Nonprofit organizations rely heavily on donations to support their missions and initiatives. However, donations and fundraising alone can sometimes fall short of providing the necessary financial support for various activities, projects and programs. One way to help fill this gap and diversify income is through grants for nonprofit organizations. According to the National Council of Nonprofits, approximately 80% of the organizations in the nonprofit sector actively seek and utilize grants to support their missions and programs. 

However, applying for a grant isn’t a quick and easy process. In fact, grant proposals are often complex and multifaceted, requiring the organization to meet specific submission conditions, such as having the right insurance.

Insurance & Grants for Nonprofit Organizations

While insurance isn’t directly tied to a grant, it plays a critical role in the application process. Having the right insurance in place can increase the organization’s chances of receiving funding by demonstrating its active role in risk management, financial responsibility and compliance — important aspects when seeking grants for nonprofit organizations. Here’s how:

·         Risk Management
Grantors want to know that the organization they are financially supporting has the right insurance coverage in place to effectively manage risks.

·         Financial Protection
Insurance shows grantors that in the event of an unforeseen loss, the organization can mitigate potential risks, demonstrating its commitment to maintaining financial stability.

·         Responsibility
Insurance shows grantors that the organization understands its obligations and takes them seriously enough to secure coverage. 

·         Safeguarding of Grant Funds
Without insurance, an organization can suffer a financial loss that it may not be able to recover. Should this happen, the nonprofit may need to divert some or all of its grant funds to cover the loss. Having the right insurance can help ensure that the funds are used as originally intended.

·         Compliance Requirements
Most grant applications require organizations to secure specific lines of insurance, such as accident coverage for volunteers, directors and officers, etc. Organizations can easily meet the compliance requirements of a grant with the right insurance. 

In today’s economic environment, nonprofits are having to do more with less, which is why grants for nonprofit organizations are such a vital financial resource. And while it may seem like just another expense, organizations should think of insurance as an investment in helping to increase their chances of receiving grant funding.

As an insurance professional serving the nonprofit sector, be sure to discuss with your clients how specific coverage may help them be more successful in their grant process endeavors. 

About Charity First

Charity First is committed to providing our retail partners across the country with best-in-class underwriting, consistent and responsive service, and risk management services that include directors and officers liability insurance and accident insurance for volunteers and participants. To learn more, please contact us at 800-352-2761 or

Looking to secure nonprofit insurance coverage? Reach out to Maureen Dyson, Area Executive Vice President, at or connect with her on LinkedIn.