If your grant acceptance rate has dropped dramatically this year, you’re not imagining it.
Many nonprofits are sending more letters of inquiry than ever, and hearing back less often. At the same time, many foundations are reassessing their priorities, responding to changes in the funding landscape, and becoming more selective about where they invest. That combination has created a difficult environment for organizations seeking new funding.
The Research
Ginger Lee Consulting recently completed an in-depth foundation prospecting project for a national nonprofit organization using search terms such as movement building and social justice. Of the 129 funders researched, 73 explicitly stated that they were “not accepting unsolicited applications,” or accepted proposals “by invitation only”. Another 27 provided no information on how to apply. Together, that means 100 of the 129 funders, or 78%, were not openly accepting information from new potential grantees. That statistic surprised even me. And among the remaining 29 funders, only a handful were actually aligned with the organization’s mission.
So, What Is a Nonprofit to Do?
The answer isn’t simply to submit more proposals. Today’s environment rewards organizations that invest in long-term relationships with funders.
Building relationships doesn’t begin with asking for money. It begins by learning about a foundation’s priorities, attending webinars and events, engaging thoughtfully with their publications, requesting introductory conversations when appropriate, and staying visible over time. By the time a funding opportunity arises, your organization is already familiar rather than an unknown.
A Shift in Strategy
One lesson from this research is that successful fundraising is becoming less about finding the perfect grant opportunity and more about becoming known by the right funders before a grant opportunity even exists.
The encouraging news is that organizations can adapt. Many nonprofits have relied primarily on submitting applications. Today’s environment calls for a broader strategy that combines strong proposals with intentional relationship building, diversified fundraising, and a clear case for impact.
Funding Follows Strategy. Strategy Follows Relationships.
As someone who has sat in three different seats:
- Nonprofit executive raising funds,
- Consultant helping organizations build sustainable funding strategies,
- and someone who has been responsible for grantmaking and funding decisions,
I’ve had the opportunity to see relationship-building from both sides. Maybe that’s why the current funding environment has made grant strategy one of the most common requests I receive. My goal is to help organizations not only find funding opportunities but to build sustainable funding strategies that strengthen their organizations over the long term.
Building Capacity, Not Just Proposals
One of the unexpected joys of this work has been building a diverse team within Ginger Lee Consulting. Together, we bring complementary expertise in foundation prospect research, grant writing, strategic planning, nonprofit capacity building, evaluation, communications, and systems change. We don’t simply help organizations submit stronger proposals, we help them build stronger organizations that are better positioned for long-term funding success.
One Thing You Can Do This Week
Choose five foundations that genuinely align with your mission, even if they currently accept proposals only by invitation. Spend 30 minutes learning about each one. Read their strategic priorities, recent grants, annual reports, blog posts, and news. Follow them on LinkedIn, sign up for their newsletters, attend a webinar if they offer one, and learn what they care about.
Your goal isn’t to ask for funding this week. Your goal is to become an informed, thoughtful prospective partner. The strongest funding relationships often begin months, or even years, before the first proposal is submitted.
Let’s Talk
If you’re wondering how to reposition your funding strategy in today’s environment, I’d be happy to talk through what you’re seeing and whether there are opportunities you may not have considered. Whether you need help with prospect research, grant strategy, relationship-building, or strengthening your overall development approach, I’d love to explore what might be most helpful.