Why You’re Not Winning Any Grants

Nonprofits depend on grants to help fund important work, but winning them can be challenging in today’s competitive landscape.  Many organizations apply for numerous grants each year but fail to receive awards, hurting their ability to drive impact.  If your nonprofit is putting significant time and resources into grant applications but seeing little return, re-evaluate your approach.  Some issues may prevent success that you can address to dramatically improve results.

Common reasons nonprofits struggle to win grants include:

  • Lack of fit between missions or projects.  Apply for grants that align closely in purpose and scope with your nonprofit's mission and intended use of funds.  Opportunities marginally related or requiring a pivot in priorities are less likely to succeed.  Do your research to find the best fit, no matter how much the grant is worth.  Being awarded a grant incompatible with your key goals does little to advance your cause in the long run.

  • Poor grant writing.  Writing a compelling grant proposal requires significant skill and time.  If you lack experience in grant writing or cannot devote the necessary effort, your applications will not stand out.  Consider outsourcing the task to a freelance grant writer, at least for key opportunities.  Building internal capacity through training or resources on best practices is also important for improving your overall submission quality and win rate.

  • Lack of relationships with funders.  Having a prior connection with a grantmaker through communication, past awards, or collaboration on issues they support provides an advantage.  The application process alone rarely establishes the level of familiarity and trust to make your nonprofit a top contender.  Devote time to cultivating relationships with potential funders and partners between opportunities.  Then submissions feel like a natural next step in an ongoing dialogue rather than an initial request from relative strangers.

  • Inability to demonstrate impact.  Without a proven track record of success and a clear plan for grant funds to drive meaningful outcomes, your application lacks credibility and inspiration for donors.  Make sure you have robust data, stories, images, and details illustrating your nonprofit's impact and capacity for the work proposed.  Articulate specific goals, strategies, activities, timelines, and metrics to measure progress.  Funders want assurance of returns on their investment in the form of sustainable change. 

  • Insufficient organizational credibility.  Perceptions of stability, competence, integrity, and excellence influence a funder's willingness to support your work.  Ensure your nonprofit meets standards for governance, financial management, transparency, and Trust across the sector.  Address any weaknesses that could raise concerns about your ability to fulfill grant obligations.  Credibility is difficult to earn but easily lost, so make ongoing improvement a priority.

  • Over-reliance on grants as a funding strategy.  Diversified revenue from donations, events, sponsorships, earned income, and other sources provides stability when grants are delayed, declined, or discontinued.  Lack of financial sustainability apart from grants puts nonprofits in a precarious position and can discourage some funders from awarding support.  Adopt a balanced funding model with multiple streams to reduce reliance on any one source.

Winning grants is challenging yet critically important for nonprofit success.  By evaluating your grant approach for the issues above and making continuous improvements, you position your organization to attract the funding required for greater mission impact.  Remember that grantmakers want to support credible, high-impact organizations with proven outcomes and financial sustainability.  Make sure your nonprofit demonstrates these qualities and continues learning, evolving, and refining strategies to achieve funding goals over the long term.  With time and persistence, you can develop the key relationships, skills, and credibility to win more grants and advances your cause.

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