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Nonprofit grants are to be simple, the funding of specific individuals or organizations for their organization for profit. This is the main difference between a grant proposal not for profit and a capital investment proposal. The latter aims to use the money funded to make more money, while the former aims to use the money funded to achieve the objectives of the nonprofit organization.

A nonprofit organization is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples of NPOs include charities, trade unions, and public arts organizations. Most governments and government agencies meet this definition, but in most countries they are considered a separate type of organization and not counted as NPOs.