The Capital Grant Application: building value for your organization.

Now that the visions of sugarplums have subsided your thoughts have likely turned to this new leaf of 2025. And if you are an Ontario based charity your thoughts are likely drifting to the OTF Capital Grant and assessing if you can pull an award-worthy application together.  

Before we look at best practices for a capital funds application it might be a good idea to define 'capital funding'. A capital campaign, capital grant, or capital funding is a way for organizations, typically nonprofits, to raise money for big, long-term investments rather than day-to-day operating or program expenses. Capital funds might be used to build, renovate, or purchase equipment. Capital projects increase the assets of an organization because they typically result in the acquisition, improvement, or construction of tangible assets like buildings, equipment, or property. 

Here are a few things to consider  and discuss with your board, staff and project contractors:  

 Does the need exist? 

Don't create a make-work project just to win a grant; funders can spot this a mile away and it will only divert your efforts from more important work. If there is real need write a point form list of 'why'. Why is this build, renovation or equipment necessary for the organization to achieve its mission. Use the most simple language possible – then discuss this with your team.  

Once you have clearly defined the need for the project you can develop this into the rationale. This is a critical component of your funding request and will likely take the most time to get right.  

Develop the project plan: 

Before you write the application walk through how the project will be executed. Who is going to manage it? Who will do the work? What are the project deliverables? Will you need permits? Who will apply for them and how much will that cost? Remember for OTF any project with costs over $5,000 needs a quote, and more than one quote is preferred. Get your quotes in early, give your potential contractor the time to develop an accurate quote, also ask if they can provide a work-plan for their part in the project as this will help with your application.  
 
The project work plan is the most important part of the application. This is how you illustrate to the funder that not only does your organization have the need for the funding but you have the expertise, resources, and support to execute it successfully.  

Develop the project budget: 

Once you have mapped out the project work-plan you can pull together an accurate budget. Make sure you include the real cost of the project. If you are renovating will you also need to rent an interim space to continue operations? Will you need to hire  additional staff to manage the project? Will you need to raise additional funds?   

Take the time to involve any staff, board, or contractors in the project budget. Capital projects require diligent planning, it is much harder to pivot or revise a plan that literally involves building something.  

Pulling it all together: 

Once all this ground work is done you need to assess if you can realistically complete this project within the scope of the grant. Many funds require that work be completed within a set amount of time – typically a calendar year. Don't be disheartened if you need to do more ground work before applying it just means that you are increasing the chances of success by being prepared for the project.  

The OTF Capital Grant opens on February 5th and closes on March 5th. If you are an Ontario-based charity looking to apply and would like support with your application, we’re here to help.