Small grants of up to 5,000 euros are crucial for many civil society organizations to implement local projects. However, a recent study shows that although there is high demand for microgrants, they remain difficult for many initiatives to access—primarily due to a lack of transparency and significant bureaucratic hurdles.
Why Microgrants Are So Important
Small-grant programs enable associations and initiatives to receive financial support quickly and with minimal red tape. About 40 percent of organizations in Germany already take advantage of this form of funding.
The funds are primarily used for:
- Purchases such as laptops or supplies (60%)
- Events and activities (45%)
In this way, microgrants directly strengthen local engagement—especially in areas where larger grant programs do not reach.
Who funds microprojects?
The most important funding sources are:
- Local and regional foundations (e.g., community or savings bank foundations) – approximately 73%
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In addition:
- State ministries
- German Foundation for Civic Engagement and Volunteer Work (DSEE)
- Aktion Mensch e. V.
However, the funding landscape is diverse and often confusing—especially for smaller initiatives with little experience.
The Biggest Challenges
The study highlights two key problems:
1. Lack of visibility regarding funding opportunities
73 percent of organizations that do not utilize microgrants are unaware of such programs.
2. High administrative burden
On average, it takes 4 to 10 hours to submit an application and process the funding—a significant burden, especially for volunteer-run initiatives.
Who benefits—and who doesn't?
A key finding: There are clear differences between organizations with and without full-time staff structures.
Organizations with full-time staff:
- utilize networks and umbrella organizations
- apply for funding more strategically
- receive larger grants more frequently
Organizations run entirely by volunteers:
- conduct their own research (56%) or rely on personal contacts (64%)
- are less successful at securing funding
→ This leads to a structural disadvantage for small initiatives.
Differences Depending on the Area of Involvement
The use of the funds also differs:
- Sports & Environment: primarily equipment and supplies
Culture, Education, and Social Services: more often for events, as well as honoraria and expense reimbursements
What Organizations Want
Many initiatives see a need for improvement in the design of microgrants:
- Less bureaucracy
- Easier access to programs
- Higher grant amounts (ideally €4,000–5,000)
Very small amounts under 500 euros, on the other hand, are often considered not very worthwhile—especially in relation to the effort involved.
What Funding Agencies Should Consider
The study makes it clear: Funding programs have a strong steering effect.
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The amount of funding and the focus areas determine
who gains access to funding—and who does not - Low-threshold programs currently do not reach all target groups
- Volunteer organizations are often not adequately reached
Conclusion: Significant impact—but untapped potential
Small grants are an important tool for strengthening local engagement. For them to reach their full potential, the following are needed:
- simpler application procedures
- greater transparency in the funding landscape
- targeted outreach to volunteer-led initiatives
Especially in times of tight public budgets, even small grants can make a big difference—if they reach the right organizations.
Source & Additional Information
The findings are based on the study:
“Small Amounts, Big Help? The Importance of Microgrants for Civil Society Organizations in Germany”
