Why does nonprofit incorporation matter? 

To win grants, you must first be eligible to apply. Every grant has a set of unique eligibility criteria an entity must meet to qualify to apply and possibly win funding. If a proposal is submitted from an unqualified source, the proposal will be disqualified by the funder. Being incorporated as a nonprofit matters because the vast majority of grants available in the United States are strictly designated for legally incorporated nonprofits and public agencies. Without nonprofit incorporation status, you’re greatly limited as to the number and variety of grants you could compete for to win.