grant programs, sometimes passing federal money through to local organizations via subgrants.
- Local governments (cities, counties) receive their own federal formula allocations—like CDBG—and often run competitive grant cycles that community organizations can apply to directly.
This means that to access federal money, you often don't apply to the federal government at all. You apply to your city or county, which is the direct recipient of the federal funds. Knowing this changes where you look and who you build relationships with.
Key Federal Programs
Community Development Block Grant (CDBG)
CDBG is administered by HUD and distributed to cities and counties (called "entitlement communities") based on population and need metrics. Entitlement communities—cities with 50,000+ people and urban counties with 200,000+—receive direct annual allocations and run their own CDBG subgrant programs. Smaller jurisdictions receive their allocations through their state's CDBG program.
CDBG funds a broad range of community activities: housing rehabilitation, public facilities, economic development, public services (up to 15% of the allocation), and planning. To be eligible, an activity must primarily benefit low- and moderate-income persons, prevent or eliminate slums and blight, or address an urgent community need.
To access CDBG funding as a community organization, contact your city or county's community development or planning department. They run the competitive cycle, set the local priorities, and accept applications from nonprofits and other community organizations.
EDA (Economic Development Administration)
EDA is part of the Department of Commerce and focuses on economic distress—communities with high unemployment, low per-capita income, or sudden economic disruptions like plant closures. EDA programs fund planning, public works and infrastructure, technical assistance, and capacity building for economic development organizations.
Key programs include:
- Public Works and Economic Adjustment Assistance: Capital grants for infrastructure that supports business development and job creation. Typical awards range from $500K to $5M. Requires a 50% match (reduced in distressed areas).
- Planning grants: Smaller awards ($50K–$350K) for economic development planning, including comprehensive economic development strategies (CEDS).
- Trade Adjustment Assistance for Firms: For manufacturers affected by import competition.
EDA grants go to state and local governments, public entities, nonprofits, and institutions of higher education. They're appropriate for larger community development organizations with established capacity and a history of managing government funds.
USDA Rural Development
If your community organization operates in a rural area (generally, areas outside of cities with 50,000+ people), USDA Rural Development has programs specifically for you. Relevant programs include:
- Community Facilities Direct Loan and Grant Program: Funds essential community facilities—health clinics, fire stations, libraries, community centers—in rural areas. Grants are available to nonprofits and public entities; award size depends on the area's median household income.
- Rural Business Development Grants: Supports rural small businesses and entrepreneurship programs. Available to nonprofits, public bodies, and higher education institutions.
- Community Connect Grants: Broadband infrastructure in rural communities with no existing service.
- Intermediary Relending Program: Loans channeled through community development organizations to rural businesses.
USDA Rural Development has state offices in every state. Starting with your state office is usually more productive than navigating the national programs website.
EPA Environmental Justice Grants
EPA's Office of Environmental Justice funds community organizations working on environmental health issues in overburdened communities. The Environmental Justice Collaborative Problem-Solving (EJCPS) program and the EJ Small Grants Program provide $30K–$200K to nonprofits and tribal organizations for community-driven environmental justice work. These programs are competitive but relatively accessible to community-based organizations with limited prior grant experience.
State-Level Programs
Every state runs its own grant programs outside of federal pass-through money. These vary significantly by state but commonly include:
- State arts council grants (often derived from NEA formula funding plus state appropriations)
- Community services block grants (CSBG), passed through from HHS to states, which fund Community Action Agencies
- State historical preservation grants through State Historic Preservation Offices (SHPOs)
- Youth services and workforce development grants through state labor and human services agencies
Your state's official grants portal is the best starting point. Search for your state name plus "grants for nonprofits" or "community development grants" to find current program listings.
Eligibility: What Determines Whether You Can Apply
Before applying to any government grant program, confirm:
- Legal status: Most programs require 501(c)(3) status, tribal government status, or designation as a public body. Some accept fiscally sponsored organizations.
- Service area: Your organization's geographic footprint must match the grant's target geography. Rural programs require rural service areas; place-based CDBG activities must be in eligible census tracts.
- Prior grant management experience: Larger federal grants (EDA, USDA) expect applicants to have managed prior government grants. If you're newer, start with smaller state or local programs.
- Financial health: Most federal programs require audited or reviewed financial statements. Some require a Negotiated Indirect Cost Rate Agreement (NICRA) for reimbursing overhead costs.
- Registration in SAM.gov: Any organization applying for federal grants directly must be registered and active in SAM.gov (the federal government's System for Award Management). Registration is free but takes 1–3 weeks to process.
How to Find Programs Matched to Your Organization
The volume of government grant programs—federal, state, and local—makes manual searching inefficient. Grants.gov lists federal programs, but state and local programs are scattered across dozens of agency websites. Tools like FindGrants aggregate grants from federal agencies, state programs, and foundations into a single searchable database, and match them to your organization's profile: your type, location, focus areas, and size. The matching algorithm scores each grant for alignment with your specific characteristics, so you can focus your research on programs where you have a genuine fit.
Building a shortlist of 8–12 well-matched programs is more productive than broadly surveying 200 that aren't right for you. Quality of fit matters more than volume of applications.
What Strong Applications Have in Common
Government grant applications for community organizations tend to reward the same qualities:
- Clear problem definition: State the community need with local data. Census tract poverty rates, local unemployment figures, and community needs assessments carry more weight than national statistics.
- Demonstrated community engagement: Government funders—especially HUD and EPA—want to see that affected community members were involved in shaping the project, not just receiving services.
- Realistic budgets: Overbuilt budgets with inflated consultant rates and underbuilt project scopes are red flags. Match your budget to comparable projects and explain your cost assumptions.
- Measurable outcomes: "Improve neighborhood conditions" is not an outcome. "Rehabilitate 40 housing units serving 80 households with incomes below 80% AMI" is.
- Organizational capacity: Staff qualifications, prior grant performance, and your audit history are all factors. If you're newer, document your track record carefully even for smaller projects.
Government grants move slowly, but they're renewable. An organization that manages its first CDBG subgrant well is far more likely to receive a second one—and to be considered for larger awards in subsequent cycles.