Yes, churches can get grants. They are eligible to apply for federal grants on the same basis as any other nonprofit, and private foundations are free to fund religious organizations under whatever criteria they choose. The distinction that matters most is what the money pays for: federal dollars must support a secular activity like a food pantry, shelter, security upgrade, or job training program, while private funders can support religious programs if their own guidelines allow it.
The Legal Footing
In Trinity Lutheran Church of Columbia, Inc. v. Comer, the Supreme Court held that Missouri violated the Free Exercise Clause when it excluded a church from a playground resurfacing grant solely because the applicant was a religious institution. Requiring a church to “renounce its religious character in order to participate in an otherwise generally available public benefit program” triggered the highest level of constitutional scrutiny, and no state interest justified the exclusion.1Supreme Court of the United States. Trinity Lutheran Church of Columbia, Inc. v. Comer, 582 U.S. 449 (2017)
Federal statute says the same thing. Under 42 U.S.C. ยง 290kk-1, religious organizations may participate in federal programs “on the same basis as any other nonprofit private organization,” and neither federal nor state agencies distributing program funds may discriminate against an applicant because it is religious.2Office of the Law Revision Counsel. 42 USC 290kk-1 – Religious Organizations as Program Participants Religious identity, in short, is not a lawful reason to deny a church a grant.
What Federal Grants Can and Cannot Pay For
Federal grants must serve a secular purpose. A church can use federal money to run a food pantry, operate a homeless shelter, deliver addiction recovery services, provide disaster relief, or fund an after-school program. It cannot use those same dollars to pay for worship services, religious instruction, or evangelism. Any religious activity must be offered separately in time or location from the funded program, and participation must be voluntary.3eCFR. 34 CFR 75.52 – Eligibility of Faith-Based Organizations for a Grant and Nondiscrimination Against Those Organizations
Several federal agencies routinely fund faith-based applicants. The Department of Justice awards grants for prisoner reentry and community violence intervention. FEMA’s Nonprofit Security Grant Program helps houses of worship harden their buildings against attack. The Department of Health and Human Services funds addiction recovery, mental health counseling, and early childhood programs.
Private and Foundation Grants Work Differently
Private foundations and corporate giving programs are not bound by the Establishment Clause. They set their own criteria and can fund religious activities, strictly secular projects, or anything between. Historic preservation foundations often fit churches with architecturally significant buildings. Community foundations fund neighborhood-level programs a church might host. The Lilly Endowment has a long record of funding clergy leadership and congregational programs.
Alignment is what matters here. Look at a foundation’s recent awards before spending time on a proposal. If its last twenty grants went to environmental groups, a food pantry proposal is unlikely to land no matter how strong it is. Foundations also tend to favor applicants with a track record and clean books, so a first-time applicant is usually better off starting with a small local funder than a national one.
What to Have Ready Before You Apply
Grant paperwork takes longer to assemble than most churches expect. Getting these items in place before you spot an opportunity keeps a good application from dying on a missing document.
Employer Identification Number
Every application asks for your EIN, the federal tax ID the IRS assigns to organizations.4Internal Revenue Service. Employer Identification Number If your church has a bank account or files any tax forms, it has one. If not, you can apply online at IRS.gov and receive the number immediately.
501(c)(3) Determination Letter
The IRS automatically recognizes churches as tax-exempt under Section 501(c)(3) without requiring an application.5Internal Revenue Service. Tax Guide for Churches and Religious Organizations – Publication 1828 In practice, most grantors still want to see a written determination letter. Getting one means filing with the IRS. Form 1023-EZ costs $275 and works for most small churches; the full Form 1023 costs $600.6Internal Revenue Service. Form 1023 and 1023-EZ – Amount of User Fee Without the letter, many funders will not open your application.
SAM.gov Registration and Unique Entity Identifier
Federal grants require registration in the System for Award Management at SAM.gov. During registration you receive a Unique Entity Identifier, the 12-character code that replaced the old DUNS number in 2022.7Department of Labor. Quick Start Guide for Getting a Unique Entity ID (SAM) Registration is free but asks for details about leadership, legal structure, and a bank account for electronic payments. Plan on two to four weeks, and know that the registration must be renewed every 365 days to stay active.8SAM.gov. Get Started with Registration and the Unique Entity ID A lapsed registration blocks federal payments, sometimes mid-grant.
Financial Records and Mission Statement
Most applications ask for at least three years of financial statements. Those numbers populate required budget forms and let reviewers judge whether your church can responsibly handle the grant amount. Pair them with a short, specific mission statement that connects your existing community work to the grant’s objectives. Reviewers spend little time on each file, and concrete descriptions of work you already do carry more weight than aspirational language.
The Strings Attached to Federal Money
Federal grants come with rules that shape how the money is spent and how the program is run. Some of these are more favorable to churches than commonly assumed; others are strict.
Faith-Based Hiring Is Still Protected
Accepting a federal grant does not force a church to abandon faith-based hiring. Under Title VII of the Civil Rights Act, religious organizations are exempt from the ban on religious discrimination in employment, and federal regulations state that this exemption “is not forfeited when the organization receives financial assistance.”3eCFR. 34 CFR 75.52 – Eligibility of Faith-Based Organizations for a Grant and Nondiscrimination Against Those Organizations A church can still require staff to share its faith and retains full authority over its governance and board.9Office of the Law Revision Counsel. 42 USC 2000e-1 – Exemption
Beneficiaries Get Equal Treatment
Hiring is protected. The people the grant-funded program serves are not. A church running a federally funded after-school program cannot require children to attend a prayer service to participate. A food pantry that hands out groceries alongside religious literature is fine; one that requires recipients to sit through a sermon first is not.3eCFR. 34 CFR 75.52 – Eligibility of Faith-Based Organizations for a Grant and Nondiscrimination Against Those Organizations
No Lobbying With Grant Dollars
Federal grant money cannot be used to influence legislation, support political campaigns, or lobby officials. This covers direct expenses like campaign contributions and letter-writing campaigns, and also subtler ones like dues in an organization that lobbies on your behalf.10eCFR. 2 CFR 200.450 – Lobbying Your church can still engage in advocacy using its own unrestricted funds.
Written Conflict of Interest Policy
Federal recipients must maintain a written conflict of interest policy for contracts and purchases made with grant funds. No employee, officer, board member, or family member can have a financial interest in a vendor selected under the grant, and the policy must include discipline for violations.11eCFR. 2 CFR 200.318 – General Procurement Standards In a small church where the pastor’s spouse handles bookkeeping and a deacon owns the local hardware store, this rule bites harder than it first looks.
How the Application Actually Gets Submitted
Federal applications go through Grants.gov, the central portal for federal funding opportunities.12Grants.gov. Home Private foundations use their own systems; some still accept paper. Every application requires an authorized representative to sign and submit on behalf of the church. For Grants.gov, that person is designated during SAM.gov registration.
Federal review typically takes 60 to 120 days, depending on the agency and the volume of applications. Check email regularly during that window. Missing a request for clarification can sink an otherwise strong application.
Many churches hire consultants for complex proposals. Hourly rates typically run $50 to $100 for experienced writers, and flat project fees usually fall between $2,500 and $6,000. One ethical standard worth knowing: reputable grant writers charge a flat fee or hourly rate, never a percentage of the award. If someone proposes a percentage arrangement, find a different consultant.
After the Award: Reporting, Audits, and Record Keeping
Winning is the start of the compliance work, not the end.
Financial Reporting
Most federal agencies require recipients to submit the Federal Financial Report (Form SF-425) quarterly, documenting how funds were spent in each period.13Grants.gov. Federal Financial Report SF-425 Sample Form Some agencies allow semi-annual or annual reporting, and a final report is due at the end of the grant period. Late or incomplete reports can trigger repayment demands and disqualify the church from future funding.
Audit Threshold
Churches that spend $1,000,000 or more in federal award funds in a single fiscal year must undergo an independent single audit.14eCFR. 2 CFR Part 200 Subpart F – Audit Requirements Organizations under that threshold are exempt from this specific requirement, though the government keeps the right to review their records. Most churches receiving a single grant will not cross the threshold, but multiple awards or subrecipient pass-throughs add up faster than expected. Single audits typically cost $5,000 to $50,000 depending on complexity, so budget for one if there is any chance you will cross the line.
Record Retention
Financial records, receipts, activity logs, and supporting documentation for a federal grant must be kept for three years from the date the final financial report is submitted.15eCFR. 2 CFR 200.334 – Record Retention Requirements If any litigation, audit, or claim is pending when that window closes, everything must be kept until the matter is resolved. Equipment records run three years from disposal of the equipment. The safe practice is to hold everything for at least five years and let your accountant tell you when it is safe to shred.
Tax Treatment of Grant Income
Grant funds a church receives to carry out its exempt purpose are not unrelated business taxable income. The IRS defines unrelated business income as revenue from a trade or business regularly carried on and not substantially related to the organization’s exempt purpose.16Internal Revenue Service. Unrelated Business Income Tax A grant to run a homeless shelter or youth mentorship program sits squarely inside a church’s charitable mission and creates no tax liability. Separately, if the church earns $1,000 or more of gross income from an actual unrelated business in the same year, it must file Form 990-T for that income.17Internal Revenue Service. Instructions for Form 990-T (2025) The grant itself does not trigger the filing, but a combination of grant-funded programs and a side revenue stream like a parking lot rental might.