Annual Grant Cycle
Due to the shifts in funding at the federal level, Methodist Healthcare Ministries (MHM) invited many of our 2025 grantees to renew their grant awards for 2026. Our intent is to help offset the uncertainty caused by these changes. As a result, MHM will have significantly fewer funds available to award through the 2026 Open Grant Cycle.
The Open Grant Cycle is a competitive process. We prioritize funding for:
- Organizations serving counties in our J, K, and L Areas of Strategic Opportunities
- Organizations serving rural counties in our 74-county service area
- Requests closely aligned to our Theories of Change
In 2023, Methodist Healthcare Ministries took time to examine current philanthropic industry best practices, identify gaps in the service-area resource landscape, and consider how our grant support can be most impactful in serving the least served.
Building upon our health equity strategy, we incorporated equitable grantmaking principles to reduce administrative burdens for grantees and to provide more flexible funding. We sought and incorporated feedback from stakeholders across our region and within our organization. Many of of our valued funded and community partners joined our effort by providing insights, and we are grateful. As a result, we introduced new approaches to grantmaking with our 2026 grant cycle. These changes will continue going forward, and MHM will seek new ways to improve our grantmaking journey.
What to Expect:
Thanks for your interest in advancing health equity through a 2026 grant from Methodist Healthcare Ministries. On this page, you will find all the information and resources you need to understand our new process. The sections below pertain to both the Open and Cornerstone 2026 Grant Cycles. It is imperative to review all the sections detailing Grant Guidelines, Planning Your Application, and then reviewing our 2025 Grant Focus Areas. Please use the links above to navigate through those sections or scroll down to the content you need to review.
Open Grant Cycle
Proposals were welcomed from organizations serving communities within our 74-county service area. Applications selected for funding will align to priorities within each focus area as outlined by the Community Investment’s Theories of Change. The Theories of Change will provide clarity and offer potential measures for each focus area with the intent to inform the scope of applications, clearly communicate MHM priorities, and ultimately result in a more efficient and transparent process for grant
Cornerstone Grants
As illustrated in Isaiah 28:16, a Cornerstone serves as a critical beginning block in construction that provides a strong foundation to build upon as well as directional alignment. In this spirit of strong foundations, MHM offered invitation-only Cornerstone Grants to select Access to Care and Food Security long-term partners who have consistently demonstrated outcomes aligned to MHM’s Theories of Change. Cornerstone invitations were sent directly to organization contacts. Many of these organizations have been pivotal in safeguarding access to care in their communities, whether through clinical care, mental health services, or as food banks serving our region. These organizations have helped inform our grantmaking strategy as we have broadened the definition of healthcare to address the Social Determinants of Health. We know we they will continue to play an integral role in our health equity strategy.
Grant Guidelines
What We Look For:
In alignment with MHM’s Funding Philosophy, Community Investments strives to be transparent and accessible, providing prospective partners with a clear understanding of how our grants can support their goals. We recognize and appreciate the time and effort required to prepare an application.
While not an exhaustive list, we give priority to proposals that demonstrate:
Collaboration
We believe that best work is done together, and impact is greater with collaboration. We seek partners who are active participants in local collective efforts and deeply engaged in their communities.
Community Perspectives
We value the insights and deep personal knowledge that residents with lived experience bring to programs and organizations. We look for partners and programs that intentionally incorporate the voices of those closest to the communities we serve in their organizational decision-making processes.
Serving the Least Served
Our priority is to support MHM’s mission to serve economically disadvantaged, geographically under-served, and historically disenfranchised populations.
Systemic Change
We recognize that disrupting the complex cycle of intergenerational poverty requires a combination of solutions and an integrated approach. We seek programs that address the root causes of health inequities.
Geographic Priorities:
MHM will award approximately $5M through the 2026 Open Grant Cycle. In reviewing applications, MHM has a strong preference for requests that:
- Align with our six Focus Areas
- Serve rural counties or zones J, K, and L of MHM’s Areas of Strategic Opportunity.
- Serve at least one of MHM’s priority zip codes in Bexar County
Bexar County
MHM has identified 13 priority zip codes within Bexar County. For the 2026 Open Grant Cycle, MHM will only consider requests addressing the Housing or Education & Workforce Development focus areas and serving one or more of the 13 priority zip codes. MHM will not consider requests that serve county-wide or requests within other focus areas.
New Bexar County funding will only be awarded to organizations that:
- Align to the Housing or Education & Workforce Development focus areas.
- Intentionally serve MHM’s priority zip code communities.
- Offer solutions that address root causes and seek to improve community conditions.
MHM’s priority Bexar County zip codes include: 78201, 78204, 78207, 78211, 78214, 78217,78221, 78222, 78224, 78225, 78226, 78228, 78237.
If you are considering applying, review the Grant Guidelines, Geographic Priorities, Focus Areas, and FAQs carefully to ensure your request aligns with MHM’s priorities. Only requests that closely align with our Geographic Priorities and Focus Areas will be considered.
Eligibility:
MHM does not award grants to organizations that willfully discriminate against any particular class of individuals. To be eligible for funding, organizations must comply with all applicable local, state and federal anti-discrimination laws in hiring, employment practices and service provision.
To apply, an applicant must:
- Be recognized by the IRS as a 501 (c)3 organization or other tax-exempt entity.
- Have a 501(c)3 or tax-exempt status for at least one year or have a fiscal sponsor that has.
- Provide services within at least one of MHM’s 74 service counties.
Previous grantees must be in good standing, which means:
- No significant unspent grant funds at the end of the grant period
- Strong overall organizational financial and programmatic standing
Organizations with an existing multi-year or renewal Community Investments grant for 2026 are not eligible to apply for the 2026 grant cycle. If you are unsure if your organization’s status, contact CommInvestments@mhm.org or your program officer. Organizations with an existing Digital Equity MOA are eligible to apply.
Theories of Change
The Community Investments Focus Areas and Theories of Change help our grantees and MHM strengthen strategies and maximize results by defining success and outlining the path toward health equity. They were developed collaboratively, incorporating valuable insights from esteemed partner organizations and community members to ensure that South Texas community voices were incorporated and current needs were accurately identified.
The Theories of Change present objectives and priorities for each focus area. These are intended to serve as guides and not a comprehensive list of eligible programs or metrics.
Funding requests must address one or more of the following Focus Areas:
Review the Theories of Change for detailed information about objectives, priorities, and sample metrics for each focus area. If you have questions about your specific request, contact us at CommInvestments@mhm.org.
Grant Types:
MHM will fund three grant types:
Project/Program
Capital
Capacity Building
For the 2026 Open Grant Cycle, two application tracks will be offered. Applicants may request funding through either track to support any of the grant types listed above.
Open Cycle Application Tracks
New for 2026, for our rural counties and applicants in the J, K, and L Areas of Strategic Opportunity, MHM Community Investments is pleased to introduce a small grant track with streamlined application and reporting requirements in addition to our standard track from previous grant cycles.
Organizations eligible for both a Small and Standard grant may submit only one application under either the Small grants or Standard grants application track.
We hope this opportunity will increase access to MHM grant funding for smaller and developing organizations and build nonprofit capacity in our 74-county region.
Small Grant Track:
- Only eligible for applicants serving rural counties or the J, K, and L Areas of Strategic Opportunity
- Available to organizations with annual budgets $1M and under
- Request amounts between $25,000 – $100,000 (the requested amount may not exceed 20% of the organization’s operating budget)
- May submit their own organizations’ budget for proposals
- If awarded, year-end reports required
- Eligible for all grant types including general operating support.
Standard Grant Track:
- Applicants can serve in any of the 74 counties in MHM’s service area (Unless No Bexar)
- Request amounts over $100,000
- Must use the MHM Budget Template
- If awarded, mid-year and year- end reports required
- Eligible for specific funding in either programs/project, capital, or capacity building.
After reviewing the submitted application, MHM may elect to fund the request in part or in full.
Open Cycle Application Tracks
Open Cycle Application Tracks | ||
Criteria | Standard
| Small
|
Request Amount | $100,000+ per year | $25,000 – $100,000 |
Geographic Eligibility | 74-county service region (priority to J, K, L Areas of Strategic Opportunity and rural counties) | |
Organization Budget Size | Any size, (annual request not to exceed 20% of org budget) | Under $1M (annual request not to exceed 20% of org budget)
|
Grant Budget Templates | MHM Budget Template | Organization’s program/project budget accepted |
Grant Period | Single year; may request 3-year grant if 2025 grantee | Single- year funding only |
Reporting Expectations | Mid-year and year-end reports | Year-end report only |
Grant Type |
|
|
Project/Program
Support for establishing, sustaining new or existing programs or projects. To include capacity building or capital line item, add it to the project budget template. May include:
- Capacity building costs (up to 20% of the total grant request)
- Capital/renovation line item (up to 50% of the total grant request)
Example: A grant to add a facilitator and purchase materials for a nutrition program at a new location, including renovation of a room (new flooring, lighting, and paint).
Capacity Building
Support for strengthening organizational competencies, strategies, systems, and structures that improve effectiveness and contribute to long-term sustainability.
These grants do not cover capital costs or project/program expenses, such as program staff roles. Review the FAQs for additional information about capacity building requests.
Example: A collaborative has been in existence for one year. The organizations participating have different requirements for sharing data. The collaborative will submit a grant request for a consultant to build a data sharing agreement and identify shared software for data capture.
Capital
Support for facilities or infrastructure that enable organizations to acquire, construct, or renovate physical assets that contribute to long-term sustainability. Capital grants do not include program/project or capacity building expenses.
Example: An organization has purchased a new building. The organization submits a grant request to replace the roof.
For the 2026 Open Cycle, we anticipate awarding approximately $4M Grant request may not exceed 20% of the overall organizational budget. The average grant size for a Standard Grant is $220,000 – $250,000.
Grant Period Options
Single-year funding: available for a 12-month period (January – December).
Multi-year funding: available for three years (12-month periods, January to December) to organizations that are 2025 Grantees through Community Investments and are currently in good standing. We encourage multi-year applicants to reach out to their program officer to discuss their proposal.
Grant Goals
The grant application must include goals that describe what you aim to accomplish with the requested funds within the grant period. The goals must be aligned to the Priority or Priorities listed on one or more focus area Theories of Change and align to your grant request. The mid-year (if applicable) and year-end grant reports will ask for updates on the progress toward these goals.
Each application will include a maximum of five goals. Two must be quantitative goals, and the others can be either quantitative or qualitative. In the application, you will first copy and paste a priority from a Theory of Change, then you will write your goal.
Quantitative goals are based on numerical data that can be measured or counted to describe activities or outcomes. Examples include the number of pounds of food distributed, A1c improvements, PHQ-9 improvements, number of services a client receives, number of devices distributed, and number of certifications gained by students. Tools to collect quantitative data include logs or trackers, surveys, baseline and end surveys, and randomized controlled trials. | Quantitative Goal Example: |
Qualitative goals are based on non-numerical data that cannot be easily counted and can help explain why, how, or what of activities or outcomes. Examples include testimonies of improved quality of life due to an intervention, or participants in digital literacy programs describing the impact of acquiring devices. Tools include interviews, observations, document review, focus groups, and case studies. | Qualitative Goal Example |
Refer to the Theories of Change for additional examples.
Grant Request Budget
The application includes a section to upload the budget for your grant request. Only budgets submitted on MHM’s budget template will be accepted for applicants choosing to follow the Standard Grant Track. Applicants following the Small Grant Track may submit their organization’s existing program or project budget.
Review the Instructions tab on MHM’s budget template (single year, multi-year) carefully before submitting your application.
Unallowable Costs
MHM will not fund:
- Endowments
- Financial deficits or debt reduction
- Fundraising events
- Requests from individuals for scholarships
- Insurance (unless for a capacity building or capital grant)
- Land
- Legal fees (litigation related)
- Lobbying on behalf of a political candidate
Indirect Costs
Indirect costs are expenditures shared across multiple projects or programs within an organization and are therefore difficult or impossible to attribute to a specific project or program. These costs exist whether or not a particular program runs. Examples include utilities, administrative staff salaries and benefits, legal services, and rent.
Indirect Costs Policy
- Allowed at a maximum rate of 15% of direct costs.
- Allowed for universities/colleges up to 10%.
- Not allowed for government agencies or municipalities.
- Not applicable for General Operating grants.
- Not allowed for capital expenses, equipment purchases, or bulk computer purchases.
- Only allowed to be included at time of application.
Review Community Investment’s Indirect Cost Guidelines for additional details.
Fiscal Sponsorship
Fiscal sponsorship: a portion of the requested grant monies is allowable for sponsor responsibilities. If you are applying with a fiscal sponsor, contact MHM when applying for guidance on budget submission for allowable fiscal sponsor fees.
Grant Payment Schedule
Several payment schedule options are available to meet the needs of grantees. You will choose one of the payment schedules listed below on the grant application.
Multi-year requests: the payment schedule is based on the annual grant amount, not the total request amount. Review the information carefully to select the best option for your needs.
| Requests $100,000 and over | Requests under $100,000 |
Annual | N/A | At time of executed Grant Agreement: Full award amount |
Biannual | N/A | At time of executed Grant Agreement: 50% of award amount September: Up to 50% of the award based on mid-year reconciliation |
Quarterly | At time of executed Grant Agreement: 25% of award amount April: 25% of award amount July: 25% of award amount October: Up to 25% of the award amount based on mid-year reconciliation | |
Monthly | January – September: Even monthly payments based on the award amount October – December: Even monthly payments based on mid-year reconciliation | |
Grant Payment & Reporting
Mid-year and year-end reporting requirements include a financial report reflecting actual spending that will be reconciled to budgets submitted at the time of application. The financial report should compare the budgeted MHM grant expense amounts to the actual MHM grant expense amounts, along with variance explanations as required.
Underspent funds at reporting time will be reduced from the following grant payments after reconciliation. At the end of the grant period, MHM may request any funds that remain unspent be returned to MHM.
- Single-year grants will be reconciled as part of mid-year and year-end reporting.
- Multi-year grants will be reconciled at mid-year and year-end reporting during year 1, and then at the end of each grant year for years 2 and 3.
Examples of grant amounts and reconciled payment amounts are available in the Grant Resource Library. Additional information is provided in the Reporting section.
Financial Statements
The open-cycle grant application includes a section to upload your organization’s financial information. If you are unsure if your organization received a Community Investments grant in 2025, review the list on our website: https://www.mhm.org/grantmaking/
| Annual Financial Statements | Monthly Financial Statements | External Audit Report (if audited) & Government Grant Audit Report (If required due to receiving government grant dollars) |
New Standard Applicants | Two most recent years | Most recent | Two most recent years |
New Small Applicants | NA | NA | NA |
2025 Community Investment Grantees | Most recent year only | Most recent | Most recent year only |
Grantees with multi-year grants must submit updated financial statements each year.
How & When to Apply
Step 1: Review Community Investments Grant Materials
- Eligibility & Grant Guidelines
- FAQs
- Theories of Change
- Application (.pdf)
- Budget Template
- Community Investments
Step 2: Watch the 2025 Grant Cycle Informational Convening
On September 6th, MHM hosted a 90-minute recorded webinar providing information about MHM’s overall strategy direction, funding priorities, and how to apply to the 2025 Grant Cycle.
To watch the pre-recorded convening, click here.
Step 3: Access the Online Grant Portal
MHM uses an online platform for application and reporting submissions. When clicking on the initial link listed on our website, you will be directed to the Sign-In page of our online portal. Follow instructions on the Sign-In page to login and access the Eligibility Quiz. If your responses to the quiz suggest that your organization is eligible to apply, the system will direct you to the application. If ineligible, you will not be able to proceed. If you encounter technical difficulties, contact us at comminvestments@mhm.org.
- Use the initial link below to access the Small Grant application:
https://us.grantrequest.com/application.aspx?sid=1143&fid=35366
- Use the initial link below to access the Standard Grant application:
https://us.grantrequest.com/application.aspx?sid=1143&fid=35362
Once you access the form, DO NOT use the initial link again, as it will create a new form and save it to your online account.
- Use the saved application link below to return to a saved form in progress: https://us.grantrequest.com/accountmanager.aspx?sid=1143
Step 4: Submit an Application
Only applications submitted through the online grants portal will be accepted. Submission of an application does not indicate a commitment of funding. Late applications will not be reviewed.
- Applications are due August 15th at 5 pm.
Step 5: Receive Notifications
Applications will be reviewed from August 15th to October 29th by our internal staff and Board of Directors. Organizations selected to receive a grant for the 2026 cycle will be notified of the status of their application in December 2025.
Mid-Year & Year-End Narrative Reports
All grantees with awards in the Open Cycle Standard Grant track complete a written mid-year and year-end report on the progress of your grant. Grantees receiving a Small Grant will complete year-end report only.
Typically, the mid-year reports are due in July, and the year-end reports are due in January. Community Investments sends out a notification when the reports are available to submit, and when they are submitted through MHM’s online grant portal.
Mid-Year & Year-End Financial Reports Budget to Actual
As part of the Mid-Year and Year-End reports, grantees will submit a budget- to- actual financial report, comparing the budgeted MHM grant expense amounts to the actual MHM grant expense amounts, along with variance explanations as required.
Underspent funds identified during reconciliation will be deducted from subsequent grant payments.
- Single-year grants are reconciled at mid-year (if applicable) and year-end reporting.
- Multi-year grants are reconciled at mid-year and year-end reporting. At the end of the grant period, MHM may request the return of any unspent funds.
- Additionally, for grantees with multi-year grants, updated financial statements must be submitted each year.
Initial MHM grant funds are disbursed based on the payment schedule selected during the application process. Future grant disbursements are disbursed on the same schedule but contingent on meeting all grant reporting requirements and maintaining good standing (no significant unspent funds, good overall financial and program standing).
MHM does not require the submission of transactional documentation (such as receipts or general ledgers) for grantees to receive their payment. However, MHM reserves the right to conduct an audit of all funds received and expended during the grant period.
Site Visit
In addition to formal reports, Program officers and other MHM staff may be asked to participate in site visits virtually or in-person throughout the grant period.
