Key Term

What is Multi-Year Grant?

Definition

A multi-year grant is a financial commitment made by a donor or foundation to provide funding to a nonprofit organization over multiple years, typically ranging from two to five years. These grants are structured with predetermined payment schedules and specific reporting requirements, offering guaranteed funding streams that extend beyond a single fiscal year.

Significance

Multi-year grants are crucial in the charitable sector as they provide nonprofits with financial stability and the ability to plan long-term programs and initiatives. This funding structure allows organizations to focus on their mission rather than constant fundraising, leading to more sustainable operations and greater impact. For donors, multi-year grants represent a strategic approach to giving that can help build stronger partnerships with grantees and create more meaningful, lasting change in communities. They also typically result in lower administrative costs for both the donor and recipient, as the grant renewal process is simplified over the funding period.