Challenge Grant
The Kresge Foundation awards facilities capital as a challenge grant to help nonprofit organizations build their base of private financial support as they conduct capital campaigns to build or renovate their facilities.
Facilities capital challenge grants are awarded to organizations that cater specifically to the needs of poor, disadvantaged and disenfranchised in six fields of interest: health, the environment, arts and culture, education, human services, and community development.
The goals for a successful challenge grant application are outlined below.
Links to the Application Process and Apply Online pages are located in the gray bar at the top of this page, just above the Challenge Grant heading.
Eligibility guidelines
All organizations applying for grants must have annual financial statements that have been prepared and certified by a certified public accountant (the auditor) in accordance with U.S. Generally Accepted Accounting Principles (GAAP) or Government Accounting Standards (GAS). The foundation does not accept compilations or reviews.
Who may apply?
- 501(c)(3) organizations that are not classified as private foundations
- Government entities
- Religious organizations that are operated by or within religious institutions and serve secular needs, have space formally dedicated to their programs, and have financial and governing autonomy from the parent religious organization
- Colleges and universities that are fully accredited associate, baccalaureate and/or graduate degree-granting institutions
- Elementary and secondary schools that serve predominately students with physical and/or developmental disabilities
- Hospitals that are accredited by the Joint Commission on Accreditation of Healthcare Organizations
- International organizations that would qualify as charitable organizations under United States law and have an independent audit prepared in accordance with their recognized local standards
Who may not apply?
- Organizations without independently audited financial statements as outlined above
- Elementary and secondary schools that do not serve predominately students with physical and/or developmental disabilities
- Individuals
What types of facilities capital projects are eligible?
- Construction of facilities
- Renovation of facilities
- Purchase of real estate and conservation easements
- Major integrated equipment systems of $500,000 or more in value
What types of facilities capital projects are ineligible?
- Buildings used predominately for worship services
- Projects that are substantially completed at the time of application
- Projects that would use grant funds to retire long-term debt
Goals of the challenge grant
Kresge has long been known as a supporter of brick and mortar projects. Our signature challenge grant program historically has funded nonprofit organizations that are engaged in capital campaigns to raise private funds in support of institutional growth through the construction of new facilities, the acquisition or renovation of existing facilities, the purchase of real property, or the purchase of major integrated equipment systems.
This goal remains constant. With the challenge grant, we want to help you strengthen the long-term sustainability of your institution. We want your organization to become more practiced in strategic planning and development and to increase staff ability to assess organizational need and plan accordingly.
We expect grantseekers to be experienced in delivering effective programs, have talented and motivated leadership and possess the ability to mobilize private resources to achieve sustainable transformation.
Our values criteria enables us to reach those organizations that are doing excellent, sometimes innovative work – often on the frontlines – that may not necessarily be well-funded or located in resource-rich markets. Grant proposals will be evaluated based on how well an organization advances our values.
No one value or subset of values carries disproportionate weight. Rather, it is the collective influence of multiple values exemplified by your organization and your project that interests us most.
Because environmental conservation is one of our values, we encourage challenge grant applicants to consider green construction.
Timing your application
The appropriate time to submit a letter of intent for a challenge grant is when your organization has raised initial private gifts, including some lead gifts, toward your private capital campaign fundraising goal.
For more information, please see the reference documents located in the Resources box at the upper, right-hand corner of this page, including Am I Ready To Submit?
Additionally, there is a complete FAQ – Frequently Asked Questions – section located in the gray color bar at the top of this page, just above the Challenge Grant heading.
If you have questions, e-mail the Grants Inquiry Coordinator or call 248-643-9630.