You’ve got a great idea for a co-op and a group of dedicated people ready to make it happen. But now you’re facing a hurdle: finding the money to get it started. And while loans and fundraising are great options, it’s always nice to find free money in the form of grants.  

Here are five tips from our Entrepreneur-in-Residence, Cathy Edwards, on securing grant funding for your new co-operative. 

  1. Make sure you check the boxes

    Before filling out a grant application, make sure you understand your organization’s structure. Is it a for-profit business, a non-profit, or a charitable organization? 

If your business is for-profit, your grant options will be limited. There may be government funds available depending on your sector, but as with other businesses that generate a profit for their owners, free money will be hard to come by.  

If your co-op will be a charity or operate on a not-for-profit basis (if its profits will be reinvested in the co-op or distributed to the community) you’re more likely to qualify for grants.  

If you are starting a charitable organization, you’ll have the widest access to funds. Not–for–profit organizations that can’t issue charitable receipts also have some good options. But, if you don’t have charitable status, don’t count yourself out.  

“Most grant opportunities will allow for you to partner,” Cathy said, “so if you are a Community Service Co-operative or otherwise organized not-for-profit, I would encourage you to pursue partnerships with existing charities to explore and expand your grant opportunity and reach.” 

Cathy said to also look for partners like school boards or municipalities that are happy to share oversight as a charitable organization to give you access to funding. 

2. Identify the mandate 

You need to be very clear on the mission and mandate of your co-op so you can explain it effectively to others. It’s time to refine your elevator pitch and make it clear and concise.  

Knowing what your co-op aims to do will keep you from mission creep – choose to apply for programs that align with what your co-op will do. Cathy said to remember that you can’t fit a square peg in a round hole. 

“Sometimes people are trying to put themselves in the box that the grant is trying to meet,” she said. “My advice is take the feedback and look for grants that are very tightly aligned with your mission vision and mandate.” 

She also encourages people to think outside the box when looking for funders. Though they might not have a defined granting program available, what organizations working in the same space might want to support you? It can be worth reaching out.  

3. Get noticed 

Grant writing is competitive – a lot of organizations are applying for a finite amount of money, and you want to make sure you stand out.  

“Finding ways to distinguish yourself is very, very important,” Cathy says, recommending that your co-op look for opportunities to connect with the funder outside the application process.  

For example, if the funder holds a webinar about the application process, make sure you enroll. If they provide a person to contact through phone or email, call and ask for a meeting. It can be hard to promote your organization through a standardized application, and pitching it in person can be much more effective.  

Some funders operate on a rotating cycle, offering grants every year. If you’ve applied and were unsuccessful, ask the funder for feedback. That not only gets you on their radar but also gives you a better idea of how to be successful in the future. 

4. Prepare, prepare, prepare 

Prepare for a grant application the same way you would other types of financing, like approaching a financial institution for a loan. Before you’ve even identified grants you want to apply for, get ‘investment ready’.  

Cathy recommends preparing a business plan, a project plan, and letters of support in advance. Letters of support can come from potential partner organizations or even the people your organization will support.  

“To refer to my own personal experience…there is nothing more persuasive than when the grantor gets to read letters that have been prepared by our participants of our program to say how they’ve been impacted by the opportunity to participate.” 

5. Go find money! 

There is no single website that can help you find or navigate all the available grants, and Cathy cautions that searching for grants entails going down a lot of rabbit holes. There are some good places to start, however, and she recommends looking into the following: 

 Best of luck! 

Grants are competitive, but can be such a leg-up for your new co-op. With Cathy’s tips, your application will be as strong as possible!  

And remember, if you’re starting a co-op in Western Canada, reach out to us for support.