In a word, maybe.

Sources of grant funding are usually Federal, state or local agencies. The real issue is - in order to get most grants, sad as it must be to state, one has to be politically connected and not "merely" intent on improving the community.

Before you dismiss this as the ravings of a conspiracy theorist or disgruntled community organizer, I can tell you that my pre-retirement life (as an executive of a municipal utility in a really politicized state of the union) has opened my eyes to the way public funds are "moved" in the real world. (This realization was the main reason I retired actually.)

If you are incorporated it will appear to a truly disinterested grant processor that you are better prepared to account for and use public funds than if you are, for example, a sole proprietor.

But if your actual chance of getting such a grant is 1 in a thousand (since you are probably NOT politically connected) and being incorporated doubles your chances, you are still only 2 in a thousand to get the grant.

My estimate? It's not worth the cost and bother to incorporate. If you actually have a good chance to get the grant, go for it. If you don't have a prayer, incorporating won't change the odds.