Grants to Purchase Land for Nonprofit

There can be a wide variety of reasons your nonprofit may be looking for a grant to purchase land. Anything from building a community center, creating a shelter for animals in need, or preserving natural spaces as part of an environmental charity. The problem is, there really aren’t any grants specifically to buy land for a nonprofit organization.

We’ve dug deep into this question, and from all of our research, we have yet to find land grants specifically for nonprofits. Most land grants are either given out by the USA federal government, or sometimes on a state or even local level. But these grants typically have to do with agriculture and rural development or affordable housing and urban development. And even then are they rarely meant specifically for nonprofit use.

There is however one exception, environmental land grants. There are instances where anyone or any entity is welcome to compete for a grant that the funding is meant to purchase land that addresses some sort of ecological or environmental concern. There are a variety of different grants and anything from awareness to the purchase of land can be funded. But again, there is still nothing specifically given to nonprofits over any other person or entity willing to compete in the grant process.

Even most foundations aren’t willing to dole out land grants for nonprofits since they’re mostly focused on impact, funding initiatives that produce measurable, immediate results. Buying land is often seen as too long-term or risky an investment, especially when grantmakers have no control over how that land will be managed down the line.

So, where does that leave you as a nonprofit leader hoping to secure a bit of land for a new project or even an office? The good news is, while land specific grants may be scarce, there are other ways to get creative with securing land. It’s just about shifting your perspective a bit and thinking outside the box. It’s about finding the right approach to land ownership and tapping into the right networks, and maybe even considering methods you hadn’t thought of before.

Why Grants for Land Purchases Are Rare

When it comes to grants, the dream of getting one specifically to buy land for your nonprofit is, well, a bit of a mirage. Why? Because most grants just aren’t built that way. Most funders design their grants to support specific programs that are in line with their own objectives. And while they may fund your charity for items like operational costs, or capital improvements, buying land simply doesn’t often align with their view of what a nonprofit should be focusing on.

For example, if they’re backing your after-school program, they want to see an immediate outcome like the number of children attending classes. They’re not so keen on seeing those funds go toward a property title that isn’t giving an immediate return on their ‘investment’. Simply put, it’s about impact that can be measured right now, not in ten years even if your grand plan is to build a school or workspaces for tutors.

In addition, real estate ownership comes with its own set of headaches, even if you’re a nonprofit. You’ve got to worry about maintenance, property taxes (yes, even for nonprofits sometimes), insurance and a whole range of other legal responsibilities. Not every nonprofit is ready for that kind of commitment, and many grantmakers know it. As much as they’d love to see your community center flourish, they also don’t want to get in a situation where your nonprofit can’t stay sustainable because you can’t keep up with the costs of owning and maintaining the land. They want to be sure that their gift leads to something sustainable, not a financial sinkhole disguised as a building project.

Alternative Ways to Secure Land for a Nonprofit

Although there may not be specific grants tailored to your organization’s needs, that doesn’t mean there’s no hope. There are still many alternatives to securing property that you can employ and we’ll go over some of the best ways below. Just remember, getting creative and thinking out of the box is what entrepreneurs do, and if you think being the head of a nonprofit isn’t still a form of entrepreneur, you’d be very wrong. Because at the end of the day, even a nonprofit is still a business, it’s just not focused on profits.

Partnerships and Donations

One of these easiest and most direct routes for securing land for your nonprofit is through partnerships and donations. These are often the ways charities end up with land and while it may take a little effort and going through your connections, the end result far exceeds the effort.

Land Donations

Land donations are possibly one of the hardest ways to secure land depending on your abilities, but it is usually much easier than some of the other ways we’ll go over. This is because land can be donated just like cash donations can. And the gifter even receives a tax deduction when it comes to their own finances. But you’ll really need to scour through your connections and look for individuals or organizations that believe in your mission and are willing to contribute more than just money, specifically, land.

It’s completely feasible that local philanthropists, corporations, and even community members may have property they no longer need, or they might prefer to see it used for the greater good rather than sitting idle. For example, a local philanthropist might own a piece of property that they no longer need or doesn’t really serve them any benefit even though they still need to pay property taxes on it every year. So instead of keeping it, they could donate it to your nonprofit if it aligns with their values, say for building a shelter, creating a community garden, or an animal shelter. Situations like this are a win-win scenario if you can persuade them to donate.

Corporate Partnerships

Corporations often have a Corporate Social Responsibility (CSR) initiative, where they contribute to their local community development or other types of environmental or social causes. These programs can include donating land to nonprofits like yours. If by chance a company has underutilized property, donating it for a community project could not only help them meet their CSR goals and offer tax incentives, but also benefit your organization’s mission and goal in securing land.

For instance, a real estate development company with unused parcels of land might offer to donate it to your charity for a community space, nature park, or other public use relinquishing them of the responsibility of developing and maintaining the property. It’s a win-win situation as the company strengthens its community ties while saving some money on taxes while at the same time helping your nonprofit grow.

Government Land Donations

Although government land donations are extremely rare, they do exist in certain instances. Both local or federal governments sometimes have surplus land that they no longer need, and in specific situations, they may donate it to nonprofits for community projects or conservation initiatives.

As we stated above, if your nonprofit focuses on public service or environmental conservation, it’s worth exploring these opportunities. While not as common as other routes, they can result in significant land acquisitions for the right projects.

Land Trusts and Conservation Easements

partnerships with land trusts or utilizing conservation easements can be extremely beneficial in some instances, and due to their nature they don’t require your organization to purchase any property outright, saving you a ton of money in the process. It just depends on your charitable mission focus and your intentions when it comes to using the land.

Partnering with Land Trusts

Land trusts are nonprofit organizations themselves, dedicated to conserving land for public or environmental benefit. The New England Forestry Foundation is a great example of this and the biggest land trust in the USA with more than 1.2 million acres while The Nature Conservancy operates in over 70 countries and has protected more than 125 million acres of land globally!

Partnering with a land trust like these can be an excellent way for your nonprofit to secure land for specific purposes like conservation, environmental education, or public recreation without having to own the land outright. It’s simply about whether your charity’s mission aligns with the trust’s own mission and goals. After all, protecting and maintaining millions or even hundreds of acres isn’t easy! But if you can demonstrate how you can relieve the burden while still maintaining their objective while using the land for your own use, many land grants would most likely be open to negotiating with you.

Conservation Easements

Another option is a conservation easement which is typically owned or controlled by a qualified land trust or a government agency, and in rarer instances certain types of charities. When a landowner grants a conservation easement, they voluntarily give up certain development rights on their property to protect its natural, cultural, or historical value. However, they still retain ownership of the land.

Again, this can suit conservation type nonprofits, but isn’t going to be the best fit for a charity looking for office or parking space. But, if you can find a fit, this approach can reduce your costs significantly since you're not buying the land itself, but rather the rights to control its use. It’s a strategy that lets nonprofits focus on preserving land for a cause without the heavy burden of full ownership if that’s your mission.

Low-Interest Loans and Financing Options

If you are in dire need for land and are willing to look into third party financing as an option, options like low-interest loans designed for nonprofits can make land acquisition more easy on your budget. Luckily there are programs and institutions willing to lend to nonprofits, especially for the purchase of land as it is always an asset to the lender.

Nonprofit Loan Programs

Several loan programs are specifically designed to help nonprofits purchase real estate. One example is the Nonprofit Finance Fund, which provides capital for nonprofits in need of property for their operations. This lender was created specifically to help charitable organizations with access to capital in order to grow and achieve their missions. This includes them offering low interest loans in order to buy land for daily operations.

Mission-Driven Lenders

Another option is to seek out mission driven lenders, financial institutions such as banks or organizations that offer more affordable loans to entities with a social impact focus. These types of lenders understand that nonprofits operate differently than for-profit businesses, so they are willing to work with you and offer lower rates or more flexible terms so the financial burden doesn’t impede your social mission.

For example, lenders might work with you to secure land for affordable housing projects, community centers, or conservation areas without the high costs typical of commercial loans. Or it’s possible to talk with local banks and secure a low interest loan in return for public publicity and demonstrating how they are giving back to their communities.

Crowdfunding and Community Fundraising

When all other options have been explored and you still need money to buy land, you can always go the traditional routes and raise money through crowdsourcing and good old fundraising. While you may not want to use your donations to purchase land, sometimes it’s the only option left.

Crowdfunding Campaigns

Crowdfunding has become a powerful way for nonprofits to raise capital, especially when it comes to large scale initiatives like purchasing property. Platforms like PayBee, GoFundMe, Kickstarter and even Facebook make it easy to get the word out and hopefully bring in donations that can be used for any reason you and your board deems fit and inline with your mission.

You’re just going to need to communicate clearly how the land acquisition will help your charity function better or reach its goals easier or quicker. Or demonstrate how it’s a necessity, like building an animal preserve or kennels for an animal charity. And in the end even if you can’t raise all the capital you need, you’ll at least be off to a solid start. And it doesn’t need to happen overnight.

Capital Campaigns

Capital campaigns are basically fundraisers for something really big, like purchasing land. They often don’t have a time limit and how close you are to raising the funds you need for a large project is the barometer that’s followed. Usually large donors, foundations, and corporate sponsors are the typical targets for these campaigns although any donation helps. And since you’d be approaching larger entities, the process can become more formal but can also lead to much larger contributions from those with the means to support you.

Community Land Purchase Cooperatives

In some cases, nonprofits have successfully collaborated with community members to form cooperatives that collectively purchase land. These cooperatives pool resources, allowing multiple parties, whether individuals, businesses, or other nonprofits to contribute toward the purchase of land that will serve the community in some capacity or will be shared in some way for the community's benefit.

One great idea here would be to find a few charities in your area that all need office space and pool all your resources together. This could also help with the costs of maintenance as the costs could all be split between each occupant.

This model also works well for items like community centers, housing projects, or shared public spaces that benefit the entire community at large. It’s a communal approach to land ownership that benefits everyone, making it easier for your organization to acquire property without bearing the full financial burden.

These alternative methods for securing land, through partnerships, donations, easements, loans, and community driven fundraising are all opportunities to finance your land without solely relying on grants. It may take some creativity and collaboration, but with the right approach, securing land for your nonprofit's mission is absolutely possible.

Wrapping Up

If you aren’t in the conservation or ecologic sectors, it is probably going to be difficult to secure any sort of grant to specifically purchase land for your charity. But that doesn’t mean there aren’t alternatives to grants. As we’ve gone over, there are a myriad of ways a charity to acquire land without the help of a grant. And although it may take a bit more creativity and work, it most definitely doesn’t need to be an obstacle to getting the land required for your charity to grow and thrive into the future.

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