Tis the Season… to Start Your OTF Capital Grant Application

Dec 03, 2025

December’s festive glow is settling in—year-end tasks compete with holiday shopping, eggnog, staff parties, and winter celebrations—and the New Year is already pushing its agenda. The OTF Capital Grant window opens February 4, 2026, which sounds really far away, but is actually really close. Shake the visions of sugarplums from your head for a wee bit longer and lay the foundations of your capital project now — you may even make Santa's “nice” list...

Before we look at best practices for a capital funds application, it might be a good idea to define “capital funding.” A capital campaign, capital grant, or capital funding is a way for organizations, typically nonprofits, to raise money for big, long-term investments rather than day-to-day operating or program expenses. Capital funds might be used to build, renovate, or purchase equipment. Capital projects increase the assets of an organization because they typically result in the acquisition, improvement, or construction of tangible assets like buildings, equipment, or property.

Here are a few things to consider and discuss with your board, staff, and project contractors:

First things first: Does the need exist, and does it align with organizational priorities?:

Don’t invent a project to chase a grant; funders can spot it instantly, and it pulls your attention away from your real priorities. If the need is genuine, jot down a simple point-form list of why—why this build, renovation, or equipment matters to your mission. Use plain language, then review it with your team.

Make sure this project isn't like gifting someone a puppy. Once its built or purchased what are the maintenance costs and needs. How will your organization manage the building, vehicle, or equipment over the long term?

Once the need is clear and in alignment, you can shape your project rationale. This is one of the most important parts of your application and can take longer than you think it should.

Who gets an opinion?

A common mistake in capital project planning is neglecting to ask the people who will actually use the space. Decisions made “above the line” often look tidy on paper but fall apart in practice because they lack lived detail. You don’t need to bring in a consultant at this early stage—the conversations can start casually. Water-cooler chats, a simple suggestion box, or even an informal open meeting can identify what matters. The goal is to get an early sense of priorities from end-users and front-line staff so the project reflects real needs, not assumptions. BUT! Be clear about whose voices are advisory vs. whose are decisive, engagement doesn't mean everyone gets a vote.

Develop the project plan:

Before you write the application walk through how the project will be executed. Who is going to manage it? Who will do the work? What are the project deliverables? Will you need permits? Who will apply for them and how much will that cost? Send your brief early to suppliers, give potential contractors the time to develop an accurate quote, also ask if they can provide a work-plan for their part in the project as this will help A LOT with your application.

The project work plan is the most important part of the application. This is how you illustrate to the funder that not only does your organization have the need for the funding but you have the expertise, resources, and support to execute it successfully. Don't guess here, spend the time to think it through; consult with staff, suppliers, partners, local authorities, inspectors —give yourself a clear picture of the project.

Develop the project budget:

Once you have mapped out the project work-plan you can pull together an accurate budget. Make sure you include the real cost of the project. If you are renovating will you also need to rent an interim space to continue operations? Will you need to hire additional staff to manage the project? Will you need to raise additional funds?

Remember OTF requires any project with costs over $5,000 to submit a quote, and more than one professionally prepared quote is preferred.

Take the time to involve any staff, board, or contractors in the project budget. Capital projects require diligent planning, it is much harder to pivot or revise a plan that literally involves building something.

Pulling it all together:

Once all this ground work is done you need to assess if you can realistically complete this project within the scope of the grant. Many funds require that work be completed within a set amount of time – typically a calendar year. Don't be disheartened if you need to do more ground work before applying it just means that you are increasing the chances of success by being prepared for the project. Also, don't be disheartened if you don't get the grant on your first ask, funders look favourably on projects that listen to feedback, evolve and get stronger.